Subject of Settlement

Agreement on Settlement of Imbalances conclusion - gas

1. Requirements

The basic requirements for opening the negotiation of the Agreement on Settlement of Imbalances.pdf (150 KB) (the "Agreement") conclusion with the subject of settlement (the "SZ") are as follows:

registered (company or branch) in Commercial register Czech Rep,
valid license for gas market given by Energy Regulatory Office,
assigned EIC code for gas market beginning with 27XG (hands out ČEPS, a.s.),
bank account (in CZK) in a Czech bank or a branch of an international bank in the Czech Republic (for settlement of the day-ahead market in EUR only in Komerční banka, a.s.).

2. Complete list of items for Agreement

For the Agreement completion - the future SZ gains access to the Organized Short-Term Gas Market) - the registered market participant (the “RMP”) sends via email (registrace-plyn@ote-cr.cz) request for the Agreement and these documents:

filled out reg. form type „B“ (DOC 180 KB) – the RPM obtains a registration number (PID) and becomes Registered market Participant (RPM),

the registration fee invoice will be printed out after receiving signed form "B" via email or post,

if the Participant is already registered, he will tell us his PID and the registration data will be updated based on the filled out reg. form type B,
filled out the 1st page of the Agreement (DOC 25 KB), the foreign company with an organizational component in the Czech Republic has to write into the Note, if the foreign company has an Office in the Czech Rep. (under the Act no. 235/2004 Coll. §4 - Czech only),
filled out reg. form type "C" (DOC 106 KB), on behalf of each person which will have access to CS OTE,
the table of Persons authorized for communication with OTE (DOC 41 KB),
filled forms for the amount of financial security and rating determination - link to Risk Management,
address for invoicing. OTE will send there a registration invoice. Alternatively the invoice may be delivered another way like in person, via fax (provide fax number).
an e-mail address that OTE will use for sending the Agreement ready for sign in pdf format.

3. Persons registration

OTE will assign a Reg. No. (ID USER) to participants authorized personal, which will have access to the information system CS OTE, according to data in form type C, and send the Reg. No. to the Registered Market Participant.

4. Invoice

OTE will print out an invoice for the registration fee of 10,000 CZK and send it to the RPM’s address, possibly hand over in a different arranged way (according to Article 2).

5. Access to CS OTE (productive, test environment)

New SZ can obtain secure access to OTE’s CS upon accomplishing following: paying the invoice for registration (Fee 10,000 CZK), acquiring ID USER (the unique number of registered person). On request new Subject of Settlement will be given access to the test environment of CS OTE - Sandbox after payment of the registration fee 10,000 CZK.

Security items can be obtained either via an internal certification authority OTECA (Logica Czech Republic s.r.o.) or a public certification authority I.CA. Detailed information reference on this link: http://www.ote-cr.cz/registration-and-agreements/access-to-cs-ote.

6. Agreement

After crediting the 10,000 CZK to OTE’s account - OTE will prepare a fair copy of the Agreement and send in PDF format to the e-mail address specified in Part 2.

7. Financial security

Along with registration and Agreement preparation a discussion of the financial security is under way. "The Appendix No. 2 to the contract for clearing deviations" is consulted according to anticipated characteristics and scope of business. Mutually agreed Appendix No.2 becomes an inseparable part of the Agreement (and will be signed together with the Agreement).

8. Activation in CS OTE

a) New SZ will return to OTE the signed Agreement in paper form (2 copies). Furthermore handover following documents:

Originals of signed forms types "B" and "C",
Certified copy of extract from the Commercial Register,
Certified copy of the appropriate license,
Proof of registration for VAT in the Czech Republic, possibly abroad, provided the SZ has not any Office in the Czech Rep. (under the Act no. 235/2004 Coll. §4),
Proof of acquisition of gas excluding tax (optional). Permit is issued by Customs.

b) SZ must meet following conditions:

financial security conditions,
establish a bank collection for the benefit of OTE’s accounts (specified in the Agreement). Bank account (in CZK) in a Czech bank or a branch of an international bank in the Czech Republic,
send a certificate for security access to CS OTE.

c) The agreement takes effect upon signature day and effectiveness after meeting the financial security conditions (financial security, collection order in OTE’s favor).

d) New SZ will be activated in CS OTE at the latest on 1st day of the following month when the agreement has taken effectiveness.