Important changes in the VPP auctions and procedure
To ensure the ongoing quality of the VPP auction, the Danish Competitive Authority, the Trustee and DONG Energy Generation A/S have reviewed the VPP auction as well as the VPP product. As a result the following changes will be effective for upcoming auctions:
The product time table is changed so the 12 months' and 36 months' product is sold at separate auctions in the third and fourth quarter. The energy price will be higher due to increased amount of the CO2 cost included in the energy price. A fixed level is set for the bid security. The implication is a significant reduction in the credit requirement for the bid security. In exceptional circumstances where the number of MW offered is changed by the trustee during an auction the new number of offered MW will be announced to all auction participants. The change is an elaboration of the current situation to ensure greater auction transparency.
All the legal documents have been updated and published in the confidential section of the VPP website: www.dongenergyvpp.com.

Upcoming auction - 30 August
The upcoming auction is scheduled to take place on the 30 of August. The auction will include two products:
Quarterly product: 225 MW delivered in the Q4-07 36 Months' product: 100 MW delivered in YR3-10 (2008-2010)

Deadlines for upcoming auctions
The application deadline for upcoming auction is 9 August 2007. A complete overview of the application procedures "Guide for August Auction 2007" is available from the Contracts section in the confidential section of the www.dongenergyvpp.com.

Please submit the following material before the application deadline:
Schedule A
Application for qualification to bid
For the 36 months' products "Section 3 - Credit Groups" is especially important as the level of the bid security and the option security is determined by the Credit Group Classification.
Schedule B
Bid Security Information Form
Please submit separate Bid Security Information Forms for each single product auction
Schedule C
Power of Attorney
Only required for new prospective bidders or if there are changes or if the existing Power of Attorney expires
Schedule D
Bank Guarantee for Bid Security
One bank guarantee may cover all Bid Securities
Addendum
Accepting the changes in the VPP auctions and procedure
Prospective bidders are always welcome to contact DONG Energy Generation (see details below) if there are questions regarding the application process.

DONG Energy Generation looks forward seeing both new and existing bidders at the auction.

Mock auction on 21 August
The mock auction is scheduled to take place on 21 August 2007. Prior to the mock auction, each applicant will receive a notification of whether or not the company is approved to take part in the auction.

Indicative energy price
On www.dongenergyvpp.com indicative energy prices for VPPQ4-07 and VPPYR3-10 will be published every Wednesday from week 32 until a week prior to the auction.

Questions
Questions concerning VPP and the upcoming auction, please contact:
Head of Planning, General Manager Lars Blaaberg, phone +45 76 22 25 60 or
Portfolio Management, Jacob V. Ottow, phone +45 76 22 22 39