Resolution of 1 August 2013 approving the rules for the daily and intraday electricity production markets and changing the daily market closing time

OFFICIAL STATE GAZETTE No. 190 Friday, 9 August 2013 Sec. I. Page 58231 I. GENERAL PROVISIONS MINISTRY OF INDUSTRY, ENERGY AND TOURISM 8826 Resolution of 1 August 2013, from the State Secretariat for Energy, approving the rules for the operation of the daily and intraday electricity production markets and the change of the closing time for the daily market.

Article 3.1.k) of Law 54/1997, of 27 November, on the Electricity Sector, establishes, among the competencies corresponding to the General State Administration, to approve by resolution of the State Secretary for Energy the market rules and the operational procedures of an instrumental and technical nature necessary for the economic and technical management of the system.

Paragraph 3 of Article 27 of Royal Decree 2019/1997, of 26 December, organizing and regulating the electricity production market, provides that the Market Operator and the National Energy Commission may propose to the Ministry of Industry, Energy and Tourism for approval the rules for the operation of the daily and intraday production markets that they consider adequate for the best execution of what is provided for in Law 54/1997, of 27 November, on the Electricity Sector, the aforementioned royal decree and other development regulations, who shall resolve after receiving a report from the National Energy Commission.

Under the auspices of both Directive 2009/72/EC, of 13 July 2009, on common rules for the internal electricity market, and European Regulation (EC) No 714/2009, on conditions for access to the network for cross-border trade in electricity, regional initiatives have been developed as a prior step to the establishment of an internal electricity market at the European level.

Spain is included, along with Portugal and France, in the South-West Europe Electricity Regional Initiative (SWE ERI), and work is being carried out focused on the integration of these markets, with the participation of regulators, system and market operators, and subjects from the three countries.

In 2009, at the initiative of various European market operators, including the Iberian Electricity Market Operator, the PCR (Price Coupling of Regions) project was launched with the aim of harmonizing the various European electricity markets through the use of a common clearing algorithm.

The Council of Regulators of the Iberian Electricity Market on 28 November 2011 endorsed its commitment to carry out the necessary actions so that the Iberian Electricity Market, or MIBEL, is in a position to couple with the markets of the North-West Europe region (NWE, which groups the markets of France, Belgium, the Netherlands, Germany, Luxembourg, the United Kingdom, Norway, Denmark, Sweden, and Finland).

Among these actions were those aimed at delaying the closing of the daily market by two hours until 12:00 CET, in synchronization with the closing time of the aforementioned markets. This entails adapting the schedule of subsequent markets such as the intraday market, balancing services, and the technical restrictions process, as well as programming and nomination processes. Other contents and deadlines for the regulatory modifications required consequently in Portugal and Spain were also identified, with the initial objective of completing the process by June 2012, so that the implementation in MIBEL of the unique clearing algorithm, common to all participating markets, could take place in the second half of 2012, in parallel with its adoption in the NWE region.

Although these deadlines have been extended, the objective of proceeding with market coupling in that zone in November 2013 remains firm, as evidenced by various declarations from system operators and the market operator of the NWE region.

Likewise, the commitment of the MIBEL Council of Regulators to take the necessary steps so that MIBEL is also in a position to couple is firm, and in this context, the General Directorate of Energy and Mining Policy of the Ministry of Industry, Energy and Tourism sent separate letters in October 2012 to the market operator and the system operator, urging them to propose the necessary modifications in the Market Rules and System Operation Procedures, respectively, to establish the daily market closing time at 12:00 CET.

On 31 October 2012, OMI-POLO ESPAÑOL, S.A. (OMIE), as the market operator, submitted to the State Secretariat for Energy the requested proposal, as well as a modification thereof dated 5 December 2012.

The aforementioned proposal was sent to the National Energy Commission for the issuance of a report pursuant to Article 27.3 of Royal Decree 2019/1997, of 26 December, which proceeded to issue the "Report 8/2013 of the CNE on the proposal for modifying the rules for the operation of the daily and intraday electricity production markets to set the MIBEL daily market closing time at 12:00 CET", approved by the Council of that Commission on 18 April 2013.

Having seen Law 54/1997, of 27 November, on the Electricity Sector, and Article 27 of Royal Decree 2019/1997, of 26 December, organizing and regulating the electricity production market.

Having seen the proposal of the Iberian Electricity Market Operator– Spanish Pole, S.A. dated 31 October 2012 for the modification of the current Rules for the operation of the daily and intraday electricity production markets, and Report 8/2013 of the National Energy Commission on the aforementioned proposal,

By virtue thereof, this State Secretariat for Energy resolves:

First. The Rules for the operation of the daily and intraday electricity production markets are approved, which are inserted below.

Second. The effective date of entry into force of the new clearing closing time for the daily market contemplated in Rule 51 of the Rules for the operation of the daily and intraday markets approved in this resolution is established as 15 October 2013, once the testing period established in paragraph three of this resolution has concluded.

Third. A testing period is established for the adaptation to the change in the daily market closing time, which will begin on the date this resolution takes effect and will conclude on the effective date of entry into force of the new closing time for the market determined in the previous second paragraph.

Fourth. This resolution shall take effect from the day following its publication in the "Official State Gazette".

Madrid, 1 August 2013.–The State Secretary for Energy, Alberto Nadal Belda. cve: BOE-A-2013-8826

OFFICIAL STATE GAZETTE No. 190 Friday, 9 August 2013 Sec. I. Page 58232

RULES FOR THE OPERATION OF THE DAILY AND INTRADAY ELECTRICITY PRODUCTION MARKETS Index Preamble Chapter One: General Rules Rule 1. The production market. Rule 2. The market operator. Rule 3. Scope of the market rules and object of the adherence contract. Rule 4. Daily market agents. 4.1. Subjects who can be market agents and requirements to be so. 4.2. Acquisition of the status of market agent. 4.3. Agents with possibility of physical delivery. Rule 5. Sellers. 5.1. Daily market. 5.2. Intraday market. Rule 6. Buyers. 6.1. Daily market. 6.2. Intraday market. Rule 7. Conditions for adhering to the rules for the operation of the daily and intraday electricity production markets. Rule 8. Provision of guarantees. Rule 9. Communications regarding the registration and deregistration of offer units of market agents. 9.1. Communication to the Ministry of Industry, Energy and Tourism and to the National Energy Commission. 9.2. Communications regarding registration as market agents. 9.3. Communication of deregistration of representation. Rule 10. Suspension of participation of offer units of a market agent. Rule 11. General characteristics of offers. Rule 12. Registration of sale or acquisition units in the market operator's information system. Rule 13. Time for submission of offers. Rule 14. Place for submission of offers. Rule 15. Verification of offers. 15.1. Verification of the session status for offer submission. 15.2. Verification of the agent. 15.3. Verification of the offer unit. Rule 16. Confirmation of offers. Rule 17. Firmness of offers. Rule 18. Confidentiality and publicity of information. Rule 19. Publication of information to agents for their operation in the market. 19.1. Daily market information. 19.2. Intraday market information. 19.3. Information on settlements. Rule 20. Periodic publication of public information. 20.1. Aggregated supply and demand curves and international and intra-community trade. cve: BOE-A-2013-8826

OFFICIAL STATE GAZETTE No. 190 Friday, 9 August 2013 Sec. I. Page 58233 20.2. Information on market aggregates. 20.3. Fees. 20.4. Publication of market information due to loss of confidential character. Rule 21. Periodic communication on market results to competent administrations and to the market agents committee. Rule 22. Information to the public. Rule 23. Functions of the committee. Rule 24. Composition of the committee. Rule 25. Designation of the members of the daily production market agents committee. Rule 26. Rules of operation and internal regulations. Rule 27. Object and basic concepts. Rule 28. Offers to the daily market. 28.1. Object and content of sale and acquisition offers. 28.1.1. Simple offers. 28.1.2. Complex offers. 28.2. Format for submission of sale or acquisition offers. 28.3. Information received from system operators: unavailabilities, commercial capacities of international interconnections, information on the allocation of capacity rights and on international bilateral contracts, national bilateral contracts and the result of primary energy emission option auctions. 28.3.1. Definition and incorporation of information on unavailabilities. 28.3.2. Definition and incorporation of information on commercial capacities of international interconnections. 28.3.3. Definition and incorporation of information on the allocation of capacity rights and on international bilateral contracts. 28.3.4. Definition and incorporation of information on national bilateral contracts and the result of primary energy emission option auctions. 28.4. Verification of offers. 28.4.1. Verification of session status. 28.4.2. Verification of the agent. 28.4.3. Verification of compliance with guarantees. 28.4.4. Verification of the sale or acquisition unit. 28.5. Validations on the communication of bilateral contract information sent by system operators. 28.6. Acceptance of sale and acquisition offers. 28.7. Effects of including the sale and acquisition offer in the clearing process. 28.8. Submission of offers for bilateral contracts with physical delivery. Rule 29. Physical delivery of energy negotiated forward. 29.1. Definition of forward contracting unit (fcu). 29.2. Delivery of positions for settlement by physical delivery by the forward market operator. 29.2.1. Sending period. 29.2.2. Validations and response. 29.3. Effects of resending information. Cancellation of disaggregations of agents previously sent. cve: BOE-A-2013-8826

OFFICIAL STATE GAZETTE No. 190 Friday, 9 August 2013 Sec. I. Page 58234 29.4. Receipt of disaggregations of open positions of agents. 29.4.1. Sending period. 29.4.2. Content. 29.4.3. Default disaggregations. 29.4.4. Validations upon receipt and response. 29.4.5. Information update. 29.4.6. Creation of offers arising from open positions in the forward market. 29.5. Exchange of information with the forward market operator. 29.5.1. Structural data information. 29.5.2. General market information. Rule 30. Daily market clearing procedure. 30.1. Basic elements of the daily market clearing procedure. 30.2. Simple clearing procedure. 30.2.1. Establishment of the economic precedence order of sale offers and determination of the sale offer curve. 30.2.2. Determination of the acquisition curve. 30.2.3. Clearing procedure. 30.2.4. Criteria for allocation of energy sale and acquisition. 30.2.5. Criteria for setting the marginal price. 30.3. Clearing procedure when simple and complex sale offers coincide. 30.3.1. Search for a first valid solution. 30.3.2. Successive improvement of the first valid solution. 30.4. Clearing process considering international interconnections. 30.4.1. Calculation of the balance in international interconnections. 30.4.2. Clearing process when there is excess in the international interconnections of the Iberian system. 30.4.3. Clearing process when there is excess in the international interconnection between Portugal and Spain. 30.5. Treatment of indivisible blocks. 30.6. Verification of compliance with guarantees in the result of the daily market clearing. Rule 31. Result of the daily market clearing. Rule 32. Calculation of the program resulting from the daily market clearing. 32.1. Communication of disaggregations of sale units. 32.2. Establishment of the economic precedence order of cleared offers in the clearing result. Rule 33. Information on the offer acceptance process, offer verification, and the result of the daily market clearing. Rule 34. Exceptional situations. Rule 35. Daily market settlement. 35.1. Determination of the remuneration corresponding to sellers as a result of the daily market settlement. 35.2. Prices to be considered in determining the price of electricity acquisition in the daily market. 35.3. Receivables in the daily market. 35.4. Payment obligations in the daily market. cve: BOE-A-2013-8826

OFFICIAL STATE GAZETTE No. 190 Friday, 9 August 2013 Sec. I. Page 58235 35.5. Revenues in the daily market from the market separation process. 35.6. Publication of the results of the daily market settlement. Rule 36. Daily base operating program. Rule 37. Daily viable program. Rule 38. Object and basic concepts. Rule 39. Offers to the intraday market. 39.1. Object and content of sale and acquisition offers. 39.1.1. Simple offers. 39.1.2. Complex offers. 39.2. Format for submission of sale or acquisition offers. 39.3. Information received from system operators: unavailabilities, commercial capacities of international interconnections, information on the allocation of capacity rights, limitations on the ability to offer, and zonal limitations. 39.3.1. Definition and incorporation of information on unavailabilities. 39.3.2. Definition and incorporation of information on limitations on the ability to offer and zonal limitations. 39.3.3. Definition and incorporation of information on commercial capacities of international interconnections. 39.3.4. Definition and incorporation of information on the allocation of capacity rights. 39.4. Verification of offers. 39.4.1. Verifications common to sale and acquisition offers. 39.4.2. Specific verifications of sale offers. 39.4.3. Specific verifications of acquisition offers. 39.5. Acceptance of sale and acquisition offers. 39.6. Effects of inclusion in the clearing of offers. Rule 40. Intraday market clearing procedure. 40.1. Basic elements of the clearing procedure in the intraday market. 40.2. Simple clearing procedure. 40.3. Clearing procedure when simple and complex sale and acquisition offers coincide. 40.3.1. Search for a first valid solution. 40.3.2. Successive improvement of the first valid solution. 40.4. Clearing process when the net reference capacity for exchange in international interconnections is exceeded. 40.4.1. Applicable scenario. 40.4.2. Predetermination of data to be considered. 40.4.3. Procedure for determining the final solution. 40.4.4. Market separation procedure when there is congestion in the Spanish-Portuguese interconnection. Rule 41. Result of the intraday market clearing. 41.1. Calculation of the incremental program resulting from the intraday market. 41.2. Communication of disaggregations of sale units and conversion to programming units by system operators. 41.3. Establishment of the economic precedence order of cleared offers in the clearing result. cve: BOE-A-2013-8826

OFFICIAL STATE GAZETTE No. 190 Friday, 9 August 2013 Sec. I. Page 58236 Rule 42. Information on the offer acceptance process, offer verification, and the result of the intraday market clearing. Rule 43. Exceptional situations in intraday markets. 43.1. Unavailability of the daily viable program. Rule 44. Intraday market settlement. 44.1. Determination of the remuneration corresponding to sellers as a result of the intraday market settlement. 44.2. Prices to be considered in determining the price of electricity acquisition in the intraday market. 44.3. Receivables in the intraday market. 44.4. Payment obligations in the intraday market. 44.5. Revenues in the intraday market from the market separation process. 44.6. Publication of the results of the intraday market settlement. Rule 45. Final hourly program subsequent to each intraday market. Rule 46. General characteristics of settlement. 46.1. Elements of price determination. 46.2. Settlement. Rule 47. Settlement process. 47.1. Daily settlement. 47.2. Resolution of incidents. Rule 48. Procedure for billing transactions in the electricity market. 48.1. Daily production market agents to whom billing is performed. 48.2. Determination of buy-sell transactions in the electricity market. 48.3. Issuance of the invoice. 48.4. Concepts included in the invoice. 48.5. Applicable fees and taxes. 48.5.1. Electricity tax. 48.5.2. Value added tax. 48.6. Agent data for billing purposes. 48.7. Billing period. 48.8. Electronic billing. 48.9. Other information relating to billing. 48.10. Rectifying invoices. 48.11. Fiscal obligations of the market operator relating to billing. 48.12. Obligations of subjects relating to billing. 48.13. Request for information relating to billing. Rule 49. System of charges and credits. 49.1. Settlement horizon. 49.2. Collections and payments. 49.3. Characteristics of aggregated charge and credit notes. 49.3.1. Publication of the aggregated charge and credit note. 49.3.2. New publication of the aggregated charge and credit note. 49.4. Consolidation of collections and payments. 49.5. Obligations for market agents resulting as buyers. 49.6. Rights for market agents resulting as sellers. cve: BOE-A-2013-8826

OFFICIAL STATE GAZETTE No. 190 Friday, 9 August 2013 Sec. I. Page 58237 49.7. Account designated by the market operator for the making of credits and payments. 49.8. Regime for non-payment and late interest. 49.9. Small collections and payments. 49.10. Calendar for collections and payments. 49.11. Pledge on receivables. Rule 50. Procedure relating to the provision of guarantees in favor of the market operator. 50.1. Constitution of guarantees. 50.2. Subjects who must provide guarantees in the market. 50.3. Maintenance of guarantees. 50.4. Coverage of guarantees. 50.5. Types of guarantees. 50.6. Formalization of guarantees. 50.6.1. Instruments for formalizing guarantees. 50.6.2. Period of validity of guarantees. 50.6.3. Communication of registration, deregistration, or modification of guarantees. 50.7. Regime for determining the amount of guarantees and method of their constitution. 50.7.1. Criteria for determining the amount of guarantees to be provided. 50.7.2. Guarantee information made available to agents. 50.7.3. Guarantee balance. 50.7.4. Determination of guarantees. 50.7.5. Assignment of receivables. 50.8. Management of guarantees. 50.9. Criteria for action in the face of non-compliance. 50.10. Prolonged non-payment. 50.11. Prolonged insufficiency of guarantees. 50.12. Lack of constitution or lack of update of guarantees. Rule 51. Description of the sequence, schedules, and information exchanges of contracting sessions. 51.1. Sequence of daily market operations. 51.2. Sequence of intraday market operations. 51.3. Alterations to the schedule. 51.4. Coordination between the market operator and system operators. 51.4.1. Information that system operators must supply to the market operator. 51.4.2. Information that the market operator must supply to system operators. Rule 52. Regime for market operation. 52.1. Claims regarding market processes, settlements, and billing. 52.1.1. Notifications. 52.1.2. Submission of claims to the market operator. 52.2. Schedules and deadlines for agent requests. Rule 53. Entry into force, duration, and modifications of the market operation rules. Rule 54. Applicable legislation and dispute resolution. cve: BOE-A-2013-8826

OFFICIAL STATE GAZETTE No. 190 Friday, 9 August 2013 Sec. I. Page 58238

PREAMBLE I) Pursuant to Article 32 of the Electricity Sector Law, the Market Operator and the System Operator assume the necessary functions to carry out the economic management referred to the efficient development of the electricity production market and the guarantee of the technical management of the electrical system. Article 33 entrusts the Market Operator with the management of the system for buying and selling electricity offers in the daily and intraday markets. II) Current regulations establish that producers, traders, consumers, system load managers, and representatives, in order to participate in the daily production market, must comply with... cve: BOE-A-2013-8826