Regulation C1 – Terms of balance responsibility

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.

© Energinet.dk

Energinet.dk – Regulation C1 – Terms of balance responsibility

2/23

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


3/23

Contents

1. Terminology and definitions................................................................................................ 4 1.1 PO production ......................................................................................... 4 1.2 Notification ............................................................................................. 4 1.3 Balance responsibility............................................................................... 4 1.4 Balance responsible party (BRP)................................................................ 4 1.5 Balancing power ...................................................................................... 4 1.6 Electricity supplier ................................................................................... 4 1.7 Balance responsible party for consumption (BRP for consumption................. 4 1.8 Balance responsible party for trade (BRP for trade) ..................................... 4 1.9 Correction settlement............................................................................... 4 1.10 Credit line............................................................................................... 4 1.11 Credit insurance ...................................................................................... 5 1.12 Metering point......................................................................................... 5 1.13 Metered data collector.............................................................................. 5 1.14 Grid company.......................................................................................... 5 1.15 Balance responsible party for production (BRP for production)...................... 5 1.16 Load-profile settlement ............................................................................ 5 1.17 Hourly settlement.................................................................................... 5

2. Purpose, scope of application and administrative provisions.................................................. 5 2.1 Statutory authority .................................................................................. 6 2.2 Complaints and sanctions ......................................................................... 6 2.3 Effective date .......................................................................................... 6

3. Balance responsibility in general.......................................................................................... 6

4. Approval of BRPs ............................................................................................................... 7 4.1 Fees....................................................................................................... 8 4.2 Security.................................................................................................. 8

4.2.1 Credit insurance ..................................................................... 8 4.2.2 Determination of credit line ....................................................10

5. Balance responsibility for production ................................................................................. 10

6. Balance responsibility for consumption.............................................................................. 11 6.1 End customers ...................................................................................... 11 6.2 Grid companies ..................................................................................... 11

7. Balance responsibility for trade ......................................................................................... 11

8. Change of balance responsible party................................................................................. 12 8.1 Change of balance responsible for production (BRP for production) ............. 12

8.1.1 Procedure for changing BRP for production for existing plants .........12 8.1.2 Procedure for assigning a BRP for production to new plants...........12

8.2 Change of balance responsible party for consumption (BRP for consumption) ... 12

Appendix 1 – Agreement on balance responsibility....................................................................... 13

Appendix 2 – Master data for balance responsible parties ............................................................. 18

Standard form - Application to change balance responsible party for production for existing plants.. 20

Standard form - Application to assign balance responsible party for production for new plants ........ 22


4/23

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.


5/23

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.


6/23

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


7/23

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.


8/23

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.


9/23

- 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.


10/23

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).


11/23

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.


12/23

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.

Appendix 1

13/23

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 sub-

markets, 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.

Appendix 2

14/23

� 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

25th 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 25th 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.

Appendix 2

15/23

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.

Appendix 2

16/23

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

Appendix 2

17/23

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»

Appendix 2

18/23

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:

Appendix 2

19/23

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.

Appendix 3

20/23

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)

Appendix 3

21/23

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 15th 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 15th 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

stated as both BRP and supplier (GLN number:

5790001088057).

Appendix 4

22/23

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:

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

Appendix 4

23/23

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:

5790001088057).

Documents

Regulation C1 – Terms of balance responsibility