GENERAL PRINCIPLES

FOR THE ALLOCATION OF IMBALANCES

IN THE COMBINED BALANCING GROUP

WITH COORDINATOR EL BONUS EOOD

I.     General terms

1.1. These General Principles for the Allocation of Imbalances within the Combined Balancing Group of EL BONUS EOOD („General Principles“) contain the general rules and conditions for the allocation of imbalances and imbalance costs between the individual participants in the Combined Balancing Group of EL BONUS EOOD.

1.2. EL BONUS EOOD (the „Company“) is registered in the Commercial Register at the Registry Agency, with UIC 131381543, with seat and management address in Sofia, 1000, Sredets region,  11A Aksakov Str., fl. 4, office 2.

1.3. The Company holds License for trading in electricity № Л-484-15 from 16.03.2017, with included rights and obligations of „coordinator of standard balancing group“ and „coordinator of combined balancing group“, pursuant to Article 39, paragraph 5 of the Energy Act (EA), issued by the Energy and Water Regulatory Commission /„EWRC“/.

1.4. The Company is registered as a coordinator of a combined balancing group in the public register of the Electricity System Operator EAD (ESO EAD), pursuant to Article 65 of the Electricity Trading Rules („ETR“ or „the Rules“) with status „active“.

1.5. These General Principles are adopted by EL BONUS EOOD in its capacity as a Coordinator of a balancing group who  has the right to amend and supplement these General Principles. In case of an amendment and/or supplement to the General Principles, EL BONUS EOOD updates the published General Principles on its website.

II.   Nature and purpose of the balancing group

The purpose of balancing groups is to aggregate the imbalances within them. The group members transfer the balancing responsibility to the Coordinator of the balancing group who distributes the total imbalance in the balancing group among the balancing group members, thereby mitigating the economic effect of the balancing energy prices.

III. Principles of allocation of the imbalances

3.1. The General principles according to which the Coordinator carries out the allocation of imbalances between the participants in the combined balancing group of EL BONUS EOOD are:

1. Equality and fairness

2. Proportionality - The Coordinator shall allocate imbalances among the members according to the weight they contribute to the group's imbalances

3. Transparency, accuracy and clarity – the participants receive information on both their individual imbalances and costs of imbalances and the total imbalances and costs of the group.

IV. Determination of imbalances

4.1. Group imbalances are determined based on aggregated measured values ​​for production and physical exchanges reported to the Coordinator of the balancing group for each settlement period. Imbalances are determined for each astronomical hour, based on production for the hour. The imbalances of members of the balancing group are determined as follows:

·        A producer, a member of the group, is in "shortage" if the measured value of the produced electricity is less than the value according to the approved schedule.

·        A producer, a member of the group, is in "surplus" when the measured value of the produced electricity is higher than the value according to the approved schedule.

·        ESO EAD determines the imbalances of the Coordinator according to ETR.

·        The ESO prepares and provides the Coordinator with a monthly settlement statement of the combined balancing group, including the values ​​for each settlement period.

·        The coordinator distributes the imbalances of each participant in the group in proportion to the individual weight with which each participant contributes to the imbalances of the group and, as a result of the intra-group aggregation, sets individual surplus and shortage prices for each participant.

·        The group participant receives a monthly detailed report, both for their individual imbalances and imbalance costs, and for the group's total imbalances and costs.

4.2.  All additional costs incurred as a result of a change in the regulatory framework, incl. but not limited to changes in the market model, pricing methodologies or the methodology of ESO for settlement of imbalances and determination of balancing energy prices for each settlement period, changes and/or acts adopted by EWRC and/or other competent authority, are charged by EL BONUS EOOD and are paid by the participant from the date of entry into force of the changes until the expiration of the contract concluded between EL BONUS EOOD and the participant pursuant to provided information on the size and methodology of the formation of the costs.

V.   Participation in the combined balancing group with Coordinator EL BONUS EOOD

5.1. In relation to the participation of producers of electricity from renewable energy sources, the Coordinator of the combined balancing group shall conclude a Contract with NEK EAD, in accordance with Article 11, item 14 of the Electricity Trading Rules for.

5.2. A member of the combined balancing group of "EL BONUS" EOOD can be any producer of energy from renewable energy sources, who has gained access and is registered on the market of balancing energy and has fulfilled his obligations to join a combined balancing group with a coordinator "EL BONUS" EOOD.

5.3. Conditions for inclusion in the balancing group of EL BONUS EOOD:

1. Submission an application to the Coordinator of the combined balancing group that contains the following information:

-        participant's details and current coordinator, if there is such;

-        a desired date for joining the group, which shall not be earlier than thirty (30) calendar days after the application for participation in the Combined Balancing Group has been sent and always from the 1st of the month;

-        hourly data for requested and actually produced energy by the participant for the last 6 months.

2. The Coordinator shall verify the data received, prepare an analysis of the effect of the applicant's possible participation in the group and respond within 7 (seven) days in writing for the applicant's consent to participate in the balancing group or shall reasonably refuse to accept the applicant as a participant in the balancing group.

3. After fulfillment of the conditions under item 1 and confirmation by EL BONUS EOOD, the participant concludes a contract with the EL BONUS EOOD Coordinator, which regulates his participation in the balancing group.

5.4. The conditions in these General Principles applied with priority over the individual contracts of the participants in the balancing group with the Coordinator EL BONUS EOOD.

These General Principles for the Allocation of Imbalances within the Combined Balancing Group of EL BONUS EOOD are produced in accordance with the requirements of Article 58, paragraph 1, item 2 of the Electricity Trading Rules.

In case of a contradiction between the text in Bulgarian and in English, the Bulgarian text shall prevail.