TERMS AND CONDITIONS OF ELECTRONIC AUCTION OF INNOGY GAS STORAGE, S.R.O. FOR YEARLY GAS STORAGE CONTRACTS

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1 TERMS AND CONDITIONS OF ELECTRONIC AUCTION OF INNOGY GAS STORAGE, S.R.O. FOR YEARLY GAS STORAGE CONTRACTS DATE OF AUCTION: 31 October 2017 OFFERED CAPACITY: MWh STORAGE PERIOD: 1 April March 2019 innogy Gas Storage, s.r.o. Limuzská 3135/ Praha 10 T gs.aukce@innogy.com

2 A. Minimum storage capacity unit price 1. Price calculation method The auctioned storage capacity price will be determined as the weighted average of the addons and individual SW Spreads (see A.2) for the fixation dates, for an Option Period or a Settlement Period (see A.1.(i)), as applicable. This is not a static calculation to an SW Spread on the auction day, but a continuous mechanism built on the following Formula 1: P D = SW D + D 26 Where P D is the individual price for the storage capacity for a given fixation date, SW D is the SW Spread on the given fixation date and D is the add-on, i.e. the only element to be auctioned. The resulting price (weighted average) will be rounded to one decimal place. Capacity will be reserved in favour of successful applicants on the auction day, and the final price will be determined as follows: The Storage Operator will inform the Storage User, on selected days and in accordance with the terms and conditions of article A.4, about the Storage Operator s fixing of the individual price for the part of the storage capacity reserved by the Storage User in the auction, within the Option Period (see (i) below), or the price will be automatically fixed within the Settlement Period (see (ii) below) by the dates set out in the table in A.4, unless the price is fixed for the entire capacity reserved by the Storage User in the Option Period. The price will be fixed on this day according to Formula 1 above and the SW Spread applicable on that day. The final annual price for the storage capacity is calculated after the final fixation of individual prices, and is determined as the weighted average of the individual prices weighted by their previously defined volumes. The calculation is based on Formula 2 below: P F = k i=1 P i V i k i=1 V i = P 1V 1 + P 2 V 2 + P k V k V 1 + V 2 + V k Where P F is the final unit price for the storage capacity, V is the total reserved capacity, V 1 k are individual fixed parts (volumes) of the reserved capacity and P 1 k are individual prices calculated according to Formula 1. The final annual price for the storage capacity is calculated after the Settlement Period according to the conditions set out in these Auction Terms and Conditions. P F does not include VAT which will be charged in addition to the storage price, at a rate applicable in the Czech Republic. Fixation period: For the price fixation, two periods are specified within the Auction Terms and Conditions, i.e. (i) Option Period and (ii) Settlement Period. During the Option Period, the Storage Operator has the right to fix the price for the capacity reserved within the auction for all Storage Users, on the selected days and in accordance Storage period: 1 April April 2019 Page 2/8

3 Formula 1. During the subsequent Settlement Period, fixation is performed regularly at the determined frequency according to the present Auction Terms and Conditions (A.4.). (i) During the Option Period, the partial price for part of the storage capacity is fixed on the days specified by the Storage Operator at its discretion (A.4.f). The Storage Operator informs the Storage User if on the day concerned the individual price for a certain part of the reserved capacity is fixed. Furthermore, the Storage Operator informs the Storage User about the amount of the fixed part of the reserved capacity. The Storage Operator is obliged to inform the Storage User (A.4.e) by 11:30 AM of the day in question about the Storage Operator s decision that the price for part of the reserved capacity is fixed on that day. The form and method of communication is described in A.3, Exchange of Information. For the purposes of this auction, the maximum amount of the storage capacity for which the Storage Operator may fix the price on a single day is 20 % of the capacity reserved for the given Storage User (if the total volume is reserved by a single customer, this will correspond to MWh). For the purposes of this auction, the minimum amount of the storage capacity for which the Storage Operator may fix the price on a single day is 1 % of the capacity reserved for the given Storage User (if the total volume is reserved by a single customer, this will correspond to MWh). The maximum and the minimum volume of the capacity for which the price may be fixed can be changed for all Storage Users, subject to each Storage User s consent to such a change. These amounts are quoted as percentages of the total reserved capacity. (ii) During the Settlement Period, individual prices for the remaining volumes are regularly fixed on days determined in advance, for prices applicable on these days (P D) according to the formula above (see A.1), for a period of two weeks for the purposes of this auction, i.e. every Thursday 50% of the capacity for which the price was not fixed during the Option Period. The individual allocated capacity volumes are always determined according to the given scheme (see A.4.g and A.4.h) at the beginning of the Settlement Period, therefore, P D values are determined during the Settlement Period automatically, without any intervention by the Storage Operator, unless otherwise agreed with the Storage Users. The minimum and maximum price is set for both periods: if the P D value according to Formula 1 above reaches outside the minimum and maximum price limits, the P D value will take the minimum or the maximum value for the given day, determined in A.4.a. or A.4.b. of the present Auction Terms and Conditions, respectively. With regard to the duration of the capacity reservation, the method of the price indexation after the first year of the contract duration is not stated. The minimum amount of add-on D for this auction (the auction starting price) is: CZK 16/MWh of working gas volume. Storage period: 1 April April 2019 Page 3/8

4 2. SW Spread and exchange rates For this auction, the price used in the formula as a price for the storage capacity is the value of the SW Spread calculated as the positive difference (Winter-Summer) of the final prices (settlement prices) for the Summer and Winter seasonal futures contracts for the first storage year offered in the auction. Net Connect Germany (NCG) is the reference market for setting the fixation prices, i.e. specifically the prices for the natural gas futures contracts on NCG. The items are published as EUR/MWh on the Natural Gas tab of the Derivatives Market section. If any of the aforesaid EEX prices published on the website: is no longer published on this website, and there are doubts about the future availability thereof for at least 5 business days following the day for which the SW value is determined, the list below will be applied, by the order of preference below - The above mentioned NCG futures prices (winter and summer) will be used, available from - if Net Connect Germany does not provide the price for natural gas futures contracts, the prices available from TTF should be used - if no TTF prices are available, the Storage Operator undertakes to provide the Storage User, without undue delay following the discovery of this fact, with a proposal for an adequate adjustment or substitution of these prices, so that the adjustment or substitution best reflect the goals of the original price As soon as the relevant prices are available for calculation, the relevant price will be recalculated without undue delay, and the Storage Operator will issue an invoice for the adjusted price. The last day of the Settlement Period shall serve as the decisive date. Exchange rates As all the prices published on EEX are quoted as EUR/MWh and innogy Gas Storage, s.r.o. offers its capacity as CZK/MWh, an EUR to CZK conversion needs to be done. This will be based on the official exchange rates published by the Czech National Bank ( 1 ) for each day on which the price is fixed. If she data is not available, the exchange rate published by the European Central Bank ( will be used. 3. Exchange of Information The Storage Operator undertakes to provide information on the price fixation for part of the storage capacity reserved for the Storage User, at the time specified in the table below (4.A.e). This information will be available from a protected part of the Storage Operator s website - Customer Zone ( If agreed between the parties involved, the information may also be sent via , as an additional form of communication. 1 Storage period: 1 April April 2019 Page 4/8

5 4. Basic parameters of FIST auction a) Minimum price, P D CZK 16/MWh b) Maximum price P D CZK 28.6/MWh c) Reference prices SW spread from NCG settlement prices d) Maximum daily volumes which the Storage Operator may fix 20% ( MWh/day) e) Deadline for distributing fixation decisions By 11:30 AM on the fixation day f) Duration of the Option Period 1 Nov Nov 2017 g) Duration of the Settlement Period 1 Dec Dec 2017 h) Settlement Period scheme; volume for fixation Weekly (Thursdays); 50 % B. Auction date and legth of the auction round 31 October 2017 starting at 10 AM CET*, length of the auction round is 7 minutes. Timetable Deadline Customer Zone registration by 24 October 2017 Financial security deposited or bank guarantee submitted by 26 October 2017 Electronic affirmation of the fulfilment of the conditions for participation in the auction by 31 October 2017 Auction 31 October 2017 Confirmation of auction results by 1 November 2017 Start of storage period 1 April 2018 C. Total storage capacity offered Working gas volume: Maximum withdrawal rate: Maximum injection rate: for the duration of the contract MWh 0 MWh/day 0 MWh/day D. Increase in price supplement per storage capacity unit, between the auction rounds, and the method of allocating the storage capacity CZK 1/MWh Storage period: 1 April April 2019 Page 5/8

6 The storage capacity allocation mechanism in an electronic auction is determined by Decree No. 349/2015 Coll. Gas Market Rules; an illustrative chart is published on the innogy Gas Storage website here. E. Effective duration of the contract The contract duration in the auction is set to 1 storage year (from 1 April 2018, 6 AM CET to 1 April 2019, 6 AM CET). F. Standard contract for gas storage The binding draft of the contract to be signed between the Storage Operator and the Storage User with a reserved capacity, including the necessary identification data and data resulting from the auction, is provided in Annex 1 to these Terms and Conditions, forming an integral part thereof. G. Procedure for depositing financial security The Applicant will determine the amount of the financial security based on the storage capacity required. The Applicant may fill in the request for a storage capacity at most up to the amount of the deposited financial security. The maximum amount of the financial security (if the Applicant decides to request 100% of the offered storage capacity) is: CZK 80,000. If the Applicant deposits a lower amount, the Applicant will be able to request the corresponding proportion of the offered storage capacity in the first round (if 50% of the maximum financial security is deposited, the Applicant will be able to submit a request for up to 50% offered storage capacity). The Applicant deposits a financial security in the Storage Operator s account by the term set in item B of these Auction Terms and Conditions. The financial security will be deposited to the following bank accounts (BIC/Swift: CEKOCZPP): a. in CZK: /0300, IBAN: CZ or b. in EUR: /0300, IBAN: CZ , the accounts have been opened at ČSOB, a.s., Radlická 333/150, Praha 5. For payment identification purposes, Applicants will complete the variable symbol box with their identification number (IC), provided they have been assigned one; otherwise they indicate the last 9 digits of their telephone number stated in the Customer Zone. The exchange rate used for the EUR/CZK conversion shall be the average exchange rate for the 3rd quarter of 2017, officially published by the Czech National Bank on its website 2, i.e. CZK /EUR Based on the financial security deposited in the Storage Operator s account the Applicant will receive confirmation (to their address stated in the Customer Zone) of the amount of the deposited financial security. 2 Storage period: 1 April April 2019 Page 6/8

7 By duly depositing the financial security the registered Applicant becomes an active applicant/participant in the auction. The applicant must not participate in the auction while subject to insolvency proceedings initiated according to Act 182/2006 Coll. (Insolvency Act), unless the Storage Operator decides otherwise. If the financial security is returned pursuant to the Storage Code, it will be credited to the Applicant s account from which it had been transferred and that in the same amount as deposited prior to the auction. The obligation to provide financial security may also be fulfilled by submitting an irrevocable and unconditional bank guarantee issued in accordance with the Storage Code, provided that the issuing bank must comply to the terms of financial credibility as specified in Annex 1 of the Storage Code. Active applicants who have reserved the storage capacity based on the auction results but have not signed a gas storage contract as set out in section B of these Terms and Conditions will not be returned the financial security in the amount corresponding to the reserved storage capacity. H. Electronic communication and an alternative way of communication in the auction The auction takes place via a secured web interface which can be accessed from the website of innogy Gas Storage, s.r.o. (hereinafter the Storage Operator ) Applicants interested in participating in the auction shall register in the Customer Zone by the date specified in the Timetable in section B of these Terms and Conditions, and shall acknowledge prior to the commencement of the auction that they comply with the conditions for participation in the auction, by an electronic consent in the Storage Operator s auction system. The Storage Operator will send access information to the Customer Zone and to the auction application to the Applicants not registered in the Customer Zone of the Storage Operator who fill in the registration form by the date set out in section B of these Terms and Conditions, available from the Storage Operator s website. Applicants may only participate in the electronic auction after the Storage Operator approves their registration and after the financial security has been deposited (see section G of these Terms and Conditions). In the event the electronic communication fails on the Applicant s part during the course of an auction, or fax can be used as an alternative method for filing requests ( gs.aukce@innogy.com, fax numbers: or ). The or fax message must include the following: a. Applicant s identification (company name/name and surname, company identification number, address of the registered office/permanent address, phone number and address of the authorized/contact person), b. Exact identification of the auction and the number of the auction round for which the request is filed, c. Amount of requested storage capacity for each offered storage year in the relevant Storage period: 1 April April 2019 Page 7/8

8 auction round, in the form of a number rounded off to two decimal places, expressing the percentage share in the total offered storage capacity, and d. Signature of the authorized/contact person. If such an alternative form of communication is used, the Storage Operator must be notified via phone on If the Applicant uses an alternative communication method, the Storage Operator may suspend the auction round or the auction as such for the time needed for filing such requests into the application. These Auction Terms and Conditions have been issued based on Public Notice of the Energy Regulatory Office, on the Gas Market Rules. This Public Notice and the Storage Code also regulate the procedure for the organization of auctions. These documents are available from the Storage Operator s website ( *If an auction does not end by 4 PM of the first day, it will be automatically suspended and will continue at 10 AM of the following business day. If an auction does not end by 4 PM of such a following business day, it will continue in the same manner on subsequent business days, always between 10 AM and 4 PM. Storage period: 1 April April 2019 Page 8/8

SEPA DIRECT DEBIT PROCESSING

SEPA DIRECT DEBIT PROCESSING TERMS AND CONDITIONS Československá obchodní banka, a. s. Postal Savings Bank (Poštovní spořitelna) Československá obchodní banka, a. s., with Registered Office at Radlická