Conclusion of contracts

Entities of the Balancing Electricity Market are wholesale electricity market participants included in the Register of Wholesale Electricity Market Participants maintained by the System Operator.

The basis for concluding agreements with the Settlement Center of the Balancing Electricity Market (Settlement Center) is the inclusion of a legal entity by the System Operator in the Register of Wholesale Electricity Market Participants.

The following standard agreements shall be concluded between the Settlement Center and a market participant:

- Balancing Electricity and Negative Imbalances Purchase and Sale Agreement (BPSA);

- Accession Agreement among all Balancing Electricity Market Participants (AA).

To conclude the agreements, the market participant shall submit an application (application form) to the Settlement Center together with the following documents:

• a copy of the company's Charter (Articles of Association);

• a Certificate of State Registration (Re-registration) of the legal entity, valid as of the submission date;

• a copy of the resolution (order) appointing the Chief Executive Officer (Head of the organization);

• a copy of the resolution approving the transaction (where required by law or the company's Charter);

• a Power of Attorney authorizing the representative to sign documents (if applicable);

• a copy of the document confirming VAT registration or VAT exemption;

• the company's bank details and corporate particulars.

Please note that the Power of Attorney and the participant's internal corporate documents shall not contain any restrictions regarding the transaction amount, execution of agreements, conditions related to the representative's authority or compliance with other documents, or any other legally uncertain conditions.

Agreements with the Settlement Center may be concluded in one of the following ways:

• electronically via the Documentolog electronic document management system;

• electronically through the official information system of KOREM JSC;

• in paper form.

Agreements with the Settlement Center may be terminated in the following cases:

• exclusion of the participant from the Register of Wholesale Electricity Market Participants;

• failure to perform contractual obligations;

• bankruptcy of the participant;

• amendment or repeal of a regulatory act that serves as the legal basis for participation in the market.

Termination Procedure:

• The Settlement Center shall notify the participant of the agreement termination within five (5) business days in the event of the participant's exclusion from the Register of Wholesale Electricity Market Participants;

• In all other cases, the parties shall notify each other of the intended termination no later than fifteen (15) calendar days before the termination date.

Important Notice!

Termination of an agreement shall not release the parties from fulfilling obligations that arose prior to the termination date, nor shall it release them from liability for failure to perform or improper performance of such obligations.