Market communication - CEE split

Dear Market Participant,

We have identified the need to have CEE auctions run separately, instead of one joint auction for all corridors. This will allow more flexibility and control over the different products and markets. Additionally, it will allow for more possibilities to solve border specific problems in the unfortunate event where these occur.

That being said, we realize that this change may have an impact on your daily routine, and potentially on your internal process or tool.

We would therefore like to provide you some more information about how this would be implemented and the potential impact this could have on your tools/processes.

The change will consist in a split of the joint CEE Auctions as described below:

DAILY AUCTIONS

Each day we will run a separate auction for:

o AT-CZ

o CZ-AT

o CZ-DE(TenneT)

o DE(Tennet)-CZ

o HR-HU

o HU-HR

o HR-SI

o SI-HR

o AT-HU

o HU-AT

o CEE technical profiles (DE(50Hz)-CZ, DE(50Hz)-PL, CZ-PL, SK-PL, CZ-DE(50Hz), PL-DE(50Hz), PL-CZ, PL-SK)

LONG TERM AUCTIONS

In addition to the abovementioned corridors we will also run yearly and monthly auctions for:

o AT-SI

o SI-AT

o HU-SK

o SK-HU

AUCTION IDENTIFICATION

The auction ID will be changed. The current naming convention will be kept but the actual standalone auction will be reflected, for example:

o HR-HU-Y-BASE-------YYMMDD-01 for HR to HU yearly base auction

o SK-HU-M-BASE-------YYMMDD-01 for SK to HU monthly base auction

o AT-CZ-D-DAILYPRODU-YYMMDD-01 for AT to CZ daily auction

Please note that borders with a technical profile will remain as a joint auction using the current ID (f.ex. CEEXD-D-DAILYPRODU-YYMMDD-01)

BIDDING

In eCAT each corridor has to be selected separately. It will no longer be possible to bid for all the previously joint auctions on the same page, only CEE technical profile will remain together.

FILE EXCHANGE

Allocation results: 1 file per auction.

Rights document: 1 file containing all CEE borders.

CREDIT LIMIT

No impact: it is expected that all auctions will be run simultaneously and a joint credit limit assessment will be performed at the closing of the auctions (as is already the case today).

WEB SERVICES

Regarding Web Services the method of sending files will not be affected. However, all web services will use the new auction IDs.

RELEASE DATE

We intend to implement this update of CEE products in the coming months between end April and end of June 2018

SHADOW AUCTIONS

If you currently have shadow bids for the joint CEE auction you will need to resubmit your shadow bids for each individual auction.

MEMBER TRIAL

You will soon be invited to a test session during which you will be able to see the changes in eCAT and place bids on dummy auctions.

Best Regards,

Operations Team

JAO S.A.

2 rue de Bitbourg

L-1273 Luxembourg-Hamm

T. +352 27 62 38 38