New Fallback procedure from March 1, 2014

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Dear business partners,

we would like to remind you that new backup solution will be applied for daily allocation of cross-border capacities on CZ-SK profile in case of Decoupling in regard to the trilateral CZ-SK-HU market coupling. The new backup solution will come into force for delivery date 1. 3. 2014 (i.e. day ahead market matching performed on 28. 2. 2014). In case of Decoupling cross-border transmission capacity for the CZ-SK border will be allocated through the explicit capacity auction (Shadow Auction) starting from mentioned date. The Shadow Auction of cross-border transmission capacities, organized by ČEPS in the Damas Energy system for the CZ-SK border, will be run in parallel with settlement of decoupled day-ahead markets.

Detailed information about the Shadow Auction can be found in Shadow Auction Rules published on the web pages of both transmission system operators, ČEPS and SEPS.

Note: Decoupling - situation where it is not feasible to run the CZ-SK-HU Market Coupling due to technical problems and as a result it is impossible to  allocate the available transmission capacity implicitly via CZ-SK-HU Market Coupling .

In recent days you had an option to test new processes bound to Shadow Auction on CZ-SK profile using Damas Energy platform.

Please find attached detailed information and list of messages valid from 1/3/2014. By means of these messages via IS OKTE you will be informed about Daily Market status including situations, when Fallback procedures will take place.

In case of any questions, please do not hesitate to contact us.

OKTE, a.s.