Common use of Difference Payment due to Buyer Clause in Contracts

Difference Payment due to Buyer. For each Transaction, the Difference Payment due to Buyer (“DPB”) for a Trading Period is calculated as follows: DPBtp = 0.50 * Max (0, (SMPtp – SPtp) * Qtp) where: SMPtp is the SMP in [€/MWh] [£/MWh] for the Trading Period; SPtp is the Strike Price in [€/MWh] [£/MWh] for the Trading Period; and Qtp is the Contract Quantity (in MW) for that Transaction applicable to the Trading Period. By way of non-binding illustrative example for the above calculation, say: SMPtp = 55 (€/MWh or £/MWh) SPtp = 50 (€/MWh or £/MWh) Qtp = 5 MW, then the Difference Payment due to the Buyer will be: 0.5*Max (0, (55-50)*5) = 12.5 (€/MWh or £/MWh) SCHEDULE 4 CREDIT EXPOSURE CALCULATION The Credit Exposure will be calculated to be equal to the sum of: - "Forward Exposure" – the aggregate net Forward Exposure for all Transactions under this Agreement; and - "Receivables" – the aggregate net amounts owing for Difference Payments incurred but not yet paid for all Transactions under this Agreement, inclusive of any VAT amounts that may be payable in respect of such Transactions. If the calculation of Credit Exposure above yields a net positive amount for the Seller, then the Seller shall have the right to call for Margin pursuant to Clause 10.2 (Exposure Calculations and Payment Assurances). The methodology by which Forward Exposure and Receivables shall be calculated is specified in detail below using the Dollar-Euro Foreign Exchange Rate and the Sterling Euro Foreign Exchange Rate.

Difference Payment due to Buyer. For each Transaction, the Difference Payment due to Buyer (“DPB”) for a Trading Period is calculated as follows: DPBtp = 0.50 * Max (0, (SMPtp – SPtp) * Qtp) where: SMPtp is the SMP in [€/MWh] [£/MWh] for the Trading Period; SPtp is the Strike Price in [€/MWh] [£/MWh] for the Trading Period; and Qtp is the Contract Quantity (in MW) for that Transaction applicable to the Trading Period. By way of non-binding illustrative example for the above calculation, say: SMPtp = 55 (€/MWh or £/MWh) SPtp = 50 (€/MWh or £/MWh) Qtp = 5 MW, then the Difference Payment due to the Buyer will be: 0.5*Max (0, (55-50)*5) = 12.5 (€/MWh or £/MWh) SCHEDULE 4 CREDIT EXPOSURE CALCULATION The Credit Exposure will be calculated to be equal to the sum of: - "Forward Exposure" – the aggregate net Forward Exposure for all Transactions under this Agreement; and - "Receivables" – the aggregate net amounts owing for Difference Payments incurred but not yet paid for all Transactions under this Agreement, inclusive of any VAT amounts that may be payable in respect of such Transactions. If the calculation of Credit Exposure above yields a net positive amount for the Seller, then the Seller shall have the right to call for Margin pursuant to Clause 10.2 (Exposure Calculations and Payment Assurances). The methodology by which Forward Exposure and Receivables shall be calculated is specified in detail below using the Dollar-Euro Foreign Exchange Rate and the Sterling Euro Foreign Exchange Rate.