General Rules for the Auctioning of the Reservation of ATC on the CEPS - APG Interconnection

Scope of the Auction Rules

The following provisions shall in general apply equally to yearly, monthly and daily auctions:

1. The demand for capacity at the Interconnection between APG and CEPS is usually much higher than the ATC. In order to obtain maximum transparency in the allocation of the ATC and to avoid discrimination in allocating the ATC, auctions shall be held. The Auction Rules are construed in accordance with the regulations set out by European law, in particular by the EU-Regulation 1228/2003, in accordance with Austrian and Czech law and in accordance with regulations issued by the Austrian and Czech Regulatory Authorities. In order to correspond with these legal requirements the auction covers the reservation of the ATC. The auctioning of the reservation of the ATC aims at providing a transparent method of congestion management.

2. This document contains the terms and conditions for the auctioning of the reservation of ATC at the interconnection that is jointly offered by CEPS and APG. CEPS and APG will carry out the auctions of the yearly, monthly and daily ATC both for the Austrian and for the Czech side.

3. Auctions for yearly, monthly and daily ATC for the year 2009 will be held in order to ensure that reservations of ATC will be valid for each side of the Interconnection. Auctions for yearly and monthly ATC will be held both by APG and CEPS via Auction Office; auctions for daily ATC will be held by APG and CEPS via CEPS´ auction system “Damas ePortal”.

4. APG and CEPS will fully accept the result of the individual auction procedures held by the other party provided these procedures are consistent with the terms and conditions of the Auction Rules and will carry out the transmission services according to the respective auction results in compliance with the legal requirements of grid access, possible electricity import bans and applicable market rules.

5. The Auction Rules only deal with the reservation of ATC at the interconnection. The auction of the reservation of ATC and the financial settlement of the reservation of ATC purchased via an auction do not include energy transports or any rights, liabilities or financial aspects concerning energy transports, such as, but not limited to, transmission fees resulting from cross-border-tarification.

Yearly Auction
The auction in which the reservation of capacity for annual electricity transports from January 1 through December 31 of the following calendar year is auctioned.

Monthly Auction
The auction in which the reservation of capacity for monthly electricity transports from the first through the last day of the following calendar month is auctioned.

Definitions:
In the first stage, yearly and monthly auctions will be held for the reservation of the capacity in both directions.

Auction 1 deals with the direction from the Czech Republic to Austria.
Auction 2 deals with the direction from Austria to the Czech Republic.

Generally, the capacity is offered in the auctions in form of the following products:

 - Baseload
   Capacity from 00:00 to 24:00
   (CET) , Monday to Sunday.
 - Peakload
   Capacity from 08:00 to 20:00
   (CET) , commencing on January 2,
   2009; work days from Monday to
   Friday; except on public Austrian
   holidays mentioned in Annex 4a.