Calculation of imbalances and their cost

Preparation of Primary Data.

• Upon completion of the settlement month, the System Operator prepares and submits to the Settlement Center the data required to calculate the hourly volumes of balancing electricity and the imbalances of Balancing Electricity Market Participants (hereinafter referred to as the Primary Data). The Primary Data includes information for each hour of the completed settlement period. (link)

• The Settlement Center publishes on its official information resource the scheduled and actual electricity generation and consumption values of the Balancing Electricity Market Participants of the Republic of Kazakhstan for each hour of the completed settlement period. (link)

• The System Operator approves the actual electricity generation and consumption balance of the Republic of Kazakhstan for the settlement period.

Each Balancing Electricity Market Participant shall issue a single-line electronic VAT invoice to the Settlement Center no later than the 20th (twentieth) day of the month following the month of electricity supply.

Calculation of Hourly Volumes and Imbalance Values.

Based on the Primary Data received from the System Operator, the Settlement Center:

• calculates the hourly volumes of balancing electricity and negative imbalances;

• determines the value of balancing electricity and negative imbalances;

• prepares the calculation results.

The calculation results are published on the official information resource of the Settlement Center. (link)

If any discrepancies are identified, a Balancing Electricity Market Participant is entitled to submit a reasoned request to the System Operator and the Settlement Center within two (2) business days from the date of publication of the calculation results.

Preparation of the Financial Settlement Register.

If no comments or objections are received regarding the calculated hourly volumes of balancing electricity and hourly imbalances of the Balancing Electricity Market Participants of the Republic of Kazakhstan, the Settlement Center prepares the Netting Register.

• Based on the latest version of the calculated hourly volumes of balancing electricity and hourly imbalances published on its official information resource, the Settlement Center determines the outstanding net balance of each participant for the completed settlement month;

• Based on the identified outstanding balances, participant pairs are established for the subsequent settlement of monetary obligations. Accordingly, the Settlement Center prepares the Netting Register among the Balancing Electricity Market Participants of the Republic of Kazakhstan;

• The Netting Register is approved by the Settlement Center and published on its official information resource (link);

The Netting Register among the Balancing Electricity Market Participants of the Republic of Kazakhstan is final, is not subject to appeal, and shall be accepted by each Balancing Electricity Market Participant without comments or objections.

Issuance of Electronic VAT Invoices and Exchange of Delivery Notes

Following the approval of the Netting Register, the Settlement Center initiates the exchange of primary accounting documents, electronic VAT invoices, and delivery notes with the Balancing Electricity Market Participants of the Republic of Kazakhstan.