Rules for the Operation of the Organised Electricity Market 2012

7/30/2019 Rules for the Operation of the Organised Electricity Market 2012

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WARNING: the unofficial consolidated text of the regulation shall only represent an informativeworking aid and, in this regard, the company, Borzen, organizator trga z elektrino energijo,d.o.o., shall not be liable for any damage or otherwise.

The company Borzen d.o.o. has prepared an unofficial consolidated text of the Rules for the operationof the organised electricity market which includes:

- Rules for the operation of the organised electricity market (Official Gazette of the RS, No.

98/09), and

- Rules for amendments and supplements to the Rules for the operation of the organised

electricity market (Official Gazette of the RS, No. 97/11).

RULESFOR THE OPERATION OF THE ORGANISED ELECTRICITY MARKET

I. GENERAL PROVISIONS

Article 1(Scope)

These Rules for the Operation of the Organised Electricity Market (hereinafter: the Rules) govern themethod for the implementation of public service obligations relating to the organisation of the electricitymarket in the part referring to:

- Balance Scheme management;

- Recording contracts of Balance Scheme Membership, open contracts and closed contracts(hereinafter: Recording of contracts);

- Imbalance Settlement;

- Financial settlement of imbalance settlement;

- Gathering and publishing data for providing transparency for the operation of the organisedelectricity market.

Article 2

(Meaning of Expressions)

Expressions used in the Rules shall have the following meanings:- Balance Subgroup: Is a group of Balance Scheme Members. Its peak is represented by a

Balance Responsible Party which is followed by any number of hierarchically inferior BalanceGroup Members. A Balance Subgroup is formed on the basis of a Compensation Agreement forthe purpose of delivering balancing energy and the settlement of unmatched balances.

- Balancing Agreement: Balancing Agreements are legal transactions and other relations whichlegal and natural persons use to manage the delivery of balancing energy and financial settlementof the imbalances with the Market Operator, which includes the legal or natural person in aBalance Scheme as a Balance Responsible Party, and help them acquire membership status in a

Balance Scheme.


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- Balancing Affiliation: Represents the affiliation of the Delivery point to the individual BalanceScheme Member which is established with the recording of an open contract.

- Balance Scheme: Is the hierarchical arrangement of the organised electricity market where therelationships among Balance Scheme Members and management of revenue and expenditureaccounts of Balance Scheme Members are uniformly defined with Balance Scheme Membership

Contracts.- Balance Group: Is a group of Balance Scheme Members. Its peak is represented by a Balance

Responsible Party which is followed by any number of hierarchically inferior Balance GroupMembers. A Balance Group is formed in accordance with the Balancing Agreement for thepurpose of delivering balancing energy, the operation of the Balance Responsible Party on theorganised market with regulation of balance responsibility, risk management and control ofimbalances of the Responsible Party and of the hierarchically inferior members of the BalanceGroup.

- Imbalance Settlement: Is a clearing of balance groups, within which the amount of imbalances isdetermined and calculated by comparing the market plan of balance groups and their entirerealisation. Besides the amount of imbalances, the imbalance settlement also includes the

financial values of imbalances.- Total operational Forecast of a Balance Group: Is an aggregated operational forecast of a

Balance Group, calculated by the Market Operator with the aggregation of reported operationalforecasts for delivery points which belong to the Balance Group and any hierarchically inferiormember of their Balance Group.

- Balance Scheme Members: Are Balance Responsible Parties and Balance SubgroupResponsible Parties.

- Deposit Account: Is an account opened at the Settlement Bank by the Market Operator and isintended for submitting financial guarantees by Financial Settlement Participants.

- Energy Exchange: Shall mean an organised exchange of demands and offers regarding theelectricity supply and energy products and trading in standardised products within a certaintimeframe, enabling any participant in the exchange to participate on equal conditions, andproviding a transparent and non-discriminatory formation of the price concluded;

- Record of Open Contracts: Is a uniform record of validly registered open contracts, whoseconstitutive parts are the list of Delivery Points and their affiliation to the particular BalanceScheme Member.

- Record of Balance Scheme Membership Agreements : Is a register of validly registeredBalancing Agreements and Compensation Agreements, whose constitutive parts are the list of theBalance Scheme Members and the Balance Scheme itself.

- Record of closed contracts with the use of cross-border transmission capacities: Is a list ofrecorded closed contracts with the use of cross-border transmission capacities at each state

border.- Record of Closed Contracts: Is the record of validly recorded Closed Contracts.- Recording: Is the entry of legally relevant facts of (fictional) contractual relationships of Balance

Scheme Members to the register of the organised market.- Financial Guarantee: Represents the warranty which should be submitted by Financial

Settlement Participants to ensure the execution of their financial liabilities.- Variable Financial Guarantee: Is the guarantee calculated by the Market Operator on the basis

of additional exposure of the Financial Settlement Participant.- Hierarchically Inferior Balance Scheme Member: Is each hierarchically inferior Balance

Scheme Member including all hierarchically inferior Balance Subgroup Members.- Final Operating Schedule: Is an indicative operating schedule, supplemented with data on

technical restrictions and system services on the part of the Transmission System Operator.


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- Control Market Plan: Is a plan of a Balance Groups position on the organised market for eachaccounting interval and represents an outcome of all closed contracts of a Balance Group. Acontrol market plan is made by each Balance Group which must report it to the Market Operator.

- Net Debtor: Is a Financial Settlement Participant, whereby in a certain accounting period thevalue of positive imbalances is higher than the value of negative imbalances in the imbalance

settlement.- Net Creditor: Is a Financial Settlement Participant, whereby in a certain accounting period the

value of negative imbalances is higher than the value of positive imbalances in the imbalancesettlement.

- Operational Forecast: Is a forecast of supply and consumption of electricity of each BalanceScheme Member for delivery points for which open contracts were concluded.

- Balance Subgroup Responsible Party: Is a legal or natural person who, by signing theCompensation Agreement, forms a Balance Subgroup and is responsible to a hierarchicallysuperior Balance Scheme Member and to the Market Operator for the reporting of closedcontracts, operational forecasts, balancing of electricity, and for the exchanging of relevantinformation with the Market Operator.

-Balance Responsible Party: Is a legal or natural person who, by signing the Balancingagreement, forms a Balance Group and is responsible to the Market Operator for the reporting ofclosed agreements, operational forecasts, imbalance settlement, and for the exchanging ofrelevant information with the Market Operator.

- Open Contracts: Are legal transactions and other relations defining the balancing affiliation of thedelivery points. Open Contracts can be Supply Agreements or Virtual Open Contracts.

- Indicative Operating Schedule: Is an operating schedule of the transmission and distributionnetwork, calculated and drawn up by the Market Operator on the basis of the reported closedcontracts.

- Organised Market: Is the electricity market in the Republic of Slovenia.- Basic Financial Guarantee: Is a basic financial guarantee of the Financial Settlement

Participants financial liabilities deriving from his liabilities for the imbalance costs. - Supply Agreement: Is an Open Contract concluded between a supplier and an owner/holder of a

delivery point, acting as a consumer or producer, the subject of which shall be the supply orconsumption of electricity at the delivery points, defined in the Agreement, which constitutesaffiliation of the delivery point with the supplier.

- Compensation Agreement: A Compensation Agreement is a legal transaction and other relationused by a legal and natural person for managing the delivery of balancing energy and settlementin case of an unmatched balance, by which a legal or natural person is included in a BalanceScheme as a Balance Subgroup Responsible Party and acquires membership status in a BalanceScheme.

-

Balance Scheme Membership Agreements: Are Balancing Agreements and CompensationAgreements on the basis of which the Market Operator includes any legal or natural person in theBalance Scheme.

- Settlement Bank: Is a business bank through which the financial settlement of liabilities isexecuted, deriving from the imbalance settlement, and where the submission of financialguarantees in the form of a deposit takes place.

- Clearing Day: Is a business day, set for the settlement of financial liabilities of the imbalancesettlement.

- Settlement Account: Is an account, opened at the Settlement Bank, through which the financialsettlement of an imbalance settlement takes place.

- Settlement Agreement: Is an agreement concluded between the Market Operator and a

Financial Settlement Participant and which states the customers rights and liabilities which arisefrom said customers participation in the financial settlement of an imbalance settlement.


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- Delivery Point: Is a point at which the supply and consumption of electricity takes place and forwhich an operational forecast is reported. A delivery point is a physical point in the system fittedwith measuring equipment which is prescribed by the System Operator and which providesinformation on the realised delivery and consumption of electricity for an individual delivery pointin an individual accounting interval.

-TISMO: Is the computer assisted technical information system of the Market Operator whichenables the exchange of data with the Market Operator.

- Market Plan: Is a plan of an individual Balance Scheme Members position on the organisedmarket for each accounting interval and is an outcome of all Closed Contracts concluded by aBalance Scheme Member. The plan is made by the Market Operator on the basis of concludedClosed Contracts.

- Financial Settlement Participant: Is the Balance Responsible Party which signs the SettlementAgreement with the Market Operator in order that the Market Operator provides settlement of hisfinancial liabilities and receivables in compliance with the Settlement Agreement and theseInstructions.

- Participant of the Organised Market: Is a legal or natural person who operates on the

organised electricity market.- Force Majeure: Shall be: unexpected natural events, which have the characteristics of a natural

disaster (floods, earthquakes, fires and similar) and other events which cannot be foreseen,prevented, eliminated or avoided;

- Operating Schedule of Exchanges with Other Countries: Is an aggregated operating scheduleof exchanges of electricity with neighbouring countries, calculated by the Market Operator with theaggregation of closed contracts with the use of cross-border transmission capacities at theindividual state border.

- Operating Schedule of the Transmission System Operator: Is an aggregated operatingschedule of the transmission network, calculated by the Market Operator with an aggregation ofrecorded operational forecasts of all delivery points in the transmission network.

-Operating Schedule of the Distribution Network Areas: Is an aggregated operating scheduleof the distribution network areas, calculated by the Market Operator with an aggregation ofrecorded operational forecasts of all delivery points in the individual distribution network area.

- Closed Contracts: Are legal transactions or other relationships among the Balance SchemeMembers of the organised electricity market, whereby the amount of supplied electricity in arelevant time period is fixed for each accounting interval. Closed Contracts include closedcontracts and virtual closed contracts. Closed Contracts with the use of cross-border transmissioncapacities also fall within the heading of Closed Contracts and are considered as ClosedContracts for the delivery of electricity across Slovenian borders to which the rights of cross-border transmission apply as well.

II. OPERATION OF THE ORGANISED ELECTRICITY MARKET

Article 3(Participants of the Organised Market)

(1) Participants of the organised market are:

- Producers;

- Consumers;

- Traders, market representatives and market intermediaries;

- Suppliers;

-

Energy Exchange; and


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- Commercial public service providers from Article 20 of the Energy Act (Official Gazette no.27/2007 official consolidated text and no. 70/2008, 22/10 and 37/11 (Constitutional CourtDecision) hereinafter: the Energy Act) within the framework and for the purpose ofcommercial public service provision.

(2) Participants of the organised market who wish to operate on the organised market actively and

assume any responsibilities arising from the balancing and financial settlement in case of an unmatchedbalance must be included in the Balance Scheme.

(3) The Market Operator is obliged to conclude a Balancing Agreement with each participant of theorganised market or to include each market participant which meets all conditions laid down in theEnergy Act, in the Decree on the method for the implementation of public service obligations relating tothe organisation of the electricity market (Official Gazette No. 8/2009), and in the Rules to the BalanceScheme on the basis of a Compensation Agreement.

(4) The Market Operator can include the market participant in the Balance Scheme with a writtendecision if its membership in the Balance Scheme is obligatory pursuant to the Energy Act.

Article 4(Structure of the Organised Market)

(1) The organised market it is operated with:

- Balance Scheme Membership contracts;

- Direct operations with Open and Closed Contracts, and indirect operations throughintermediaries or on the Energy Exchange;

- Transactions on forward, daily, and intra-day markets;

- Transactions on the balancing market and other system service markets.

(2) The organised market is hierarchically arranged into a Balance Scheme where the relationshipsamong Balance Scheme Members and the management of their balance of inflows and outflows are

uniformly defined with Balance Scheme Membership Agreements.(3) The following contracts represent the basic types of legal relationship on the organised market:

- Balance Scheme Membership Agreements;

- Open Contracts; and

- Closed Contracts.

Article 5(Register of the Organised Market)

(1) The Balance Scheme Membership Agreements, Open Contracts, and Closed Contracts are

recorded in the organised market register (hereinafter: the Register) according to the Rules.(2) The Register is the basic element of the organised market and serves as the basis for carrying outthe fulfilment of the commercial part of concluded electricity transactions.

(3) Contracts from the first paragraph of this Article which are not recorded in the Register according tothe Rules shall be considered non-existent.

Article 6(Market Operator)

(1) The Market operator manages the organised market in the Republic of Slovenia as a commercialpublic service provider of the organised electricity market, where his basic functions are the setting up of

rules for the operation of the electricity market and the risk management of the organised market as awhole.


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(2) The Market Operator shall act to the benefit of all Balance Scheme Members and is forbidden fromacting on the organised market as a Balance Scheme Member on his own behalf and for his ownaccount, except within the framework of a commercial public service provision.

(3) The Market Operator shall publish market relevant information from the field of electricity supply byelectronic means.

(4)

The Market Operator ensures effective communication with Balance Scheme Members. For thispurpose, he can invite the Balance Scheme Members to jointly address specific issues regarding themanagement of the organised market.

Article 7(Actions on the Organised Market)

(1) The operation of Balance Scheme Members on the organised market must be in compliance withvalid regulations and the Rules at all times.

(2) Balance Scheme Members must act professionally and in compliance with good business practicesand are not allowed to make use of any unsuitable or unreasonable business methods on the organised

market.

(3) Upon a written request from the Market Operator, the Balance Scheme Member must provide, inthe shortest possible time, all data and documentation including all contracts which the BalanceScheme Member has concluded on the organised market and which are important for the provision ofthe smooth operation of the organised market and risk management on the organised market as awhole. The contracts must clearly show, at least: the contracting parties, the type of contract, the timeframe, the quantities, the validity of the contract and other elements which influence the implementationof the tasks by the Market Operator.

Article 8

(Technical Information System of the Market Operator)(1) The Technical Information System of the Market Operator (hereinafter: TISMO) is a computersupported information system of the Market Operator which enables the exchange of data with theMarket Operator in compliance with valid regulations and the Rules.(2)Access to TISMO and its use are made available by using personal identification data that enableits use within the authorisation limits. Personal identification data can only be used by their holders towhich these data were issued and who are obliged to protect them against unauthorised access by thirdparties and which should, under no circumstances, be revealed to any third party. Any violations mustbe reported to the Market Operator immediately.(3) In case of any abuse due to the inappropriate protection of personal identification data, the holderwhose identification data was abused is deemed responsible, or the employee of the Market Operator, ifthey are equally responsible for the abuse.(4)Any errors, technical difficulties or difficulties in working with TISMO shall be communicated byBalance Scheme Members to the Market Operator directly via telephone, fax or e-mail. A description ofany errors or technical difficulties should be delivered by Balance Scheme Members to the MarketOperator in writing as soon as possible.(5) The Market Operator shall maintain and upgrade TISMO simultaneously in order to reach the levelof the latest technological achievements. The Market Operator shall be required to inform the BalanceScheme Members of any such adjustments at least eight (8) days before such changes take effect.(6) Balance Scheme Members shall be solely accountable for the operation and maintenance of theirown information systems, i.e. their hardware, software, and communication equipment, to reach a level

that enables them to communicate with TISMO in an appropriate manner.


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Article 9(Services Regarding Communication and Dissemination of Information about Network Operation)

(1) With these Rules, the Market Operator defines the liabilities of the System Operators regarding thedissemination of information and data which are necessary for performing the duties of public utilityservice for electricity market operation and for the transparent operation of the electricity market.

(2) Information and data referred to in the previous paragraph shall, in particular, be:

- Data on Balance Scheme Members who hold contracts regarding regulated energy supplywith the Transmission System Operator, about the technical particularities of the provisionof regulated energy, and about the duration of these contracts;

- System balancing according to business operations and intervals;

- The residual diagram for individual distribution areas;

- Exercised rights to use cross-border transmission capacities;

- The quantities of realised electricity exchange at the borders with neighbouringTransmission System Operators;

-

Execution of load restrictions and base power reduction;- Electricity losses in the system.

(3) System Operators must promptly update and publish data on planned repairs, network upgrades,quantities of cross-border transmission capacities, and failures.

III. BALANCE SCHEME

Article 10(Balance Scheme)

(1) A Balance Scheme is a hierarchical structure of contractual and virtual contractual relations on the

organised market, whose peak is defined by the Balancing Agreements, concluded with the MarketOperator.

(2) In the Balance Scheme, the relations among Balance Scheme Members and the management oftheir balances of inflows and outflows are uniformly defined by Balance Scheme Membership

Agreements.

Article 11(Balance Scheme Membership)

(1) A member of the Balance Scheme shall be any natural or legal person who is uniformly included inthe Balance Scheme by the Market Operator upon request and on the basis of the Balance Scheme

Membership Agreement or upon a written decision issued by the Market Operator.(2) System Operators are Balance Scheme Members within the framework of a public utility servicerelating to the activity of the System Operator.

(3) A Market Operator is a Balance Scheme Member within the framework of a public utility servicerelating to the organisation of the electricity market.

(4) The Energy Exchange Operator is a Balance Scheme Member for the purpose of providing thebalancing of transactions concluded on the Energy Exchange.

(5) Any natural or legal person may be included in the Balance Scheme as a Balance Scheme Memberon the basis of only one Balancing Agreement or one Compensation Agreement, with the exception ofpublic utility service providers from Article 20 of the Energy Act who may form separate Balance

Subgroups besides their own mandatory Balance Group for the purposes of performing the activities inthe scope of a public utility service.


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(6) The Market Operator is allowed to form individual Balance Scheme Members with a special statusfor the purpose of performing the activities in the scope of a public utility service.

Article 12(Balance Scheme Members)

(1) Balance Scheme Members shall be the following:

- The Balance Responsible Party based on the Balancing Agreement concluded with theMarket Operator or upon a written decision, issued by the Market Operator;

- The Balance Subgroup Responsible Party based on the Compensation Agreementconcluded with the Balance Responsible Party or the Balance Subgroup Responsible Party,or upon a decision, issued by the Market Operator.

(2) Balance Groups and Subgroups shall be constituted by the Balance Responsible Party or BalanceSubgroup Responsible Party and by any number of hierarchically inferior Balance Group or SubgroupMembers.

a.

Balance Scheme Membership Agreements

Article 13(Balance Scheme Membership Agreements)

Balance Scheme Membership Agreements are Balancing Agreements and Compensation Agreementson the basis of which the Market Operator includes any legal or natural person in the Balance Scheme.

Article 14(Membership Categories in the Balance Scheme)

With regard to the type of membership agreement, the Balance Scheme Members are classified intotwo membership categories:

- Direct membership where the basis for including a member in a Balance Scheme is aBalancing Agreement; and

- Indirect membership where the basis for including a member in a Balance Scheme is aCompensation Agreement.

Article 15(Balancing Agreement)

(1)A Balancing Agreement is a legal transaction or other relation which legal and natural persons

utilise to manage the delivery of balancing energy and the financial settlement of the imbalances in caseof an unmatched balance with the Market Operator, by which the legal or natural person is included in aBalance Scheme as a Balance Responsible Party and acquires membership status in a BalanceScheme.

(2)A Balancing Agreement shall be concluded on the basis of a valid decision of the Market Operatoron accession to the Balance Scheme for an indefinite period of time and shall regulate the whole seriesof relations with regard to the establishment, charging, and responsibility for payments for imbalancesand for classifying the Balance Responsible Parties into a Balance Scheme.

(3)A Balancing Agreement shall include the following mandatory elements:

- Provisions on the financial settlement of imbalances;

-

Provisions on compulsory notification about the conclusion of the Compensation Agreementto the Market Operator;


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- The date of validity of the Balancing Agreement including the provision determining that theAgreement in question shall come into force only if the required financial guarantees havebeen submitted on time and the Balancing Agreement has been registered in the BalanceScheme Membership Agreement Registry.

(4)According to the Balancing Agreements, the Balance Scheme shall also include:

-

System Operators, wherein the subject of the Balancing Agreement shall be the imbalancesettlement of the System Operator and consequently its inclusion in the Balance Schemeas the Balance Responsible Party. This Balancing Agreement limits the operation of theSystem Operator on the organised electricity market to performing public serviceobligations relating to the System Operator exclusively;

- The Energy Exchange Operator, where the subject of the Balancing Agreement shall be therecording of energy transactions concluded on the Energy Exchange and thus inclusion inthe Balance Scheme as the Balance Responsible Party.

(5) In case a System Operator was not included in the Balance Scheme on the basis of the BalancingAgreement, the Market Operator shall include the System Operator in the Balance Scheme on the basis

ofthe Market Operators Decision and, providing that all relations between the Market Operator and theSystem Operator are settled, these relations shall be deemed equal to a concluded BalancingAgreement.

(6) The members of the Balance Scheme with a special status can be established by the MarketOperator on the basis of his decision, provided that the purpose of the establishment is a necessity forseparate balance-keeping under the heading of individual tasks of a public utility service relating to theorganised electricity market.

(7) Within its Balance Group, the Energy Exchange guarantees the balancing of all transactionsinvolving electricity concluded on the Energy Exchange.

Article 16(Balance Group)

(1)A Balance Group is established on the basis of the Balancing Agreement, except in cases where itcan be established in accordance with the Rules on the basis of the Market Operators Decision.

(2) A Balance Group is established for the purpose of delivering balancing energy, the operation of theBalance Responsible Party on the organised market with regulation of balance responsibility, riskmanagement and control of imbalances of the Responsible Party and of the hierarchically inferiormembers of the Balance Group and, as such, represents the subject of the imbalance settlement.

(3)A Balance Group shall be represented by the Balance Responsible Party who shall be responsiblefor:

-

Concluding a Balancing Agreement with the Market Operator;- Concluding a Settlement Agreement for the financial settlement of imbalances;

- Reporting of Compensation Agreements which form the basis for the establishment ofindividual hierarchically inferior members of a Balance Group and an adequate adjustmentof financial guarantees on the Market Operators call;

- A notification of concluded Closed Contracts for the entire Balance Group to the MarketOperator;

- A notification of concluded Delivery Agreements, namely the notifications on their ownsupply to the competent System Operators;

- A notification of operational forecasts of the delivery points belonging to them or to anyother hierarchically inferior members of the Balance Group to the Market Operator.


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(4) The provisions of this Article shall reasonably apply to the Balance Groups, established upon theMarket Operators decision.

Article 17(Termination of the Balancing Agreement)

(1) Upon a valid decision on exclusion from a Balance Group, the Market Operator can unilaterallyterminate a Balancing Agreement without notice.

(2) The termination of a Balancing Agreement referred to in the previous paragraph becomes effectiveon the day of issuing the Decision on exclusion from the Balance Scheme and with the entry of thetermination into the Record of Balance Scheme Membership Agreements.

(3)A Balance Responsible Party can terminate the Balancing Agreement if their obligations regardingthe imbalance settlement towards the Market Operator are settled and they have presented adequateguarantees for potential liabilities arising from the imbalance settlement, and

- They have no hierarchically inferior Balance Group Members, they are not a supplier to anyconsumer or producer, and they do not supply any self-owned delivery points, all of which

terminate their participation in a Balance Scheme; or

- They conclude a Compensation Agreement which becomes a new foundation for theirmembership in a Balance Group or Subgroup, which makes them the Balance SubgroupResponsible Party.

(4) The termination of a Balancing Agreement referred to in the previous paragraph becomes effectiveon the basis of an issued Market Operators decision on exclusion from the Balance Scheme, on thebasis of entry of the termination into the Record of Balance Scheme Membership Agreements, and onthe enforcement day.

(5) The enforcement day referred to in the previous paragraph shall be:

- The first (1st) day of the month following the month of entry of the termination into the

Balance Scheme Membership Agreement Registry, if the complete report of withdrawal wasperformed with the Market Operator not later than the tenth (10th) day of that same month;or

- The first (1st) day of the second (2nd) month following the month of registering thetermination into the Balance Scheme Membership Agreement Registry, if the completereport of withdrawal was performed with the Market Operator after the tenth (10th) day ofthat same month; or

- The first (1st) day of the first (1st) month following the expiry of the notice period, longer thantwenty (20) days.

Article 18(Compensation Agreement)

(1) A Compensation Agreement is a legal transaction and other relation used by a legal and naturalperson for managing the delivery of balancing energy and a settlement in case of an unmatchedbalance, by which a legal or natural person is included in a Balance Scheme as a Balance SubgroupResponsible Party and acquires membership status in a Balance Scheme.

(2) The Market Operator may establish Balance Scheme Members with a special status on the basis ofhis decision, provided that the purpose of establishment is a necessity for separate balance sheetkeeping under the heading of individual tasks of a public utility service.

(3) System Operators are not allowed to include other Balance Scheme Members in their own Balance

Group.(4) A Compensation Agreement shall include the following mandatory elements:


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- The date of entry into force of the Compensation Agreement including the provisiondetermining that the Agreement in question shall become effective not earlier than on theday of entry of the essential elements into the Balance Scheme Membership AgreementRegistry;

- Date of expiry of the Compensation Agreement which can only be on the last day of the

month, or a provision of its indefinite-time validity;- A provision on obligation to obtain consent from the Balance Responsible Party for the

establishment of a hierarchically inferior Balance Group Member;

- Provisions on reasons for termination with a notice period which should not be shorter thantwenty (20) days;

- Provisions on compulsory notification about the conclusion of the CompensationAgreements to the Market Operator;

- A clause stipulating that the Balance Scheme Member has included a hierarchically inferiorBalance Scheme Member in its own Balance Group or Subgroup as the responsibility of thehierarchically inferior Balance Subgroup;

-

A clause stipulating that the balance of the Balance Subgroup of the hierarchically inferiorBalance Scheme Member is settled through the balance of the Balance Group or Subgroupof the hierarchically superior Balance Scheme Member;

- A clause stipulating that the Compensation Agreement regulates the contractingrelationship between the market participants in accordance with the Rules and that itcontains all elements, required under the Rules.

(5) The Balance Responsible Party shall be obliged to inform the Market Operator about the conclusionof a Compensation Agreement which is the basis for the establishment of the hierarchically inferiormembers of the Balance Group and is obliged to submit a copy of the Compensation Agreement and awritten statement on agreement with the establishment of the Balance Subgroup in question.

Article 19(Balance Subgroup)

(1)A Balance Subgroup shall be established on the basis of a Compensation Agreement.

(2)A Balance Subgroup is established for the purpose of delivering balancing energy, the operation ofthe Balance Subgroup Responsible Party on the organised market with regulation of balanceresponsibility and risk management and control of imbalances of the Responsible Party and of theBalance Subgroup members and, as such, it represents an aggregation subject within the framework ofthe Balance Group or Subgroup.

(3) The prerequisite to obtain Balance Responsible Party status or Balance Subgroup Responsible

Party status in case of transition among Balance Groups or Subgroups is the expiration of a BalanceScheme Membership Agreement, which was the foundation for the inclusion of the Party before thetransition.

(4) Balance subgroups shall be represented by the Balance Subgroup Responsible Party, who shall beresponsible for:

- The conclusion of a Compensation Agreement with the Balance Responsible Party or theBalance Subgroup Responsible Party;

- The exchange of data with the Balance Responsible Party or Balance SubgroupResponsible Party;

- The notification of concluded Closed Contracts to the Balance Responsible Party orBalance Subgroup Responsible Party;


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- A notification of operational forecasts for the delivery points that belong directly to him or tothe Balance Scheme Members in his Balance Subgroup to the Balance Responsible Partyor Balance Subgroup Responsible Party;

- The reporting of concluded Supply Agreements, namely notifications on their own supply tothe competent System Operators.

Article 20(Termination of a Compensation Agreement)

(1)A Balance Responsible Party or Balance Subgroup Responsible Party may terminate aCompensation Agreement with a hierarchically inferior Balance Scheme Member in accordance with thereasons for termination stipulated in the Compensation Agreement.

(2) The Balance Subgroup Responsible Party may terminate the Compensation Agreement inaccordance with the agreed reasons for termination and provided that their obligations towards thehierarchically superior Balance Scheme Member regarding the imbalance settlement is settled and theyhave submitted adequate financial guarantees for potential liabilities arising from the imbalance

settlement, and- They have no Balance Subgroup Members, they are not a supplier to any consumer or

producer, and they do not supply any self-owned delivery points, all of which terminate theirmembership in the Balance Scheme; or

- They conclude a Balancing Agreement with the Market Operator or conclude a newCompensation Agreement with another Balance Scheme Member which forms thefoundation for their participation in the Balance Group or Subgroup thus retaining the statusof Balance Scheme Member.

(3)A Balance Responsible Party or Balance Subgroup Responsible Party must notify the MarketOperator about the termination of the Compensation Agreement which has been concluded with the

hierarchically inferior Balance Scheme Member.(4) Termination of the Compensation Agreement shall come into force with the entry of the terminationin the Record of Balance Scheme Membership Agreements on the enforcement day.

(5) The enforcement day referred to in the previous paragraph shall be:

- The first (1st) day of the month following the month of entry of the termination into theBalance Scheme Membership Agreement Registry if the complete report of the terminationof the Compensation Agreement was performed with the Market Operator not later than thetenth (10th) day of that same month; or

- The first (1st) day of the second (2nd) month following the month of entry of the terminationinto the Balance Scheme Membership Agreement Registry if the complete report of the

termination of the Agreement was performed with the Market Operator not later than thetenth (10th) day of that same month; or

- The first (1st) day of the month following the expiry of the notice period if this day occurssubsequently.

Article 21(Transitions between the Balance Groups and Balance Subgroups)

(1) The transition of Balance Scheme Members among the Balance Groups or Subgroups can occur inthe following cases:

- Transition due to the termination of a Balance Agreement and with the conclusion of a

Compensation Agreement;


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- Transition due to the expiration or termination of a Compensation Agreement and with theconclusion of a Balancing Agreement or a new Compensation Agreement

- In other cases of implementing a commercial public service relating to the organisation ofthe electricity market.

(2) With transitions of Balance Scheme Members among the Balance Groups or Subgroups:

-

In case of the transition of a Balance Responsible Party or a Balance SubgroupResponsible Party, the relations among the previously existing Balance Group or SubgroupMembers do not change;

- In case of the transition of the supplier, the relations among the existing consumers and/orproducers do not change;

- In case of the transition of the supplier, which supplies its own delivery points, the supply tothese delivery points does not change.

(3) In case of transition between Balance Groups or Balance Subgroups because of withdrawal fromthe Compensation Agreement or in case of transition because of the expiry or termination of theCompensation Agreement with the conclusion of the Balancing Agreement or a new Compensation

Agreement, the transition takes effect on the basis of entry in the Balance Scheme MembershipAgreement Registry on the enforcement day which shall be

- The first (1st) day of the month following the month of entry to the Balance SchemeMembership Agreement Registry on the basis of the concluded Balancing Agreement or acomplete report of a new Compensation Agreement to the Market Operator if the Balancing

Agreement has been concluded or the Compensation Agreement has been fully reportednot later than the tenth (10th) day of that same month; or

- The first (1st) day of the second (2nd) month following the month of entry to the BalanceScheme Membership Agreement Registry on the basis of the concluded Balancing

Agreement or a complete report of a new Compensation Agreement to the Market Operatorif the Balancing Agreement has been concluded or the Compensation Agreement has beenfully reported after the tenth (10th) day of that same month; or

- The first (1st) day of the first (1st) month of the application of the Balancing Agreement or anew Compensation Agreement if this day occurs subsequently.

(4) In other cases of the transition of Balance Scheme Members with a special status within theframework of a commercial public service relating to the organisation of the electricity market, thetransition takes effect on the basis of entry in the Balance Scheme Membership AgreementRegistry on the enforcement day which shall be:

- The first (1st) day of the month following the month of entry in the Balance SchemeMembership Agreement Registry; or

- The first (1st) day of the first (1st) month of the application of the Balancing Agreement or a

new Compensation Agreement if this day occurs subsequently.

b. Open Contracts

Article 22(Open Contracts)

(1) Open Contracts are legal transactions and other relations defining the balancing affiliation of thedelivery points.

(2) Open Contracts include Supply Agreements or Virtual Open Contracts.

(3)

The realisation of the delivery points is given consideration in the balance of the Balance SchemeMember with which it has balance affiliation.


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(4) Realisation of a delivery point which has more than one supplier shall be taken into consideration inthe balance of the Balance Scheme Member to which it has balance affiliation in a share that a suppliercovers.

Article 23

(Supply Agreement)

(1) A Supply Agreement is an Open Contract concluded between a supplier and an owner/holder of adelivery point, acting as a consumer or producer, the subject of which shall be the supply or receipt ofelectricity at the delivery points, defined in the Contract which constitutes a balancing affiliation to thesupplier.

(2) Only a Balance Scheme Member may conclude a Supply Agreement with the owner/holder of thedelivery point.

(3) A Supply Agreement shall include the following mandatory elements:

- Identification reference of the Balance Scheme Member, which is a supplier;

- Identification reference of the delivery points which are the subjects of the delivery;

- The date of entry into force, including the provision determining that the said Agreementshall become effective not earlier than on the day of entry of the essential elements in theRecord of Open Contracts;

- Date of expiry, which can only be on the last day of the month, or a provision of itsindefinite-time validity;

- Provisions on the reasons for termination with defined periods of notice;

- Provisions on informing the competent System Operators;

- Share of balancing affiliation, if a delivery point belongs to more than one supplier.

(4) The Open Contract may come into force only on the first (1st) day of the month, except in the caseof a new Network Access Agreement or upon the changing of the owner/holder of the delivery point.

Article 24(Termination of the Supply Agreement)

The Termination of the Supply Agreement shall become effective on the basis of its entry in theRecord of Open Contracts on the enforcement day.

Article 25(Virtual Open Contracts)

(1) Virtual open contracts are legal transactions or other relations which may occur on the basis of:

- The fact that the delivery point is the part of the network/system managed by the SystemOperator and that the delivery point does not have balancing affiliation to another BalanceScheme Member;

- The fact that a delivery point delimits either two networks, managed by two different SystemOperators, or two distribution areas, managed by the same Distribution System Operator;

- A notification on self-supply;

- The occurrence of the after-effects of emergency supply in the Record of Open Contracts;

- The occurrence of the after-effects of essential supply in the Record of Open Contracts.

(2) The fact that the delivery point is the part of the network/system managed by the System Operatorand that the delivery point does not have balancing affiliation to another Balance Scheme Member is theinformation provided in the Registry of Open Contracts.


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(3) The delivery point delimiting two networks, managed by two different System Operators, ordelimiting two distribution areas, shall be deemed a part of both networks or areas for the purposes ofimbalance settlement.

(4)A notification on self-supply is a statement by the Balance Scheme Member whose subject is thesupply of electricity at the delivery points, defined in the statement, and thereby the establishment of

affiliation to the Balance Scheme Member which is unilaterally adopted by the Balance SchemeMember.

(5) The circumstances of the occurrence and after-effects of emergency supply and/or essential supplyin the Record of Open Contracts are defined by the Rules.

Article 26(Self-supply Notification)

(1) Self-supply notifications contain a statement by the Balance Scheme Members that the deliverypoints, specified in the statement, shall be supplied on their own. Notification also determines theaffiliation of the specified delivery points to the Balance Scheme Member in whose balance the

realisation of these delivery points is taken into account in its primary value.(2) The self-supply notification shall contain the following obligatory contents:

- An identification reference of a Balance Scheme Member;

- Delivery points which are the subject of the self-supply;

- A date of entering into force with a provision that the notification becomes valid at themoment when essential components are entered in the Record of Open Contracts.

(3) A Balance Scheme Member may start supplying his own delivery points no sooner than on the first(1st) day of the month, except in the case of a concluded new Network Access Agreement or upon achange in the ownership/holdership (Note: good word!) of the delivery point.

(4) As regards self-supply delivery points and within the meaning of these Rules, a Balance Scheme

Member shall have the status of supplier.

Article 27(Emergency Supply)

(1) Within the emergency supply, these Rules determine the rights and obligations of marketparticipants in times of certain incidents on the electricity market.

(2) Provisions on the emergency supply, according to these Rules, do not interfere with the rights andobligations of legal or natural persons regarding the conclusion of a Supply Agreement based on theprovisions on the emergency supply set out in the regulations which regulate the general requirementsfor the delivery and consumption of electricity of System Operators.

Article 28(Reasons for Occurrence of an Emergency Supply)

(1) The reasons for the occurrence of an emergency supply of delivery points is the termination ofvalidity of:

- The Balancing Agreement of the Balance Responsible Party in which the delivery pointshad balancing affiliation to the Balance Responsible Party or to the hierarchically inferiorBalance Scheme Members where the transfer of the Balance Responsible Party to anotherBalance Group or Subgroup was not conducted;


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- The Compensation Agreement of the Balance Responsible Party in which the deliverypoints had balancing affiliation to the Balance Responsible Party or to the hierarchicallyinferior Balance Scheme Members where the transfer of the Balance Responsible Party toanother Balance Group or Subgroup was not conducted or their own Balance Group hasnot been established;

-

The foundation of an affiliation of the delivery point without the carried out affiliation changeof a delivery point.

(2) The after-effects of the emergency supply in the Record of Open Contracts occur whenever it isconcluded that an individual delivery point has no affiliation.

(3) The emergency supply shall take effect with the date of fulfilment of all conditions for theemergency supply which had been entered in the record of open contracts.

Article 29(After-effects of Occurrence of an Emergency Supply in the Record of Open Contracts)

(1) In case of the occurrence of the emergency supply of a delivery point, the System Operator to

which a delivery point is connected is considered to be a supplier based on an emergency supply for theentire time for which the non-affiliation was determined.

(2) With the occurrence of the after-effects of an emergency supply, the actual realisation of a deliverypoint for the entire time of the determined non-affiliation is considered in the balance of a SystemOperator to which a delivery point is connected.

(3) When non-affiliation of the delivery point is determined without registration meters or the registrationinterval is longer than the accounting interval, the System Operator must carry out the reading of themetering point immediately. The reading of such a metering point must be carried out by the SystemOperator also in case of the termination of an emergency supply.

Article 30(Essential Supply)

(1) According to these Rules, an essential supply framework regulates the relationships which occurwhen the non-affiliation of a delivery point has been determined and the conditions for the essentialsupply have been met in the Record of Open Contracts.

(2) The System Operator shall notify the Market Operator in writing of the date of occurrence of theessential supply.

(3) The provisions of these Rules regarding essential supply do not interfere with other rights andobligations of the System Operators and consumers according to the general requirements for thedelivery and consumption of electricity of a System Operator to which a non-affiliated delivery point is

connected.

Article 31(After-effects of Occurrence of an Essential Supply)

With the occurrence of an essential supply, the actual realisation of a delivery point for the entire time ofthe determined non-affiliation is considered in the balance of a System Operator to which a deliverypoint is connected.

Article 32(Affiliation of a Delivery Point)

(1)

The affiliation of a delivery point is determined by:


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- The supply contract;

- The self-supply notification;

- The network of which areas it divides, or networks which it divides;

- The occurrence of an emergency supply; or

- The occurrence of an essential supply.

(2)A delivery point connected to the electricity transmission network can belong to more than onesupplier. However, a delivery point connected to the distribution network can only belong to onesupplier.

(3) Shares of suppliers for delivery points that have more than one supplier must be known in advance,and their total value in each accounting period must equal 100%. In case the total value of shares ofsuppliers equals more or less than 100 %, it shall be deemed that the delivery point has no balancingaffiliation.

(4) Delivery points can be a part of two different networks of System Operators if they:

- Divide two networks of different System Operators;

- Divide two networks that belong to a System Operator and a System Operator of a foreignneighbouring network.

(5)A delivery point can be a part of two different areas of a System Operator in cases where it dividestwo areas of the same System Operator.

c. Closed Contracts

Article 33(Closed Contracts)

(1) Closed contracts are legal transactions or other relations among Balance Scheme Members of theorganised electricity market where the amount of supplied electricity in a relevant time period is fixed foreach accounting interval. Closed Contracts with the use of cross-border transmission capacities also fallwithin the category of Closed Contracts and are considered as Closed Contracts for the delivery ofelectricity across Slovenian borders to which the rights of cross-border transmission also apply.

(2) Closed Contracts include closed contracts and virtual closed contracts.

Article 34(Closed Contract)

A Closed Contract is:

- A contract concluded between two Balance Scheme Members for the supply of electricity

within Slovenian borders; or- A contract for the supply of electricity with the use of cross-border transmission capacities

concluded between a Balance Scheme Member and a neighbouring market participant(hereinafter: a Cross-border Contract).

Article 35(Virtual Closed Contract)

(1)A Virtual Closed Contract is:

- A cross-border electricity transmission of a Balance Scheme Member who is, at the sametime, also a participant in the neighbouring market, with the use of cross-border

transmission capacities (hereinafter: a cross-border transmission); and


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- The occurrence of after-effects of the exclusion of the Balance Scheme Member in theRecord of Closed Contracts.

(2) Cross-border electricity transmission consists of a report of cross-border transmissions made by aBalance Scheme Member who is also a neighbouring market participant, whereas the subject of thisreport is the transmission of certain amounts of electricity in certain accounting periods with the use of

cross-border transmission capacities.

Article 36(Occurrence of After-effects of Exclusion of a Balance Scheme Member in the Record of Closed

Contracts)

In case of the exclusion of a Balance Scheme Member, all Closed Contracts registered in the Record ofClosed Contracts where one of the contracting parties is the excluded Balance Scheme Member, arerepealed by the Market Operator with the registration of the opposite Closed Contracts of those BalanceScheme Members with whom the Closed Contracts were concluded, namely for the amounts in allaccounting intervals from the occurrence of the exclusion of the Balance Scheme Member.

d. Procedure for Acquisition of Balance Scheme Membership

Article 37(Request for Inclusion in Balance Scheme)

(1) A request for inclusion in the Balance Scheme (hereinafter: the Request) shall be submitted inwriting to the Market Operator directly.

(2) The Market Operator formulates the Request form and publishes it on its website.

(3) The Request has to include the supporting documents set out in the Rules, and other documentswhich prove that the applicant of the Request meets the requirements for inclusion in the Balance

Scheme.(4) The Market Operator may request that the applicant provide additional information or documents tosupport the merits of his inclusion in the Balance Scheme.

Article 38(Examination of Conditions for Inclusion in Balance Scheme)

(1) Upon receipt of the Request, the Market Operator shall first verify:

- Whether the Request has been submitted on a prescribed form;

- Whether all required data are provided in the form;

-

Whether all required documents are enclosed with the Request;- Whether the Balance Responsible Party has submitted a written statement referred to in

Paragraph 5 of Article 18 of these Rules in case of a request for the inclusion of the MarketParticipant as the Balance Subgroup Responsible Party.

(2) In case the Request does not comply with the conditions referred to in the previous paragraph, theMarket Operator shall invite the applicant to eliminate the shortcomings within fifteen (15) days.

(3) In case the Balance Responsible Party has not submitted a written statement from Paragraph 5 ofArticle 18 of these Rules, the Market Operator shall invite him to clear this up within fifteen (15) days.

(4) If the applicant eliminates the shortcomings within the determined period or the BalanceResponsible Party submits a written statement from Paragraph 5 of Article 18 of these Rules, therequest shall be deemed submitted on the day of submission of the application when the shortcomingswere eliminated.


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(5) If the applicant fails to eliminate the shortcomings or the Balance Responsible Party fails to submita written statement from Paragraph 5 of Article 18 of these Rules within the defined period, the MarketOperator shall dismiss the request.

(6) The Market Operator shall begin the process for substantive consideration of the request anddecide on the matter if, after formal verification of the request, the latter was not dismissed by a

decision.(7) The Market Operator shall issue a decision on the matter not later than within thirty (30) days ofreceipt of the complete Request, and shall either:

- Grant the request if it has been determined that all requisite conditions were met and set adate for inclusion in the Balance Scheme within a period of not longer than fifteen (15)days or in case of the transition between Balance Groups determine a date in accordancewith Article 21 of these Rules; or

- Dismiss the Request if it has been determined that not all the requisite conditions weremet.

(8) If the request is granted, no statement of reasons shall be required. The Market Operator shall

publish on its official website the inclusion of the new Balance Scheme Member in the Balance Scheme.(9) If the Request is dismissed or rejected, the decision requires a statement of reasons.

Article 39(Responsibility of Balance Scheme Members)

(1) A Balance Scheme Member shall bear objective responsibility for any loss or damage (including thecosts incurred in the process) caused by breaking the applicable Rules.

(2) A Balance Scheme Member shall not be responsible for any potential loss or damage incurred dueto the performing of any doings or omissions that are regulated by the Rules, providing their actionswere not intentional or a result of serious negligence.

(3)A Balance Scheme Member shall in no case be liable for payment of compensation for indirect loss

or consequent damages (including loss of profit or an agreement), provided their actions were notintentional or a result of serious negligence.

e. Termination of Balance Scheme Membership

Article 40(Termination of Balance Scheme Membership)

(1) Balance Scheme Membership shall cease:

- With the withdrawal of the Balance Scheme Member if the Balance Scheme Membersubmits a written notice to the Market Operator stating that they wish to withdraw from theBalance Scheme or from a certain category of the membership;

- With the exclusion of the Balance Scheme Member on the basis of the Market Operator'sdecision on said exclusion;

- With the occurrence of legal consequences deriving from the bankruptcy or liquidation of aBalance Scheme Member;

- If a Balance Scheme Member ceases to exist.

(2) The Market Operator publishes the termination of the Balance Scheme Membership on its officialwebsite.


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Article 41(Exclusion of a Balance Scheme Member and the Reasons for Said Exclusion)

(1) The Market Operator shall exclude a Balance Scheme Member either from certain categories withina Balance Scheme Membership or from the Balance Scheme as a whole.

(2)

Based on the reason for exclusion, the Market Operator shall exclude a Balance Scheme Membereither permanently or for a definite period of time.

(3) The Market Operator shall exclude a Balance Scheme Member:

- If the Balance Scheme Member loses the right to be a Balance Scheme Member due tothe withdrawal of a licence to pursue activities required according to the applicable law forthe admission to the organised market, or due to any other reasons;

- If the Balance Scheme Member was admitted on the basis of untrue or false information;

- If the Balance Scheme Member ceases to comply with the required conditions forparticipation in a Balance Scheme;

- If the Balance Scheme Member breaks these Rules;

-

If the Balance Scheme Member fails to enable the examination of the dossier relating tothe transactions concluded on the organised market in a supervision procedure;

- Upon request from the Energy Agency.

(4) The Market Operator can exclude a Balance Scheme Member:

- If the Balance Scheme Member falls behind with the payment of the reimbursement for theservices rendered and when the said reimbursement is not paid within eight (8) days afterreceipt of a payment reminder;

- If the Balance Scheme Member runs late with the payments for the reimbursement of theMarket Operators services more than four times during six (6) months;

- If the Balance Scheme Member fails to provide technical, personnel, and other conditions

required according to these Rules for the use of TISMO or the compensation system, andfails to eliminate the breach within eight (8) days after receipt of an appeal for theelimination of the breach from the Market Operator;

- If the Balance Scheme Member fails to submit financial guarantees required by the MarketOperator within the prescribed time;

- If the Balance Scheme Member fails to conclude an annex to the CompensationAgreement within eight (8) days upon the Market Operators call;

- If any other reason for exclusion, defined in the Rules relating to membership in theBalance Scheme, should occur.

(5) Violation of Rules shall be deemed major when:

-

The Balance Scheme Member fails to eliminate a breach of the Rules important for theuninterrupted functioning of the organised market within fifteen (15) days of receipt of awritten warning from the Market Operator;

- If upon finding that an important breach of the Rules is an obvious responsibility of theBalance Scheme Member, the Market Operator shall deem such a Balance SchemeMember inappropriate and such a Member should no longer be part of the BalanceScheme.

Article 42(Decision-making on Exclusion)

(1)

The Market Operator makes a decision on the exclusion of the Balance Scheme Member in case ofa breach by the Balance Scheme Member.


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(2) The Market Operator shall decide in its decision whether the Balance Scheme Member should beexcluded only from certain categories of participation in the Balance Scheme or from the BalanceScheme as a whole and shall determine the duration of the exclusion.

(3) In case of the imposition of a permanent exclusion measure, the Member is not entitled to apply foradmittance to the organised market again.

Article 43(Temporary Exclusion)

(1) The Balance Scheme Member whom the Market Operator reasonably suspects of performingactions, prohibited by the Rules or any other instruments, can be, effective immediately, temporarilyexcluded by the Market Operator from the organised market or from a particular part of the organisedmarket.

(2) Temporary exclusion can last until the Market Operator reaches its final decision at the latest.

f. Procedure in Case of a Breach by the Balance Scheme Member

Article 44(Breaches by Balance Scheme Members)

A Balance Scheme Member breaches the Rules of the organised market if:

- They cease to meet the requirements for inclusion in the Balance Scheme;

- They breach the provisions of regulations in force applicable to the organised market andthe Rules;

- They breach the provisions of other regulations in force which can influence the BalanceScheme Members ability to act according to the Rules.

Article 45(Procedure)

(1) The Market Operator addresses the breaches of the Rules or other regulations in force concerninga Balance Scheme Members conduct on the organised market, decides on the liability of a BalanceScheme Member, and imposes disciplinary measures against an infringer.

(2) The Market Operator can authorise a special commission comprised of the Market Operator'semployees for the conduct of the entire procedure, for imposing measures against a Balance SchemeMember, or for individual actions within the procedure.

(3) The procedure against a Balance Scheme Member is imposed on behalf of another Balance

Scheme Member or upon the Market Operator's own initiative (hereinafter: the Procedure Proposer).The Market Operator can, at its own discretion, accede to the request for initiating the procedure as aco-proposer and amend it with an independent proposal.

(4) The Market Operator can unite the procedures provided against several Balance Scheme Membersinto a single procedure if the alleged breaches, in the judgement of the market Operator, arise fromsubstantially associated actions or suspensions.

(5) Parties to the Procedure are the Alleged Infringer and the Procedure Proposer.


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Article 46(Limitation Period)

(1) The Market Operator must initiate a procedure not later than one (1) year from the committedbreach. The limitation period is interrupted by every measure imposed by the Market Operator againstthe Alleged Infringer.

(2) After each interruption, the limitation period recommences; however, the procedure expires aftertwo (2) years since the breach was committed in all cases.

Article 47(Decision-making in a Procedure)

(1) The Market Operator makes a decision about a breach at a session where the right to participate isgiven to the parties of the procedure as well.

(2) The Alleged Infringer is notified in writing about the exact date and hour of the session, the natureof the alleged violation, the possibility of a written defence, and the right to participate at the session. A

notification about the exact date and hour of the session and the right to participate at the session issent to the Procedure Proposer as well.

(3) If the Alleged Infringer fails to attend the session despite a timely invitation, the Market Operatordiscusses his alleged violation in his absence and considers his written defence if it was submitted indue time.

(4) Before the session, the Alleged Infringer has to have at least fifteen (15) days available to preparefor the session. If the Alleged Infringer would like to submit a written defence, he has to forward it to theMarket Operator at least five (5) working days before the scheduled date of the session.

(5) If the Market Operator acts as the proposer or if the Procedure Proposer fails to attend the session,the Procedure Proposer or the Market Operator explains at the beginning of the session the reasons forinitiating the Procedure; afterwards, the Market Operator has to provide the Alleged Infringer or his

representative an opportunity to pronounce himself on the matter.

Article 48(Minutes)

(1) For the session, a minutes is taken down. The minutes has to include all important information toresolve the issue and adopt a decision.

(2) Instead of taking down the minutes simultaneously, it can be taken with the use of recordingdevices. In the latter case, the party to the procedure makes remarks to the minutes within three (3)days after receiving it.

(3) The minutes shall be signed by a Market Operator, the Alleged Infringer, if he was present at thesession, and the recording clerk.

Article 49(Issuing a Decision)

(1) After the Market Operator determines that the matter has been clarified, a decision on the matter ismade.

(2) The decision is issued in writing and at least within fifteen (15) days after the closure of the sessionor until the deadline for submitting additional evidence, according to the minutes, has expired.


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- Temporary or permanent exclusion from the operation on the organised market with thenotification of the decision to the Infringer and the termination of the contract regardingBalance Scheme membership.

IV. RECORDING OF CONTRACTS

Article 53(Record of Balance Scheme Membership Agreements)

(1) The Record of Balance Scheme Membership Agreements is a uniform record of validly recordedBalancing Agreements and Compensation Agreements, whose constitutive parts are the lists of theBalance Scheme Members and the Balance Scheme.

(2) The list of the Balance Scheme Members is divided into membership categories and shall bepublished on the Market Operators website promptly. Information on an individual Balance SchemeMember must include, at least:

- Registered name i.e. the name of the Balance Scheme Member;

-

Identification number of the Balance Scheme Member;

- Balance Scheme Membership category

(3)All changes to the registries referred to in the first paragraph of this Article are the result of entries ofthe Market Operator upon the complete notification of the Balance Scheme Member about the entry intoforce, the change, or the expiration of validity of Balance Scheme Membership Agreements.

(4) The Market Operator can deny the entry of the change in the Record on the basis of a receivednotice, because the notice is incomplete or because it does not include all required information, orbecause it was sent by an unauthorised person; the Market Operator shall inform the Balance SchemeMember accordingly.

(5) The Market Operator shall confirm the receipt of a complete notification by the Balance Scheme

Member through a return notice, upon receipt of which it becomes indisputable for the Balance SchemeMember that the content matter of the notification is in fact recorded in the Record.

(6) Every change, recorded in the Record, shall become effective with the occurrence of theenforcement day, determined by the Market Operator in accordance with these Rules.

(7) In addition to the basic elements, the Record shall include information relating to mandatorycomponents of the Balance Scheme Membership Agreements.

Article 54(Record of Open Contracts)

(1) The Record of Open Contracts is a uniform record of validly registered Open Contracts, whoseconstitutive parts are the lists of delivery points and their affiliation to a particular Balance SchemeMember.

(2) All changes to the records referred to in the previous paragraph are the result of entries of thecompetent System Operators upon the complete notification of the Balance Scheme Member about theentry into force, the change, or the expiration of validity of the Open Contract.

(3) The Record of Open Contracts and all related information shall be kept by the System Operators.

(4) Every change, recorded in the Record, shall become effective with the occurrence of theenforcement day in accordance with these Rules.

(5) The Record of Open Contracts shall include at least the following information:

- The list of delivery points:

o

Identification reference of the delivery point;


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o Type and/or role in the network;

o The System Operator to which it belongs;

o Distribution network area to which it belongs, if the delivery point is connected to adistribution network;

o Parties to the Network Access Agreement.

- The affiliation to an individual Balance Scheme Member:

o The date of receipt of a complete application to the System Operator;

o Date of entry into force of the Open Contract;

o The Balance Scheme Member to which the delivery point belongs;

o Mandatory contents of the foundation for the affiliation in accordance with theseRules.

(6) The System Operator must ensure the traceability of changes in the Record of Open Contracts in away which enables a detailed audit of:

- The entry of changes in the record (a history of changes in the record); and

-

The validity dates of individual data entered in the record (status history testified by therecord)

for each individual record entry.

(7) The System Operator must provide the Market Operator with constant and direct access to theRecord of Open Contracts, to all changes made in the Record of Open Contracts, and to all relatedinformation.

Article 55(Implementation of Changes in Delivery Points Affiliation)

(1) Changes in the affiliation of delivery points occur in the following cases:

-

Affiliation on the basis of the conclusion of a Supply Agreement or notification on the self-supply of a delivery point which was not subject to the supply prior to that;

- Regular change in the affiliation on the basis of a new Open Contract;

- The occurrence of after-effects of emergency or essential supply;

- The change of the affiliation when emergency or essential supply ends.

(2) The implementation of the change in the delivery points affiliation affects the Balance Schemewhen the change is entered in the Record of Open Contracts and when the enforcement day occurs,which is determined by the System Operator on the basis of a complete notification of the valid OpenContract in accordance with the regulations which regulate general conditions for the supply andconsumption of electricity.

Article 56(Record of Closed Contracts)

(1) The Record of Closed Contracts is a record of validly recorded Closed Contracts.

(2) All changes in the Record of Closed Contracts are the outcome of entries made by the MarketOperator about the essential elements and their changes, based on:

- The receipt of a complete report made by a Balance Scheme Member;

- The receipt of a complete report made by the Energy Exchange; or

- The entry of the Market Operator.

(3) The Market Operator can reject the entry of a change or the entry of the report of a Closed Contractin the Record of Closed Contracts on the basis of a received report, if:


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- It is incomplete or does not contain the required data;

- It was not sent in due time; or

- It was sent by an unauthorized person

upon which the Balance Scheme Member has to be notified through a return notice.

(4) The Market Operator confirms the receipt of a complete report sent by a Balance Scheme Memberwith a return notice, thus making it undisputable for the Balance Scheme Member that the content of thereport is entered in the Record of Closed Contracts.

Article 57(Person Responsible for Recording of Closed Contracts)

(1) The Balance Responsible Party is responsible for the reporting of all Closed Contracts concludedby him or by the members of his Balance Group on the organised market.

(2) A transaction concluded on the Energy Exchange, the subject of which is the delivery of fixedamounts of electricity in fixed accounting intervals, is entered in the Record of Closed Contracts on thebasis of the receipt of a complete report regarding the Closed Contract sent by the subject whoperforms the activities of the energy exchange.

(3) A transaction concluded on the balancing market is entered in the Record of Closed Contracts onthe basis of the Market Operators entry.

Article 58(Conditions for Recording Closed Contracts)

(1) The Closed Contract is entered in the Record of Closed Contracts on the basis of the receivedcomplete report from the Balance Scheme Member or on the basis of the Market Operators entry.

(2) The Closed Contract with the use of cross-border transmission capacities is entered in the Record

of Closed Contracts upon receipt of:- A complete report of a Balance Scheme Member and a complete confirmation of the

Transmission System Operator regarding the content of the report of a Balance SchemeMember; or

- A complete report of the Energy Exchange and a complete confirmation of theTransmission System Operator regarding the content of the report of the Energy Exchange.

(3) The declaration on the cross-border transmission of a Balance Scheme Member who is, at thesame time, a participant of the neighbouring market, is entered in the Record of Closed Contracts uponreceipt of a complete report of a Balance Scheme Member and a complete confirmation of theTransmission System Operator regarding the content of the Balance Scheme Member.

(4) Carried out regulation, carried out load restrictions, and the reduction of the base power are enteredin the Record of Closed Contracts upon receipt of a complete report of the Transmission SystemOperator.

Article 59(Prohibition of Netting Closed Contracts)

(1) Each individual Closed Contract has to be reported. A report on the balances of all ClosedContracts between two Balance Scheme Members is prohibited (prohibition of netting ClosedContracts).

(2) For the purpose of providing anonymity in Energy Exchange trading, the Energy ExchangeOperator can report the balances of all Closed Contracts between an individual Balance SchemeMember and the Energy Exchange Operator in an individual accounting interval.


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(3) The Energy Exchange Operator must provide the Market Operator with constant and direct accessto all data regarding the transactions concluded on the Energy Exchange.

Article 60(Reporting of Closed Contracts among Balance Scheme Members)

(1) Each Closed Contract may be recorded only between two Balance Scheme Members.

(2) Each Closed Contract is reported only by the contracting party who sells the electricity.

(3) Each Closed Contract with the use of cross-border transmission capacities is reported to TISMO bythe contracting party who concludes the contract as the Balance Scheme Member in the Republic ofSlovenia.

Article 61(Actions in Case of Report and Confirmation Mismatch)

(1) In the case of a report mismatch among contracting parties, the contracting party that buys

electricity is bound to notify the Market Operator about the mismatch not later than the deadline for thereport of Closed Contracts. In the latter case, the Market Operator shall invite the contracting parties toeliminate the mismatches.

(2) If the contracting parties cannot reach an agreement on the reporting of a Closed Contract, theMarket Operator records, as a valid report, the quantities as they result from the complete confirmationof the buyer regarding the content on the report of the seller.

(3) In the case where the contracting party that buys electricity does not notify the Market Operatorabout the mismatch it shall be deemed that it acknowledges the content of the report.

Article 62(Content of Recording of Closed Contracts)

(1) The Record of Closed Contracts records the following essential components of an individual ClosedContract:

- For all closed contracts:

o The identification reference of the Balance Scheme Members whose balance is beingdirectly affected by a Closed Contract;

o Quantities of supplied electricity in an individual accounting interval;

o The content and time of receipt of the complete reports or entries of the MarketOperator and confirmation of the reports which form the basis for recording a ClosedContract;

o

Other essential elements.- For Closed Contracts with the use of cross-border transmission capacities also:

o The essential contents of utilising the rights to use cross-border transmissioncapacities;

o Other essential elements.

(2) Reported quantities in the Closed Contracts must be expressed in MWh. All values must berounded to one decimal place.

(3) Reported quantities in the Closed Contracts with the use of cross-border transmission capacitiesmust be expressed in MWh. All values must be rounded to a whole number.

(4) The direction of an electricity exchange is defined depending on the status of the contracting parties

(seller buyer) with appurtenant virtual delivery points. Reported values under Closed Contracts mayhave a positive sign only.


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Article 63(Deadline for Reporting of Closed Contracts)

(1) Closed Contracts must be reported at least for the following day.

(2) The deadline for the reporting of Closed Contracts, the deadline for the reporting of changes in the

Closed Contracts with the use of cross-border transmission capacities, and the deadline for thereporting of changes in the Closed Contracts concluded inside the regulation area are all published bythe Market Operator on its official website.

(3) Closed Contracts which shall not be reported in accordance with the deadlines referred to in theprevious paragraph of this article shall not be recorded and shall be considered non-existent.

Article 64(Effects of Recorded Closed Contracts)

(1) A recorded Closed Contract affects the balance of both Balance Scheme Members at the momentof its entry into the Record of Closed Contracts in such a manner that the recorded quantities of the

supplied electricity in an individual accounting interval are considered as an inflow or outflow in thebalance of a Balance Scheme Member.

(2) Closed Contracts with the use of cross-border transmission capacities affect the Record of ClosedContracts as a Closed Contract concluded between a Balance Scheme Member and a TransmissionSystem Operator.(3) Interference of the Transmission System Operators with the rights and obligations of the Balance

Scheme Members deriving from the recording of Closed and Open Contracts in the case of load

restrictions, reduction of electricity exchange among Balance Scheme Members, reductions and the

cancellation of rights to use cross-border transmission capacities are managed according to the

regulations which regulate this area with the entry of the inflows and outflows into the balances of the

Balance Scheme Members in the form of Closed Contracts.

(4) Each entry of inflows and outflows in the balance of a Balance Scheme Member referred to in theprevious paragraph must have a reciprocally opposite entry in the balance of the Transmission SystemOperator.

Article 65(Record of Rights to Use Cross-border Transmission Capacities)

(1) The Record of Rights to Use Cross-border Transmission Capacities and all its related data aremanaged by the Transmission System Operator.

(2) The Record of Rights to Use Cross-border Transmission Capacities regarding an individual right to

use cross-border transmission capacities includes at least the following data:- A Balance Scheme Member to whom the right pertains;

- A primary issuer of the right;

- A person who granted the right to a Balance Scheme Member;

- The identification reference of the granted right;

- The limit and orientation of the right;

- The type of right (interruptible/uninterruptible);

- The quantity;

- The accounting interval.

(3) The Transmission System Operator is obliged to provide tracking of any changes in the Record of

Rights to Use Cross-border Transmission Capacities so that it is possible to make a detailed audit of:- The entry of changes in the record (a history of changes in the record); and


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- The validity dates of individual data entered in the record (status history testified by therecord)

for each individual record entry.

(4) For the purpose of performing the Market Operators duties, the System Operator must provide theMarket Operator with constant and direct access to the Record of Rights to Use Cross-border

Transmission Capacities.

Article 66(Obligations of Transmission System Operator Regarding Closed Contracts with the Use of Cross-

border Transmission Capacities)

On the basis of the Market Operator's notice, the Transmission System Operator is obliged to verify theright of the participant of the neighbouring market to conclude a transaction regarding Closed Contractswith the use of cross-border transmission capacities with the System Operator of the neighbouringtransmission network and to deliver the notice to the Market Operator.

Article 67(Changes in Record of Closed Contracts Due to Transactions on Balancing Market or Within the

Regulation of the Energy System)

(1) The changes in the Record of Closed Contracts which are necessary due to the transactionsconcluded on the balancing market are recorded by the Market Operator from the information system forthe operation of the balancing market.

(2) The changes in the Record of Closed Contracts which are necessary due to the transactions withinthe implementation of the regulation in the energy system are managed by the Market Operator on thebasis of the accounting data on the executed/carried out secondary and tertiary regulation and executedload restrictions provided from the Transmission System Operator.

Article 68(Market Plan)

(1) The Market Plan is the basis for an imbalance settlement.

(2) On the basis of registered Closed Contracts, the Market Operator prepares a market plan for anindividual Balance Scheme Member for each accounting interval which represents a position plan ofeach Balance Scheme Member on the organised market and is the outcome of all Closed Contractsconcluded by a Balance Scheme Member and hierarchically inferior Balance Scheme Members.

(3) Balance Scheme Members who have no appurtenant delivery points (the traders) have to have aMarket Plan which equals 0 MWh in all accounting intervals.

(4) If the Market Plan of a Balance Group which has no appurtenant delivery points does not equal 0MWh in all accounting intervals after the deadline for the reporting of Closed Contracts, it shall beconsidered that the Balance Responsible Party has reported the forecasted imbalances.

Article 69(Control Market Plan)

(1) The Balance Responsible P

Documents

Rules for the Operation of the Organised Electricity Market 2012