The requirements connected with membership of the exchange run by Polish Power Exchange.

The after-mentioned text has been worked out for information purposes only and it is not legally binding.

1. In accordance with relevant Polish law regulations the following entities may be the exchange members:

• commodity brokerage houses (acting on the grounds of the commodity exchange Act, dated on the day of October 26th 2000),
• brokerage houses (acting on the grounds of the financial instruments trading Act, dated on the day of July the 29th 2005),
• power companies holding license for generation, transmission, distribution or trading of electricity as well as consumers - being legal entities - authorized for use of transmission services in accordance with the regulations stated in the Power Law Ac, dated on the day of April the 10th 1997 and fulfilling the conditions specified in the commodity exchange Act,
• the foreign legal entities mentioned in Article 50 paragraph 1 the commodity exchange Act,
• general partnerships, which are not the commodity brokerage houses and which carry out the activity consisting in purchase and disposal of the exchange commodities

The power companies shall be entitled to enter into transactions, subjects of which may be exchange commodities being electricity, limits of production amount or limits of pollution emissions, the property rights resulted from the certificates of origin for electricity generated in a renewable energy source as well as for electricity generated in high-efficient combined heat and power units, or the property rights, which are not the financial instruments, price of which depends directly or indirectly on electricity - only on their own account.

2. The power companies shall be entitled to enter into transactions on the commodity exchange on their own behalf if they have got relevant agreements signed with the following authorities exercising supervision over the capital- and the power market:

• The Polish Financial Supervision Authority - the permission for keeping of the exchange commodities accounts or registers;
• The Energy Regulatory Office - the license for generation, transmission, distribution or trading of electricity;
• The Transmission System Operator - the agreement concerning rendering of electricity transmission services.

2.1. In accordance with the commodity exchange Act the orders placed on the Polish Power Exchange must be placed by a commodity exchange broker. The commodity exchange broker shall be entitled to represent given exchange member on all markets being run by the Polish Power Exchange, that means.

•  The Day-Ahead and Intraday Market,
• The Commodity Derivatives Market,
• The Property Rights Market,
• The Emission Allowance Market.

The commodity exchange broker qualifications, achieved in the European Union countries, may be appreciated in Poland by the Polish Financial Supervision Authority.

The application ( the application must be fiilled in polish) for instituting of proceedings concerning appreciation of the professional qualifications should be submitted to the Polish Financial Supervision Authority along with appropriate appendices in accordance with the Decree of the Minister of Science and Higher Education, dated on the day of October the 9th 2008 and concerning determination of specimens of forms of applications for instituting of proceedings concerning appreciation of the professional qualifications, with later amendments /Before submitting of the application it would be advisable to come in contact with the PFSA in order to determine which documents listed in the application instruction should be submitted./

In case when any lack is found in the documentation the PFSA shall approach the interested person for supplementing of the documents. The decision concerning appreciation of the professional qualifications should be taken and issued within the [period of 3 (three) months from the moment the complete documentation concerning the matter has been delivered at. In particular cases the deadline as above may be prolonged by one month. In case when the applicant has been sent for an adaptation placement or a performance assessment the flow of the time shall be suspended.

During the proceedings concerning appreciation of the qualifications the PFSA shall examine:

• appropriate level of education,
• qualifications giving entitlement to practice given profession in the country they have been achieved in.

If the Polish Financial Supervision Authority finds that:

• there are essential differences in education or training  or
• there is disaccord between the scope of professional activities of given profession being in force in the country given person comes from and Poland,

and moreover if the PFSA examines documents confirming professional experience of the applicant in order to check whether knowledge and skills achieved by the applicant during the process of obtaining of its professional experience are sufficient for compensation - full or partial - of the essential differences mentioned above and if it finds that the differences have not been compensated the PFSA shall be entitled to apply the following compensation measures:

• the skill test  or
• the adaptation traineeship (lasting for the period up to 6 months).

The applicant shall have the choice between the skill test and the adaptation traineeship.

After accomplishing of the subject-matter proceedings the PFSA shall issue its decision about appreciation of the professional qualifications or about refusal of such appreciation.

All information pieces concerning the procedure of appreciation of the professional qualifications as well as the application form can be found on the website: http://www.nauka.gov.pl/higher-education/

2.2. Appropriate permission issued by the Polish Financial Supervision Authority.

2.2.1. The Polish Financial Supervision Authority permission for keeping of the exchange commodities accounts or registers.

In order to get the permission the Warsaw Commodity Clearing House shall issue the commitment for clearing the transactions, which have been entered into on the exchange. The permission is required for participation on all markets mentioned in item 2.1. above.
The application submitted to the Polish Financial Supervision Authority concerning the subject matter has been presented on the POLPX website in the "Membership" bookmark.

2.2.2. Permission for carrying out of brokerage activities.

The brokerage activities permission, issued by the Polish Financial Supervision Authority or the brokerage activities permission, issued by relevant supervision agency for the entities coming from the European Union countries, which have notified about their intention to start activities on the territory of Poland - use of the "European passport".

The foreign investment companies holding permission for brokerage activities, which have notified about their intention to start activities on the territory of Poland, have to take on the following actions:

• to notify its relevant supervision agency about its intention to start the brokerage activities within the scope of exchange commodities trading in Poland;
• the relevant supervision agency shall be obliged to notify the PFSA about the fact that the foreign investment company (the applicant) is going to start the brokerage activities within the scope of the exchange commodities trading in Poland;
• the foreign investment company has to notify the PFSA - in form of a current report - about commencement of individual activities within the framework of the brokerage activity permission, being in its possession, in accordance with Article 67 of the Decree of the Minister of Finance dated on the day of February the 5th 2010 and concerning scope, mode and form of transfer of information by investment companies, banks mentioned in Article 70 paragraph 2 of the financial instrument trading Act,  as well as trust companies.

2.3. The license for generation, transmission, distribution or trading of electricity issued by the President of the Energy Regulatory Office.

The license is required for participation on the Day-Ahead and Intraday Market as well as on the Commodity Derivatives Market.

2.4. The agreement concerning rendering of transmission services, including recording and configuring data of the applicant's participation on the Balancing Market.

The issue concerns the entities submitting application for participation on the Day-Ahead and Intraday Market as well as on the Commodity Derivatives Market.

2.5. After collecting of all documents specified in items 2.1 - 2.4 above the applicant may fill in the application for concluding of the membership agreement on the Exchange Commodity Market as well as the application for admittance to activities on the Exchange Commodity Market.

The specimens of the applications are available on the POLPX website in the "Membership" bookmark.

All regulations for the markets run by the exchange, along with the application for membership as well as the application for admittance to activities on the exchange, have been presented on the Polish Power Exchange website.

The exchange clerks offer their assistance during the process of filling in of the applications as well as in all problems related to the Polish Power Exchange membership.

Contact :

Aneta Lickindorf:  +48 698 637 122