Just to let you know that this is further (and final) fruit of Philip 
Davies's efforts over the past 18 months.  The 1000 MW of capacity in the 
Skaggerak cable (running between Norway and Denmark) is now available daily 
to Nord Pool, via a transparent auction process.  This is something our 
traders wanted (Thor Lien and Gregor Baumerich), and is something that Enron 
should be able to take advantage of, over others, given our activity in both 
Nord Pool, and on the Continent.   Philip has been virtually alone for most 
of this time in advocating this, and had only limited support from elsewhere 
in industry and government lately.  A regulatory "win" for Enron,  for those 
keeping score.  mcs  
---------------------- Forwarded by Mark Schroeder/LON/ECT on 02/01/2001 
09:58 ---------------------------


Philip Davies
02/01/2001 08:57
To: Thorstein Jenssen, Peter Larsen, Thomas van Gilst/LON/ECT@ECT, Gregor 
Baumerich/LON/ECT@ECT, Ulf Ek/LON/ECT@ECT, Heribert Kresse/FRA/ECT@ECT
cc: Paul Hennemeyer/LON/ECT@ECT, Mark Schroeder, Peter Styles/LON/ECT@ECT 

Subject: Skagerrak/D-G border

Confirmation that Skagerrak capacity is available to NP now and that the 
extra 400 MW on the Danish/German border is available now for allocation 
through the daily auction.

Peter -the conditional prioritisation for Skagerrak trade looks like an 
attempt to meet the trade distortion concerns (due to border tariffs 
affecting Swedish but not Norwegian trade into W. Dk) that you raised.  Does 
it satisfactorily do the job?  Thomas, please look into this with Peter. 

Changes affecting Elspot trade with Denmark
Skagerrak
Nord Pool,s Participant Information bulletin no. 31-2000 presented the 
cooperation between Statnett and Eltra aimed at opening the Skagerrak cables 
(connecting Norway and western Denmark) for power market trade via Nord Pool,
s spot market. The Norwegian Parliament has passed a decision that allows for 
cable capacity to be made available for such purposes, beginning 1 January 
2001. As of that date, the border tariff on power transported via the cables 
will be set at zero.
Sweden - Denmark
Nord Pool,s Participant Information bulletin no. 28-2000 presented Svenska 
Kraftn,t,s proposal to Swedish government recommending the removal of border 
tariffs on electric power trade between Sweden and Denmark beginning 1 
January 2001. Nord Pool has been informed that the Swedish government will 
not make any decision in this matter before year end 2000.
Denmark - Germany via Eltra - E.ON Netz
The existing transit agreement for power transport via Eltra,s transmission 
grid will be removed as of 1 January 2001. With the removal of transit 
reservations, the capacity available for capacity auctions on the 
Germany-Denmark border will increase by nearly 400 MW.
In January, this capacity will be distributed through daily auctions (the 
auction for the month of January has been held). The distribution according 
to daily and monthly auctions for the ensuing months is decided by Eltra and 
E.ON Netz.
Framework for Elspot trade
Based on the above information, the following applies to power trade with 
Denmark, as of 1 January 2001:
The Skagerrak cables are open to trade free of border tariffs. 
Konti-Skan cables (connecting Sweden and western Denmark) are open to Elspot 
trade; border tariffs remain as today. 
The _resund interconnection (Sweden and eastern Denmark) is open, with border 
tariffs as today. 
A &ramping8 factor will be introduced. This means that the maximum combined 
change in flow on the Konti-Skan and Skagerrak cables may not exceed 600 MW 
between any two hours. 
Because power transported via the Skagerrak cables is not subject to border 
tariffs, while border tariffs are levied on the Konti-Skan interconnection, 
Nord Pool will prioritize trade via Skagerrak above Konti-Skan trade, in 
order to lower costs for Denmark West participants when market prices in 
Norway and Sweden are identical.
Nord Pool is very pleased that access to the Skagerrak interconnection has 
been made available for all market participants.