Order IET/2013/2013, of 31 October, which regulates the competitive mechanism for the allocation of the service of management of the demand for interruptibility, regulates a competitive mechanism of allocation of interruptible resource made available to the electrical system through the service of management of the demand for interruptibility.

This order was amended by Order IET/36/2014 of 7 March, amending Order IET/2013/2013 of 31 October 2013 and Order IET/1752/2014 of 26 September 2014 laying down the timetable for the for the electrical season and certain aspects relating to the service of management of the demand for interruptibility are modified accordingly.

According to the provisions of the order, the system operator is in charge of the management of the service of management of the demand for interruptibility, as well as of the execution, monitoring and verification of all aspects relating to the provision of the same.

Article 4.1 of the above order provides that the allocation of the interruptibility service will be performed through an auction procedure managed by the system operator.

The second additional provision contains the mandate given to the system operator to propose, inter alia, the auction mechanism and the auction rules, as well as the model of adherence to the legal framework established for the participation in the auction, which will be approved by Resolution of the Secretary of State of Energy once the mandatory hearing procedure has been carried out and published in the "Official Gazette of the State".

According to this forecast, by Resolution of 1 August 2014 the Secretariat of State of Energy approved the rules of the competitive procedure of auctions for the allocation of the service of management of the demand interruptibility and the model of adherence to the legal framework established for the participation of the auctions.

Also, by Resolution of 10 October 2014, the Secretariat of State of Energy approved the characteristics of the competitive procedure of auctions for the allocation of the service of management of the demand for interruptibility regulated in Order IET/2013/2013 of 31 October 2013 for the 2015 electric season, in which paragraph 2 it is established that the rules of application to the auction procedure for the allocation of the service of interruptibility in the season 2015 and consumers of electrical energy enabled to participate in it, will be the included in Annex I to the Resolution of 1 August 2014, by the Secretary of State for Energy, approving the rules of the competitive auction procedure for the allocation of the service for the management of the demand for interruptibility and the model of adherence to the legal framework established for the participation of the auctions.

Similarly, in the Resolution of 17 December 2014, the Secretariat of State of Energy approving the aspects relating to the extraordinary auction procedure for the 2015 electric season was resolved. apply to the extraordinary auction procedure for the allocation of the additional interruptible power requirement of the interruptibility service in the 2015 season and to the power consumers entitled to participate in the the Rules included in Annex I to the Resolution of 1 August 2014 of the Secretariat of State of Energy, with certain particularities provided for in its second paragraph.

dated May 4, 2015 has had entry into the Ministry of Industry, Energy and Tourism, proposal of the Operator of the System that collects, among other aspects relating to the procedure of auctions of interruptibility for the season 2016 under the provisions of Articles 4.2 and 12.3 of Order IET/2013/2013 of 31 October 2013, a number of considerations concerning the conduct of the auctions affecting the development of the auctions and which therefore entail a amendment of the rules adopted by Resolution of 1 August 2014.

The above mentioned proposal has been referred to the National Commission of the Markets and Competition on May 28, 2015 for the issuance of report in accordance with Article 4.2 of Order IET/2013/2013, dated October 31.

The Commission has issued a report dated 11 June 2015, entitled "Agreement on a report on the proposal of the Operator of the System for Interruptibility Auctions for the 2016 Electric Season", in which values the System Operator's proposals and makes other modification proposals.

Once the alternatives raised by the system operator and the National Market and Competition Commission have been analysed, it has been considered appropriate to proceed with the adaptation of the Rules of the competitive procedure of auctions for the allocation of the interruptibility demand management service. For a better understanding of the same for the subjects to which they are intended, it is necessary to approve new rules, without prejudice to the fact that the content of the approved rules is not in essence modified in August 2014.

The auction rules approved in this resolution take into account the provisions of Order IET/2013/2013 of 31 October 2013 concerning the product types to be auctioned and the delivery period, without prejudice to the the characteristics of the auctions to be approved in advance by the Secretary of State for Energy's resolution to enable them to be developed.

Also, the Rules set forth in that order the requirements that must be met for the participation in the auction, the supervision that will be carried out by the CNMC and the reporting obligations of the results.

In accordance with the provisions of Article 7.2 of Order IET/2013/2013 of 31 October 2013, the formal accession of the participants in the auction to the established legal framework, which may be carried out after obtaining the the system operator shall have the right to comply with the conditions of the service, and the obligation to provide the service, in the event of a successful tenderer, except as provided for in the exclusion of the service in Article 11 of the order.

In its virtue, I resolve:

First. Rules of the competitive procedure of auctions and model of adhesion for the allocation of the service of management of the demand for interruptibility.

This resolution establishes, as a general rule, the content of the Rules of the competitive auction procedure for the allocation of the service for the management of the demand for interruptibility, in accordance with the provisions in Order IET/2013/2013 of 31 October 2013 regulating the competitive mechanism for the allocation of the service for the management of the demand for interruptibility, and which are inserted in Annex I to this resolution.

The Model of adherence to the legal framework of the competitive mechanism for the allocation of the service of management of the demand for interruptibility, and the model of authorization to participate as a pujadores in representation of the service, is approved consumer in the auctions included in Annex II to this resolution.

Second. Consumer adherence to the legal framework of the competitive allocation mechanism of the Interruptibility Demand Management service.

Consumers who before this resolution takes effect would have formally adhered to the legal framework for their participation in the competitive mechanism for the allocation of interruptibility, they will have to formalize a new formal accession in accordance with the Model of Accession to the legal framework of the competitive mechanism for the allocation of the Interruptibility Demand management service approved in Annex II to this resolution.

Third. Publication.

This resolution will be published in the "Official State Gazette".

Fourth. Effects.

This resolution shall have effect from the day following that of its publication in the "Official State Gazette".

From that date the resolution of 1 August 2014 of the Secretary of State of Energy, for which the rules of the competitive procedure of auctions for the allocation of the service of the management of the demand for interruptibility and the model of adherence to the legal framework established for the participation of the auctions.

Madrid, July 30, 2015. -Secretary of State for Energy, Alberto Nadal Belda.

ANNEX I

Auction rules for the Interruptibility Demand Management service allocation competitive mechanism

1. Object

Annex I is intended to set the Rules for the auction process to be carried out for the allocation of the service for the management of the demand for interruptibility, offered by consumers who meet the requirements to be suppliers of the same, as defined in Order IET/2013/2013 of 31 October 2013, which regulates the conditions of the service for the management of the demand for interruptibility and Order IET/1752/2014 of 26 September 2014 establishing the calendar for the electrical season and certain aspects are modified accordingly relating to the Interruptibility Demand Management service.

The terms linked to the auction methodology, the agents involved and the procedures associated with the assignment of the interruptible power requirement used in these Rules are defined in the Appendix A of this Annex I on glossary of terms.

2. Subjects in the auction process

2.1 Intervinlient Subjects.

The subjects involved in the auction process are as follows:

-Participant is the natural or legal person who has successfully completed the process of joining the legal and contractual framework of the competitive allocation mechanism of the demand management service interruptibility.

-Pujador is the legal representative of the designated participant for each of the supply points, who will participate in the product block auctions of a call.

-Auction Administrator (hereafter Administrator): System Operator (hereafter OS).

-Auction supervisor (in advance supervisor): National Commission on Markets and Competition (hereinafter CNMC).

2.2 Subject requirements for participation in the auction process.

In addition to the requirements set out in Article 6 of Order IET/2013/2013 of 31 October 2013, to participate in the auction process, the following requirements must be met:

-Be adhered to the relevant legal and contractual framework.

-Meet the conditions set at any time by applicable regulations.

-Contar with available enabled product blocks.

3. General features of the auction process

3.1 Products to be auctioned.

The object of the product block auctions shall be the sale to the OS of the interruptible power blocks for which the participant has been enabled in its corresponding supply points.

According to the provisions of Article 5 of Order IET/2013/2013 of 31 October, two types of products will be auctioned, which will be called 5 MW product and 90 MW product.

3.2 Auction type.

Each of the 5 MW or 90 MW product blocks to be awarded will be auctioned by the administrator at a descending price auction in a series of rounds, under the supervision of the CNMC, on the basis of a price of the exit to be established in the resolution referred to in paragraph 3.5.

3.3 Product Sales Price.

Without prejudice to paragraphs 4.4.1, 4.4.2 and 4.5.6, the selling price of each block of the auctioned product shall be that resulting from its corresponding block of product auction, expressed in €/MW (EUR per Megawatt) not including those taxes that are legally applicable.

3.4 Uninterruptible power requirement to be auctioned.

The Secretary of State for Energy (hereinafter ESA) by resolution will determine, for each of the product types, the range of quantities of interruptible power to be auctioned and the number of product blocks in which it is unadd those quantities.

Prior to the conclusion of the auctions, the Secretary of State for Energy will set the value of the concrete requirement of interruptible power to be auctioned within the range of quantities previously determined, for each product type, as provided for in paragraph 4.2, and the number of product blocks in which that requirement is broken down for each product type.

The product blocks will be auctioned prior to the start of the delivery period, in one or more auction calls for product blocks, in accordance with paragraph 4.

By virtue of Articles 4.2 and 4.3 of Order IET/2013/2013 of 31 October 2013, the OS may propose the update of the interruptible power requirement for the delivery period for each product.

When the auction price of the set of auctions is lower than the average price initially intended, calculated as the ratio between the expected cost of the service of management of the interruptibility demand for the the delivery period and the uninterruptible power requirement to be auctioned within the specified range of quantities, additional power requirement may be auctioned. In such cases, additional calls for tenders may be made on consecutive dates for the conclusion of the previous calls.

In this case, the system operator shall communicate the additional requirement to be auctioned to the participants as provided for in paragraph 4.4.1.).

3.5 Resolution of the features of the auctions.

By resolution of the ESS will be published, at least:

-For each product type: the ranges of interruptible power quantities and the product blocks in which those quantities are disaggregated.

-The delivery period of the interruptible power.

-The output price of the products to be auctioned.

-The price drop step.

-The auction completion dates.

-The coefficients ka, kb and kc as defined in Article 12 of Order IET/2013/2013 of 31 October 2013.

The maximum total interruptible power requirement and the budget allocated for the auction process referred to in paragraph 4.1, as well as the termination assumptions of the tenders, shall be published in the confidential annex. auctions for lack of competence referred to in point 4.c. of paragraph 4.4.2.

3.6 Logging of enabled and awarded product blocks.

The auction manager will manage the registration of licensed and licensed product blocks, which will be telematic, and which will have access to the National Markets and Competition Commission and the Ministry of Industry, Energy and Tourism.

4. Auction process

4.1 General considerations.

The Auction Process will be carried out through several calls, in which successive auctions of product blocks will be held to cover the requirement to be awarded on each call (both from the Product of 5 MW as of the 90 MW product) or, where applicable, until the budget allocated in confidential annex is exhausted.

4.2 Previous information.

Information regarding the conclusion of product block auctions (for both the 5 MW and 90 MW product) for each call will include, among other things:

-The date and place of the same,

-The expected range of product blocks to be auctioned,

-The exit price approved by resolution of the ESS,

-The price drop step approved by resolution of the ESS.

This information will be communicated to the participants via the auction process website of the Interruptibility Service, included on the website e-sios (www.esios.ree.es), according to the format defined in the Appendix B, no later than 2 working days after the publication of the resolution of the ESS in which the characteristics of the auctions are approved.

The number of product blocks to be auctioned for the uninterruptible power requirement to be auctioned, for each of the products, shall be fixed and made known according to the following:

-The system operator shall communicate to the Ministry of Industry, Energy and Tourism the parameters and conditions of the consumers that are enabled in accordance with Article 7.1.c of Order IET/2013/2013, of 31 October.

This communication will include the total number of blocks enabled for each of the products to be auctioned and a justified proposal for an interruptible power requirement value to be auctioned, within the range of amounts that would have been previously determined by resolution of the ESS.

-The ESS, in the light of that information and taking into account the total maximum requirement and the budget allocated for the auction process, shall set the value of the interruptible power requirement to be auctioned for each product. This value will be communicated to the OS and the CNMC.

-The OS shall inform the participants through the website referred to in this paragraph.

The ESA may, at the justified request of the administrator and after communication to the supervisor, postpone the call at any time before the date of its conclusion. In this case, the administrator shall notify the participants of the new date of the same.

Also, by resolution of the ESS, the process or timing of the auctions may be modified. In particular, it shall be possible to provide for new auctions to cover the uninterruptible power requirement to be auctioned.

4.3 Pre-auction actuations.

The Administrator will make available to all participants the "instructions to the pujadores" that will contain indications for participation in the auction of product blocks. Such information shall be transmitted at least 15 calendar days before the date of the first call.

Prior to the first call, the administrator will provide all participants with the necessary accreditation instruments for the participation in the auctions, thus acquiring the status of the bidders. In order for a buyer to be able to take part in product block auctions, it is a necessary condition for the administrator to have a signed confirmation that he has received the aforementioned accreditation instruments.

Each purer will have a puja position, assigned by the administrator at the beginning of each call.

The maximum number of suppliers per point of supply that can participate in the auctions will be determined in the information that the OS publishes before each call.

4.4 Development of Convocation.

4.4.1 General development.

In general, the auction process will be performed according to the following sequence:

1) First, a call will be made to hold the first 50 successive auctions corresponding to the 5 MW product.

2) The auction manager will calculate, once the first 50 product blocks of 5 MW are auctioned, the average reference price as the arithmetic mean of the award prices of the same.

3) A call will be made subsequently to hold the successive auctions for the 90 MW product.

4) Following the conclusion of the 90 MW product block auction call, including the completion, if any, of the direct allocation mechanism referred to in paragraph 4.4.2, the average price shall be disclosed. a reference calculated as determined in point (2) above.

In the event that the entire 90 MW product requirement has been allocated to auctioneer, participants with 90 MW product blocks that have not been awarded will be able to split these product blocks. of 90 MW not awarded in product blocks of 5 MW and participate in subsequent auctions of the 5 MW product or request direct award to the average reference price as set out in point (5).

For these purposes, such non-successful participants must inform the system operator of this decision to divide their non-awarded 90 MW blocks into 5 MW product blocks after the call is completed in a maximum time limit of 2 hours to be counted since the result is known. In this case, the OS will update the registration of enabled and adjudicated product blocks to make their ability to participate in the 5 MW product auctions effective.

5) Business groups or, where appropriate, natural or legal persons with one or more supply points that have not been awarded with at least 2 5 MW product blocks for the set of their supply points in the first 50 auctions of the 5 MW product, or which, having regard to the provisions of point 4) have requested to divide their product blocks of 90 MW into 5 MW product blocks, may, where appropriate, qualify for a direct award, up to a maximum of 2 product blocks of 5 MW, at the average reference price.

In application of the above, a representative of each business group or, if applicable, natural or legal person with one or more supply points will determine and communicate, according to the defined communication format and procedure for the OS, the supply points of its group to which the product blocks of 5 MW shall be allocated to the average reference price.

6) The auction process shall continue with one or more successive auction calls for the 5 MW product to cover the entire interruptible power requirement to be auctioned for the auctions in accordance with Paragraph 4.2, or, where applicable, until the budget allocated in the confidential annex is exhausted.

7) If the calls for the uninterruptible power requirement set by the ESS were completed after the end of the calls, the entire budget allocated for the process of the process would not have been exceeded. auctions, additional calls for tenders shall be carried out to cover the maximum total uninterruptible power requirement or, where appropriate, until the allocated budget is exhausted, both of which are set out in confidential annex.

For these purposes, the OS shall inform the participants through the website referred to in this paragraph in the terms of paragraph 4.2.

8) At any time in the auction process, participants who have unawarded product blocks may request the OS, taking into account the mechanism available on its website to make such an application, the final abandonment of the auction process, as regards only the blocks that have been left unallocated.

Once you have requested your definitive abandonment, the participant will not be able to participate in any product block auctions that are held.

4.4.2 Development of auctions on each call.

Throughout a call, performing successive product block auctions will take into account the following schema:

1) Warning of the auction of a product block, with an advance to the conclusion of the block not less than 30 seconds.

2) Realization of the auction of a product block and award of the block, or a declaration of a deserted auction in the event of a subsequent tie, in accordance with paragraph 4.5.5.

3) A rest period of not less than 5 minutes shall be established for each auction hour.

4) A call will be terminated under one of these circumstances:

a) When all of the expected product block auctions have been performed for the same.

(b) When in the next 5 MW or 90 MW block auction of all the joists who are to participate in the auction, they belong to the same business group or in their case natural or legal person with one or more points of supply.

(c) When in the next 5 MW or 90 MW product block auction any of the assumptions that are collected in confidential annex to the ESA's resolution of characteristics are produced.

If one of the assumptions provided for in subparagraphs (b) or (c) above is given, allocation rounds shall be made in which all the outstanding product blocks to be awarded from each group shall be directly awarded. business or, where appropriate, natural or legal person with one or more supply points.

The allocation of product blocks through this mechanism will be voluntary and, therefore, the business groups or, where appropriate, natural or legal persons with one or more supply points, must communicate, according to the the format and the communication procedure defined by the OS, if they accept such award and the order of award of the product blocks between their supply points with product blocks to be awarded.

In each of these direct allocation rounds, a single product block will be awarded to the corresponding supply point between those who have outstanding product blocks to be awarded.

The price of the product blocks that are awarded in each round will be determined according to the following formula:

Block award price m = km * Medium

Where,

− Medium: is the arithmetic mean of the award prices of the above block auctions of the product concerned.

− Km: coefficient to be calculated according to the following:

Being:

− n: total number of unawarded product blocks to cover the required requirement for the call.

− m (1, 2, 3 ...): identifier of the unawarded product blocks to cover the required requirement for the call.

• If n = 1, for each block m Km = 1.

• If n < 6, for each block m the following formula will apply:

= 1-	m -1	×
n -1

• If n ≥ 6, for m = 1, ..., 6 will apply the following formula:

5

= 1-	m -1	×

• If n ≥ 6, for m > 6, Km = 0.8.

In this case, the business group or in its case natural or legal person with one or more supply points must communicate, according to the format and the procedure of communication defined by the OS, the order of award of the product blocks, from m = 1 to m = n, between the supply points of your group with product blocks to be awarded.

If, as a result of the application of the direct award mechanism described above, the budget allocated in confidential annex to the resolution of the resolution is exceeded in a given round of direct allocation. characteristics of the ESS, the following shall be done:

1. No block will be allocated in the quoted round.

2. The end of the auction will be the last block assigned to the previous round.

The auction administrator may remove from the auctions those participants who interfere with the proper development of the auctions.

4.5 Product Block Auctions.

4.5.1 Information about the development of the auction for a product block.

During the development of the auction of a product block, the purer will only receive information about the round price of the auctioned product block. Once the purer has been removed, and not resulting in the successful auction of the product block, no further information will be available on the auction of that product block, with the following information being received by the product block at the beginning of the auction. from the next auction of a product block.

At the end of each auction of a product block, only the successful bidder will know the award price of the product block that has been awarded to it, in which case the Product Block Registry will be updated. enabled and awarded, not providing such information to the rest of the bidders who have participated in the auction.

4.5.2 Developing the auction of a product block.

In the auction of a product block, the duration of the round is a second. From the exit price, the round price will go down each round at the rate of the previously established price drop step.

Both the output price, and the round prices will be expressed in €/MW (EUR per Megavatio).

The pager will be understood to accept the round price of each round, unless it is withdrawn from the auction of a product block. The act of withdrawing from the auction of a product block must be confirmed by activating the mechanism established for that purpose by the administrator (push-button).

4.5.3 Closing procedure for the auction of a product block.

The auction of a product block will be considered complete and will be closed when in a specific round, close to), all the pujors except one have been removed, or when, close b), all the pujadores have been removed.

4.5.3.1 Close to): In a specific round there is a single purer left without retiring.

If all the pujors except one have been removed, the auction of the product block will be terminated. This last unretired purer will be the successful bidder of the product block and the award price of that product block will be the round price to which the last purer was removed.

4.5.3.2 Close b): In a specific round all the pujors have been removed (tie).

If all the jokers have been withdrawn, the auction of the product block will be completed, resulting in a tie between the retired players within the last round. In this case, a tiebreaker auction will be held.

4.5.4 Auction Auction.

A tie will be considered to exist when all the jokers present in an ongoing auction have been simultaneously withdrawn in the same round.

The n pujators will be informed of the time the tiebreaker auction begins.

The tiebreaker auction will consist of a down-price auction, as described in section 3.2.

The exit price of the tiebreaker auction will be the round price of the round immediately preceding the round in which the tie occurred.

The price drop step of the tiebreaker auction will be less than the approved price drop step for the overall product block auction process.

The duration of the rounds during the tiebreaker auction will be equal to the duration of the rounds of the overall product block auction process.

The tiebreaker auction will conclude when in one round the number of players except one has retired. The successful tenderer of the product block and the award price of that block shall be those set out in paragraph 4.5.3.1

4.5.5 A deserted auction or a tie-breaker in case of a new tie.

In case the n pujadores, re-tie in the tiebreaker auction, the auction of that product block will be declared a deserted auction.

The product block will be auctioned again at the end of the day when the auction is deserted.

In case of a number of jagers, where m a number less than n, they are tied in the auction, a new auction will be held, considering the same step of price drop as in the auction already held.

4.5.6 Award price in case of non-validation of the auction.

In the event that, in accordance with paragraph 5, the CNMC does not validate any particular product block auction, participants may opt for a direct allocation of the product blocks for which they have been awarded, provided that the invalidation has not been derived from the successful tenderer's own action, at the following award price:

− For the 90 MW product, the award price shall be the average price resulting from the set of auctions of 5 MW product blocks validated by the CNMC plus 50% of the value obtained as a difference in the output price of the product of 90 MW and the output price of the product of 5 MW set out in the relevant resolution of the Secretary of State for Energy approving the characteristics of the auction.

− For the 5 MW product, the award price will be the minimum price resulting from the set of 5 MW product block auctions validated by the CNMC.

In the event that, in accordance with paragraph 5, the CNMC does not validate any of the auctions that would have taken place, it shall be as provided for in the last subparagraph of paragraph 4.2.

5. Validation of auctions

Before the end of the 24-hour period from the closing of the last auction of each call, the National Markets and Competition Commission will confirm that the auction process has taken place objective, competitive and non-discriminatory form, in the absence of any appreciation of the use of practices which may lead to restrictions on competition or other shortcomings in the development of competition, also confirming the validation of the results.

6. Information about the auction process

The OS must forward to the ESS and the CNMC within a maximum of one week from the conclusion of each auction, the information relating to the participants who have been awarded the same, the number of blocks of each product offered by each of them, the product blocks finally awarded, and the award prices resulting for each of them, as well as any other information required by the ESS or the CNMC.

The information will be sent in electronic form (spreadsheets) that will enable the processing of the data.

7. Publishing information

Before twenty-four hours from the time of the closing of the last auction for the delivery period and once confirmed by the National Commission of the Markets and the Competition that the process is has made objective, competitive and non-discriminatory form, the OS shall publish the following information for each call for the auction process, which shall be public:

− Number of participating participants.

-Number of successful bidders.

-Average price considering all product block auctions of each call for each product (5 MW and 90 MW), and average price considering all the calls made.

-Total number of blocks of each product allocated considering all product block auctions of each call, and number of product blocks in the auction process considering all calls performed.

-Total number of product blocks allocated in the total of the calls to the successful bidders aggregated by business groups or in their case natural or legal persons with one or more supply points without specify the headlines, differentiating by products (5 MW and 90 MW).

Each purer will know the product blocks that have been assigned to it for the delivery period, and this assignment will be binding.

8. Mechanism of action in case of system failure during the execution of the auction product blocks

8.1 Emergency mechanism in case of failure.

In case it is impossible for any of the jokers to withdraw from the auction of a product block due to a failure in the communication system with the administrator, the pujador will have an additional mechanism through the which may inform the administrator that an error has occurred and your bid will not be considered valid.

8.2 Award in case of failure.

In the event that a joker drives the said mechanism its bid will not be considered valid, unless the product block of the product block of the product block has been awarded.

8.3 Troubleshooting after using the mechanism in case of failure.

After the auction of a product block in which one or more of the jokers have used the emergency mechanism, the administrator will verify the failure and address the problem to allow the Buyers affected by the failure will return to bidding normally in upcoming auctions.

APPENDIX TO

Terms Glossary

Auction Administrator: Entity in charge of performing and managing the process and logistics of the auctions.

Available product block available: Minimum product unit per supply point enabled to participate in the auction. The number of enabled product blocks available for each provisioning point is collected and updated in the Registry of enabled and awarded product blocks.

Call: Each of the subprocesses in which the auction process is divided, in which a partial quantity of the interruptible power requirement to be auctioned is auctioned.

Price Drop Step: Price Decrease of Product Block between Round and Round of Product Block Auction, set by resolution of the Secretary of State of Energy, or by the system operator in the case of tiebreaker auctions.

Business Group: Definition in accordance with Article 42.1 of the Trade Code.

Participant: A natural or legal person who has successfully completed the process of adhering to the legal and contractual framework of the competitive allocation mechanism of the Interruptibility Demand Management service.

Delivery Period: Period of time in which the awarded product blocks can be executed by the system operator.

Award Price: Price to be received by the successful bidder for a given product as a result of a product block auction or any of the procedures set out in these rules.

Round Price: Product Price in each of the rounds in which the product block auction is divided, automatically set by the system used for performing the auctions from the low of the default price.

Output Price: The price each product will have in the first round of the product block auctions.

Average reference price: Price obtained as an arithmetic average of the award prices of the first 50 block auctions of the 5 MW product held.

Assigned budget: amount in millions of euros allocated for the auction process in confidential annex to the resolution of characteristics approved by the Secretary of State of Energy.

Auction Process: Process composed of multiple calls, through which the expected requirement for the delivery period is awarded.

Product: Uninterruptible power block for a delivery period. According to the provisions of Article 5 of Order IET/2013/2013 of 31 October 2013, there are two differentiated products according to the reduction potential made available to the system and the availability of the system (5 MW and 90 MW).

Bid position: Physical site equipped with the necessary equipment (furniture, computer equipment and/or electronics) to enable the pujador to participate in the auction of product blocks.

Pushing: The legal representative of the designated participant for each of the supply points, who will participate in the auction of product blocks of a call.

Successful Bidder: Pujador to which the product block is assigned by auction or by any of the procedures provided for in these rules, resulting in binding for the supply point to which it is located associated for the provision of the Interruptibility Demand Management service.

Record of enabled and awarded product blocks: Telematic registry in which updated accounting of product blocks enabled to participate in auctions and product blocks will be taken awarded for each point of supply.

Total Maximum Requirement: Interruptible Potential for the delivery period fixed in confidential annex to the resolution of the Secretary of State for Energy in which the characteristics of the auctions are approved.

Round: Each of the phases in which the auction of a product block is divided, characterized by a single price that will decrease based on the default low price step.

Product Block Auction: A single block of 5 MW product or 90 MW product interruptible power block.

Tiebreaker Auction: Auction that is held in the event that all the jokers are removed from the auction.

Deserted Auction: Product block auction where no pujador is successful.

Auction Supervisor: Independent entity in charge of the verification of auctions in an objective, competitive and non-discriminatory manner.

APPENDIX B

Auction Call Table

Within a maximum of 2 working days following the publication of the ESA resolution approving the characteristics of the auctions, the auction manager shall make public through the auction website of the Interruptibility service, including on the e-sios website (www.esios.ree.es) the data specific to the auction call to be held, summarized in the table below:

Convocation of Subastas n. º __ for Delivery Period 20__-20__

Date	__/__/____
Place	[Enclosure Name] [Street], [number] [Postal Code] [Municipality], [Province]
* of product blocks to be auctioned (#, MW)	__ products, ____ MW
Output price (€/MW)
-by-round drop scale (€/MW)
Auction Start Time *	__: __
Period	__/__/____-__/__/____
* of product blocks to be auctioned (#, MW)	__ product (s), ____ MW
Output price (€/MW)
Price-by-round drop-down (€/MW)
start time (s) * *	__: __
Period	__/__/____-__/__/____
Auction Rules	Resolution of __ of _______ of 20 __, of the Secretariat of the Energy
number of power-point-enabled boosters

* The concrete requirement for interruptible power to be auctioned will be published on the website prior to the holding of the call.

** The doors of the enclosure will be opened one hour before the start of auctions to proceed with the identification of the persons who will act as participants or assistants for each point of supply.

ANNEX II

Model of adherence to the legal framework of the competitive mechanism for the allocation of the interruptibility demand management service

Don/dona ....., in the name and representation of the mercantile ..... (hereinafter the CONSUMER), with domicile in ..... and C.I.F. number ....., duly constituted for indefinite time by public deed granted on ..... of ....., before the Notary of ....., D. ....., under the number ..... of their protocol, and which is recorded in the Mercantile Register of ..... to the took ..... folio ..... leaf ......

Intervenes in your condition of [Administrator/ acts by virtue of the conditions conferred upon you in Scripture of Power granted with date ..... before the Notary of ....., D. ....., under the number ..... of his order protocol], powers that expressly declare valid, in force and sufficient for the subscription of this document,

MANIFEST

First.

That according to the provisions of article 7.1 of Order IET/2013/2013, of October 31, the CONSUMER has been enabled in his facility located in ....., province of ..... with CUPS ..... by the operator of the system for the possible participation in the auctions of the competitive allocation mechanism of the interruptibility demand management service, for the supply points and the concrete product blocks specified in the certificate of enablement, date ..... of ..... of 20 ....., issued by the system operator.

Second.

You know that the above enablement allows you to adhere to the legal framework established to participate in the corresponding auctions.

Third.

You know that formal adherence to the legal framework established for auctions will result in adherence to the terms of the service and the obligation to provide the service, if successful.

Fourth.

You know that the legal framework of the competitive mechanism of allocation of the service of management of the demand for interruptibility, includes all the regulations of the electrical sector in force that results from application, and in particular:

1. Order IET/2013/2013 of 31 October, which regulates the competitive mechanism for the allocation of the service of management of the demand for interruptibility.

2. Order IET/36/2014 of 7 March 2013 amending Order IET/2013/2013 of 31 October 2013, which regulates the competitive mechanism for the allocation of the service of management of the demand for interruptibility.

3. Order IET/1752/2014 of 26 September 2014 laying down the timetable for the electricity season and amending accordingly certain aspects relating to the service for the management of the demand for interruptibility

4. Resolution of the Secretary of State of Energy of 30 July 2015 approving the Rules of Auction of the competitive mechanism for the allocation of the service of management of the demand for interruptibility and the model of adherence to the legal framework established for participation in the auctions.

5. Resolution of the Secretariat of the State of Energy regulating the procedure of Operation 14.11, of settlement and billing of the service of management of the demand for interruptibility.

6. Resolution of the Secretary of State for Energy regulating the Operation Procedure 15.2, of the service of management of the demand for interruptibility.

7. Resolution of the Directorate-General for Energy Policy and Mines approving the procedure of the system for the communication, execution and control of the service for the management of demand for interruptibility regulated in Order IET/2013/2013, of 31 October.

8. Resolutions of the Secretary of State of Energy for the Period of Delivery ....., in which the following is determined: (i) the range of quantities to be awarded in the auctions and the type of product; (ii) the price of departure; (iii) the rules to be applied in the auction; (iv) the date of completion of the auctions and (v) the period of delivery of the interruptible power.

Fifth.

You know that formal adherence to the legal framework established for auctions does not confer any right to interrupt, conclude, delay, or repeat any auction.

In accordance with the foregoing, the CONSUMER subscribes to this document of acceptance and adherence to the legal framework of the competitive mechanism of allocation of the service of management of the demand for interruptibility, and

DECLARES

First.

Knows and accepts freely, unconditionally and irrevocably the regulatory legal framework of the competitive and lending mechanism of the Interruptibility Demand Management service, as well as the terms and conditions established and undertakes to comply with them without reservation, restrictions or conditions.

Second.

You expressly commit to:

a) Participate in the auctions that are called by offering the product blocks for which it is enabled at the supply points of your entitlement.

(b) faithfully comply with all instructions that, in the auction process and in the provision of the interruptibility service, are issued by the system operator, as provided for in the legal framework.

c) Accept and immediately comply with the obligations arising from the results of the auctions once they are confirmed by the National Commission of the Markets and Competition and made public by the system operator.

By Consumer:

________________________________

Legal Representative Name and Charge

Date: __________________________

Authorization model to participate as a pujadores on behalf of the consumer in the auctions

Don/dona ....., in the name and representation of the mercantile ..... (hereinafter the CONSUMER), with domicile in ..... and C. I. F number ....., duly constituted for indefinite time by public deed granted on ..... ..... of ....., before the Notary of ....., D. ....., under the number ..... of their protocol, and which is recorded in the Mercantile Register of ..... to the took ..... folio ..... leaf .....

Intervenes in your condition of [Administrator/ acts by virtue of the conditions conferred upon you in Scripture of Power granted with date ..... before the Notary of ....., D. ....., under the number ..... of his order protocol], powers that expressly declare valid, in force and sufficient for the subscription of this document.

Authorizes the following persons to participate as Pujators in the auctions on behalf of the CONSUMER that has been enabled at their facility located in ....., province of ..... with CUPS .....

The natural persons who will be able to participate as Pujators in the auctions on behalf of the CONSUMER are:

Name and Last Name

DNI/Passport

Up to a maximum of five strong physical persons may be designated, without prejudice to the fact that, in the auction process, only the maximum number of juppers who are expected to bid for the supply point in question can be filled. determine in the information published by the OS for each call.

REE is exonerated from any liability that may arise from any effect arising from an eventual lack of sufficient powers to participate in the auction processes of the natural persons who have been designated as Pujators.

By Consumer:

________________________________

Legal Representative Name and Charge

Date: __________________________