Capacity Trades

1. Capacity Trades

2. Rules and Regulations Exchange rules must comply with a Contract on Accession to Wholesale Power Market’s Trading System • Exchange commodity: capacity • The emitter of the Exchange commodity: Generating company • Commodity can be traded only in the certain portions – standard lots • Following the results of the Trades the Free Capacity Sale and Purchase Contract (SDM) which is subject to registration in Commercial Operator (Administrator of Trading System - ATS) is formed • Discretenessofthedeliveryperiod: month, standard for a delivery period “m” and the following months may be concluded on the exchange since the start of certain lot circulation till the 23rd day of the month “m-1” • Trade Participants: Wholesale Electricity and Capacity Market members • The mechanism of the exchange trades: double counter anonymous auction • Exchange trading days: are only working days

3. Rules and Regulations How it is traded: • Suppliers: Generating companies of the wholesale market can sell an infinite amount of capacity in the Zone of Free Cross-Flow (ZFC). • Group of Generating Delivery Points(GDPg) is required for a Trade Participant in order to be the seller under the SDM contract. • Group of Consumption Delivery Points (GDPc) is required for a Trade Participant to act as a buyer. Purchase is possible only in ZFC of a buyer. • The Exchange accepts orders of all types of lots during the Trading Day.

4. Rules and Regulations • LOT – set of parameters of the contract which are fixed and cannot be changed by Trade Participant. • LOT contains following parameters: • Delivery period: month (M) • Type of supply schedule: NE – 0 MWh of electric energy in any hour of the period, defined by the standard period schedule (load schedule).

5. Trading Day and Trading Session Trading Day – processwithin which the Exchange carries out Trades: • Data acquisition of the first Trading Day of month from ATS • Trading day begins at 10 a.m.; • Trading period laststill 17 p.m., except Special Session. Procedures for Trading Session: • Auction; • Transactions registries formation; • Transactions registries publication. Special Session consists of: • Specification of the Party under the SDM; • Contracts registries formation; • Contracts registration by the Exchange; • Contracts registry publication. Before the beginning of the first Trading Day ATS transfers following data to the Exchange: • Wholesale Electricity and Capacity Market participants codes, GDP codes, data about conformity of codes with ZFC.

6. Trading Day and Trading Session • Расписание торговых сессий: • Time established for the Trades

7. Trading System. Orders. Orders. Order submission form contains following elements: • Direction of the order: buying or selling • List of Participants’ GDPs, ZCFs • ZFC of delivery • Type of Lot and its short description • Field «Price» to fill in the price for 0,25 MW of capacity • Field «Quantity» to fill in the maximum number of lots • Order validity

8. Trading System. Orders. • «Active» order can be changed or removed at any moment within Trading Day. • At the close of Trading Session the active order automatically removes if the corresponding check box has been selected. • At closing of Trading Day all orders for which period of validity expires in current date automatically removed. Page «Orders» of Trading System • Contains information about ordersthat are either active (regardless of their date of submission), or were submitted during the current Trading Day. When the Trading Day closed, this page displays active orders of the past Trading Days.

9. SDM Settlement Procedure • On the 23rd day of the month «m-1» during the Special Session, the Exchange forms SDM contracts registry for registration in ATS. Registry contains all SDM transactions for delivery in month «m». • After SDM registration in ATS the Exchange forms financial obligations under SDM to be sent for execution to the Bank. • Financial obligations are carried out by the buyer in a following order: • -On the 14th day of the delivery month: 40% of the SDM value; • - On the 28th day of the delivery month: 60% of the SDM value. • Payments are carried out by money transfer between Participants’ trading accounts. • The bank transfers funds between Participants’ accounts without any additional banking orders.

10. System of Guarantees • Transaction conclusion does not require margin (guarantee deposit) payment. • The Exchange limit the access to the SDM Trades for Participants with the debts on payments on OREM from the list published on ATS Internet site.