Ancillary Services Agreement Services... · Ancillary Services Agreement Final Draft 4 October...

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Establishment Organisation and Pilot Operation of the HTSO Ancillary Services Agreement Final Draft 4 October 2000

Transcript of Ancillary Services Agreement Services... · Ancillary Services Agreement Final Draft 4 October...

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Establishment Organisation and Pilot Operation of the HTSO

Ancillary Services Agreement

Final Draft 4 October 2000

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Ancillary Services Agreement

Final Draft

4 October 2000

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TABLE OF CONTENTS

1. DEFINITIONS 1

2. COMMENCEMENT DATE AND TERM 1

3. TERMINATION 1

4. PROVISION OF ANCILLARY SERVICES 3

5. COMPLIANCE TESTING 4

6. BILLING AND PAYMENT 5

7. ARBITRATION 5

8. JURISDICTION 5

9. GOVERNING LAW 6

10. CONFIDENTIALITY 6

11. WAIVER 7

12. NOTICES 7

13. VARIATION OF THE AGREEMENT 8

14. LANGUAGE 8

15. LIABILITY 8

16. ASSIGNMENT 8

17. INTELLECTUAL PROPERTY 9

18. SEVERANCE OF TERMS 9

19. FORCE MAJEURE 9

20. COMPLIANCE WITH RELEVANT CODES 10

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SCHEDULE 1. DEFINITIONS 12

SCHEDULE 2. AUTOMATIC GENERATION CONTROL 15

SCHEDULE 3. OPERATING MARGIN 17

SCHEDULE 4. REACTIVE POWER 27

SCHEDULE 5. BLACK START CAPABILITY 29

SCHEDULE 6. ADDRESS DETAILS OF HTSO AND THE ANCILLARY SERVICE PROVIDER 31

SCHEDULE 7. BANKING DETAILS OF THE ANCILLARY SERVICE PROVIDER 32

REF: Stephanie Biesaga/19/3-OCT-00/C:\DOCUMENTS AND SETTINGS\STEPHANIE\MY DOCUMENTS\001003 ASA FINAL DRAFT.DOC

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THIS AGREEMENT is made on the …. day of …. 2000 BETWEEN:

(1) HELLENIC TRANSMISSION SYSTEM OPERATOR S.A. (“HTSO”), whose registered office is at …… and

(2) The … (the “Ancillary Service Provider”) whose registered office is at ……

(hereinafter referred to as the “Party” or the “Parties”)

WHEREAS:-

(1) Electricity Law No. 2773, 1999, (the Law) requires HTSO to ensure a secure, reliable and efficient Transmission System and attend to the availability of the necessary Ancillary Services and HTSO has agreed to pay for such Ancillary Services at the rates and prices and in the manner set out herein.

(2) The Ancillary Service Provider has agreed to provide those Ancillary Services to HTSO on the terms and conditions of this Agreement.

NOW THEREFORE IT IS HEREBY AGREED as follows:-

1. DEFINITIONS

The capitalised terms used in this Agreement shall have the meaning set out in Schedule 1.

2. COMMENCEMENT DATE AND TERM

This Agreement shall come into effect on the Commencement Date and shall continue in force and effect until the expiry of the last of the Terms in the Schedules, or terminated earlier pursuant to the provisions of this Agreement.

3. TERMINATION

Automatic Termination

3.1. This Agreement shall automatically terminate immediately upon the occurrence of any of the following:

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a) where the Ancillary Service Provider is a Generator, termination of the Generator’s Transmission Connection Agreement in respect of the facilities listed in the Schedules; or

b) where the Ancillary Service Provider is a Generator, revocation or withdrawal of the Generator’s Electricity Generation Authorisation in respect of the facilities listed in the Schedules; or

c) revocation or withdrawal of HTSO’s authorisation.

Termination by the Ancillary Service Provider

3.2. Where a Generator serves notice to De-energise or Disconnect the facilities listed in the Schedules under the Generator’s Transmission Connection Agreement, this Agreement shall be terminated upon expiry of the period specified in such notice.

3.3. The following are Events of Default of HTSO:

(a) HTSO entering into liquidation or bankruptcy or dissolution proceedings (other than for the purposes of amalgamation or reconstruction on terms approved in advance by the Minister of Development in writing);

(b) HTSO failing to pay (other than by inadvertent error in funds transmission which is discovered by the Ancillary Service Provider, notified to HTSO and corrected within [seven (7)] Business Days thereafter) any amount properly due or owing from HTSO to the Ancillary Service Provider pursuant to this Agreement and such failure continues unremedied for [seven (7)] Business Days after the due payment; and

(c) HTSO failing to comply (other than by inadvertent discovered by the Ancillary Service Provider, notified to HTSO and corrected within [two (2)] Business Days thereafter) with any condition of HTSO’s authorisation and such non-compliance continues unremedied for [seven (7)] Business Days after the date upon which HTSO has been notified of such non-compliance.

Following an Event of Default of HTSO the Ancillary Service Provider may serve a notice of termination upon HTSO terminating this Agreement.

Termination by HTSO

3.4. HTSO may terminate this Agreement immediately upon the occurrence of any of the following:

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a) a reduced level of Ancillary Service provision sustained by the Ancillary Service Provider for a period of not less than [7 days ];

b) continued failure by the Ancillary Service Provider to pass compliance tests performed in accordance with this Agreement; or

c) a Generator ceasing to be bound by the Power Exchange Code.

Rights and Obligations on Termination

3.5. Termination of this Agreement as a whole or in relation to any Ancillary Service or any facility listed in the Schedules shall not affect any rights or obligations of the Parties which have accrued at the time of such termination.

4. PROVISION OF ANCILLARY SERVICES

Obligations on Ancillary Service Provider

4.1. The Ancillary Service Provider shall provide HTSO with each Ancillary Service in accordance with the terms and conditions set out in this Agreement.

4.2. The Ancillary Service Provider must declare its Ancillary Services capability for each Ancillary Service in accordance with the Operating Code, regardless of whether it is bound by the Operating Code or not.

4.3. Where the Ancillary Service Provider fails to provide an Ancillary Service as instructed by HTSO, the consequences of such failure for the Ancillary Service Provider shall be as set out in the Schedule applicable to that Ancillary Service.

Requests for Service

4.4. HTSO may (but is not obliged to) require that the Ancillary Service Provider provide an Ancillary Service specified in this Agreement. Requests must be made in accordance with the Operating Code, regardless of whether the Ancillary Service Provider is bound by the Operating Code or not.

4.5. The Ancillary Service Provider shall comply with a request under Article 4.4.

4.6. If, at any time, the Ancillary Service Provider considers that a facility listed in the Schedules is, or will become, incapable of Ancillary Service provision, it must immediately notify HTSO in accordance with Article 4.7.

4.7. A notice under Article 4.6 must specify:

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a) when the facility became, or will become, incapable of providing the Ancillary Service;

b) for how long the Ancillary Service Provider expects the incapability to continue; and

c) the cause of the incapability and whether the Ancillary Service Provider believes the incapability is due to an event of Force Majeure.

5. COMPLIANCE TESTING

Conduct of Tests

5.1. HTSO, or its agent, shall periodically conduct tests of facilities providing Ancillary Services in accordance with the Operating Code. The Ancillary Service Provider is obliged to allow HTSO to test the facilities providing Ancillary Services.

Cost of Compliance Testing

5.2. Where HTSO calls for conduct of a test under Article 5.1, the Ancillary Service Provider will provide to HTSO an estimate of the costs of such a test, and HTSO shall pay the direct costs of that test if in agreement with the estimate. Direct costs will be subject to audit at the request of HTSO and the Ancillary Service Provider is obliged to provide any relevant information pertaining to such an audit.

Sanctions for Poor Performance

5.3. If the Ancillary Service Provider fails a compliance test, HTSO shall immediately issue a written notice (“Warning Notice”) to the Ancillary Service Provider.

5.4. For so long as a Warning Notice remains in effect, the Ancillary Service Provider shall use its best endeavours to improve its capability to provide the Ancillary Service, and the consequences of such failure for the Ancillary Service Provider shall be as set out in the Schedule appropriate to that Ancillary Service.

5.5. The Warning Notice shall remain in effect until the Ancillary Service Provider has passed a further compliance test for the facilities concerned. In order to take the compliance test for this purpose, the Ancillary Service Provider must request HTSO to test the capability of the facilities concerned. HTSO shall carry out such test as soon as practicable. The Ancillary Service Provider, irrespective of the result of the test, shall pay the cost of such test.

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6. BILLING AND PAYMENT

6.1. As soon as practicable after the end of each [month], the Ancillary Service Provider shall deliver to HTSO an account showing the payments due under this Agreement.

6.2. HTSO shall pay each account in full within [X] days of the date of an account submitted. If any amount remains unpaid after the due date thereof, the Ancillary Service Provider shall (in addition to any other remedies) be entitled to charge interest on the amount unpaid from and including the due date to (but excluding) the date of actual payment at the Default Interest Rate for the time being and from time to time. Interest shall accrue from day to day.

6.3. All payments shall be made by the variable direct debit method, or such other form of banker’s automated payment as shall be approved by the Ancillary Service Provider, to the account number, bank and branch specified by Ancillary Service Provider in Schedule 7.

7. ARBITRATION

7.1. Any dispute or claim arising out of or in connection with this Agreement shall be referred to senior officers of the Parties upon the written request of any Party. Where a Party has requested the reference of a dispute or claim arising in connection with this Agreement to senior officers, the officers shall employ such methods of resolution as they may agree and shall make all reasonable efforts to resolve the dispute or claim in a timely manner.

7.2. Any dispute or claim arising out of or in connection with this Agreement which has been referred to senior officers and has not been resolved within twenty (20) Business Days of the reference shall be determined in accordance with the rules for arbitration set out in the internal operation and management regulation for RAE established under article 8 of the Law.

7.3. If the rules for arbitration set out in the internal operation and management regulation for RAE are not in effect at the time any dispute or claim is referred to arbitration hereunder the provisions on arbitration contained in the Greek Civil Procedure Code shall apply.

8. JURISDICTION

8.1. Subject and without prejudice to Article 7 and to this Article 8, both Parties irrevocably agree that the courts of Greece are to have exclusive jurisdiction to settle any disputes which may arise out of or in connection with this Agreement and that

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accordingly any suit, action or proceedings (together in this Article 8 referred to as “Proceedings”) arising out of or in connection with this Agreement may be brought to such courts.

8.2. Each Party irrevocably waives any objection which it may have now or hereafter to the laying of the venue of any Proceedings in any such court as is referred to in this Article 8 and any claim that any such Proceedings have been brought in an inconvenient forum and further irrevocably agrees that judgment in any proceedings brought in the Greek courts shall be conclusive and binding upon such Party.

8.3. A Party which is not incorporated in any part of Greece agrees that if it does not have, or shall cease to have, a place of business in Greece it will promptly appoint, and shall at all times maintain, a person in Greece to accept service of process on its behalf in any Proceedings in Greece.

8.4. For the avoidance of doubt nothing contained in the foregoing provisions of this Article 8 shall be taken as permitting a Party to commence Proceedings in the courts where this Agreement otherwise provides for Proceedings to be referred to arbitration.

9. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of Greece.

10. CONFIDENTIALITY

10.1. This Agreement and all information obtained by either Party in relation to this Agreement (“Confidential Information”) shall be held confidential and shall not be disclosed by either Party to any third party without the consent of the other Party which consent shall not be refused where such disclosure is to:

(a) a bona-fide prospective purchaser of such disclosing Party upon obtaining a strict undertaking of confidentiality from such bona-fide prospective purchaser; or

(b) an outside professional consultant or adviser of the disclosing Party upon obtaining an undertaking of confidentiality from such consultants, provided that the disclosing Party shall promptly inform the other Party of the name of such consultants and the data and information disclosed to them; or

(c) any bank or financial institution from whom such disclosing Party is seeking or obtaining finance upon obtaining an undertaking of confidentiality from such bank or financial institution; or

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(d) the Minister of Development, the RAE or any government department or any governmental or regulatory agency having jurisdiction over the disclosing Party or required by laws of any relevant jurisdiction, or the terms of any relevant licence or the regulations of any recognised stock exchange.

10.2. The provisions of this Article shall not apply to any information which at the time of disclosure is in the public domain otherwise than as a consequence of a breach by the disclosing Party of its obligations under this Article 10. The Provisions of this Article 28 shall continue to bind any Party to this Agreement, notwithstanding that such Party ceases to be bound by the remainder of this Agreement.

11. WAIVER

No delay or omission by any Party in exercising any right, power, privilege or remedy under this Agreement shall operate to impair such right, power, privilege or remedy or be construed as a waiver thereof. Any single or partial exercise of any right, power, privilege or remedy shall not preclude any other or future exercise thereof or the exercise of any other right, power, privilege or remedy.

12. NOTICES

12.1. Save as otherwise expressly provided in this Agreement, any notice or other communication to be given by any Party to any other Party under, or in connection with the matters contemplated by, this Agreement shall be in writing and shall be given by letter delivered by hand or sent by [first class prepaid post] (airmail if overseas) or telex or facsimile, and shall be deemed to have been received:

(a) in the case of delivery by hand, when delivered; or

(b) in the case of [first class prepaid post], on the second day following the day of posting or (if sent airmail from overseas) on the fifth day following the day of posting; or

(c) in the case of telex, on the transmission of the automatic answer-back of the address (where such transmission occurs before [1700] hours on the day of transmission) and in any other case on the day following the day of transmission; or

d) in the case of facsimile, on acknowledgement by the addressee’s facsimile receiving equipment (where such acknowledgement occurs before 1700 hours on the day of acknowledgement) and in any other case on the day following the day of acknowledgement.

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13. VARIATION OF THE AGREEMENT

13.1. Variations to this Agreement will only be effective if made in writing and signed by or on behalf of the Parties subject to approval by the Minister of Development following consultation with RAE.

13.2. The Parties shall effect to any amendment required to be made to this Agreement by the Minister of Development as a result of a change in the terms of any authorisation granted pursuant to the Law, any directive, rule, regulation, Operating Code, Power Exchange Code and any other relevant code that may apply from time to time to ensure that the operation contemplated by this Agreement shall be conducted in a manner which is consistent with the effect of the new legislation.

13.3. The Parties shall at any time be entitled to propose variations to this Agreement by notice in writing to the other Party. The Parties should negotiate in good faith the terms of any such variation, but if a variation to the Agreement has not been agreed and put into effect within [timeframe] after it has been proposed by a Party, such Party should be entitled to refer the matter to arbitration in accordance with Article 7.

14. LANGUAGE

Each notice, instrument, and certificate or other document to be given by one Party to another under this Agreement shall be in the Greek language.

15. LIABILITY

Under this Article 15 the Parties to this Agreement shall be permitted to exclude any liability arising under or in respect of this Agreement to the fullest extent permitted under Greek law.

16. ASSIGNMENT

16.1. The Ancillary Services Provider shall not assign or transfer nor purport to assign or transfer the benefit or burden of this Agreement save in the following circumstances:

(a) the Ancillary Services Provider may assign or charge any of its receivables under this Agreement in whole or in part of way of security;

(b) upon the disposal of the whole of the Ancillary Services Provider’s business or undertaking, the Ancillary Services Provider may transfer its rights and obligations under this Agreement to the purchaser thereof provided that HTSO has consented to the transfer of the Ancillary Services Provider’s

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rights and obligations under the Transmission Use of the System Agreement.

16.2. HTSO shall not assign or transfer nor purport to assign or transfer the benefit or burden of this Agreement save to a successor Ancillary Services Provider.

17. INTELLECTUAL PROPERTY

All Intellectual Property relating to the subject matter of this Agreement conceived, originated, devised, developed or created by a Party, its officers, employees, agents or consultants during the currency of this Agreement shall vest in such Party as the sole beneficial owner thereof save where the Parties agree in writing otherwise.

18. SEVERANCE OF TERMS

If any provision of this Agreement is or becomes or is declared invalid, unenforceable or illegal by the courts of any competent jurisdiction to which it is subject or by order of any other Competent Authority such invalidity, unenforceability or illegality shall not prejudice or affect the remaining provisions of this Agreement which shall continue in full force and effect notwithstanding such invalidity, unenforceability or illegality.

19. FORCE MAJEURE

If any Party (the “Non-Performing Party”) shall be unable to carry out any of its obligations under this Agreement due to a circumstance of Force Majeure this Agreement shall remain in effect but:

a) the Non-Performing Party’s relevant obligations; and

b) the obligations of the other Party owed to the Non-Performing Party under this Agreement;

shall be suspended for a period equal to the circumstance of Force Majeure provided that:

a) the suspension of performance is of no greater scope and of no longer duration than is required by the circumstance of Force Majeure;

b) no obligations of any Party that arose before the circumstance of Force Majeure causing the suspension of performance are excused as a result of the circumstance of Force Majeure;

c) the Non-Performing Party gives the other Party prompt notice describing the circumstance of Force Majeure, including the nature of the occurrence and its

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expected duration, and continues to furnish regular reports with respect thereto during the period of Force Majeure;

d) the Non-Performing Party uses all reasonable efforts to remedy its inability to perform; and

e) as soon as practicable after the circumstance which constitutes Force Majeure the Parties shall discuss how best to continue their operations so far as possible in accordance with this Agreement.

20. COMPLIANCE WITH RELEVANT CODES

The Parties undertake to each other to comply with the Operating Code, the Power Exchange Code and such other relevant codes, that may apply from time to time.

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SIGNED for and on behalf of

HELLENIC TRANSMISSION

SYSTEM OPERATOR S.A. by its legal representative …

SIGNED for and on behalf of

{the Ancillary Service Provider] by its legal representative …

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SCHEDULE 1. DEFINITIONS

Ancillary Service(s) has the meaning given to it in the Operating Code.

Automatic Generation Control (AGC) has the meaning given to it in the Operating Code.

Available has the meaning given to it in the Operating Code.

Black Start Capability has the meaning given to it in the Operating Code.

Business Day(s) has the meaning given to it in the Operating Code.

Commencement Date means the date or dates upon which the Ancillary Service Provider shall start to provide HTSO with the Ancillary Services set out in the Schedules.

Competent Authority means the Minister of Development, the RAE and any local or national agency, authority, department, inspector, minister, ministry, official or public statutory person (whether autonomous or not) of, or the government of Greece or the European Community.

Confidential Information means all data and other information supplied to a Party by the other Party under the provisions of this Agreement.

Contingency Reserve has the meaning given to it in the Operating Code.

De-energise(s) has the meaning given to it in the Operating Code.

Declared Information has the meaning given to it in the Operating Code.

Default Interest Rate has the meaning given to it in the Power Exchange Code.

Disconnect has the meaning given to it in the Operating Code.

Dispatch Hour has the meaning given to it in the Operating Code.

Drachma means the currency for Greece.

Energy has the meaning given to it in the Operating Code.

Events of Default has the meaning given to it in Article 3.

Electricity Generation Authorisation has the meaning given to it in the Operating Code.

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Force Majeure means in relation to any Party any event or circumstances beyond the reasonable control of such Party and which results in or causes the failure of that Party to perform any of its obligations under this Agreement including, but not solely limited to any one or more of the following acts: acts or restraints of governments or public authorities; war, resolution, riot or civil commotion; strikes, lock-outs or other industrial action; blockage or embargo; failure of supplies of power, fuel, transport, equipment or other goods or services; damage to the premises or storage facilities by explosion, fire, corrosion, ionising radiation, radioactive contamination, flood, natural disaster, or negligent act or accident; and breakdown or failure of equipment whether of the Party or others.

Generator has the meaning given to it in the Operating Code.

HTSO means the Hellenic Transmission System Operator S.A.

Intellectual Property means patents, trademarks, service marks, rights and design, trade names, copyright and topography rights (whether or not any of the same are registered and including applications for registration of any of the same) and rights under licences and consents in relation to any of the same and all rights or forms of protection of a similar nature or having equivalent or similar affect to any of the same which may subsist anywhere in the world.

Law means Electricity Law No. 2773, 1999.

Minister of Development means the Minister of the Greek Ministry of Development.

Non-Performing Party has the meaning given to it in Article 19.

Operating Code has the meaning given to it in the Law.

Power Exchange Code has the meaning given to it in the Law.

Primary Operating Reserve has the meaning given to it in the Operating Code.

Proceedings has the meaning given to it in Article 8.

RAE means the Energy Regulatory Authority established under the Law.

Reactive Power has the meaning given to it in the Operating Code.

Registered Information has the meaning given to it in the Operating Code.

Secondary Operating Reserve has the meaning given to it in the Operating Code.

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Standing Reserve has the meaning given to it in the Operating Code.

Tertiary Operating Reserve has the meaning given to it in the Operating Code.

Transmission Connection Agreement has the meaning given to it in the Operating Code.

Transmission System has the meaning given to it in the Law.

Transmission Use of the System Agreement has the meaning given to it in the Operating Code.

Warning Notice has the meaning given to it in Article 5.

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SCHEDULE 2. AUTOMATIC GENERATION CONTROL

1. Definition of Service

The Ancillary Service Provider undertakes to provide Automatic Generation Control, in accordance with the meanings ascribed to that term in the Operating Code, and according to the Contracted Characteristics set out in this Schedule 2.

2. Contracted Characteristics

Name of facility [A] [name of facility]

Term of Agreement for facility [A] [insert number] Years

Normal range of loading over which AGC is operational - Maximum - Minimum

[insert number] MW [insert number] MW

Minimum range of loading acceptable - Maximum - Minimum

[insert number] MW [insert number] MW

Time on load before AGC is available [insert number] Hours

Rate of change under AGC - Normal - Minimum

[insert number] MW/min [insert number] MW/min

Availability minimum in calendar year [insert number] %

Name of facility [B] [name of facility]

[etc]

3. Minimum Technical Requirements

The Ancillary Service Provider must comply with the requirements of the Operating Code regarding the provision of Automatic Generation Control.

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4. Payments

4.1 In the first year from the Commencement Date the Ancillary Service Provider will receive an Availability Payment from HTSO determined on the basis of [x] Drachma for each hour of Automatic Generation Control capability declared available by the Ancillary Service Provider from a facility as meeting the minimum Contracted Characteristics for that facility.

4.2. In the first year from the Commencement Date the Ancillary Service Provider will receive a Utilisation Payment from HTSO determined on the basis of [y] Drachma per hour for Automatic Generation Control provided by the Ancillary Service Provider from a facility in accordance with the minimum Contracted Characteristics on instruction from HTSO for that facility to operate on AGC.

4.3. In the second and subsequent years after the Commencement Date, the payment rates provided for in paragraphs 4.1 and 4.2 above will be adjusted in proportion to the ratio of the average value of the [CPI or other suitable index] in the calendar year immediately preceding the year in question to the average value of the [CPI or other suitable index] in the calendar year immediately prior to the Commencement Date.

4.4. Where the Ancillary Services Provider fails to follow an HTSO instruction for a facility specified in Contracted Characteristics to provide the service covered by this Schedule or fails to pass any compliance test carried out under the terms of this Agreement for that facility:

(a) the Ancillary Services Provider shall not be entitled to receive any of the payments provided for under this Schedule in respect of that facility from the date of the failure to such time as the facility passes a compliance test as provided for under this Agreement; and

(b) the Ancillary Services Provider must repay to HTSO all payments made under the terms of this Schedule in respect of that facility from the most recently preceding date on which a compliance test for that facility was passed or an instruction followed in relation to that facility prior to the date of the failure. In no circumstances will the repayment amount to more than [three (3)] months of Availability and Utilisation Payments.

4.5 Where the Ancillary Services Provider fails to meet the availability minimum in respect of a facility in a calendar year, as specified in the Contracted Characteristics under paragraph 2 above, it must repay to HTSO all payments made under paragraph 4.1 above in respect of that facility in that calendar year.

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SCHEDULE 3. OPERATING MARGIN

A. Primary Operating Reserve (POR)

1. Definition of Service

The Ancillary Service Provider undertakes to provide Primary Operating Reserve (POR), in accordance with the meanings ascribed to that term in the Operating Code, and according to the Contracted Characteristics set out in this Schedule 3.

2. Contracted Characteristics

Name of facility [A] [name of facility]

Term of Agreement for facility [A] [insert number] Years

Time on load before facility [A] is ready to provide POR [insert number] Minutes

Minimum load at which maximum quantity of POR is provided [insert number] MW

Maximum load at which maximum quantity of POR is provided [insert number] MW

Maximum quantity of POR which facility [A] will provide [insert number] MW

Name of facility [B] [name of facility]

[etc]

3. Minimum Technical Requirements

The Ancillary Service Provider must comply with the requirements of the Operating Code regarding the provision of POR.

4. Payments

4.1 In the first year from the Commencement Date the Ancillary Service Provider will receive a Utilisation Payment from HTSO determined on the basis of [y] Drachma per MWh of POR provided by the Ancillary Service Provider from a facility specified in the Contracted Characteristics on instruction from HTSO.

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4.2. In the second and subsequent years after the Commencement Date, the payment rate provided for in paragraph 4.1 above will be adjusted in proportion to the ratio of the average value of the [CPI or other suitable index] in the calendar year immediately preceding the year in question to the average value of the [CPI or other suitable index] in the calendar year immediately prior to the Commencement Date.

4.3. Where the Ancillary Services Provider fails to follow an HTSO instruction for a facility specified in Contracted Characteristics to provide the service covered by this Schedule or fails to pass any compliance test carried out under the terms of this Agreement for that facility:

(a) the Ancillary Services Provider shall not be entitled to receive any of the payments provided for under this Schedule in respect of that facility from the date of the failure to such time as the facility passes a compliance test as provided for under this Agreement; and

(b) the Ancillary Services Provider must repay to HTSO all payments made under the terms of this Schedule in respect of that facility from the most recently preceding date on which a compliance test for that facility was passed or an instruction followed in relation to that facility prior to the date of the failure. In no circumstances will the repayment amount to more than [three (3)] months of Utilisation Payment.

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B. Secondary Operating Reserve (SOR)

1. Definition of Service

The Ancillary Service Provider undertakes to provide Secondary Operating Reserve (SOR), in accordance with the meanings ascribed to that term in the Operating Code, and according to the Contracted Characteristics set out in this Schedule 3.

2. Contracted Characteristics

Name of facility [A] [name of facility]

Term of Agreement for facility [A] [insert number] Years

Time on load before facility [A] is ready to provide SOR [insert number] Minutes

Minimum load at which maximum quantity of SOR is provided [insert number] MW

Maximum load at which maximum quantity of SOR is provided [insert number] MW

Maximum quantity of SOR which facility [A] will provide [insert number] MW

Name of facility [B] [name of facility]

[etc]

3. Minimum Technical Requirements

The Ancillary Service Provider must comply with the requirements of the Operating Code regarding the provision of SOR.

4. Payments

4.1 In the first year from the Commencement Date the Ancillary Service Provider will receive a Utilisation Payment from HTSO determined on the basis of [y] Drachma per MWh of SOR provided by the Ancillary Service Provider from a facility specified in the Contracted Characteristics on instruction from HTSO.

4.2. In the second and subsequent years after the Commencement Date, the payment rate provided for in paragraph 4.1 above will be adjusted in proportion to the ratio of the average value of the [CPI or other suitable index] in the calendar year immediately

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preceding the year in question to the average value of the [CPI or other suitable index] in the calendar year immediately prior to the Commencement Date.

4.3. Where the Ancillary Services Provider fails to follow an HTSO instruction for a facility specified in Contracted Characteristics to provide the service covered by this Schedule or fails to pass any compliance test carried out under the terms of this Agreement for that facility:

(a) the Ancillary Services Provider shall not be entitled to receive any of the payments provided for under this Schedule in respect of that facility from the date of the failure to such time as the facility passes a compliance test as provided for under this Agreement; and

(b) the Ancillary Services Provider must repay to HTSO all payments made under the terms of this Schedule in respect of that facility from the most recently preceding date on which a compliance test for that facility was passed or an instruction followed in relation to that facility prior to the date of the failure. In no circumstances will the repayment amount to more than [three (3)] months of Utilisation Payment.

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C. Tertiary Operating Reserve (TOR)

1. Definition of Service

The Ancillary Service Provider undertakes to provide Tertiary Operating Reserve (TOR), in accordance with the meanings ascribed to that term in the Operating Code, and according to the Contracted Characteristics set out in this Schedule 3.

2. Contracted Characteristics

Name of facility [A] [name of facility]

Term of Agreement for facility [A] [insert number] Years

Time on load before facility [A] is ready to provide TOR [insert number] Minutes

Minimum load at which maximum quantity of TOR is provided [insert number] MW

Maximum load at which maximum quantity of TOR is provided

[insert number] MW

Maximum quantity of TOR which facility [A] will provide [insert number] MW

Name of facility [B] [name of facility]

[etc]

3. Minimum Technical Requirements

The Ancillary Service Provider must comply with the requirements of the Operating Code regarding the provision of TOR.

4. Payments

4.1 In the first year from the Commencement Date the Ancillary Service Provider will receive a Utilisation Payment from HTSO determined on the basis of [y] Drachma per MWh of TOR provided by the Ancillary Service Provider from a facility specified in the Contracted Characteristics on instruction from HTSO.

4.2. In the second and subsequent years after the Commencement Date, the payment rate provided for in paragraph 4.1 above will be adjusted in proportion to the ratio of

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the average value of the [CPI or other suitable index] in the calendar year immediately preceding the year in question to the average value of the [CPI or other suitable index] in the calendar year immediately prior to the Commencement Date.

4.3. Where the Ancillary Services Provider fails to follow an HTSO instruction for a facility specified in Contracted Characteristics to provide the service covered by this Schedule or fails to pass any compliance test carried out under the terms of this Agreement for that facility:

(a) the Ancillary Services Provider shall not be entitled to receive any of the payments provided for under this Schedule in respect of that facility from the date of the failure to such time as the facility passes a compliance test as provided for under this Agreement; and

(b) the Ancillary Services Provider must repay to HTSO all payments made under the terms of this Schedule in respect of that facility from the most recently preceding date on which a compliance test for that facility was passed or an instruction followed in relation to that facility prior to the date of the failure. In no circumstances will the repayment amount to more than [three (3)] months of Utilisation Payment.

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D. Standing Reserve

1. Definition of Service

The Ancillary Service Provider undertakes to provide Standing Reserve, in accordance with the meanings ascribed to that term in the Operating Code, and according to the Contracted Characteristics set out in this Schedule 3.

2. Contracted Characteristics

Name of facility [A] [name of facility]

Term of Agreement for facility [A] [insert number] Years

Minimum load at which of maximum quantity Standing Reserve is provided

[insert number] MW

Maximum load at which maximum quantity of Standing Reserve is provided

[insert number] MW

Maximum quantity of Standing Reserve which facility [A] will provide

[insert number] MW

Name of facility [B] [name of facility ]

[etc]

3. Minimum Technical Requirements

The Ancillary Service Provider must comply with the requirements of the Operating Code regarding the provision of Standing Reserve.

4. Payments

4.1 In the first year from the Commencement Date the Ancillary Service Provider will receive a Utilisation Payment from HTSO determined on the basis of [y] Drachma per MWh of Standing Reserve provided by the Ancillary Services Provider from a facility specified in the Contracted Characteristics on instruction from HTSO.

4.2. In the second and subsequent years after the Commencement Date, the payment rate provided for in paragraph 4.1 above will be adjusted in proportion to the ratio of

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the average value of the [CPI or other suitable index] in the calendar year immediately preceding the year in question to the average value of the [CPI or other suitable index] in the calendar year immediately prior to the Commencement Date.

4.3. Where the Ancillary Services Provider fails to follow an HTSO instruction for a facility specified in Contracted Characteristics to provide the service covered by this Schedule or fails to pass any compliance test carried out under the terms of this Agreement for that facility:

(a) the Ancillary Services Provider shall not be entitled to receive any of the payments provided for under this Schedule in respect of that facility from the date of the failure to such time as the facility passes a compliance test as provided for under this Agreement; and

(b) the Ancillary Services Provider must repay to HTSO all payments made under the terms of this Schedule in respect of that facility from the most recently preceding date on which a compliance test for that facility was passed or an instruction followed in relation to that facility prior to the date of the failure. In no circumstances will the repayment amount to more than [three (3)] months of Utilisation Payment.

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E. Contingency Reserve

1. Definition of Service

The Ancillary Service Provider undertakes to provide Contingency Reserve, in accordance with the meanings ascribed to that term in the Operating Code, and according to the Contracted Characteristics set out in this Schedule 3.

2. Contracted Characteristics

Parameter Unit

Name of facility [A] [name of facility]

Term of Agreement for facility [A] [insert number] Years

Maximum quantity of Contingency Reserve which facility [A] will provide

[insert number] MW

3. Minimum Technical Requirements

The Ancillary Service Provider must comply with the technical requirements of the Operating Code regarding the provision of Contingency Reserve.

4. Payments

4.1 In the first year from the Commencement Date, HTSO shall pay a Utilisation Payment to the Ancillary Service Provider determined on the basis of [x] Drachma per hour for each MW of capacity of a facility identified in the Contracted Characteristics, which in respect of a Dispatch Hour HTSO determines:

(a) was declared available to provide Contingency Reserve for that Dispatch Hour; and

(b) is scheduled by HTSO and instructed to provide Contingency Reserve in accordance with the Operating Code for that Dispatch Hour; and which

(c) is not utilised to provide Energy in that Dispatch Hour or any the following three hours ; and

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(d) is not utilised to provide other categories of Operating Margin in that Dispatch Hour.

4.2. In the second and subsequent years after the Commencement Date, the payment rate provided for in paragraph 4.1 above will be adjusted in proportion to the ratio of the average value of the [CPI or other suitable index] in the calendar year immediately preceding the year in question to the average value of the [CPI or other suitable index] in the calendar year immediately prior to the Commencement Date.

4.3. Where the Ancillary Services Provider fails to follow an HTSO instruction for a facility specified in Contracted Characteristics to provide the service covered by this Schedule or fails to pass any compliance test carried out under the terms of this Agreement for that facility:

(a) the Ancillary Services Provider shall not be entitled to receive any of the payments provided for under this Schedule in respect of that facility from the date of the failure to such time as the facility passes a compliance test as provided for under this Agreement; and

(b) the Ancillary Services Provider must repay to HTSO all payments made under the terms of this Schedule in respect of that facility from the most recently preceding date on which a compliance test for that facility was passed or an instruction followed in relation to that facility prior to the date of the failure. In no circumstances will the repayment amount to more than [three (3)] months of Utilisation Payment.

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SCHEDULE 4. REACTIVE POWER

1. Definition of Service

The Ancillary Service Provider undertakes to provide Reactive Power, in accordance with the meanings ascribed to that term in the Operating Code, and according to the Contracted Characteristics set out in this Schedule 4.

2. Contracted Characteristics

[This paragraph specifies that the Contracted Characteristics of the relevant facilities are described in the Reactive Power Capability Chart for each facility. The Ancillary Service is provided in accordance with Declared Information.

The Term of Agreement [x years] is specified for each facility.]

3. Minimum Technical Requirements

The Ancillary Service Provider must comply with the technical requirements of the Operating Code regarding the provision of Reactive Power and must comply with any additional metering requirements specified by HTSO as necessary for the service covered by this Schedule 4.

4. Payments

4.1 In the first year from the Commencement Date the Ancillary Service Provider will receive a Capability Payment from HTSO determined on the basis of [x] Drachma per MVAr of Reactive Power generation capability declared Available in each hour by the Ancillary Service Provider from a facility specified in the Contracted Characteristics.

4.2. In the first year from the Commencement Date the Ancillary Service Provider will receive a Utilisation Payment from HTSO determined on the basis of [y] Drachma for each MVArh of Reactive Power generation provided on instruction from HTSO on instruction from HTSO by the Ancillary Service Provider from a facility specified in the Contracted Characteristics.

4.3 In the first year from the Commencement Date the Ancillary Service Provider will receive a Capability Payment from HTSO determined on the basis of [x] Drachma per MVAr of Reactive Power absorption capability declared Available in each hour by the Ancillary Service Provider from a facility specified in the Contracted Characteristics.

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4.4. In the first year from the Commencement Date the Ancillary Service Provider will receive a Utilisation Payment from HTSO determined on the basis of [y] Drachma for each MVArh of Reactive Power absorption provided on instruction from HTSO by the Ancillary Service Provider from a facility specified in the Contracted Characteristics.

4.5. In the second and subsequent years after the Commencement Date, the payment rates provided for in paragraphs 4.1, 4.2, 4.3 and 4.4 above will be adjusted in proportion to the ratio of the average value of the [CPI or other suitable index] in the calendar year immediately preceding the year in question to the average value of the [CPI or other suitable index] in the calendar year immediately prior to the Commencement Date.

4.6. Where the Ancillary Services Provider fails to follow an HTSO instruction for a facility specified in Contracted Characteristics to provide the service covered by this Schedule or fails to pass any compliance test carried out under the terms of this Agreement for that facility:

(a) the Ancillary Services Provider shall not be entitled to receive any of the payments provided for under this Schedule in respect of that facility from the date of the failure to such time as the facility passes a compliance test as provided for under this Agreement; and

(b) the Ancillary Services Provider must repay to HTSO all payments made under the terms of this Schedule in respect of that facility from the most recently preceding date on which a compliance test for that facility was passed or an instruction followed in relation to that facility prior to the date of the failure. In no circumstances will the repayment amount to more than [three (3)] months of Capability and Utilisation Payments.

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SCHEDULE 5. BLACK START CAPABILITY

1. Definition of Service

The Ancillary Service Provider undertakes to provide Black Start Capability, in accordance with the meanings ascribed to that term in the Operating Code, and according to the Contracted Characteristics set out in this Schedule 5.

2. Contracted Characteristics

Name of facility [A] [name of facility]

Term of Agreement for facility A [insert number] Years

Level of Black Start Capability to be provided [insert number] MW

Reactive Capability Maximum generation in any Dispatch Hour Maximum absorption in any Dispatch Hour

[insert number] MVAr [insert number] MVAr

Time to full speed no-load black start instruction [insert number] Minutes

Minimum period for which black start condition must be maintained

[insert number] Hours

Availability minimum in calendar year [insert number] %

3. Minimum Technical Requirements

The Ancillary Service Provider must comply with the technical requirements of the Operating Code regarding the provision of Black Start Capability.

4. Payments

4.1 In the first year from the Commencement Date the Ancillary Service Provider will receive a Capability Payment from HTSO determined on the basis of [x] Drachma per hour of Black Start Capability declared Available by the Ancillary Service Provider from a facility specified in the Contracted Characteristics.

4.2. In the second and subsequent years after the Commencement Date, the payment rate provided for in paragraph 4.1 above will be adjusted in proportion to the ratio of

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the average value of the [CPI or other suitable index] in the calendar year immediately preceding the year in question to the average value of the [CPI or other suitable index] in the calendar year immediately prior to the Commencement Date.

4.3. Where the Ancillary Services Provider fails to follow an HTSO instruction for a facility specified in Contracted Characteristics to provide the service covered by this Schedule or fails to pass any compliance test carried out under the terms of this Agreement for that facility:

(a) the Ancillary Services Provider shall not be entitled to receive any of the payments provided for under this Schedule in respect of that facility from the date of the failure to such time as the facility passes a compliance test as provided for under this Agreement; and

(b) the Ancillary Services Provider must repay to HTSO all payments made under the terms of this Schedule in respect of that facility from the most recently preceding date on which a compliance test for that facility was passed or an instruction followed in relation to that facility prior to the date of the failure. In no circumstances will the repayment amount to more than [six (6)] months of Capability Payment.

4.5 Where the Ancillary Services Provider fails to meet the minimum availability in respect of a facility in a calendar year, as specified in the Contracted Characteristics under paragraph 2 above, it must repay to HTSO all payments made under paragraph 4.1 above in respect of that facility in that calendar year.

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SCHEDULE 6. ADDRESS DETAILS OF HTSO AND THE ANCILLARY SERVICE PROVIDER

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SCHEDULE 7. BANKING DETAILS OF THE ANCILLARY SERVICE PROVIDER