COLLABORATION

Billing Calculation

Cooperation with the PRO RE-BESS IFAISTOS S.A. requires the fulfilment of obligations by the liable producers throughout the entire duration of the cooperation, while the contractual relationship is terminated if either party fails to meet their respective obligations. The billing for the PRO’s services covers the cost of its operation as well as the waste management cost for the liable producers, through the payment of a Fixed Contribution & a Recycling Contribution.

More specifically, the charging of liable producers is estimated as follows:

Producer Obligations

An annual contribution (the “Fixed Contribution”),

which covers the total administrative cost of the PRO. The contribution for each producer depends on the annual capacity (in MWh) of the Li-ion/LFP BESS-type batteries they place on the market and which are consequently managed by the PRO, and is calculated proportionally each year in relation to the total waste managed by the PRO.

The fixed contribution shall be adjusted on an annual basis (every 01.01.20xx), taking into account the total volume of waste (in MWh) under the management of the PRO on that date, in accordance with the following formula:

Fixed Contribution =

Estimated operational costs

x

Qproducer

Qtotal

Where:

Qproducer: the battery capacity under management of each liable producer (MWh) for the reference year

Qtotal: the total battery capacity under management of the PRO (MWh) for the reference year

Recycling Contribution

for the management of future quantities of waste generated, the charge (the “Recycling Contribution”) will be applied at the time the waste is generated and will depend on the then-current cost thereof.

At the liable Producer’s discretion, the available methods of guarantee for the payment of the recycling contribution are as follows:

  • Payment of the total amount required for waste management into a pledged account (in favour of the PRO) held by the liable producer.
  • Submission of a 2-year renewable Bank Guarantee in favour of the PRO for an amount equal to the Guarantee (where “Guarantee” is defined as the amount of the Recycling Contribution).
  • Alternatively, and because the cost of the above Bank Guarantees over the long period until recycling (e.g. 15 years) is high, another option available is to provide a Corporate Guarantee by the contracted Producer (or a third-party Guarantor on behalf of the Producer) for the payment of the Guarantee amount to the PRO when required. The Producer (or the Guarantor) is assessed as creditworthy for the provision of the Corporate Guarantee by a decision of the competent body of the PRO, and on the condition that, based on their most recently published, audited, non-consolidated financial statements, the following financial ratios are met for the total guarantees provided (excluding bank guarantees) to the PRO:
    • Net Equity / Guarantee: ≥ 200:1
      and
    • Cash and Cash Equivalents / Guarantee: ≥ 50:1

    The above financial ratios shall be reviewed annually based on the most recently published, audited, non-consolidated financial statements at the time. In the event that these criteria are not met, the counterparty shall either deposit the full amount into a pledged account (in favour of the PRO), or issue and submit to the PRO the aforementioned Bank Guarantee.
    It is noted that the Guarantee amount does not correspond to the waste management cost. It constitutes the PRO’s security against payment of the estimated waste management cost at the time the Guarantee is provided. The precise determination of the waste management cost will be made at the time the recycling requirement arises.
    The recycling cost has been estimated at €6.50/kg. Therefore, the Guarantee amount is calculated on a case-by-case basis for each liable producer, based on the weight of the batteries they place on the market and for which they enter into a contract with the PRO. Liable producers subject to the provision of a Guarantee must certify, based on appropriate manufacturer documentation, the weight of the battery packs for the recycling of which they will be contracted with the PRO, in order for the applicable Guarantee amount to be calculated.