MAIN PREMISES TO THE FINANCIAL SECURITY RULES

1. MAIN PREMISES TO THE FINANCIAL SECURITY RULES USED BY THE GAS TRANSMISSION OPERATOR GAZ-SYSTEM S.A. IN TRANSMISSION CONTRACTS AND NETWORK CONNECTION AGREEMENTS the system,that connects

2. Financial security • LEGAL GROUNDS • Art. 14 item 3 Regulation (EC) 715/2009 • In the applicable cases, services connected with third party access can be performed provided that the network users submit appropriate guarantees concerning their financial credibility. Such guarantees • cannot be considered as unjustified barriers hindering from entering the market and additionally are: TRANSPARENT NON-DISCRIMINATORY PROPORTIONAL agreed based on the guidelines outlined in the specimen transmission contract Equal rules for all system users Security level set proportionally to the value of the service rendered • In the adopted model (operating since 2006) by TSO GAZ-SYSTEM S.A. the financial credibility evaluation • of entities attempting to provide transmission services via the TSO and the provisions regulating the forms and amount of financial security have been ordered on the network code level – the Transmission Network Code (TNC), which, in compliance with the legislation and doctrine, serves as a contractual model in the meaning of Article 384 of the Civil Code • and has been approved by the Energy Regulatory Office (ERO) pursuant to Art. 41 of Directive 2009/73/EC. • In July 2012, the President of the ERO referring to an alternative interpretation of Art. 41 Directive 2009/73/EC called the Company to • remove from the Transmission Network Code (TNC) provisions regulating the level and forms of financial security applied by TSO GAZ-SYSTEM S.A. in order to secure payments from transmission contracts and connection agreements. • As a result of the decision of the President of the ERO, provisions on financial security were transferred to • the specimen transmission contract or connection agreements. the system,that connects

3. Connection Agreements Client Options or or or Instalment plan according to the agreed scheme 100% payments after service performance 20% payments after obtaining permission to perform investment and 80% after completion of investment 50% security when signing agreements 100% security when signing agreements 80% security when signing agreements For Clients that do not have a 4-year positive history of cooperation with GS For Clients that have a positive 4-year history of cooperation with GS the system,that connects

4. Gas Market Entities - Fees System Users System Users Shipper • Tariff fees, of which: • constant and variable charge • charge for exceeding capacity • Fees and discounts for contractual congestion, i.e. quality of gas • Balancing charges • Fees for contractual congestion (nomination inconsistent with performance) Contracted Capacity Allocation (CCA) Capacity Allocation (CA) the system,that connects

5. Transmission Contracts The rating required by the TSO not lower than: Baa2 for Moody’s, BBB for Standard and Poors, BBB for Fitch YES NO No additional security Required security amount 2 months commitment resulting from Transmission Contract For Clients that do not have a 4-year positive cooperation history with GS For Clients that have a positive 4-year cooperation history with GS the system,that connects

6. Financial security on the Balancing Market The rating required by the TSO not lower than: Baa2 for Moody’s, BBB for Standard and Poors, BBB for Fitch YES NO No additional security Required security amount 20% of the gas value transmitted in a given gas month For Clients that do not have a 4-year positive cooperation history with GS For Clients that have a positive 4-year cooperation history with GS the system,that connects

7. Security on the Balancing Market cont. • The submitted Security is based on the arithmetic mean of the daily values of the Gas Reference Price (GRP), determined pursuant to the TNC for the month preceding the month in which it was submitted. • on the capacity allocation application review stage (CA), based on the quantities of gaseous fuel declared in the application, delivered for transmission (including the gas quantities that the entity intends to trade on the Gas Exchange or within bilateral on the OTC market) • on the transmission contract performance stage • , based on the • average monthly quantities • of transported gaseous fuel • Term of Validity of financial security should include the entire term for which the capacity was allocated for (CA) • In the case of long-term services performed for a term longer than on (1) year, the TSO admits the possibility of submitting • financial security for a term not shorter than one gas year, subject to its renewal fourteen (14) working days prior to its date of expiry. • The entity should monitor the level of financial security that it submitted in the context of the planned volumes of • transmitted gas. • If the amount of security established does not cover 20% of the average monthly value of the volume of transported gas • , the Balancing Market Participant should supplement the security to an appropriate level. Otherwise it may be fined • in the form of a 25% increase in value of the financial security. • During the performance of the contract, the TSO shall monitor the level of security in the context of transmissions performed by the Shipper. • Should the security submitted by the Shipper prove to be inadequate, the TSO shall request it to be raised (within 2-3 days) otherwise the CA or the agreement may be terminated. • At present, the TSO GAZ-SYSTEM S.A. is preparing a detailed concept of solutions that will enable the monitoring of the level of securities and the imbalance position of the URB on an ongoing basis. the system,that connects