General framework for Tertiary Control Dynamic Profile

Transcription

1 General framework for Tertiary Control Dynamic Profile Between ELIA SYSTEM OPERATOR N.V., a company established under Belgian law with head office at Keizerslaan 20, B-1000 Brussels, company registration number , and represented by Frank Vandenberghe and François Cornélis, authorised signatories; Hereinafter referred to as ELIA and Company name: Address head Office: V.A.T. number : Represented by: Hereinafter referred to as the Supplier, ELIA and the Supplier are referred to as "The Parties"

2 CONTENTS Definitions... 4 Conclusion of the General framework and application of the General Terms & Conditions Conditions for participation in the Service Procurement of the Service Provision of the Service Exchange of information, record and monitoring of the Service Remuneration Penalties for non-performance of the General framework Invoicing and payment Modifications to the General framework Consultation and disputes Contact persons Annex 1. xprocurement of R3 Power (annex for R3 and R3 DP) Annex 2. Template - Long Term Contracted tertiary Control Power Annex 3. Template for the list of R3DP Delivery Points Annex 4. Quantity of Tertiary Control Power - Dynamic Profile Required Annex 5. Procedure For Acceptance ELIA connected Delivery Points Annex 6. Metering requirements Annex 7. Rules for the exchange of information by The Parties Annex 8. Ex-Post check of the Tertiary Control Power Obligation Annex 9. Calculation of penalties for Missing MW Annex 10. Ex-post check of the Tertiary Control Power - Dynamic Profile Supplied (Activation) Annex 11. Calculation of penalties for R3 DP Not Supplied Annex 12. Penalty Cap Annex 13. Appropriation structure Annex 14. Template Contact persons XXX Page 2 of 54

3 WHEREAS: ELIA is responsible for the operation of the Belgian ELIA grid over which it has a property right or at least a user right (hereinafter, the ELIA Grid ); ELIA has been appointed as transmission grid operator, in accordance with the law of 29 April 1999 concerning the liberalisation of the electricity market and supervises the safety, reliability and efficiency of the Transmission Grid; ELIA must therefore ensure the provision of the requisite ancillary services in particular, the Tertiary Control in accordance with Articles 249 and seq of the Grid Code; In this context ELIA purchases a quantity of Tertiary Control R3 Dynamic Profile and/or Variant Services, needed to guarantee the safety, the reliability, and the efficiency of the transmission grid proposed by ELIA and validated by CREG cfr Article 233 of the Grid Code The Supplier has the requisite Delivery Points / has an agreement with one or more Dynamic Grid User(s) who have the required Delivery Point(s) to provide Tertiary Control Power Dynamic Profile for ELIA, the purpose of which being to restore the balance between supply and demand for active power within the Control Area, in accordance with Articles 249 et seq. of the Grid Code and in this way to participate in the Tertiary Control Service Dynamic Profile; Beginning 2015, ELIA presented in the taskforce balancing (26/03/2015) the proposal to evolve towards a monthly procurement for a limited volume in This evolution was, after a consultation by CREG, approved in the Balancing Rules via decision XX. The present General framework for the Service lays down the mutual rights and obligations of ELIA and the Supplier in relation to the procurement of Tertiary Control Power and the eventual provision by The Supplier of the Tertiary Control within the Control Area. XXX Page 3 of 54

4 IT IS CONSEQUENTLY AGREED AS FOLLOWS: 1 Definitions Access Point(s) ARP ( Access Responsible Party ) ARP Contract Auction Rules Award Criteria One or more physical locations, defined by an EAN code, from which active power is injected/taken off the Transmission or Distribution Grid.; Any natural person or legal entity listed in the register of access responsible parties in accordance with the Technical Transmission Regulations; sometimes also referred to in the Grid Codes for Distribution, Local and Regional Transmission with the term Balance Responsible Party ; The contract concluded between ELIA and an ARP in accordance with Articles 150 and 151 et seq. of the Grid Code; Rules that describe how Capacity Bids made by a Supplier are treated; The principles applied by ELIA when retaining Capacity Bids; Belpex or BPX Balancing Rules Bidding Obligations Capacity Bid(s) or Offer CIPU Contract Contracted Tertiary Control Power Dynamic Profile or Contracted R3 DP Control Area The Belgian power exchange, which publications are made on the website : A document, validated by the CREG, describing the market operation rules for the compensation of quarter-hourly imbalances, pursuant to Article 159, 1 of the Grid Code The obligations to be respected by the Supplier when submitting Capacity Bids; A number of combinations of offered volumes in combination with a price offer, allowing ELIA to procure the Service for a defined Delivery Period; The contract for the coordination of injection of Production Units concluded with ELIA in respect of art 198 of the Grid Code; The quantity of the Service, being Tertiary Control Power Dynamic Profile, (in MW) contracted by ELIA with the Supplier in relation to the present General framework. The area for which ELIA has been designated transmission grid operator in accordance with the law of 29 April 1999 XXX Page 4 of 54

5 CREG Delivery Period Delivery Point The federal regulating body of gas and electricity markets in Belgium The timeframe and Period in which the Contracted Tertiary Control Power has to be made available to ELIA (e.g. January Peak ; yearly 2016 PEAK) A point connected to the electricity grid from which active power is taken off and from where the Service Tertiary Control Power Dynamic Profile can be delivered, subject to this Contract. A Delivery Point may be: - an Access Point connected to the ELIA Grid; - an Access Point connected to the Distribution Grid; - another point within the electrical facilities of a grid user downstream of an Access Point connected to the ELIA Grid (hereinafter defined as "Delivery Point within an Industrial Site" ); - another point within the electrical facilities of a grid user downstream of an Access Point connected to the Distribution Grid; - a point within a CDS connected to the ELIA Grid. A list of the Delivery Points agreed between ELIA and the Supplier as described in Article 3.2; 3.3 and 3.4; Distribution Grid Distribution System Operator Concerned ( DSO ) Dynamic Profile Provider ( Supplier ) Dynamic Grid User Dynamic Grid User Declaration The electricity distribution system for which the Distribution System Operator has proprietary rights or at least user or operating rights and for which it is the designated Distribution System Operator as licensed by the Regional Regulator or the competent regional authorities; A natural personal or legal entity appointed by the designated Regional Regulator or regional authority, who is responsible for the exploitation, the maintenance and, if necessary, the development of The Distribution Grid in a certain zone and, where applicable, for its interconnectors with other systems and who is responsible of guaranteeing the long-term ability of the Distribution Grid to meet reasonable demands for electricity distribution; Any natural person or legal entity that provides to ELIA Tertiary Control Service - Dynamic Profile by adjusting profiles of Dynamic Grid User(s), aggregated or not, with the purpose of helping to balance the Belgian Control Area; The natural person or legal entity connected to the ELIA, CDS or Distribution Grid as producer or consumer at an Access Point; Official declaration of the Dynamic Grid User by signature that they agree with the clauses as specified in Annex 5. XXX Page 5 of 54

6 Dossier Volumes ENTSO-E General framework General Terms & Conditions A document, validated by the CREG, defining the required volumes of primary, secondary and Tertiary Control Power to be procured by ELIA, pursuant to Article 233, of the Grid Code. European Network of Transmission System Operators for Electricity The General framework for Tertiary Control Dynamic Profile Service The General Conditions governing ancillary services at the time a Capacity Bid is made, valid for the applicable Delivery Period. At the moment of the signature of the General framework, this is the version of 13/05/2013. All references in the General framework are made based on this version. Grid Code The provisions of the Royal Decree of 19 December 2002 regarding the technical regulations for operating an electricity grid and access thereto Headmetering Injection Interruptibility Contract Long Term Measurement of electrical energy associated with the Access Point as determined by ELIA, or the DSO (for the Distribution Grid), by means of one or more meters installed by ELIA for the ELIA Grid and the DSO for the Distribution Grid (hereinafter referred to as "Headmeter(s)"); Making active power available at a physical location connected to the Transmission or the Distribution Grid at a certain voltage level; A contract for the Interruptibility Service that can be concluded between ELIA and a grid user, which specifies the product of Interruptibility; Relative to the Long-Term Products; Long Term Product Long Off Peak or LOP Lot Missing MW or R3 DP_missing Tertiary Control Service or Variant Service with a Delivery Period greater than one Month; A Period defined as follows: The hours between 20:00 pm and 08:00 am for all 7 days of the week and also the hours between 08:00 am and 20:00pm on Saturday and Sunday; A quantity of power (expressed in MW) contracted by ELIA with the Supplier for a Period The difference (in MW) between R3 DP Obligation and R3 DP Made Available by the Supplier; XXX Page 6 of 54

7 Month Monthly Fixed Remuneration Monthly ST Remuneration Power measured or Pmeasured Open Qualification Procedure Period starting at 0hrs the 1 st of the month until 24hrs the last day of the month; The remuneration described in Article 7.2.a of the present General framework The remuneration for the reservation of the Short Term Contracted R3 DP Power of the Service described in Article 7.2.b of the present General framework; The Active Power measured at a physical location connected to the Transmission or the Distribution Grid at a certain voltage level. Net consumption from the grid is considered as a positive value, net injection into the grid is considered as a negative value; A qualification procedure in which prospective Suppliers are screened based on criteria set by ELIA in a publication on ted.europe.eu; Peak or P A Period defined as follows: the hours between 08:00 and 20:00 during weekdays (from Monday till Friday, including holidays); Period A tariff period : Peak (P) hours or Long Off-Peak (LOP) hours; Proof of Submeter Compliance Short Term Report demonstrating that the minimum technical requirements established by ELIA for the Submetering facility are fulfilled; Relative to the Short-Term Products Short Term Product Submetering Tertiary Control Dynamic Profile Service or Service Tertiary Control Power Dynamic Profile Required or "R3 DP Req" Tertiary Control Service of Variant Service with a Delivery Period shorter or equal to one Month Measurement of the electricity consumed by equipment or processes within an industrial site by means of one or more meters (hereinafter referred to as "Submeter(s)") situated downstream of the Headmeter(s); The service described in the present General framework and provided by the Supplier, comprising at least the following: the provision of the Tertiary Control Power Obligations; and the activation of this Tertiary Control Power in accordance with the provisions of the present General framework; The Tertiary Control Power Dynamic Profile of the Service to be supplied by the Supplier to the ELIA Grid in relation to the present General framework, expressed in an average power [MW] during a quarter hour; XXX Page 7 of 54

8 Tertiary Control Power Dynamic Profile Supplied or R3 DP Sup The quantity of Tertiary Control Power Dynamic Profile of the Service physically supplied by the Supplier to the ELIA Grid, expressed in an average power [MW] during a quarter hour; Tertiary Control Power Dynamic Profile or R3 DP Tertiary Control Power Dynamic Profile Made Available "R3 DP_mad" Tertiary Control Power Dynamic Profile Obligation "R3 DP_obligation" Prequalification (for the Delivery Point) Prequalified Power A quantity of Tertiary Control Dynamic Profile Power expressed in MW; the quantity of Tertiary Control Power Dynamic Profile of the Service (in MW) actually made available to ELIA by the Supplier, i.e. the reserve of power made available to ELIA, allowing ELIA, by its activation, to limit the exchanges of energy between the Control Area and the other control areas of the ENTSO-E grid to the value set in accordance with the rules and recommendations of the ENTSO-E; The sum of Contracted Tertiary Control Dynamic Profile Power to be made available and activated in case of an activation by Elia in relation to the present General framework; Procedure by which the ELIA gives its official consent and validation for reasons of the stability of the ELIA Grid that the Delivery Point can participate in the Tertiary Control Service Dynamic Profile.; Quantity of power (expressed in MW) per Delivery Point that is prequalified by the DSO concerned, if the Delivery Point is connected to the Distribution Grid, or ELIA, if the Delivery Point is connected to the ELIA Grid; Procedure Acceptance For Procedure for which the Supplier must fulfil all conditions as described in Annex 5 in order to participate in the Service; Production Unit A physical unit with an alternator that generates or absorbs electricity; ELIA grid Trimester Strategic Reserve (SDR) Demand The electricity grid to which Elia holds the property right or at least that of using and operating it, and for which Elia has been designated as the transmission system operator. Three month period either from 1 January to 31 March included, from 1 April to 30 June included, from 1 July to 30 September included, from 1 October to 31 December included; Supply of strategic reserves by means of demand as foreseen in article 7quinquies 2,1 of the Electricity Law and as defined in the contract for SDR; XXX Page 8 of 54

9 Supplier-DSO contract Regional Regulator(s) Unsheddable Margin Variant Service Week An agreement between the Supplier and DSO allowing the Supplier to provide the Service to Elia with the Delivery Points listed in this agreement. The regional regulating bodies, VREG, CWaPE and Brugel, of gas and electricity markets in Belgium; Minimum amount of Power measured (expressed in [MW]) which cannot be curtailed (inflexible or unsheddable power) at the Delivery Point. The value for ELIA grid connected Delivery Points is mutually agreed upon between ELIA and the Supplier in Article 3.2 for each Period; The value for DSO grid connected Delivery Points is agreed between the concerned DSO and the Supplier in the Supplier-DSO contract An existing or future service consisting of the provision of Tertiary Control to ELIA, other than the Service described in the General framework, that can, if applicable and described in the award criteria, compete in a tender with the Service offered by generators; Period starting at 0hrs Monday morning until 24hrs the next Sunday; XXX Page 9 of 54

10 2 Conclusion of the General framework and application of the General Terms & Conditions 2.1. The Supplier makes best effort (not being unreasonable) by signature of this General framework to participate in the procurements for the Service throughout the validity period of the General framework, i.e. from General framework signature date to 31 December 2018 and in case of Contracted Tertiary Control Power Dynamic Profile for a Delivery Period, to provide the Service throughout this Delivery Period The present General framework will come into force subject to the conditions set forth in Article 3.1.a The performance of the General framework is governed by the General Terms & Conditions. An update of the General Terms & Conditions will be done in accordance with Article The clauses of the General framework will be supplemented by the General Terms & Conditions. If there is a contradiction between the General framework and the General Terms & Conditions, the General framework shall take precedence The Supplier declares that he has received a copy of the General Terms & Conditions and that he accepts them. The Supplier hereby renounces his own general terms & conditions, special or otherwise, regardless of the time when they were remitted or the form of their remittance. 3 Conditions for participation in the Service 3.1. Suppliers Conditions a. The present General framework will come into force subject to the conditions set forth in the Open Qualification Procedure (requirements for signature of the General framework). ELIA is entitled to evaluate, at any time during the validity period of the General framework, whether the Supplier complies with the conditions mentioned in Article 3.1.a. For the avoidance of doubt, this does not entail any right for ELIA to physically access Supplier s assets. If it is confirmed that the Supplier no longer complies with these conditions, ELIA will notify the Supplier and the General framework will be suspended. If after 15 working days the Supplier remains uncompliant to these conditions, the General framework will be terminated without prior approval by a court of law in accordance with the terms of Article 11 of the General Terms & Conditions b. For the avoidance of doubt, the Parties are aware of the mutual relationships that exist between the present General framework, Interruptibility Service Contract(s), other ancillary service contracts, the SDR contract(s), the ARP Contract(s) and the Connection and Access Contract(s) with ELIA and/or the DSO Concerned, as each of them is an essential constituent of the means that ELIA uses to ensure the safety, reliability and efficiency of the ELIA Grid. The observance of the rules set out in the aforementioned contracts is necessary for the proper implementation of the present General framework. c. The Parties shall ensure that the proper performance of this General framework is always based on the existence and proper performance of the requisite contractual agreements with third parties involved. d. Once the General framework is signed, the Supplier must successfully complete the following elements of the Procedure For Acceptance The Communication test as specified in Annex 5F. e. Once the General framework is signed and Elia contracted a volume R3DP with the Supplier, the Supplier must successfully complete the following elements of the Procedure for Acceptance: XXX Page 10 of 54

11 The simulation test as specified in Annex 5G. The simulation test will be organized at the beginning of the first Delivery Period and will not be considered as an Activation as described in the General framework. In case of a failed simulation test, or a partially failed simulation tests, the maximum of not activated quarter hourly volume in MW, calculated as per annex 10, will be considered as minimum Missing MW since the beginning of the month in the determination of the penalty in Article 8.1, until a successful simulation test is performed. All costs linked to the simulation test are born by the Supplier. In no case shall ELIA be liable for any direct or indirect damages to third parties resulting from or occurring during the simulation test. The general liability regime organised by Article 4 of the General Terms & Conditions is applicable to the Supplier during both tests. f. Suppliers not in respect with Article 3.1.d are allowed to participate in a Long term tender, but have to be in respect with this Article before the start of the Delivery Period. In case of non-respect during the Delivery Period, the service will be considered as unavailable and the penalty described in Article 8.1 will be applied for the period of non-respect. g. Suppliers not in respect with article 3.1.d are not allowed to participate in Short term procurement Conditions specific for the Delivery Points Connected to the ELIA grid a. The Supplier and ELIA agree on the list of Delivery Points connected to the ELIA grid based ont the template in annex 3, that the Supplier declares technically capable of providing the Service and is in respect with all conditions set forth in this Article 3.2. b. All Delivery Points connected to the ELIA grid in the list must have successfully completed the following elements of the Procedure For Acceptance: Prequalification of Delivery Points as specified in Annex 5A, Dynamic Grid User Declaration as specified in Annex 5B, In case of Delivery Points within an Industrial Site: Proof of Submeter Compliance as specified in Annex 5C, In case of Delivery Points within an Industrial Site: Submeter Commissioning Test as specified in Annex 5D. In case of Delivery Points within a CDS: CDSO declaration as specified in Annex 5E. In no case shall ELIA be liable for any direct or indirect damages to third parties resulting from or occurring during the Submeter Commissioning Test. The general liability regime organized by Article 4 of the General Terms & Conditions is applicable to the Supplier during both tests. c. Submeters on Delivery Points connected to the ELIA grid must be compliant with the technical requirements published on the ELIA website. d. The Supplier will inform and discuss the technical requested Submetering solution with ELIA as soon as possible, ideally before submitting Long Term Capacity Bids to ELIA. e. The agreed list of Delivery Points connected to the ELIA Grid may be updated under the following conditions. XXX Page 11 of 54

12 Changes become effective at the beginning of each Month. The changes must be notified to ELIA by submitting an updated lists based on the template in Annex 3 via to contracting_as@elia.be At the moment of the notification, the Delivery Points must be in respect with the applicable conditions set in Article 3.2 and 3.4. ELIA will accept or reject the updated list at latest 5 working days by after reception of notice. The modifications take effect the month following the acceptance by ELIA The Supplier should take into account that in some case, such as Delivery Points with Submetering, the installation of the equipment(s) and the Procedure for Acceptance might extend to a considerable amount of time. It s the responsibility of the Supplier to take into consideration the time period necessary for technical integration, and ensure that the DP is operational at the agreed moment. ELIA has the right to request a new simulation test as described in Annex 5G Conditions specific for the Delivery Points Connected to the DSO grid The Supplier and the DSO agree, in a contract (hereinafter referred to as Supplier-DSO contract ) on a list of Delivery Points connected to the DSO grid that the Supplier declares technically capable of providing the Service. ELIA must receive a copy of the signed Supplier-DSO contract. The list of DSO connected Delivery Points is provided by the DSO to ELIA. ELIA will only consider this list. The Supplier keeps ELIA informed of the latest list of DSO connected Delivery Points for informative purposes only Conditions for all Delivery Points a. All Delivery Points described in 3.2 and 3.3 Cannot be a part of another Ancillary Service except for demand side primary frequency control. Cannot be a part of a Strategic Demand Reserve contract, nor can the Headmeter upstream of the Delivery Point be part of a Strategic Demand Reserve contract. b. In case of a Delivery Point, as intended in 3.2.a, behind a Headmeter, no other Delivery Point behind the same Headmeter can be part of another contract for R3DP or a contract for Strategic Demand Reserve with a different supplier. c. Production Units which are included in a CIPU Contract are not allowed to participate in the provision of Tertiary Control Power Dynamic Profile. d. ELIA reserves the right to disqualify a Delivery Point if the participation of the Delivery Point in the R3 DP Service jeopardizes the ELIA Grid security in the Belgian Control Area. e. The Supplier declares that the Delivery Points, as mentioned in Article 3.2, are related to Access Point(s) included in valid Access Contract(s) and are in the Perimeter of an ARP having a valid ARP Contract. f. The Supplier declares that in case of an activation of the Service, the consumption of active power at the Delivery Point behind an Access Point will not be transferred to another process behind the Access Point. g. All Delivery Points in this list must comply with the metering requirements set forth in Annex 6. XXX Page 12 of 54

13 4 Procurement of the Service 4.1. Within the framework of this General framework, ELIA will procure the Service, Tertiary Control Power Dynamic Profile, during Peak and Long Off Peak hours (or combined base) The Service will be procured from Suppliers with a valid General framework for Tertiary Control Power Dynamic Profile and with at least one Delivery Point The total volume to be procured by ELIA, the repartition between the Service and Variant Services of the R3 products as well as the split between Long Term and Short Term procurement, is determined and fixed in the Dossier Volumes and the Balancing Rules, both approved by the CREG The quantity of Contracted Tertiary Control Power Dynamic Profile is the result of the Long Term and Short Term procurement The process, Bidding Obligations, consequences of non-respect, rights and rules for Long Term and Short Term procurement are described in Annex 1 of the General framework A Capacity Bid is a firm commitment by the Supplier to deliver the corresponding Tertiary Control Dynamic Profile Power Obligation ELIA has the right to reject Capacity Bids that are not in line with the rules and obligations set forth by ELIA as described in the General framework Once a Capacity Bid is awarded, the Contracted Tertiary Control Power Dynamic Profile is part of the Tertiary Control Power Dynamic Profile Obligations and thus the Supplier undertakes the necessary to provide the Service for the entire duration from the start of the applicable Delivery Period (without further action by ELIA). 5 Provision of the Service 5.1. The Tertiary Control Power to be provided by the Supplier is the R3 DP Obligation, which is determined based on the Long and Short Term R3DP Contracted and the number of activations in the applicable Short Term Period. a. In case of less than 8 activations in the considered Short Term Delivery Period and less than 40 activations in the considered Long Term Delivery Period, the R3 DP Obligation is the sum of the Long Term and Short Term R3 DP Contracted. b. In case of 8 or more activations in the considered Short Term Delivery Period, but less than 40 activations in the considered Long Term Delivery Period, the R3 DP Obligation is equal to the Long Term R3 DP Contracted. c. In case of less than 8 activations in the considered Short Term Delivery Period but 40 or more activations in the considered Long Term Delivery Period, the R3 DP Obligation is equal to the Short Term R3 DP Contracted. d. In case of more than 8 activations in the considered Short Term Delivery Period and 40 or more activations in the considered Long Term Delivery Period, the R3 DP Obligation is zero Activation a. In real time (day D), ELIA may activate partially or entirely the Tertiary Control Power Obligation, hereinafter referred to as Tertiary Control Power Dynamic Profile Activated. b. During one single activation, ELIA can change the quantity of R3 DP Activated on a quarter hourly basis. c. The quantity of Tertiary Control Power requested in Article 5.2.a must be activated in no more than 15 minutes. XXX Page 13 of 54

14 d. The resulting Tertiary Control Power Required per quarter hour is calculated as described in Annex 4. e. The maximum duration of one single activation is two hours. f. There shall at least be 12 hours between the end of an activation and the beginning of the following R3 DP activation. g. The Supplier is free to choose on which Delivery Points he performs the activation of the Service. The list of Delivery Points used to perform the activation is communicate to ELIA as described in Annex 7. h. ELIA defines how the activation is communicated to the Supplier. This data exchange is defined in Annex 7. i. ELIA does not remunerate the activation of Tertiary Control Power Dynamic Profile. 6 Exchange of information, record and monitoring of the Service 6.1. All metering data will be collected, treated and validated for all Delivery Points as described in Annex The Supplier hereby agrees that metering data from ELIA, the DSO or the CDS Operator, as mentioned in Article 6.1, will be used as the basis for the settlement as specified in Article For DSO grid connected Delivery Points, the data (metering data and contractual data) used to determine the R3DP Made Available and R3DP Activated is determined based on the contractual data set in the DSO-Supplier Contract The exchange of information for the performance of the Contract will be executed through real-time communication and off-line communication, as described in Annex The exchange of information for the performance of the Contract will be directed to the respective contact persons of the Parties, as mentioned in Article Record and monitoring of the Tertiary Control Power Dynamic Profile Made Available (Availability) a. The availability of the Service will be monitored on the basis of the values of Tertiary Control Power Dynamic Profile Made Available compared to the Tertiary Control Power Dynamic Profile Obligations. b. ELIA will check every month M that the Supplier has made the amount of R3 DP_Obligation, for each quarter-hour of month M-2, available to ELIA during month M-2 as described in Annex 8 and informs the Supplier via a report as described in Article 9.2 c. The Parties agree that if the R3 DP Obligations are not fulfilled, penalties will be applied as foreseen in Article Record and monitoring of the Tertiary Control Power Dynamic Profile Required (Activation) a. ELIA will check every month that the quantity of R3 DP Supplied by the Supplier, during activations of month M-2, meets the contractual requirements under Article 5.2 of the present Contract. Said check is performed by calculating difference between the R3 DP Required and the R3 DP Supplied as per the method described in Annex 10. b. ELIA will perform this check on all Delivery Points pursuant to Article 3.2 and 3.3. c. The Parties agree that if the R3 DP Supplied is lower than the R3 DP required, penalties will be applied as foreseen in Article 8.2. XXX Page 14 of 54

15 7 Remuneration 7.1. The remuneration of the Service consists of a remuneration for the Contracted R3 DP (reservation). All costs relating to the provision of the Service should be covered with this remuneration and consequently have to be taken into account when submitting Capacity Bids Remuneration for the Tertiary Control Power Contracted (reservation) a. The foreseen remuneration or Monthly Fixed Remuneration for the delivery of the Long Term Contracted Tertiary Control Power Dynamic Profile will be calculated on the basis of the unit prices and the volume of Contracted Tertiary Control Power Dynamic Profile, listed in the exchanged, completed template Annex 1. It corresponds to the sum of remunerations for the various Lots where each remuneration is the product of: The unit price, in /MW/h, for that particular Lot in accordance with listed in the exchanged, completed template Annex 1, The number of MW of said Lot in accordance with listed in the exchanged, completed template Annex 1, The number of corresponding hours per year for the Period concerned, divided by 12. b. The foreseen remuneration or Monthly ST Remuneration for the delivery of the Short Term Contracted R3 DP will be calculated on a monthly basis, based on unit prices of the corresponding Short Term Contracted R3 DP. The remuneration corresponds to the sum of the remunerations for the various selected Short Term Capacity Bids where the remuneration is the product of: The unit price, in /MW/h, for the Short Term Contracted Tertiary Control Power Dynamic Profile in accordance with Article 4, The number of MW of said Short Term Contracted Tertiary Control Power Dynamic Profile in accordance with Article 4 and The number of corresponding hours of the Delivery Period concerned. 8 Penalties for non-performance of the General framework 8.1. Non-compliancy with the Tertiary Control Power- Dynamic Profile Obligation (Availability) a. If ELIA establishes, based on the quantity of R3 DP Made Available as per Article 6.6, that the Supplier has failed for a particular quarter-hour to make available at least the quantity of his R3 DP Obligations, ELIA applies a penalty. b. The penalty applies to any Missing MW and for any quarter-hour of the considered month in which ELIA establishes that the quantity of R3 DP Obligation has not been reached. c. The calculation of the penalty is detailed in Annex Non-compliancy with provision of Tertiary Control Dynamic Profile Required (Activation) a. In case ELIA establishes that the Supplier has failed to deliver the R3 DP Required foreseen under Article 6.7., ELIA shall apply a penalty as defined in Annex 11. XXX Page 15 of 54

16 b. If ELIA notices consecutive activations that are not compliant with the contractual requirements or notices that the conditions of the Procedure for Acceptance as defined in Annex 5 are not met, ELIA preserves the right to suspend the Contract with the Supplier for a certain period of time. The Supplier will then not perceive its Monthly Fixed Remuneration during the suspension period. The Supplier can only be accepted again by completing successfully the Procedure For Acceptance as described in Annex 5 before a certain date to be agreed upon by ELIA and the Supplier. This renewal of acceptation is at the expense of the Supplier Penalties for non-compliancy with R3 DP Obligations and penalties for non-compliancy with R3 DP Required can be cumulated The sum of the penalties under Article 8.1 and Article 8.2 of the present General framework will be subject to a monthly and yearly cap, without prejudice to any liability on the part of the Supplier for the non-fulfillment of his obligations in accordance with Article 6 of the General Terms & Conditions. The method for calculation of these penalty caps is detailed in Annex Invoicing and payment 9.1. For every volume awarded (Long Term and/or Short Term Contracted Tertiary Control Power) the Supplier will receive an order confirmation stating a purchase order number and the remunerations for the Tertiary Control Power Contracted (reservation) Via a joint validation platform or other channel, ELIA will present the Supplier with a report, at the latest by the end of each calendar month, relating to the record and monitoring of the R3 DP Service provided by the Supplier in month M-2. This report will indicate, amongst others, all penalties for month M-2 as calculated by ELIA in accordance with Article 8 of the present General framework, showing the method of calculation and all data on which the calculation is based Disputes from the Supplier regarding the report and penalties stipulated in Article 8 must be reported within 25 calendar days starting from the day following ELIA s submission of the respective report. Should this occur, the Parties shall enter into negotiations with each other with a view to reaching an agreement in accordance with Article 11 of the General framework If no agreement can be reached: the Supplier, when drawing up his pro-forma invoice for Month M as specified in Article 9.5, shall take account of the penalties calculated by ELIA; the Parties shall continue their negotiations with a view to reaching an amicable arrangement and, after concluding their agreement, settle this invoice ex-post; if no amicable arrangement is reached, the dispute settlement procedure set out in Article 13.2 of the General Terms & Conditions shall apply The Supplier shall send ELIA s Settlement department (see list of contact persons exchanged as described in Article 12) his monthly pro-forma invoice no later than on the 25th (twenty-fifth) of each calendar month M. The pro-forma invoice will include, among other things: (a) the purchase order number (b) the Monthly Fixed Remuneration for the Long Term Contracted R3 DP for the following month, calculated as described in Article 7.2.a of the present General framework; (c) the remuneration for the Short Term Contracted R3 DP for month M, calculated as described in Article 7.2.b (d) As the case may be, the penalties for month M-3 as calculated by ELIA under Articles 8.1 and 8.2 of the present General framework (e) the Supplier s bank account number to which payment must be made. XXX Page 16 of 54

17 9.6. ELIA shall either approve or reject the pro-forma invoice within 5 working days of receiving it. In accordance with the pro-forma invoice, the invoice may only be sent to the Invoicing & Payment department after ELIA has approved the pro-forma invoice Annex 13 includes the appropriation structure to be used by the Supplier. 10 Modifications to the General framework ELIA has the responsibility to have the same General framework for Tertiary Control Dynamic Profile for all Suppliers Therefore, before modifying the General framework, ELIA will inform all the Suppliers who have signed a General framework for Tertiary Control Dynamic Profile at least thirty Calendar days before a Long or Short Term procurement by means of a proposal for an addendum. For Short Term procurement this is thirty days before the opening of the Gate; For Long Term procurement this is thirty days before the call for tender; In case the notification is made less than thirty days before the procurement, the current General framework without modifications will apply When ELIA does not reach an agreement with one or more parties who have signed a General framework for Tertiary Control Power Dynamic Profile with ELIA, ELIA can, in order to respect Article 10.1: notify all abovementioned parties that the General framework without modifications will apply for the next tender exclude the Supplier that refuses the addendum from a Long Term tender and/or Short Term tenders until both Parties agree upon the addendum All contracted Tertiary Control Power Dynamic Profile from the Supplier in Long Term and/or Short Term procurement before the contractual update are subject to the General framework applicable at that time In case of modifications to the General framework requested by the Supplier to ELIA, ELIA will consider these modifications, taking Article 10.1 into account and to implement the changes, will proceed as described in article Consultation and disputes If there is a dispute or conflict of interpretation between the Parties regarding one of the clauses of the Contract or regarding the implementation thereof, or when application of Article 9 is explicitly organized by the Contract, the Parties shall try to settle their dispute or conflicting interpretation amicably, before resorting to legal action, but with the reserve of all legal means required because of extreme urgency, including in this case summary proceedings in court. The Parties undertake to organise a consultative meeting within 10 days of receiving a registered letter in which the dispute is raised by one of the Parties. If the Parties cannot reach agreement within 30 days of that first meeting the first Party to take action shall take the dispute to court. 12 Contact persons Both parties shall keep the contact details up to date throughout the validity of the contract, by exchanging the filled out template in Annex 14. These exchanges and updates can be done via e- mail All contacts between the Supplier and ELIA regarding the present General framework should take place between the persons designated in Annex 14. XXX Page 17 of 54

18 XXX Page 18 of 54

19 Drawn up in Brussels on [date] in duplicate, with each Party declaring having received an original copy. ELIA System Operator S.A., represented by: Frank Vandenberghe François Cornélis * Chief Officer Energy & System Management CEO and President of the Management Committee ad interim * Permanent Representative of Monticello SPRL Datum: Datum: XXX represented by: Name: Position: Date: Name: Position: Date: XXX Page 19 of 54

20 ANNEX 1. PROCUREMENT OF R3 POWER (ANNEX FOR R3 AND R3 DP) CONTENT A. LONG TERM PROCUREMENT PROCESS B. SHORT TERM PROCUREMENT PROCESS C. AUCTION RULES & BIDDING OBLIGATIONS D. AWARD CRITERIA E. TRANSPARENCY PRIOR TO PARTICIPATION IN PROCUREMENT - CONCLUSION OF A GENERAL FRAMEWORK R3 As stated in Article 4.2 of the General framework, only Suppliers with a valid General Framework for Tertiary Control Power are allowed to participate in Long Term and Short Term procurement of R3. Step 1: become a qualified Supplier Prior to the signature of the General framework, a party should apply to become a selected Supplier. A candidate Supplier can apply by submitting a completed application form and the required documents for the applicable service to ELIA. The application form can be found on the ELIA website or requested via to contracting_as@elia.be. The deadline for application is at one month before the deadline of the signature of the General framework. Step 2: sign the General framework In order to participate in a Long Term tender or a Short Term auction, the General framework should be signed at latest the day before the Suppliers can start submitting Capacity Bids. For the Short Term auction: the deadline for signature in order to be allowed to participate for Delivery Period P, is the day before start of period P-1. (prior to process step B1 as described below) For Long Term tenders, the deadline for signature is prior to the call for tender, or step A2 in the process described below. A. LONG TERM PROCUREMENT PROCESS A1. Notification LT tender ELIA A2. call for tender - Submission offers A3. Optimal selection by ELIA A4. Communication results to Minister/CREG A5. Communication of results A6. Transparency Publications 1. Notification LT tender ELIA ELIA will announce the procurement on a Long Term basis to the Suppliers with a valid General framework at that moment, at least on calendar month before the call for tender. This announcement will contain at least: 2. Call for tender The Long Term Delivery Period The date of the launch of the call for tender (start A2) The deadline to submit the Long Term Capacity Bids.(end A2) XXX Page 20 of 54

21 On the date of the launch of the call for tender ELIA will communicate the platform and/or formats to be respected to submit valid Capacity Bids. As from that moment the Supplier may submit Capacity Bids to ELIA. The complete set of Capacity Bids must be in respect with the Bidding Obligations as described in section C of this Annex. The permitted number of Capacity Bids is unlimited. Capacity Bids are a firm commitment at the deadline to submit the Long Term Capacity Bids and must remain firm until the communication of the results or the deadline communicated by ELIA in the call for tender. (step B4). A Supplier shall not use the offered capacity in any way until he has been notified of the outcome of the tender or until the deadline for communication has passed. 3. Optimal selection by ELIA After the deadline to submit Capacity Bids has passed, ELIA evaluates the Capacity Bids. The entire set of Capacity Bids will be evaluated with regard to the respect of the Bidding Obligations as described in section C of this annex. In case of non-respect with the Bidding Obligations, certain Capacity Bids or the entire set of Capacity Bids can be rejected by ELIA. For more information on the Bidding Obligations see Annex 1 C. ELIA retains the optimal set of Capacity Bids, amongst the non-rejected Capacity Bids, following the award criteria as described in Annex 1D. 4. Communication results to Minister and CREG ELIA reports the Capacity Bids and the optimal selection to the Minister. 5. Communication of the Results to the Suppliers Once a Capacity Bid is awarded, the award decision will be communicated to The Supplier by ELIA. As from that moment the awarded Capacity Bid, entirely of partially depending on the divisibility, is considered to be the Contracted Tertiary Control Power (Dynamic Profile). 6. Transparency publications The aggregated and anonymous results are published on the website ELIA s website. (link: Volumes-Prices) ELIA foresees to make extra transparency information to participants and eventually public. ELIA will discuss this possibility with all Suppliers and introduce the rules in Annex 1E following an update with respect of Article 10. XXX Page 21 of 54

22 B. SHORT TERM PROCUREMENT PROCESS 0. Procurement Calendar A calendar indicating the delivery period and the deadline to submit offer (hereinafter referred to as gate closure time(s) or GCT ) is published on the ELIA website. In case of a change in the calendar, the Supplier will be informed via an to the contact details for Short term auctions & contractual matters, listed as Short term contact in respect with Article 12. B1. Offer introduction B2. Offer validation B3. Award of volumes by ELIA B4. End of Auction, communication of results B5. Backup in case of lack of liquidity B6. Transparency publications As from start P-1 till GCT See calendar website ELIA If required, after GCT, before start P After last GCT, before start P 1. Capacity Bid introduction When: As soon as a new delivery period starts, the Bidder can start to make Capacity Bids for the next delivery period. The Capacity Bids have to be introduced before GCT (Gate Closure Time). What & How: When the gate is open, new Capacity Bids can be introduced and already created Capacity Bids can be modified or cancelled, regardless of their status. The minimum size of a Capacity Bid is 1MW. The granularity of the offers is also 1MW. (no numbers after the decimal) When a new Capacity Bid is created it automatically has status Received. The complete set of Capacity Bids must be in respect with the Bidding Obligations as described in section C of this Annex. When this is not the case, the entire set of Capacity Bids will automatically be rejected at GCT ELIA may request supplementary information or a justification for certain Capacity Bids via the communication channels described in the auction manual published on the ELIA website. A log of the communications will be held at all times so that traceability is guaranteed. The log and the key facts are reported by ELIA to CREG. Short-term auction participants remain fully responsible for their Capacity Bids. Bids are a firm commitment at GCT and must remain firm until the end of the auction.(step B4) A Supplier shall not use the offered capacity in any way until he has been notified of the outcome of the tender or until the deadline for communication has passed. Capacity Bids are to be made in the tool STAR. The manual for the tool is published on the ELIA website. 2. Capacity Bid validation When: XXX Page 22 of 54

23 After GCT, no new Capacity Bids can be introduced, nor can existing Capacity Bids be modified or cancelled. What: The entire set of Capacity Bids will be evaluated with regard to the respect of the Bidding Obligations as described in section C of this annex. In case of non-respect with the Bidding Obligations, certain Capacity Bids and/or the entire set of Capacity Bids can automatically be rejected. (status rejected ). For more information on the Bidding Obligations see Annex 1 C. The permitted number of Capacity Bids is unlimited. ELIA can reject Capacity Bids manually in case of manifest errors. ELIA accepts (status Validated) or rejects (status rejected ) all Capacity Bids that have not been validated yet (remaining Capacity Bids with status received ). How: ELIA will set a status Validated or Rejected in STAR. The manual for the tool is published on the ELIA website. 3. Award of Volumes by ELIA When: After GCT, no new Capacity Bids can be introduced, nor can existing Capacity Bids be modified or cancelled. What & How: ELIA selects the optimal set of Capacity Bids (entirely of partially), amongst the Capacity Bids with the status Validated, following the award criteria as described in Annex 1D. 4. End auction & communication of the auction results What & How: When ELIA ends the auction, the status of the retained Capacity Bids changes to Retained. The status of the other Capacity Bids remains unchanged (Accepted or Rejected). All Bidders receive an to inform that the auction ended and can consult if and which volume of his Capacity Bids has been retained in the Auction overview. ELIA publishes the required information as described in section X Transparency of this Annex. 5. Backup procedure in case of insufficient volume. In case insufficient volumes R3(DP) are offered to ELIA in a Short Term Procurement, ELIA will award the maximum possible offered volume. ELIA will organize a second auction for the remaining volume, in which ELIA will request all Suppliers to make extra volume available. 6. Transparency publications When: Between the end of the auction and the start of Delivery Period P. What & How: XXX Page 23 of 54