Article 3.1.k) of Law 54/1997 of 27 November of the Electrical Sector establishes, among the powers that correspond to the General Administration of the State, to approve by means of Resolution of the Secretary General of Energy the market rules and operating procedures of an instrumental and technical nature necessary for the economic and technical management of the system.

For its part, the Royal Decree 2019/1997 of 26 December, for which the electricity production market is organised and regulated, provided, in Article 31, that the system operator may propose for approval by the Ministry of Industry Tourism and Trade the technical and instrumental operating procedures necessary to carry out the proper technical management of the system, who will resolve prior report of the National Energy Commission.

By this review we seek greater flexibility for the market participants by introducing a new mechanism for the formalization of guarantees, considering the replacement of the guarantee if the guarantor loses the required minimum credit rating and reviews the calculation of the Additional Operations Guarantees so as not to penalize new subjects with moderate deviations.

View Law 54/1997 of 27 November of the Electrical Sector and of Article 31 of Royal Decree 2019/1997 of 26 December on the organisation and regulation of the electricity production market.

View the proposal made by the System Operator of operation procedure 14.3 "Payment Guarantee".

This Secretary of State, prior to the report of the National Energy Commission, resolves:

First. -Approve the procedure for the operation of the 14.3 "Payment Guarantee" electrical system, which is inserted below.

Second. This resolution shall take effect on the day following that of its publication in the "Official State Gazette".

Third. As of the date on which this resolution takes effect, the P.O. 14.3 "Guarantees of Payment", approved by Resolution of the General Secretariat of Energy, dated 28 July 2008, is without effect.

Madrid, May 9, 2011. -Secretary of State for Energy, Fabricio Hernández Pampaloni.

ANNEX

P. O. 14.3 Payment Guarantees

1. Object.-The purpose of this operating procedure is to establish the general conditions for the receipt and management of the guarantees corresponding to any of the settlements established in Operation Procedure 14.1.

The System Operator will be able to enable an Authorized Third Party to perform warranty management and assume the central counterpart function, if any. If the aforementioned rating has been granted, the terms of this Operation Procedure to the System Operator regarding the receipt, management and determination of guarantees shall be construed as being made to the Authorized Third Party. The System Operator will properly inform the Market Subjects of the Authorized Third Enablement Market.

2. Scope and definitions.

2.1 Scope. -This procedure of operation is applicable to the Production Market Subjects and the System Operator.

2.2 Definitions. -The term "Market" in this procedure refers to the Electric Power Production Market.

The terms "Market Subject" and "Subject" in this proceeding refer to the Electrical Power Production Market Subjects.

The schedules mentioned in this procedure refer to the CET (Central European Time) European Central Time.

3. Guaranty Constitution.-Market Subjects that may be liable to be debtors as a result of the System Operator's liquidations shall provide it with sufficient assurance to cover its economic obligations arising from the their participation in the Market, in such a way as to guarantee to the creditors the full recovery of the liquidations made by the Operator of the System and in the days of payments and charges established in the Procedure of Operation 14.1.

The time limit for providing the guarantees will be 15:00 hours on the last day indicated in the different sections of this Operation Procedure.

The lack of provision of this guarantee, its lack of acceptance by the Operator of the System as insufficient or inadequate, or its lack of maintenance and updating, will be the cause of suspension of the participation of the Subject on the production market as set out in Operation Procedure 14.1.

4. Release of guarantees.-The System Operator shall release the security provided by the Market Subject at the time it loses its Market Subject condition, provided that it has fulfilled all its obligations and has faced all its debts arising from its participation in the same or, where appropriate, provided that it has been verified that no such debts exist.

5. Coverage of the guarantees.-The security to be provided by each Subject shall be without limitation, in accordance with the provisions of this Operation Procedure, of the debtor obligations to be assumed by the performed by the System Operator.

The collateral provided must also be in response to any taxes and surcharges in force on the subject at the time of payment for the payment of the debt securities by the System Operator.

This guarantee will not be liable for obligations incurred by customers, persons or entities other than the Subject parties acting on the Market. In particular, it shall not be liable for payments to be made for the settlement of tolls, for payments corresponding to the bilateral physical contracts and for the settlement of the market operator.

6. Types of Guarantees Required.-The warranties that the Market Subjects are required to provide are as follows:

(a) A basic operating guarantee to be determined by the System Operator and shall be specified and reviewed in the light of the evolution of the volume of energy contracted in the period and its maximum hourly purchase power; and the sale requested, in order to ensure a sufficient level of guarantee on a permanent basis. This guarantee shall not be less than the value of its maximum possible debit positions for a number of days as set out in paragraph 10.

(b) A guarantee of additional transaction in the event that the liquidations practiced to the Subject are not final.

(c) An exceptional guarantee, payable to the Subject in those cases where the Operator of the System considers it necessary, either because there is a higher risk than the coverage of the basic and additional operating guarantees; for other special circumstances which objectively justify the requirement for additional guarantees.

In this respect the System Operator may request a rating company, the risk rating of the Subject to act as a buyer for purposes of objectively justifying the requirement of an exceptional guarantee. The cost of this qualification must be borne by the affected Subject.

7. Formalisation of the guarantees.-The provision of guarantees must be made in favour of the System Operator by one or more of the following instruments:

(a) Cash deposits in the account designated by the System Operator. The System Operator may be able to make the existing cash available to the System Operator. The interest accrued on this account, minus the possible costs of the same and less than a maximum of 0,25% which may be retained by the System Operator as a management fee, shall be returned to the subjects who have contributed the deposits in cash. The System Operator will make appropriate retentions in accordance with current legislation.

b) Aval or bond of solidarity provided by bank, savings bank or credit union, which does not belong to the group of the company endorsed or established, in favor of the Operator of the System, in which the guarantor or guarantor recognizes that their obligation to pay by virtue of the guarantee is first, wholly abstract, without the guarantor or guarantor being able to derogate from any exception to avoid payment to the beneficiary and, in particular, no loss of the underlying relationship between the guarantor or guarantor and the endorsement or entrench. The System Operator may establish a model to formalize this warranty.

The System Operator may reject the endorsement provided by a credit institution that does not have a rating "rating" of "Investment Grade". In the event of a guarantee or joint guarantee granted by a non-resident credit institution, the Operator of the System may reject the endorsement or request prior to the acceptance of the guarantee or guarantee a legal opinion on the validity and enforceability of the guarantee in the country where the guarantee was granted. The cost of this legal opinion will be borne by the company endorsed or established. In the event of the execution of the guarantee or of the security, the possible costs of such execution shall be borne by the undertaking endorsed or established.

If the guarantor entity is declared to be in insolvency, or the administrative authorisation for the exercise of its business would have gone without effect, or its credit rating would have fallen below the minimum (a) the obligation to provide security must be replaced by another, in the same way or in the same way as in this Operation Procedure, in accordance with the time limits laid down for the replacement of guarantees.

The payment in charge of the security executed must be effected in such a way that the Operator of the System can make it effective at first requirement with a value date no later than two working days after the date of the requirement.

(c) Irrevocable authorisation of use, up to the maximum amount of payment obligations incurred in the period to be settled, of one or more credit lines subscribed by the energy buyer.

The lines of credit referred to in this paragraph shall be a finalist and must be used exclusively as payment or hedging lines in the guarantee of obligations under their obligations of payment for the settlement of the System Operator, with a minimum amount available at each moment equivalent to the basic and additional operating guarantee and, where applicable, the additional amount corresponding to the guarantee exceptional, required by the System Operator.

d) Cession of future receivables from the liquidations made by the System Operator, which the Subject that is a creditor as a result of the System Operator's liquidations does in favor of the Subject debtors, provided that this transfer is carried out in accordance with the model accepted by the System Operator, is accepted by the System Operator and the Subject that cedes its future charges has a credit balance in the previous settlements according to the provisions of paragraph 13. Irrespective of the amount which the transferor may enter in the transfer document, the amount recognised and, therefore, valid to constitute the required guarantees, shall be the least of the amount in the document and the maximum set out in paragraph 13.

e) Certificate of Insurance of Solidarity provided by insurance institution that does not belong to the insurance taker group, in favour of the System Operator, as insured, in which the insurer recognizes that its obligation to payment by virtue of the same is at first, wholly abstract, formal notice without the insurer being able to derogate from any exception to avoid payment to the System Operator and, in particular, no loss of the underlying relationship between the insurer and the policyholder. In particular, the non-payment of the premium will not entitle the insurer to terminate the contract or be extinguished, nor the cover of the suspended insurer, nor shall it be released from its obligation to produce the non-compliance in the payment by the policyholder. The System Operator may establish a model to formalize this warranty.

The System Operator may reject insurance certificates of caution provided by an insurer that does not have a rating of "Investment Grade".

In case of presentation of a certificate of solidarity insurance granted by a non-resident credit institution, the System Operator may reject the certificate or request prior to the acceptance of the certificate of (a) a legal opinion on the validity and enforceability of the guarantee in the country where the guarantee has been granted. The cost of this legal opinion will be borne by the company. In the event of the certificate being carried out, the costs of such execution shall be borne by the insurance undertaking.

If the insurance institution was declared to be in insolvency, or the administrative authorisation for the exercise of its business would have been without effect, or its credit rating would have fallen below the minimum (a) the obligation to provide security must be replaced by another, in the same way or in the same way as in this Operation Procedure, in accordance with the time limits laid down for the replacement of guarantees.

The payment in charge of the security executed must be effected in such a way that the Operator of the System can make it effective at first requirement with a value date no later than two working days after the date of the requirement.

8. Management of the guarantees constituted.-The Operator of the System will be responsible for the management of the guarantees constituted, in the interest of the Market Subjects, both for the purpose of supervising the obligations of constitution and maintenance of the updated guarantees, as well as of the ordinary wealth management to which it gave rise or, where appropriate, the provision of the amounts necessary to meet the guaranteed obligations. The Operator of the System shall keep a record in which the rights and obligations relating to such guarantees shall be included in separate headings.

The System Operator shall retain at all times the documents in which the collateral is formalized as long as the holder has the status of Market Subject.

Even if guarantees are to be executed, the Operator of the System will always have documents to formalize guarantees for the payment obligations due and the liquidation of which has not yet been carried out.

For these purposes, in the execution of guarantees, the System Operator will always retain the original of the guarantees presented, which may be reduced in its amount by the guarantor in the part of the guarantees that it has been executed.

9. Principles for determining the amount of guarantees required.-The amount of guarantees required for each Market Subject shall be determined by the System Operator based on the provisions of paragraph 6 and taking into account the following criteria:

(a) The risk period to be covered by the basic operating guarantee shall be the same as the settlement period plus an increase to consider the additional days until the effective payment and the following five days necessary for the formalisation of new guarantees in the event of non-compliance and execution of the existing ones. If the settlement period is fortnightly, the risk period shall be 35 days.

(b) Maximum debt in the period of risk to be covered by the guarantee in accordance with the best estimate of its debt in that period. This volume shall be updated on the basis of the evolution of the liquidations.

(c) Payment obligations that may arise as a result of further settlement practices over months in which the prior settlements were not final.

10. Determination of the amount and period of validity of the basic operating guarantees required.-The System Operator will calculate and communicate to the Market Subjects, before the last working day of the months of March, June, September and (a) December of each year, the amount to be set by the Subject for the concept of the basic operating guarantee required for the following quarter, without prejudice to the daily review provided for in paragraph 12 and the review of guarantees by power changes when they reach a variation of more than 20% in relation to the power values maximum of the Subject in the last revision of the basic operating guarantees.

Market Subjects shall modify the securities incorporated, as required by the System Operator, during the first four working days of the month in question.

Basic operating guarantees shall be determined, in a general manner, for each Subject and activity of which they perform on the Market, under the conditions described in paragraphs 10.1 and 10.2.

The basic operation guarantee calculated as set out in this section will be rounded up to a multiple of a thousand euros.

In the event that the System Operator increases the frequency of the liquidations as set out in Operation Procedure 14.1, the parameters set out in this paragraph 10 will be reviewed in line with the new settlement periods.

When changes in the assets of the Liquidation Subjects occur, or regulatory changes affecting purchase or sale prices occur, basic operating guarantees will be reviewed according to these new conditions, so that historical values will be corrected according to the new scenario so that they faithfully represent the expected future conditions.

The System Operator will provide information to the Subjects about the data mentioned in the following sections.

In any case, at the time of the formalisation of the guarantees, the term must be at least until the expected date of submission of the next revision plus one month.

10.1 Energy acquisition activities for consumers within the Spanish electricity system.-The basic operating guarantees of the Subjects for energy acquisition activities for consumers will be determined by the next mode:

(a) The net debtor balance of the payment entitlements and payment obligations of the settlement of the System Operator of each of the three series formed by a number of consecutive days equal to the risk period shall be considered. defined in paragraph 9.a) that are initiated on the first day of each of the months of the previous year of the same quarterly period for which the basic operating guarantee is being calculated.

(b) To correct possible increases in energy and price, each value shall be increased by applying the maximum percentage change of the total amount cleared by the System Operator for the energy acquisition activities for consumers of each month in respect of the same month of the previous year calculated on the basis of changes in previous years of the System Operator's liquidations, up to a maximum of six.

(c) The value obtained shall be reduced, where appropriate, by the credit balance of the Subject in the same series for activities other than energy consumption for consumers increased by the maximum percentage change calculated in the Previous section.

d) The highest value will be selected from the previous three values.

e) In any case, each value in paragraph (b) for the basic operating guarantee shall never be considered to be less than the maximum power of the acquisition unit of the Subject for 24 hours, for nine days and for a price of a reference to the costs cleared by the System Operator which shall be the price of the last available month increased by a growth factor calculated on the basis of the monthly percentage changes of the previous 12 months.

(f) Alternatively, those subjects who wish for a more frequent update of the calculation of the operating guarantee must, according to the model provided by the System Operator, request in writing that they be submitted to the requirements of this paragraph 10.1.f) and that, therefore, the calculation of the guarantee of operation shall be carried out on the second highest value of the three securities referred to in paragraph (d). The subjects who have received this most frequent guarantee update shall have a more stringent basic operation guarantee review as regards the day-to-day monitoring of the collateral, as provided for in paragraph 12.

(g) The Subject shall be obliged to report to the System Operator the expected changes in its energy acquisitions of the quarter provided that its intended acquisitions exceed those corresponding to the value obtained in the Previous paragraphs. In this case, the required basic operating guarantees shall be increased with respect to those calculated in the general form in the same proportion as the expected acquisitions increase.

(h) A similar procedure shall be carried out if the Subject communicated and justified changes in its energy acquisitions in the quarter and in its maximum buying powers that result in a reduction of more than 20% of those considered. for the calculation according to this section. In any case, the subjects who have received this update of guarantees shall have a review of the most stringent basic operational guarantees with regard to the daily monitoring of the guarantees, as provided for in paragraph 12. If, at some point in the quarter, energy acquisitions exceed those provided for by the Subject, the Subject may not request a reduction in guarantees in respect of the initial calculation in the following quarterly review.

10.2 Production activities and international import and export exchanges.-Subject to which activities other than those described in paragraph 10.1 are liquidated, they shall be required to provide security of operation the basic amount of the debtor balance that may correspond to them as a result of the System Operator's liquidations.

Basic operating guarantees for activities other than those referred to in paragraph 10.1 shall be determined as follows:

(a) For determination, the period of 12 months prior to the calculation date shall be considered, considering complete months.

The twelve securities of the net debtor balance shall be determined during the consecutive days of the risk period in paragraph 9.a) starting on the first day of each month of the period considered.

b) The highest value among the previous twelve values will be selected to obtain the amount of the basic operating guarantee.

(c) In any event, the basic operating guarantee shall never be considered to be less than the sum of the maximum powers of its production and import units for 24 hours, for four days and for 10% of the average price of deviations for the least generation of the last month available. The powers of facilities with the right to charge an investment incentive or integrated into a regulatory area shall not be considered in this calculation if the Liquidation Subject has three or more units with the right to charge an investment incentive or integrated into a regulatory area.

(d) Alternatively, those subjects who wish for a more frequent update of the calculation of the guarantee of operation must, according to the model provided by the Operator of the System, request in writing that they be subject to the requirements of this paragraph 10.2.d) and that therefore the calculation of the guarantee of operation shall be carried out on the fourth highest value of the 12 securities referred to in paragraph (b). In any case, the subjects who have received this most frequent guarantee update shall have a more stringent basic operation guarantee review as regards the day-to-day monitoring of the guarantees as provided for in paragraph 12. and six days shall be used for the calculation of its minimum basic operating guarantee as described in paragraph c) above.

The Liquidation Subjects of the production facilities that request the high in the Market must have a basic initial operating guarantee that will be calculated as the product of the net installed power of the new installation by means of the average guarantees per MW deposited by the subjects with installations of the same technology and economic regime. These mean values will be published by the System Operator. In the case of Liquidation Subjects applying for the High in the Market to participate exclusively with export units, the minimum basic operating guarantee shall be one thousand euros.

10.3 Sales and purchase activities with generic programming units. -Subjects who perform operations in the market with generic sales and purchase units, understanding for all those that do not have associates the border points of measures or capacity rights, they shall have a basic operational guarantee which shall be calculated in accordance with paragraph 10.2. For the purposes of paragraph 10.2.c), the maximum sales or purchase powers of the generic units multiplied by two shall be included in the sum.

11. Determination of the amount of additional operating guarantees required.-Each Market Subject shall have sufficient additional operating guarantees to cover payment obligations arising from future settlement corrective of the initial settlement. The additional transaction guarantees shall be covered by financial guarantees with a minimum term of validity of thirteen months.

The System Operator will provide information to the Subjects about the data mentioned in the following sections.

In any event, at the time of the formalisation of the guarantees, these will not be able to be disposals of receivables and their validity must be at least thirteen months.

As long as the final final settlement of one month is not performed, additional transaction guarantees will be requested from all Subjects as set forth below. The first application shall take place on the first working day following the sixth calendar day of the month following each month, and the Subject shall constitute the security requested within four working days following the request.

The additional operation guarantee calculated according to this section will be rounded up to a multiple of a thousand euros.

11.1 Energy acquisition activities for consumers within the Spanish electricity system.

11.1.1 Acquisition of Energy for Consumers in the Market. -Additional operating guarantees of Market Subjects for energy acquisition activities for consumers will be determined as follows:

(a) The monthly percentage deviations from the programme produced in each of the last 12 months in which final firm measures are available shall be calculated and the third highest percentage (P3) shall be used. In case the third highest percentage is less than one percent, the percentage of one percent will be used.

(b) The percentage P3 obtained in the preceding paragraph shall apply to the total settlement of the month to obtain the estimated deviation for additional guarantees (DG):

DG = P3 × EPC

Where: EPC is the monthly sum of the scheduled power consumption.

c) The additional operation guarantee amount (GOA) will be calculated using the following formula:

GOA = PE × (DG-DA) + PDS × DG-IMPDA

Where:

DA is the monthly sum of the deviations assigned to each Subject from the total deviation of the set of participants in the production market in the absence of full measures as set out in P.O. 14.4.

PE is the average monthly price of all concepts passed on to the Subject's demand as the cost of technical constraints, the cost of the regulatory band and the cost of the power guarantee.

PDS is the average monthly price of higher consumption deviations, weighted by total settled demand in each hour.

IMPDA is the monthly amount of the initial settlement corresponding to the assigned diversions DA.

If the amount thus obtained is a creditor, no additional operating guarantee will be required for that period.

d) In the event that there is no historical three-month final settlement of a Subject, the P3 percentage of the ten percent or, if higher, the average percentage of the Subjects will be used. marketers and consumers.

(e) Where measures of the provisional closure are settled, the additional operational guarantees shall be recalculated by replacing the percentage deviations in paragraph (a) with respect to the programme by the third highest difference between the the monthly percentage deviations from the final closure and the percentage deviations from the programme obtained with the provisional closure in each of the last 12 months in which final final measures are available. In addition, the minimum percentage of 1% is replaced by a percentage of 0,2%. Where appropriate, in paragraph (c), the term 'DA' is replaced by the 'provisionally cleared' allocated deviation and, the term 'IMPDA', by the amount of the provisional settlement corresponding to the provisionally settled deviation. In paragraph (d), the percentage of 10% by 1,8% is replaced.

(f) Distributors shall communicate to the System Operator, each month, the available energy values used in the billing of the access rates to each marketer or qualified consumer of the months without closure of measures. Such securities may be used for new estimates of the percentage value P3 when they exceed the energy values considered for the calculation of additional operating guarantees and, where appropriate, for further calculations of the guarantees of additional operation.

11.2 Production and international trade activities.-The subjects to which activities other than those described in paragraph 10.1 are liquidated shall be provided as additional guarantees of operation the debtor difference between any settlement, covering a full month, after the initial month and the corresponding initial settlement for the last 12 months.

12. Review of the required (basic and additional) operation guarantees as a result of the daily follow up of the guarantees.-For the calculation of the amount of guarantees required at each moment, the System Operator may verify at any time that the guarantee provided by the Market Subject covers the total amount of the payment obligations due and not paid. To perform this monitoring in a transparent manner, the System Operator will make daily available to the Subject, through the Computer Operator's IT application, the following information:

a) The warranties constituted.

(b) The payment obligations minus the receivables accrued to date plus the additional operating guarantees required under paragraph 11.

(c) The percentage value of the value obtained in paragraph (b) with respect to the securities provided for in paragraph (a).

(d) The value of the security constituted, which is theoretically not covering any payment obligations or any other charges, nor the required additional transaction guarantee, nor the required exceptional guarantee, which will determine the guarantee available.

e) An estimate of the number of days of payment obligations that can be covered by the available guarantee. The average daily of the payment obligations due in the last ten calendar days shall be used for that estimate.

If the number of days calculated in e) is less than seven or the percentage calculated in paragraph c) is greater than eighty percent, the System Operator will urge the Market Subject to increase or replace the next mode:

The new guarantees required will be calculated in accordance with paragraph 10, taking the new volume of purchases if the insufficiency is due to an increase in purchases, and based on the economic value of the purchases. payment obligations of the previous week if the insufficiency is due to an increase in prices compared to that in the original calculation or to another cause. In any event, the amount of increase or replacement of guarantees shall be at least equal to the amount of guarantees necessary to comply with the provisions of the preceding paragraph, increased by 20%, and rounded up to a multiple of a thousand euros.

For those Market Subjects that have received a more frequent collateral update in the terms of paragraphs 10.1.f), 10.1.h) and 10.2.d), the 7-day and 80% parameters shall be 14 days and 60%, respectively.

The Market Subject shall constitute the security required before 15:00 hours on the third working day following the request for an increase or replacement of guarantees. Without prejudice to paragraph 14, the second non-compliance with this deadline in the same month shall mean that the daily monitoring shall be carried out with the parameters of 14 days and 60%.

13. Cession of charges.

13.1 Calculation of the charges that may be given to third parties. -The charges that a Market Subject may yield to another Subject and that are considered valid for the provision of guarantees, will be calculated by the System Operator in the the same dates and for the same period in which it calculates the guarantees to be provided by the debtors, as follows:

(a) In the event that a Subject communicates to the System Operator that it wishes to transfer charges to another Subject, it shall be calculated as the maximum amount that it may yield as the sum of the balances of its receivables and its payment obligations in the period of consecutive days in which the value of the debtor obligations has been calculated for the calculation of the guarantees of the transfer receiving Subject, as referred to in paragraph 10.

(b) In the event that a Subject communicates to the System Operator that it wishes to transfer charges to a number of Subjects, once the guarantees to be provided by the Subject are individually calculated, the corresponding to the whole of the receiving subjects of the cession of charges by determining the amount and the corresponding period of time in the manner referred to in paragraph 10. Charges that may be given by the Subject as collateral to the set of Subjects shall be calculated, for the period determined in the preceding paragraph, as if an individual Subject is treated.

If the charges to yield do not cover the sum of the guarantees required individually for each of the subjects, they must constitute the guarantee that is missing by any other of the instruments set out in paragraph 7. For the purposes of determining the amount to be allocated, the charges shall be distributed according to the order of precedence communicated by the transferor, or, failing that, in proportion to the debtor obligations of the receiving subjects.

13.2 Cession of receivables as a result of the daily monitoring of the guarantees. -If in the daily monitoring of the guarantees of a Subject, as provided for in paragraph 12, the circumstances are detected In order to require the Subject to increase the guarantees constituted, and another Subject communicates its desire to cede its receivables, it will be calculated to be credited to it and pending collection in the current period.

14. Criteria for action against non-compliances.

14.1 Non-compliance with payment obligations. -In the event that any Market Subject fails in whole or in part, any of its payment obligations arising from its activity in that market, the System Operator execute with the utmost diligence and as soon as possible the guarantees constituted, in order to ensure compliance with the obligations of the defaulting Subject.

In addition, for the purposes of Article 50 of Law 54/1997 of 27 November of the Electrical Sector, if the defaulting Subject is a qualified consumer, the System Operator shall immediately communicate that the Ministry of Industry, Tourism and Energy, the National Energy Commission, as well as the area distributor for the aforementioned consumer.

The Operator of the System may also agree to the provisional suspension of the defaulting Subject, thereby giving the National Energy Commission and the Ministry of Industry, Tourism and Energy account.

14.2 Impairment of guarantees and non-compliance with the obligations of the constitution, increase or replacement of guarantees. -When as a consequence of the execution of guarantees, because they are insufficient according to the 10, 11 and 12, due to the expiry or insufficient of their term of validity, or as a result of non-compliance with the obligations of the constitution, increase or replacement of guarantees within the time limits provided for in paragraphs 10, 11 and 12, or by any other reason, the guarantees are not valid or are insufficient, the System Operator will require the Subject of the Market in question to restore its guarantee within two working days. If the risk is greater than the cover of the guarantees or if the guarantee has not been restored after that period, the System Operator may agree to suspend it as a Market Subject.

Once the suspension has been agreed, the National Energy Commission and the Ministry of Industry, Tourism and Energy will be informed.

The lack of a constitution, replacement or update by a Subject of any of the guarantees provided for in these Operation Procedures will be understood as a settlement order for all transactions in the System Operator, in the event of an agreement on the suspension of the Subject, shall perform an exceptional settlement in accordance with the terms set out in P.O. 14.1.

14.3 Situation of a Market Subject. -In the event that a Market Subject enters or is in a bankruptcy situation, it must immediately communicate it to the System Operator. The System Operator may require a supplementary guarantee and may even agree to its provisional suspension as a Market Subject. Once the suspension has been agreed, the National Energy Commission and the Ministry of Industry, Tourism and Energy will be informed. Once the provisional suspension has been agreed, the System Operator may perform an exceptional settlement on the terms set out in P.O. 14.1.

14.4 Prolonged non-compliance in the payment. -In the event of a prolonged non-compliance with the payment obligations by a Market Subject, which is not covered by the guarantees constituted by the Subject, the Operator of the System shall be directed against the judicially or by any other means admitted in the legal system. The defaulting Subject will be obliged to pay the overdrafts, with their interests, and all damages caused.

For these purposes, it is considered that there is a prolonged breach of payment obligations by a Subject if two working days elapse from the date the payment is due without the payment being made.

15. Transitional period.-Until the System Operator has six full years of settlements practiced under the new Liquidations Operation Procedures, the System Operator may use, for the sole purpose of the calculations as set out in paragraph 10.1.b), the aggregated results of liquidations of domestic consumption activities available on the public website of the market operator and which have been carried out prior to the entry into force of the market operator procedure, up to a maximum of six years. These calculations will be made available to the Liquidation Subjects.