October 2007

CURRICULUM VITAE

René Le Prou

OFFICE: Compass Lexecon 200 Aldersgate Aldersgate Street , EC1A 4HD Direct: +44 20 3725 9012 Fax: +44 20 3725 9099 [email protected]

EDUCATION: 2005 – 2006, M.A. in Economics, Victoria University of Wellington, New Zealand 2001 – 2004, B.A. (First Class Honours) in Economics, Victoria University of Wellington, New Zealand

PROFESSIONAL EXPERIENCE: May 2018 – Present, Senior Economist, Compass Lexecon, London, UK July 2017 – May 2018, Senior Manager, Cornerstone Research, London, UK March 2013 – July 2017, Director, FTI Consulting, London, UK January 2011 – March 2013, Consultant, PA Consulting Group, London, UK September 2008 – June 2010, Consultant, Concept Consulting Group, Wellington, New Zealand September 2006 – September 2008, Economist, LECG, Wellington, New Zealand

RELEVANT EXPERIENCE:

Gas Markets Confidential client (2017-18): René led a team supporting a large, integrated energy company with its dispute relating to an alleged breach of contract in a major European gas market. René was responsible for estimating the damages to the client arising from a gas shipper unilaterally terminating the contract. The case remains ongoing.

Confidential client (2017-18): René assisted a gas supplier with five separate gas price reviews relating to its supply of pipeline gas to five private-sector companies operating in a major Middle Eastern market. He assessed changes in the market, analysed import prices, and whether the proposed price resulted in a fair and equitable revision to the price of gas. The case remains ongoing. Confidential client (2016-17): René assisted a gas supplier with a gas price review relating to its supply of around 20 billion cubic metres of pipeline gas to an incumbent gas firm operating in a major Middle Eastern market. He assessed changes in the market, analysed import prices, and considered whether the approach taken by the opposing experts resulted in a fair and equitable revision to the price of gas. The case was settled between the parties. Confidential client (2015): René was engaged by a gas producer that supplied pipeline gas to an EU member state, in the context of a gas price review under the Swedish Arbitration Act 1999. He undertook end-user price analysis, assessed prices in neighbouring countries and considered changes to domestic taxes and subsidies for gas and its competing fuels over the relevant period. René was responsible for drafting the corresponding chapters in the two Expert Reports. The case was settled between the parties. Confidential client (2015): The European Commission alleged that the client acted anti- competitively when pricing its gas in Eastern Europe. René drafted a response document relating to the Commission’s price/cost analysis, highlighting flaws in its approach when compared with best practice and European competition case law. The case was settled between the parties. Australian Energy Market Commission (2015): The client was considering whether to reform the market arrangements for gas on the east coast of Australia. René worked with the client to develop a report that set out the conceptual design for a virtual gas hub or hubs. The report has been published on the AEMC website. Confidential client (2015): A Middle Eastern LNG supplier asked for help to determine the price for gas that was unloaded into new European LNG terminals and for which no price was specified in the contract, under an ICC arbitration. René assessed the appropriate level of hub-indexation in the contract via benchmarking and he also considered whether a margin should be deducted from the contract price, based on existing practice in the market. Confidential client (2014-15): René assisted a North-western European gas supplier with a gas price review under UNCITRAL arbitration. He assessed the ability of the buyer to economically market its gas and analysed gas flows, drafting the corresponding chapters of two Expert Reports. The arbitration tribunal decision was in favour of my client.

2 Confidential client (2014): René assisted a gas supplier in a gas price review relating to an annual supply of 20 billion cubic metres of pipeline gas into Europe, held under the Swedish Arbitration Act 1999. He identified trends and developments in the German gas market and assessed the import prices of large-scale, long-term supplies of natural gas in Western Europe. René was responsible for drafting relevant chapters of the Expert Report. Confidential client (2013): The confidential client was involved in a tax dispute based on its short-term gas supply contracts to a German subsidiary. René determined that the non-price terms of the contracts to the subsidiary were materially different to the client’s other gas supply agreements into Germany, most notably with respect to contract length, and that it was not appropriate to compare prices across the contracts. Confidential client (2013): The European Commission opened a competition investigation into access to my client’s gas pipeline. René conducted analysis on pipeline capacities, gas flows, product availability, tariffs and gas hub activity in Germany and neighbouring markets in response to the Commission’s queries. René’s work allowed the client to secure an agreement with the Commission on pipeline access that was acceptable to both sides. UK Trade and Investment (2012): René undertook an international review of oil and gas sector for the client. He provided a view on the top twenty high value opportunities that currently exist in the sector throughout the world, from a UK company perspective. René's work identified potential projects worth upwards of $100 billion to UK companies operating at all levels of the oil and gas value chain. (2012): René wrote an independent report to support the client's business plan to the regulator. He benchmarked the client's business support costs with 20 UK and international utilities to determine how efficient the client was, investigating and explaining any divergences from best practice that were identified. René's work provided for Northern Gas Networks to submit a more detailed and persuasive business plan to the regulator which assisted in Ofgem moving the client from an 'amber' rating to a 'green' rating in terms of internal cost efficiency. Office of Gas and Electricity Markets (2011): René provided regulatory support to the GB markets team at Ofgem on third party access to gas storage and LNG facilities. His work involved considering the implications of the EU Third Internal Energy Package to the GB gas market. Specifically, René looked at how best to meet the European requirements given the liberalised, developed nature of the domestic market. Ultimately René's work assisted Ofgem in clarifying the TPA regime in GB to market participants and potential investors through the publication of a Final Decision Paper. and OMV (2010): René assisted in preparing expert evidence for both Royal Shell Dutch and OMV, who were involved in a New Zealand High Court dispute over gas field production with their joint venture partner. René analysed whether there were competition effects from producing at below the gas field's potential daily maximum. His analysis contributed to the clients' successful legal defence, showing that even had the plaintiff been able to produce at the physical maximum, there would have been a limited effect on market price.

3 Gas Industry Company, New Zealand (2009): René developed options for a gas and electricity consumer complaints scheme for the gas industry body, in conjunction with the electricity regulator. He was involved with stakeholder engagement and determining the final design of the scheme. The result of his work was a single, unified point of contact across the energy industry for consumer complaints, which replaced a variety of bodies.

Power markets Public Power Corporation, Greece (2014): René assisted the largest power company in Greece with its response to the regulator RAE on adopting the EU Target Model. He compared the current Greek electricity market design with RAE’s proposed market design and identified implications for the Greek electricity market. He also considered market power mitigation measures for Greece, given RAE’s concerns of market power abuse. The paper has been published on the RAE website. Authority for Electricity Regulation, Oman (2013-14): René supported the AER in its 2015-17 price control of Oman’s five electricity distribution and supply companies. He contributed significantly towards the writing of a Consultation Paper, five Initial Proposals and five Final Proposals, which were accepted by all of the regulated companies. The Consultation Paper has been published on the AER website. UK Power Networks (2013): René benchmarked the client's business support costs with 26 UK and international utilities to determine how efficient the client was, investigating and explaining any divergences from best practice that were identified. René's work allowed the client to assess where they stood relative to their peers and to better prepare for the forthcoming RIIO-ED1 price control. Office of Gas and Electricity Markets (2013): René worked with the GB markets team to assess whether the wholesale electricity market trading arrangements remain fit for purpose. Since being established in 2001, a number of challenges to the trading arrangements have arisen, including the need to integrate a larger share of intermittent generation on the system and European reforms leading to a common market across the continent. René’s wrote a report on the future trading arrangements, which was circulated by Ofgem as part of a consultation in 2014. UK Power Networks (2013): René wrote UK Power Networks’ Innovation Strategy, as part of their response to the forthcoming RIIO-ED1 price control review. His work involved meeting with key members of the business to determine what innovation is to be delivered by the client and how this innovation will be delivered. He then presented the evidence in a concise, cohesive strategy. As a result, the client was awarded the innovation allowance that it requested in Ofgem’s initial assessment of Innovation Strategies. MyPower Corporation, Malaysia (2012): René developed an end-user tariff regime for the client, who was tasked with reforming the electricity sector in Malaysia. Moving towards market prices required the removal of substantial subsidies and René designed an associated stabilisation fund to make the transition away from subsidised electricity tariffs as smooth and politically feasible as possible.

4 UK Power Networks (2012): René supported the client's ‘Smarter Network Storage’ bid for funding from the Low Carbon Network Fund. Specifically, he assessed the potential for battery storage technology to be deployed at substations throughout Great Britain, which contributed to the wider business case for the battery storage technology trial at a UK Power Networks' substation. René’s work saw the Low Carbon Network Fund provide £13.22 million to the Smarter Network Storage project. King Abdullah City for Atomic and Renewable Energy, Saudi Arabia (2011): René played a lead role in assessing the costs and benefits of Saudi Arabia trading low carbon generated electricity with the European Union. The work involved modelling the markets in 27 EU Member States plus interconnected countries to establish a forward view of prices and, therefore, potential revenues. René was instrumental to the modelling work and also to establishing the practicalities of trading in the EU, including potential barriers to entry, network charging regimes and potential financial incentives available to low carbon generation. Dansk Energi (2011): René conducted research into the regulation of distribution network operators (DNOs) throughout the world. His work involved determining how efficiency in DNO operating expenditure is incentivised by regulators in various jurisdictions in Europe and Asia-Pacific. René's work allowed the client to present their view to the Danish DNO regulator on what an appropriate incentive regime might look like. ElectraLink (2011): René undertook stakeholder engagement for the client, who was seeking to expand their data management service for the electricity and gas meters in light of the GB smart meter rollout. His work involved consulting a wide range of interested parties as to how ElectraLink might manage additional data flows arising from smart meters. The stakeholder engagement fed into an independent report that was published on the ElectraLink website to support its business case. Office of Gas and Electricity Markets (2011): René considered the appropriate limit for small business protection in the electricity and gas retail markets. He researched the costs and benefits of extending protection currently afforded to micro-businesses to larger classes of non-domestic consumer. René's work was published on the Ofgem website and referenced in a consultation paper as part of Ofgem's Retail Market Review. Electricity Commission, New Zealand (2009-2010): René assisted the regulator with electricity market design. René's work contributed to the market reform process and included looking at how greater competition might be encouraged in the wholesale electricity market, as well as how to incentivise security of supply through scarcity pricing. Energy Efficiency and Conservation Authority, New Zealand (2009): René prepared a report summarising the potential implications for security of supply from increasing the proportion of renewable generation, with a particular emphasis on wind. René's report informed the Authority of potential concerns and opportunities from such development.

5 Various generation companies (2008-2010): René prepared evidence for the New Zealand Environment Court for a number of generation companies including Contact Energy and Meridian Energy relating to various proposed wind, hydro and geothermal generation projects. René analysed the electricity related benefits from the proposed plant, such as meeting forecast increases in demand, as well as reducing emissions and Kyoto Protocol liability. René's evidence assisted clients in securing options to develop new renewable generation. Parliamentary Commissioner for the Environment, New Zealand (2008): René assessed the potential benefits of time-of-use electricity tariffs, enabled by the introduction of smart meters. Benefits included demand response from consumers, reduced climate change obligations and operational gains, such as remote meter reading. The Commissioner used René's report to make policy recommendations to the Government. Electricity Networks Association, New Zealand (2007): René contributed, on behalf of an electricity distribution network association, to a submission on proposed competition legislation. The submission allowed the client to put forward a unified view to the competition regulator, from a disparate collection of distribution network companies, which influenced the regulator's policy decisions in this area.

Other Sectors Confidential client (2017): This ICSID arbitration related to a Central European group in the food and drinks sector. Their operations had been adversely affected by the withdrawal of incentives designed to stimulate investments in disadvantaged areas. René assessed the extent to which any damages awarded for lost profits would be realised by the shareholders of the group companies. The arbitration remains ongoing. Confidential client (2015-16): René supported two Private Equity (PE) firms that were being sued in the US Bankruptcy Court by debtholders of a European mobile telecommunications business, which the PE firms previously owned. He assessed the global economic conditions at the time of the debt issue, domestic mobile market structure, reasonableness of the debt level and other effects that ultimately led to the mobile telecommunications business defaulting on its debt. The case remains in trial. UK Trade and Investment (2012): René led a comprehensive review of the UK water sector for the client. Through interviewing key sector personnel, he determined the ownership structure, the level of foreign investment being undertaken and any perceived barriers to future investment. The client was particularly interested in any foreign investment opportunities that they might be able to facilitate in the future and René's work allowed the client to develop a clearer picture of such opportunities. Ministry for the Environment, New Zealand (2006-07): René considered the design of the New Zealand Emissions Trading Scheme in terms of emissions credit allocation for large industrial users. His work contributed towards the ultimate Scheme design.

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