Regulation C1 – Terms of balance responsibility

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Regulation C1 –

Terms of balance responsibility

January 2011 Rev. 3

In case of any discrepancy between the Danish text and the English translation, the Danish text shall prevail.

July 2008 July 2008 2008008

Oct. 2008 Dec. 2008 DATE

MRP LEG HEP LSO ^NAME

Dec. 2010 Jan. 2011 Jan. 2011 Jan. 2011 ^DATE

HEP GMA GEE SDK ^NAME

REV. DESCRIPTION PREPARED CHECKED REVIEWED APPROVED

78324-07

DOC. NO.

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Revision view

Chapter number and text Revision

4.1 Introduction of new fee structure, see proposal for harmonised balance settlement in the Nordic region

July 2008 MRP

4.2 Introduction of credit insurance

December 2010 HEP

6 Clarification of terms and conditions for grid companies' balance responsibility for grid losses

July 2008 LEG

All Editorial corrections

July 2008 LEG

All Editorial corrections, including new template

December 2010 HEP

Appendix number and text Revision

1 Agreement amended in accordance with revised Regulation C1

July 2008 MRP

1 Agreement amended in accordance with revised Regulation C1

December 2010 HEP

2 Editorial corrections

December 2010 GMA

3 Editorial corrections

July 2008 LEG

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1. Terminology and definitions

1.1 PO production

Electricity produced at local CHP plants with a maximum capacity of 5 MW and renewable energy (wind turbines and various kinds of biomass, biogas and photovoltaic cells), which Energinet.dk is obliged to purchase at statutory prices.

1.2 Notification

A notification is the balance responsible party’s set of trading schedules (purchase/sale of electricity in MWh per hour), submitted the day before the day of operation.

1.3 Balance responsibility

Responsibility for variations between notification and actual consumption/

production at a number of metering points.

1.4 Balance responsible party (BRP)

A player approved by and party to an agreement with Energinet.dk regarding assumption of balance responsibility.

1.5 Balancing power

Balancing power is the difference between the notification and the actual operating state. The exchange of balancing power between players is managed by Energinet.dk (balance settlement).

1.6 Electricity supplier

An electricity supplier buys electricity from a BRP, from Nord Pool Spot or from another electricity supplier and sells it to end customers. If the electricity supplier is not a BRP, he must have an agreement with a BRP.

1.7 Balance responsible party for consumption (BRP for consumption

A BRP holding balance responsibility for consumption, including grid losses, and related agreements on the physical trading of electricity.

1.8 Balance responsible party for trade (BRP for trade) A BRP exclusively holding balance responsibility for the physical trading of electricity (a trader).

1.9 Correction settlement

Correction settlement is a type of settlement used for correcting the settlement between Energinet.dk and BRPs (balance settlement) as a result of metering faults and aggregation errors. Correction settlement takes place for one month at a time three months after the ordinary balance settlement.

1.10 Credit line

The credit line indicates the player’s expected maximum outstanding balance (in connection with balance settlement) against Energinet.dk at normal settlement frequency.

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1.11 Credit insurance

A credit insurance policy is a policy businesses can take out with an insurance company, thus ensuring that they receive the amounts owed to them by their customers. Energinet.dk has taken out credit insurance that becomes effective if the BRPs are unable to pay as a result of insolvent liquidation or the like.

1.12 Metering point

Any place of delivery ('off-take') that gives the customers access to the market is defined as a metering point. For ordinary small customers with a single physical meter, the metering point is the same as this physical meter.

1.13 Metered data collector

The metered data collector responsible for a given metering point is the grid company in whose area the metering point is located.

1.14 Grid company

The grid company operates the distribution network and performs all meter readings. The grid company submits the metered consumption and production data for each individual BRP to Energinet.dk, which uses the data to settle imbalances. The grid company may leave the practical metering task to a metering point administrator.

1.15 Balance responsible party for production (BRP for production) A BRP that holds balance responsibility for production and related agreements on the physical trading of electricity.

1.16 Load-profile settlement

Is used for all metering points where hourly settlement is not used. This includes metering points read once a year by the customer or instances where the grid company on a monthly basis transmits hourly values through remote reading.

1.17 Hourly settlement

Hourly settlement is used for all metering points for which the grid company on a daily basis transmits, validates and distributes hourly values for settlement purposes.

2. Purpose, scope of application and administrative provisions

This regulation describes how Energinet.dk defines the terms of balance responsibility.

The regulation is primarily directed at players that have already signed or want to sign an agreement with Energinet.dk in order to become a balance

responsible party (BRP). The regulation is also of interest to all who basically qualify as BRP – for example default supply companies, grid companies, electricity producers and electricity traders.

This regulation is effective within the framework of the Danish Electricity Supply (Consolidated) Act no. 516 of 20 May 2010 as subsequently amended.

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2.1 Statutory authority

The regulation has been issued under the provisions of Section 7(1)(iii) and (iiii) of the Danish Executive Order no. 1463 of 19 December 2005 on transmission system operation and the use of the electricity transmission grid, etc.

2.2 Complaints and sanctions Complaints

Complaints in respect of this regulation can be lodged with the Danish Energy Regulatory Authority, Nyropsgade 30, DK-1780 Copenhagen V.

Sanctions

If a BRP materially fails to fulfil its obligations, for example by failing to effect payment/provide security, Energinet.dk may immediately relieve the BRP of its balance responsibility by terminating the agreement concluded.

2.3 Effective date

This regulation takes effect on 8 February 2011 and supersedes:

- Regulation C1: Terms of balance responsibility, version 2 of December 2008.

This regulation has the following appendices: 'Agreement on balance responsibility' (Appendix 1), 'Master data for balance responsible parties' (Appendix 2), 'Application to change balance responsible party for production for existing plants' (Appendix 3) and 'Application to assign balance responsible party for production for new plants' (Appendix 4).

Requests for additional information and queries should be directed to

Energinet.dk’s contact person responsible for Regulation C1, see Energinet.dk’s website at www.energinet.dk, where the latest applicable regulation can also be downloaded.

The regulation will be notified to the Danish Energy Regulatory Authority in pursuance of the provisions of Section 76 of the Danish Electricity Supply Act and Section 7 of the Danish Executive Order on transmission system operation and the use of the electricity transmission grid, etc.

3. Balance responsibility in general

Balance responsibility implies that a player is financially liable to Energinet.dk and accordingly charged for any such imbalances as may occur in connection with the production, consumption and trade of electricity as defined in Energinet.dk’s Regulation C2.

Balance responsibility is held by balance responsible parties (BRPs), ie players which have signed an 'Agreement on balance responsibility' with Energinet.dk that has not been terminated. These BRPs are listed on Energinet.dk’s website at www.energinet.dk.

BRPs must be assigned to all production, consumption and trading of electricity.

Basically, electricity consumers, producers and traders are themselves responsible for balancing their own consumption, production and trade of electricity. Players that do not hold balance responsibility must assign it to a

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BRP. In practice, customers normally assign this obligation to their electricity supplier.

A change of BRP must always be reported. In the case of production plants, the change must be reported to Energinet.dk using a special form, see Appendix 3.

The same form must be used for reporting a change of electricity supplier.

Applications to assign a BRP to new plants must be sent to Energinet.dk using a special form, see Appendix 4.

In the case of consumption, a change of BRP or electricity supplier must be reported to the local grid company¹.

4. Approval of BRPs

In order for a player to hold balance responsibility, the player must enter into an 'agreement on balance responsibility' with Energinet.dk. A copy of the standard agreement is enclosed as Appendix 1.

The player must meet the following requirements in order to be approved as a BRP:

1. The player must be registered for VAT in Denmark or another EU Member State.

2. The player must – if necessary – provide adequate security for his obligations, see 4.2.

3. The player must have completed a test approved by Energinet.dk in relation to communication between the player and Energinet.dk, see Energinet.dk’s Regulation F.

4. The player must provide Energinet.dk with the necessary master data, see Appendix 2. The same form must be used for reporting changes to the master data.

5. The player must have signed an 'agreement on balance responsibility', see Appendix 1.

The player need only conclude one agreement on balance responsibility with Energinet.dk, regardless of whether the player is active in several business areas (consumption, production, trading) and several price areas (Western Denmark (DK1) and/or Eastern Denmark (DK2)).

Before an 'agreement on balance responsibility' can be concluded, the form 'Master data for balance responsible parties', see Appendix 2, must be forwarded to Energinet.dk, duly filled in. Based on this information,

Energinet.dk will draw up the 'agreement on balance responsibility', which will be forwarded to the BRP for signing.

Once these formalities have been completed, the BRP should expect that it will take five business days before trading can be commenced.

1 However, grid companies handling grid losses in the 50/60 kV grid must report changes of electricity supplier and BRP to Energinet.dk.

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4.1 Fees

BRPs must pay the following fees to Energinet.dk:

1) A monthly fee, currently DKK 1,500 (2011)

2) A fee per purchased or sold unit of balancing power in respect of consumption and trading, currently DKK 1/MWh (2011)

3) A fee on actual production, currently DKK 0.33/MWh (2011) 4) A fee on actual consumption, currently DKK 0.77/MWh (2011).

Actual production/consumption means the metered or estimated values used for balance settlement. The final fees in 2)-4) above are thus calculated in

connection with the correction settlement three months after ordinary balance settlement.

The fees are adjusted once a year, and the current values can always be seen on Energinet.dk's website www.energinet.dk.

4.2 Security

Generally, Energinet.dk makes use of credit insurance – ie the player does not normally have to provide Energinet.dk with security.

The principle on which the insurance company bases its granting of credit insurance to the individual player is described in 4.2.1.

If the insurance company rejects a credit line or offers an insufficient credit line, Energinet.dk will, if necessary, ask the player to provide a demand guarantee corresponding to the outstanding credit line, see 4.2.2.

4.2.1 Credit insurance

The general principle on which the insurance companies base their granting of credit lines to the individual players is an objective assessment of the

creditworthiness of the player based on transparent, non-discriminatory principles.

The creditworthiness of the players is assessed using a points system based on an analysis of the following criteria:

1. Trend in company operations 2. Trend in company cash flow 3. Trend in company equity ratio

4. Company group structure and capital structure 5. Company owners

6. Company business foundation

7. Payment experience with the company

8. Developments in the company’s home country.

- Re 1) The criterion focuses on the company’s historical and current ability to generate profit.

- Re 2) The criterion focuses on the company’s financial resources, including whether the company generates the cash flow required to fulfil future obligations.

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- Re 3) The criterion focuses on the financing of company activities, the size of company gearing and thus the owners’ own exposure.

- Re 4) The criterion focuses on corporate form, liability and other group companies, including performance of subsidiaries, affiliated companies and parent companies.

- Re 5) The criterion focuses on owner history and previous ownership structure.

- Re 6) The criterion focuses on an analysis of the player’s future possibilities for creating/upholding a sound business.

- Re 7) The criterion focuses on experience gained in respect of the company’s ability to fulfil its obligations at the agreed time.

- Re 8) The criterion focuses on societal developments in the home country of the company that could influence the above matters, including political and economic conditions.

The insurance company awards the individual criteria 0-10 points, 10 points being the highest.

- 0-31 points – no credit insurance - 32-55 points – partial credit insurance - 56-80 points – full credit insurance

However, credit is not granted if just one of the eight criteria scores two points or less.

The awarding of points is generally based on publicly available accounting records and information material, but, in special, complex cases, the insurance company may have to contact Energinet.dk with a view to collecting additional information about the player.

The credit line fixed may be changed at one month’s notice if the insurance company finds that material changes in credit rating criteria have been made that change the creditworthiness of the player.

If the insurance company rejects or reduces the credit line, the insurance company is under an obligation towards Energinet.dk to prepare a documented explanation of the rejection/reduction.

New BRPs

Special introductory terms apply to new BRPs. If the player has a Dun &

Bradstreet (D&B) rating of at least A (1A international), the insurance company will grant the new player a credit line of up to DKK 7.5 million. However, the amount cannot exceed the maximum credit recommended by D&B.

The insurance company may revoke the credit line granted at one month’s notice on the basis of the general credit granting criteria outlined in 4.2.1.

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4.2.2 Determination of credit line

The credit line indicates the player’s expected maximum outstanding balance against Energinet.dk at normal settlement frequency. The total credit line for a BRP is calculated as the sum of credit lines related to activities in the various business segments and price areas.

The way in which the credit line for the various business segments and price areas is determined is described below.

The credit line of BRPs for trade has been determined by Energinet.dk at DKK 2,000,000 covering activities in both DK1 and DK2.

The credit line of BRPs for consumption is determined as 5% of the previous month’s consumption in DK1 and DK2 multiplied by the current year’s forward price for DK1 and DK2, respectively, as fixed by Nord Pool on the last day of trading in November the previous year, however, minimum DKK 2,000,000 on a national basis.

The credit line of BRPs for production is determined by Energinet.dk on the basis of the following calculated volumes in DK1 and DK2 multiplied by the current year’s forward price for DK1 and DK2, respectively, as fixed by Nord Pool on the last day of trading in November the previous year, however, minimum DKK 2,000,000 on a national basis.

- Central power stations: 0.01 * monthly production - Local CHP plants: 0.05 * monthly production - Wind turbines: 0.2 * monthly production

The percentages have been calculated by Energinet.dk on the basis of historical figures for variations between planned and measured production.

The above-mentioned credit lines for production and consumption are standard amounts subject to change by Energinet.dk if, for quite a long time, the amounts prove insufficient to cover the player’s balance outstanding with Energinet.dk on the assumption of normal settlement frequency. In this situation, faster - perhaps daily - settlement will initially be used, see Energinet.dk’s Regulation C2.

Any security will be released on termination of the 'agreement on balance responsibility'. Release must take place not later than three months after termination of the agreement, see the deadline for correction settlement in Energinet.dk’s Regulation D1.

5. Balance responsibility for production

A BRP for production must be assigned to all electricity production.

In principle, electricity producers hold balance responsibility for the electricity produced at their own plants and are required to assign the balance

responsibility to a BRP for production if they do not want to hold the

responsibility themselves. In practice, small-scale producers usually assign this responsibility to their 'electricity supplier' (the buyer of their production).

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Where PO production is concerned, Energinet.dk always acts as 'electricity supplier' as well as BRP for production.

Production is calculated per metering point as described in detail in

Energinet.dk’s Regulation D1. Only one BRP is allowed for each metering point.

In certain cases, special rules apply to autoproducers using net settlement.

These rules are described in detail in Energinet.dk’s 'Guidelines for net

settlement of autoproducers' (Retningslinjer for nettoafregning af egenproducenter).

6. Balance responsibility for consumption

A BRP for consumption must be assigned to all electricity consumption (including grid losses).

Consumption is calculated per metering point as described in detail in

Energinet.dk’s Regulation D1. Calculation of grid losses, definition of metering point and rules on load-profile settlement, etc., are described in Energinet.dk’s Regulation H2.

6.1 End customers

End customers are generally responsible for balancing their own consumption and are obliged to assign balance responsibility to a BRP. In practice, the customer assigns this obligation to its electricity supplier, and the electricity supplier is thus responsible for ensuring that balance responsibility for the customer’s metering points is assigned to a BRP.

End customers are defined by having one metering point. There must be one and only one BRP for consumption for every metering point.

Within each grid area, an electricity supplier may only use one and the same BRP for all its metering points, be they subject to hourly metering or not.

Definitions and descriptions of load-profile settlement, residual consumption and share quotients can be seen from Energinet.dk’s Regulation H2.

6.2 Grid companies

In principle, these companies hold balance responsibility for grid losses in their own grids unless they have been made available to third parties.

Balance responsibility for grid losses in a given grid area cannot be shared by several BRPs.

7. Balance responsibility for trade

If a player does not want to hold balance responsibility for consumption or production but nevertheless wants to buy/sell electricity (as a trader) and be a BRP directly in relation to Energinet.dk, the player may be approved as a BRP for trade.

BRPs for trade are responsible for balancing their own trade with other players.

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In addition to engaging in the trade that is directly the result of the player's consumption or production, BRPs for production and/or consumption may also engage in the physical trade of electricity. The players themselves hold balance responsibility for this type of trade.

8. Change of balance responsible party

Balance responsibility can be assigned to other BRPs provided that the above restrictions in relation to the sharing of balance responsibility are observed.

8.1 Change of balance responsible for production (BRP for production)

Plant owners are entitled to change their BRP for production.

8.1.1 Procedure for changing BRP for production for existing plants A change of BRP for production must be applied for in writing at minimum one month’s notice to become effective from the first day of a calendar month.

A change of BRP for production for owners of local CHP plants that start operating on market terms, however, can only become effective from the first day of a quarter.

The written application must be sent to Energinet.dk, and Energinet.dk will send a written approval or rejection not later than five working days after receipt of the application. Rejections must be reasoned.

The standard application 'Application to change balance responsible party for production for existing plants' is attached as Appendix 3.

8.1.2 Procedure for assigning a BRP for production to new plants

Balance responsibility for completely new plants can be assigned (to a BRP for production) on any day of the month. However, Energinet.dk must be in receipt of the application not later than five working days prior to the requested date of commencement.

The standard form 'Application to assign a balance responsible party to new plants' is attached as Appendix 4.

8.2 Change of balance responsible party for consumption (BRP for consumption)

A change of BRP for consumption and electricity supplier for an end customer must be reported to the local grid company according to the rules outlined in the currently applicable version of Energinet.dk’s Regulation H1.

As far as grid companies handling the grid losses in the 50/60 kV grid are concerned, a change of electricity supplier and BRP must be reported to Energinet.dk.

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Appendix 1 – Agreement on balance responsibility

Contract

Energinet.dk Tonne Kjærsvej 65 DK-7000 Fredericia ('Energinet.dk') and

«Company__long_name»

«Player_address_1»

«Player_address_2»

«Postcode» «Town/city»

('Player')

have entered into the following:

Agreement on balance responsibility

Whereas:

Energinet.dk – as national transmission system operator - is responsible for ensuring the operation of the electricity market in Denmark.

The Danish electricity market consists of two geographically separate submarkets, Western Denmark ('DK1') and Eastern Denmark ('DK2').

This Agreement covers both submarkets.

The responsibility for maintaining the balance in Western and Eastern Denmark is shared by a number of balance responsible parties (BRPs), each of which are financially committed to maintaining balance.

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A metering point is the smallest unit of a balance responsibility.

Each metering point (production/consumption) must have one and only one BRP.

No agreements on the physical supply of electricity can be concluded without a BRP being involved.

Energinet.dk finds that the Player meets the requirements to assume financial balance responsibility in relation to Energinet.dk.

it is hereby agreed as follows:

1. Area

The Player is the BRP for (please tick as appropriate):

DK1 DK2

Production Consumption Trade

2. The Player’s tasks

Prior to the day of operation, the Player shall submit a binding notification to Energinet.dk.

BRPs for production shall also submit power schedules to Energinet.dk. The power schedules must be updated on a regular basis before and during the day of operation.

3. Energinet.dk’s tasks

After the day of operation, Energinet.dk calculates and settles any production, consumption and trade imbalances according to the rules of Energinet.dk’s Regulation C2.

In the case of BRPs for production, Energinet.dk announces any constraints in the input from specific production units into certain substations (nodes).

4. Payment

Invoicing and crediting of balancing power and fees are effected for one calendar month at a time.

Amounts due with interest must be deposited in Energinet.dk’s account on the 25^th of a month. If this day is not a business day, the payment falls due on the first business day thereafter.

Energinet.dk shall effect payment on the 25^th of the month after the end of the current settlement month. If this day is not a business day, payment is effected on the first business day thereafter.

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Energinet.dk reserves the right in special situations to change to more frequent invoicing, including daily settlement.

5. Security

Generally, Energinet.dk makes use of credit insurance, which means that the Player need not normally provide Energinet.dk with security.

If the insurance company rejects a credit line or offers an insufficient credit line, the Player shall, however, provide security in pursuance of the rules contained in chapter 4.2 of Energinet.dk's Regulation C1 'Terms of balance responsibility'.

Security must be provided on demand terms in the form of an adequate bank guarantee or other similar security.

Energinet.dk is entitled to demand an alteration of the security at 14 days’

written notice.

The security is released when the agreement on balance responsibility is terminated. The security must be released not later than three months after termination.

6. Assignment of rights and obligations

The Player shall not assign all or any contractual rights or obligations under this Agreement without Energinet.dk’s written consent.

7. Other agreements and guidelines

Energinet.dk’s guidelines and regulations in force at any time form an integral part of this Agreement.

Energinet.dk reserves the right to unilaterally change such guidelines and regulations. Energinet.dk will submit any material changes to guidelines and regulations to the BRPs for consultation at reasonable notice.

All information disclosed by the Player must be treated in confidence if such information is considered commercially confidential.

Energinet.dk’s latest applicable regulations in force from time to time describe in detail the rules for the Player's communication with Energinet.dk in

connection with the submission of notifications etc.

When this Agreement comes into force, the Player’s name will be included in the list of BRPs on Energinet.dk’s website.

8. Liability

Energinet.dk is not liable for any financial losses incurred by the Player if Energinet.dk on the day before the day of operation adjusts a notification submitted by the Player because it is either incorrect or incomplete, or applies own estimates if the Player fails to submit its notification in due time.

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Similarly, Energinet.dk is not liable for any financial losses incurred by the Player if Energinet.dk initiates emergency procedures in the event of a break- down of communication between Energinet.dk and the Player, and the fault does not lie with Energinet.dk.

Finally, Energinet.dk is not liable for any financial losses incurred by the Player if the metered data collectors submit incomplete or incorrect meter readings and fail to correct them by the relevant due dates, or if Energinet.dk applies its own estimates if the metered data collectors fail in full or in part to submit the necessary meter readings.

9. Non-compliance

In the event of material non-compliance, for example non-payment/non- provision of security, Energinet.dk may immediately relieve the Player of its balance responsibility by terminating this Agreement. Until an acceptable solution has been found, Energinet.dk or a BRP appointed by Energinet.dk shall hold the balance responsibility.

In case of the Player’s voluntary liquidation, moratorium, suspension of

payments, compulsory liquidation or other insolvency proceedings, Energinet.dk is entitled to terminate this Agreement without further notice.

10. Termination

The Player may terminate this Agreement by giving two months’ written notice to Energinet.dk to expire on the last day of any month. The Player shall also notify the Players for which it holds balance responsibility of the termination and its consequences. The balance responsibility is assigned to Energinet.dk or to a BRP appointed by Energinet.dk if it has not been assigned to a BRP at least one month before the termination becomes effective.

Energinet.dk may terminate this Agreement by giving two months’ written notice to the Player to expire on the last day of any month. The termination must be justified by legislation or drastic changes in the trading structure of the Danish electricity market. The Player shall give notice of the termination and its consequences in the manner described above, and the balance responsibility must be assigned to Energinet.dk or a BRP appointed by Energinet.dk.

11. Disputes

Settlement of any disputes arising out of this Agreement which cannot be settled amicably by the parties must first be attempted through mediation.

Mediation must take place according to the currently applicable rules for mediation under the Danish Institute of Arbitration (Danish Arbitration).

If the dispute cannot be settled through mediation, and it is not within the competence of either the Danish Energy Regulatory Authority or the Danish Energy Agency to settle the dispute, it must be resolved according to the 'Rules for treatment of cases by the Danish Institute of Arbitration (Danish

Arbitration)'. Each party shall appoint one arbitrator, whereas the Institute shall appoint the chairman of the arbitration tribunal. If one of the parties fails to appoint an arbitrator within 30 days of having submitted or been notified of the

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request for arbitration, the Institute shall appoint such arbitrator according to the aforementioned rules.

If the dispute concerns amounts of less than DKK 500,000, the arbitration tribunal consists of one member only to be appointed by the Board of Arbitration.

The arbitration tribunal shall in its award consider the distribution of legal costs, including attorneys’ fees.

The arbitration award is final and binding on the parties.

This Agreement is made in two originals, one for the Player and one for Energinet.dk.

Place: Place:

Date: Date:

Energinet.dk

Søren Dupont Kristensen, Vice President, Electricity Market

«Company__long_name»

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Appendix 2 – Master data for balance responsible parties

Please complete the following form and send it to: Energinet.dk, Tonne Kjærsvej 65, DK-7000 Fredericia.

Company details Name:

Address:

Postcode: Town/city:

Country:

Tel.:

Contact¹: E-mail:

Service messages to the BRP about schedules²: Email: Text message:

GLN location no.:

Short name (Energinet.dk’s area):

Financial details

Contact, finance: Email:

VAT or CVR (Danish company reg.) no.³: Debtor no.:

Bank: BIC (Swift) code:

Registration and account no. for transfers from Energinet.dk: - IBAN no. for transfers from Energinet.dk:

Settlement address:

German trading partner GLN location no.:

Energinet.dk’s short name for German partner:

EIC code of German partner:

Shaded boxes to be filled in by Energinet.dk

1 This person must be the main contact person. More than one user may be stated. Please state necessary details, for example user names, email addresses and phone numbers in the table below.

2 Email address for daily submission of electronic receipts and balance-control reports. It is strongly recommended to establish an internal distribution list, ie one email address from which information is distributed internally to relevant employees.

3 Companies domiciled within the EU must use the local VAT number. For other companies, special arrangements must be made.

The player is the BRP for (please tick as appropriate):

DK1 DK2

Production Consumption Trade

State expected start date:

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Users of self-service portal:

User User name

(not more than 10 characters)

Email Tel.

Any user of Pre-production ('rehearsal track' for self-service portal):

User User name

(not more than 10 characters)

Email Tel.

Note: You can only create one user in Pre-production.

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Standard form

- skift af balanceansvar for produktionsanlæg

Application to change balance responsible party for production for existing plants

Completion of this form is mandatory in order to change balance responsible party or electricity supplier (buyer of production) for existing plants. The form must be filled in and submitted to Energinet.dk.

For further terms relating to the change of balance responsible party, see the back of this form.

To: From:

Energinet.dk

Attn.: Settlement Office Tonne Kjærsvej 65 DK-7000 Fredericia

Electricity supplier’s name and address (stamp, if available)

Plant owner’s name and address (stamp, if available) Change of balance responsible party to be effective on: 01/

Day/month/year Plant GSRN no. and owner’s CVR/CPR no. (Danish company/civil reg. no.):

GSRN no.: CVR/CPR no.:

Balance responsible party

Current: GLN no.:

Future: GLN no.:

Email address for receipt of aggregated time series (Ediel):

Current electricity supplier:

Name: GLN no.:

Future electricity supplier:

Name: Contact:

Data recipient (name): GLN no.:

Email address for receipt of individual time series (Ediel):

Yes:

The plant owner hereby authorises the electricity supplier to change balance responsible party on its behalf at any time and without further approval:

No:

We, the undersigned parties, hereby certify that the above information is correct and declare to have read and accepted the terms specified on the back of this application. We further accept that metered data for settlement purposes may be passed on to relevant third parties.

Signatures:

Date: Date: Date:

Signature of plant owner Signature of future electricity supplier

Signature of future balance responsible party

To be completed by Energinet.dk:

Date Initials

Concluded on: Change to be effective from: 01/

Receipt sent on: Day/month/year

Reason for rejection:

Time series ID:

Date Energinet.dk’s signature (stamp, if available)

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Terms and conditions for changing balance responsible party (BRP)

Completion of this form is mandatory when applying for a change of BRP or electricity supplier (buyer of

production) for existing production plants.

A change of BRP can only be effective from the first day of a month. The application must be received by Energinet.dk before the first day of the month prior to the requested date of change. If the application arrives too late, Energinet.dk will postpone the effective date to the following turn of the month. For local CHP plants, however, a change from purchase obligation to market terms may only be effected from the first day of a quarter.

The application will be rejected on the grounds of insufficient metered data if it relates to a production plant located in a wind cluster/wind farm using joint settlement metering and no applications have been filed for a change of BRP to the same party that holds balance responsibility for the other plants in the cluster/farm.

Energinet.dk will consider the application for a change of BRP on the basis of the data available at the time of submission of the application. If the plant has status as producer of electricity under a purchase obligation at the time in question, for example if the plant has not used up all its full-load hours (this applies to wind turbines), there are two alternative procedures:

1) If an 'application for rejection of subsidies and compensation for production plants' has also been signed and submitted, the application for a change of BRP will be processed by Energinet.dk in the usual way, and the plant’s prioritised status will be terminated accordingly.

2) If no application for rejection of subsidies is presented, Energinet.dk will inform the plant owner and the future electricity supplier in writing that a change of BRP cannot be effected for the time being owing to the plant’s status as producer of electricity under a purchase obligation.

Energinet.dk will keep the form on file and effect the change when the terms and conditions have been fulfilled. If the terms and conditions have been fulfilled before the 15^th of a month, Energinet.dk will effect the change from the first day of the following month. However, if the terms and conditions have been fulfilled after the 15^th of a month, Energinet.dk will effect the change from the first day of the following month.

A space is provided in the form, in which the plant owner may authorise the electricity supplier to change the BRP on its behalf at any time. To choose this option, the electricity supplier must contact Energinet.dk in writing and enclose a copy of the standard forms for the relevant plants. Such change of BRP must also be reported to Energinet.dk at one month’s notice to become effective on the first day of any month.

Not later than on the fifth working day after receipt of the application for a change of BRP, Energinet.dk will acknowledge receipt of the application to the plant owner and the present and future electricity supplier. Working days are to be understood as Monday to Friday - excluding public holidays. Energinet.dk will also notify the grid companies affected by the change of BRP to enable them to prepare the communication of data to the recipients listed in the form.

The future electricity supplier must notify Energinet.dk accordingly if an agreement is terminated and the plant owner in question is consequently left without an agreement on balance responsibility. Such notification must be received by Energinet.dk not later than one month prior to the termination of the agreement with the plant owner.

The electricity will be transported according to the current agreement on grid use, which can be obtained from the local grid companies.

How to complete the form -

- All spaces must be filled in.

For wind turbines, one completed form is required per plant (with indication of GSRN no.). An application must still be completed for each plant if several production plants are located in a wind cluster/wind farm. For local CHP plants, one completed form is required per plant (with indication of plant GSRN no.). As a rule, the GSRN number must be provided by the electricity supplier/plant owner. If the electricity supplier/plant owner does not know the number, it can be obtained from the local grid company to which the plant is connected. Identification of the plant is not possible without the GSRN number, and the application for to change BRP or electricity supplier will be rejected on the grounds of insufficient data.

In the case of single-proprietor plants, the owner’s CPR number must also be provided. For jointly owned plants, the CVR number must be provided, and the form must be signed by the person authorised to sign for the owners.

The combination of CPR/CVR number and GSRN number enables a precise identification of the plant. If the two numbers do not correspond with the information in Energinet.dk’s register of master data, Energinet.dk will immediately contact the electricity supplier/plant owner for clarification.

In some cases, the 'future balance responsible party' will be identical to the 'future electricity supplier' and 'data recipient'. In such cases, the same name, address, etc., are entered in the relevant fields in the form.¹

The form can be downloaded from www.energinet.dk.

Reason for rejection

In case of rejection, Energinet.dk will return the form to the plant owner/electricity supplier stating one of the following codes under 'Reason for rejection':

Code Cause

GSRN The GSRN no. is not stated.

Master data Identification of the plant based on the data given (GSRN and CPR/CVR numbers) is not possible.

Joint metering The plant is part of a wind cluster/wind farm using joint settlement metering, and the other plants in the cluster/farm are not included.

Household The plant has permanent status as producer of electricity under a purchase obligation. This applies, for instance, to ≤ 25 kW household turbines commissioned before 1 January 2003. In such cases, Energinet.dk will not keep these applications on file but will return them to the plant owner/electricity supplier.

Cancelled Plant owner/electricity supplier has withdrawn the application.

Signature The form is not signed.

1 If, at the time of submission of the form, the plant has status as producer of electricity under a purchase obligation, Energinet.dk must be stated as the present BRP (GLN number:

5790000432752) and the local grid company as the present supplier (GLN number not required).

If, at the time of submission of the form, the plant does not have status as producer of electricity under a purchase obligation, but the balance responsibility is held by Energinet.dk pursuant to legislation, Energinet.dk must be

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Standard form

Application to assign balance responsible party for production for new plants

Completion of this form is mandatory in order to assign a balance responsible party for new plants. The form must be filled in and submitted to Energinet.dk.For further terms relating to the assignment of balance responsibility, see the back of this form.

To: From:

Energinet.dk

Attn.: Settlement Office Tonne Kjærsvej 65 DK-7000 Fredericia

Electricity supplier’s name and address (stamp, if available)

Plant owner’s name and address (stamp, if available)

Date of commissioning for plant:

Day/month/year

Plant GSRN no. and owner’s CVR/CPR no. (Danish company/civil reg. no.):

GSRN no.: CVR/CPR no.:

Balance responsible party:

Name: GLN no.:

Email address for receipt of aggregated time series (Ediel):

Electricity supplier:

Name: Contact:

Data recipient (name): GLN no.:

E-mail address for receipt of individual time series (Ediel):

Yes:

The plant owner hereby authorises the electricity supplier to change balance responsible party on his behalf at any time and without further approval:

No:

We, the undersigned parties, hereby certify that the above information is correct and declare to have read and accepted the terms specified on the back of this application. We further accept that metered data for settlement purposes may be passed on to relevant third parties.

Signatures:

Date: Date: Date:

Signature of plant owner Signature of electricity supplier Signature of balance responsible party

To be completed by Energinet.dk:

Date Initials

Concluded on: Balance responsibility to be effective from: 01/

Receipt sent on: Day/month/year

Reason for rejection:

Time series ID:

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Terms and conditions for assigning balance responsibility

Completion of this form is mandatory when applying for the assignment of balance responsibility for new production plants.

Assignment of balance responsibility for new plants can take effect from any date of the month.

However, Energinet.dk must be in receipt of the application five working days prior to the requested date of commencement.

The application will be rejected on the grounds of insufficient metered data if it applies to a

production plant located in a wind cluster/wind farm using joint settlement metering and no applications have been filed for a change of balance responsible party (BRP) to the same party that holds balance responsibility for the other plants in the cluster/farm.

A space is provided in the form, in which the plant owner may authorise the electricity supplier to change the BRP on its behalf at any time. To choose this option, the electricity supplier must contact Energinet.dk in writing and enclose a copy of the standard forms for the relevant plants.

Such change of BRP must also be reported to Energinet.dk at one month’s notice to become effective on the first day of any month.

The electricity will be transported according to the current agreement on grid use, which can be obtained from the local grid companies.

How to complete the form -

- All spaces must be filled in.

For wind turbines, one completed form is required per plant (with indication of GSRN no.). An application must still be completed for each plant if several production plants are located in a wind cluster/wind farm. For local CHP plants, one completed form is required per plant (with indication of plant GSRN no.). As a rule, the GSRN number must be provided by the electricity supplier/plant owner. If the electricity

supplier/plant owner does not know the number, it can be obtained from the local grid company to which the plant is connected. Identification of the plant is not possible without the GSRN number.

In the case of single-proprietor plants, the owner’s CPR number must also be provided. For jointly owned plants, the CVR number must be provided, and the form must be signed by the person authorised to sign for the owners.

The combination of CPR/CVR number and GSRN number enables a precise identification of the plant. If the two numbers do not correspond with the information in Energinet.dk’s register of master data, Energinet.dk will immediately contact the electricity supplier/plant owner for clarification.

In some cases, the 'balance responsible party' will be identical to the 'Electricity supplier' and 'Data recipient'. In such cases, the same name, address, etc., are entered in the relevant fields in the form.¹

The form can be downloaded from www.energinet.dk.

Reason for rejection

In case of rejection, Energinet.dk will return the form to the plant owner/electricity supplier stating one of the following codes under 'Reason for rejection':

Code Cause

GSRN The GSRN no. is not stated.

Master data Identification of the plant based on the data given (GSRN and CPR/CVR numbers) is not possible.

Joint metering The plant is part of a wind cluster/wind farm using joint settlement metering, and the other plants in the cluster/farm are not included.

Cancelled Plant owner/electricity supplier has withdrawn the application.

Signature The form is not signed.

1 If, at the time of submission of the form, the plant has status as producer of electricity under a purchase obligation, Energinet.dk must be stated as the present BRP (GLN number:

5790000432752) and the local grid company as the present supplier (GLN number not required).

If, at the time of submission of the form, the plant does not have status as producer of electricity under a purchase obligation, but the balance responsibility is held by Energinet.dk pursuant to legislation, Energinet.dk must be stated as both BRP and supplier (GLN number:

Regulation C1 – Terms of balance responsibility

Regulation C1 –

Terms of balance responsibility

78324-07

Contents

1. Terminology and definitions

2. Purpose, scope of application and administrative provisions

3. Balance responsibility in general

4. Approval of BRPs

5. Balance responsibility for production

6. Balance responsibility for consumption

7. Balance responsibility for trade

8. Change of balance responsible party

Appendix 1 – Agreement on balance responsibility

Contract

Agreement on balance responsibility

1. Area

2. The Player’s tasks

3. Energinet.dk’s tasks

4. Payment

5. Security

6. Assignment of rights and obligations

7. Other agreements and guidelines

8. Liability

9. Non-compliance

10. Termination

11. Disputes

Appendix 2 – Master data for balance responsible parties

Standard form

Application to change balance responsible party for production for existing plants

Standard form

Application to assign balance responsible party for production for new plants