The balance of the Non-Compliance Charges Account, the proceeds of which are derived from the imposition of Non-Compliance Charges in accordance with this CHAPTER 22 Rulebook,is made available in accordance with the provisions of the HETS Grid Code and this Article, Article 18.7, CHAPTER 23,and CHAPTER 24 of this Rulebook CHAPTER 23 and the Rulebook on the Clearing of Balancing Market Positions or, where there is no Clearing House operating on the Balancing Market, in accordance with this Article, Article 18.7, CHAPTER 21, and CHAPTER 27, shall be used in order to cover:

a) any arrears of Clearing Members in accordance with paragraph 2 of this Article,

b) any deficit in coupled markets in relation to Cross-Border Physical Deliveries that correspond to imports and exports per coupled interconnection under the Single Day-Ahead Market Coupling, Intra-Day Auctions and Continuous Intra-Day Trading, as such deficit has been calculated in the results of the Single Day-Ahead Market Coupling, Intra-Day Auctions and Continuous Intra-Day Trading respectively, pursuant to paragraph 6 of this Article, and

c) any defaults of entities registered with the HETS Operator Registry in accordance to subsection 11.6 of the HETS Grid Code.

The part of the non-Compliance Charges Account that is used to cover Clearing Member defaults shall be the Pre-Funded Financial Resources, as defined in Article 14(3) of Law 4425/2016 and the Clearing Rulebook for Balancing Market Positions. The initial amount of Pre-Funded Financial Resources is set as a percentage (a%) of the available balance of the non-Compliance Charges Account and recalculated on a quarterly basis or ad hoc in cases where the resources have been used due to a Clearing Member's default. At the time of recalculation, the Pre-Funded Financial Resources shall be increased by a% of the total non-Compliance Charges which have been collected during the period since the previous calculation, taking also into account any income or costs for their management as well as any debits or credits arising from the management of the Clearing Member's default. The Pre-Funded Financial Resources as calculated above cannot be less than a% of the available balance of the non-Compliance Charges Account as the latter stands on the second (2nd) business day prior to the day of calculation. If they are less, the Pre-Funded Financial Resources shall be set at α% of the funds available on the non-Compliance Charges Account. The HETS Operator shall notify the Clearing House of the available balance of the non-Compliance Charges Account one (1) day prior to the day of recalculation. The Prefunded Financial Resources, as recalculated each time, shall be at the disposal of the Clearing House and shall be kept in an account held by the Clearing House with the Bank of Greece, with the HETS Operator named as beneficiary.

The percentage a% shall be initially set at 50%, which may be updated annually by decision of the RAEWW following a recommendation from the Clearing House and the HETS Operator.

The above shall apply accordingly even when no Clearing House operates in the Balancing Market.

Part of the non-Compliance Charges Account, which is defined as a percentage (b%) of the available balance of the non-Compliance Charges Account, is used to cover any deficit in coupled markets in relation to the Cross-Border Physical Deliveries that correspond to the imports and exports per coupled interconnection in the context of the Single Day-Ahead Market Coupling, the Intra-Day Auctions, and the Continuous Intra-Day Trading, as such deficit has been calculated in the results of the Single Day-Ahead Market Coupling, Intra-Day Auctions and Continuous Intra-Day Trading respectively, provided that any deficit cannot be sufficiently covered by the credit arising by any remuneration due to a failure of obligation fulfilment, as set out in the contract between the Shipping Agent and the HETS Operator, and the credit arising from the remaining balance in the Non-Compliance Charges Account held by the Energy Exchange, in accordance with the Day-Ahead & Intra-Day Markets Trading Rulebook. This percentage is re-calculated on a quarterly basis, or on an ad hoc basis, if it is used to cover any deficit. During re-calculation, the part of the non-Compliance Charges Account used to cover the aforementioned deficit may be increased by b% of the total non-Compliance Charges collected during the time period following the previous calculation, and possible income or management costs, as well as possible charges or credits arising from any imbalance management, are also taken into account.

Any surplus arising in accordance with the provisions of Article 18.7, paragraph 2 of this Rulebook is also considered Revenue attributable to the Non-Compliance Charges Account.

The percentage b% is initially set at 20%, and may be updated by decision of the RAEWW, subject to a recommendation from the HETS Operator and the Shipping Agent.

The remaining amount after the deduction of the a% and b% mentioned above is used to cover any defaults of entities registered with the HETS Operator Registry in accordance with subsection 11.6 of the HETS Grid Code.