New products on the gas market of the Polish Power Exchange

1. New products on the gas market of the Polish Power Exchange Warsaw, July 2014

2. Intra-day gas market • Trade shall be conducted on the day of the delivery between 8:00 a.m. and 1:30 p.m. • Quotations shall be conducted every day. • Quotations shall be conductedon 19 hourly instruments (the first 5 hours of the gas day shall be inactive). The quotation of the instrument shall be finished 2.5h before the beginning of the delivery time, i.e. an instrument delivered between 11:00 and 12:00 p.m. shall be quoted until 8:30 a.m. • Turnover on the Intra-day Gas Market (RDBG in Polish) shall be carried out in a continuous quotation system. • Information concerning the concluded transactions (re-nomination) shall be delivered each hour to the Operator of the Gas Pipelines GAZ-SYSTEM S.A. (OSPg in Polish)

3. Quotation and performance schedule k- indication of the Delivery Day in particular delivery week, from 1 to 7, 1- meaning the Delivery Day from 6:00 a.m. on Monday and 7- meaning the Delivery Day from 6:00 a.m. on Sunday. DD-MM-RR – indicates the day, month and calendar year of the delivery HGG – indicates the hour of the delivery, for example H12 means the time between 11:00 and 12:00 a.m.

4. Hours of quotations and reporting of transactions for specific hourly instruments of a gas day Reporting contracts to the Operator of the Gas Pipelines possibility to conclude transactions on the instrument

5. Reporting concluded transactions to the OSPg (Operator of the Gas Pipelines) • The Market sends a re-nomination after closing the request gate for the following hour. • Concluded transactions shall be reported to the Operator of the Gas Pipelines during the session before each full hour. • The balance of the concluded transactions shall be reported.

6. It sold 3 MWh on the H12 instrument 3 1 The subject has concluded the following transactions on the Intra-day Gas Marketbetween 8:00 and 8:30 a.m.: • It sold 1 MWh on the H12 instrument • It bought 1 MWh on the H23 instrument • It bought 7 MWh on the H19 instrument 7 2 Later on, at 12:07 p.m., it: • Sold 9 MWh on the H06 instrument 1 • And at 13:10 h, the subject: • Sold 2 MWh on the H19 instrument 9

7. Reporting before 9:00 a.m. to the Operator the purchase of H12 2 MWh H19 7MWh H23 1 MWh Reporting before 2:00 p.m. to the Operator the purchase of H12 2 MWh H19 5 MWh H23 1 MWh And the sale of 9 MWh na H06 Reporting before 1:00 p.m. to the Operator the purchase of H12 2 MWh H19 7MWh H23 1 MWh And the sale of 9 MWh na H06 9:30 closing the next hourly instrument H13 10:30 closing the next hourly instrumentH14 11:30 closing the next hourly instrument H15 12:30 closing the next hourly instrument H16 13:30 closing the rest of the hourly instruments from H17 to H06 8:30 closing the first hourly instrument H12 8:00 -13:30 Continuous quotations on the hourly instruments

8. Example of reporting a re-nomination to the Operator of the Gas Pipelinesin a gas day n, part I Re-nomination sent by Polish Power Exchange before 9:00 a.m. 2 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 Inactive hours 7 1 Subsequent delivery hours during a gas day 6 8:30 a.m. - the end of the possibility of making requests for H12 and sending the re-nomination before 9:00 a.m. to the Operator of the Gas Pipelines

9. Example of reporting a re-nomination to the Operator of the Gas Pipelinesin a gas day n, part II Re-nomination sent by Polish Power Exchange before 1:00 p.m. 2 1 9 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 Subsequent delivery hours during a gas day Inactive hours 7 6 12:30 p.m. - the end of the possibility of making requests for H16 and sending the re-nomination before 1:00 p.m. to the Operator of the Gas Pipelines

10. Example of reporting a re-nomination to the Operator of the Gas Pipelinesin a gas day n, part III Re-nomination sent by Polish Power Exchange before 2:00 p.m 5 Inactive hours 6 2 1 9 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 Subsequent delivery hours during a gas day 1:30 p.m. - the end of the possibility of making requests for H17 and sending the re-nomination before 2:00 p.m. to the Operator of the Gas Pipelines

11. Placing weekend instruments on the market • Weekend instruments shall be placed on the Day-Ahead Gas Market since 30th July 2014. • Definition of the weekend instruments: it is an instrument with a delivery time between Saturday 6:00 a.m. and Monday 6:00 a.m. • The subject of turnover shall be gas delivery in equal quantities at each hour of the delivery period. It is a Base-type instrument, 1 contract corresponds to a delivery of 1 MWh of gas at each hour of the delivery period. • Weekend instruments shall be quoted for two days on Thursday and Friday. • Quotations shall be conducted in a continuous quotation system. • Information concerning concluded transactions (nominations) shall be reported to the OSPg (Operator of the Gas Pipelines)

12. Weekly instruments on Commodity Futures Market • Since 29 July 2014, weekly instruments shall be placed on the Commodity Futures Market (RTT in Polish). • Definition of weekly instruments: • A weekly instrument is a contract for gas delivery in the period between Saturday 6:00 a.m. and 6:00 a.m. on Monday of the following week. • There will be 4 series in the turnover (delivery for the 4 following weeks) • Quotations on weekly instruments shall be conducted according to the rules of the Commodity Futures Market(quotation period, accounting rules etc.) • Quotations shall be carried out in a continuous quotation system. • Monthly instruments shall not be divided into weekly instruments.

13. The End