OPERADOR DEL MERCADO IBÉRICO DE ENERGÍA POLO ESPAÑOL

Founded on December 24th, 1997, the Operador del Mercado Ibérico de Energía, S.A. (OMEL) was formed for the purpose of managing markets in underlying energy assets. As its first and main activity, OMEL is the company charged with performing the functions entrusted to it as operator of the electricity market.

As electricity market administrator, its functions, among other things, are as follows:

• To assume the functions necessary to perform the economic management relating to the efficient development of the market in electrical production.
• The receipt of sales offers issued for each programming period by the owners of electric power production units.
• The receipt and acceptance of offers for the acquisition of power and the sureties accompanying them, as applicable.
• The balancing of sales and acquisition offers departing from the most economic terms until the demand is met for each programming period.
• Communicating the results of balanced offers, the programming of access to the grid arising therefrom, and the marginal price of the power to the owners of production units, as well as to distributors, resellers, qualified consumers and the system operator.
• The settlement and communication of payments and collection that must be carried out by virtue of the operations performed on the market.
• The development of the electronic systems for procurement towards the appropriate performance of these functions.

In addition to this principal function, OMEL has undertaken numerous activities of consulting and development aimed at the implantation of different power market models in different countries of the European Union, Europe and America throughout its history. Several of these activities have used the company’s own technology, which has been adapted to the needs imposed by the different procurement models (balancing, iterated auctions, continuous balancing, …).

The experience OMEL has earned in the management of the electricity market and these other activities carried out make it possible to assure the success of its management as CESUR auction manager for power acquisition.

The ITC/400/2007 Order of February 26th regulating the bilateral contracts signed by distribution companies to supply the Iberian Peninsula at regulated prices establishes that the power to be supplied by each seller shall be determined through a procedure of descending clock auction. Section 6 of said Order assigns to Operador del Mercado Ibérico de Energía – Polo Español, directly or through a subsidiary, the organisation and management of the auctions.

The company in charge of managing auctions for the purchase of electrical energy by last resort retailers shall be OMEL MERCADOS AGENCIA DE VALORES, S.A.U.