Q&As on REMIT – Question II.4.42.

Is there any record keeping obligation on market participants beyond what is already required from RRMs? If so, please clarify the exact scope, e.g. period of record keeping?


Answer:

As for the record keeping obligations by market participants, please note that the obligation on record keeping as laid down in the RRM Requirements document applies only to the RRMs. However, there can be other obligations arising from national or other applicable legislation that the market participants may want to consider for their overall compliance.

RSS_Icon Last update: 08/01/2016  

Q&As on REMIT – Question II.4.41.

Our company entered into a Winter 2015-16 contract in June 2015 which we understand needs to be backloaded to the Agency. Do we need to register with our national regulatory authority?


Answer:

Yes. While the contract was concluded before the start of transaction reporting and it remains outstanding at the start of transaction reporting, it has become a reportable contract. Pursuant to Article 7(6) of Commission Implementing Regulation (EU) No 1348/2014, the outstanding contract has to be reported within 90 days of the applicable reporting day.

The market participants should have registered with the relevant national regulatory authority within 90 days following the go-live on 7 October 2015, i.e. by 6 January 2016 at the latest and in any case prior to the reporting of the backloaded contract to the Agency. In order to facilitate the registration and reporting processes, the Agency advises the market participants to register well in advance of reporting of their outstanding contracts.

RSS_Icon Last update: 30/10/2015  

Q&As on REMIT – Question II.4.38.

During the market participant’s registration process with the NRA, by mistake, a company has flagged the box in Section 5 of the registration form indicating that ‘I intend to become a reporting entity’. However, the company does not want to register as an RMM. How can this mistake be corrected?


Answer:

If a market participant has mistakenly ticked the ‘I intend to become a reporting entity’ option in Section 5 of the CEREMP registration form, please send an email to the ARIS CSD (servicedesk@support.acer-remit.eu) requesting that the RRM Registration process is terminated for this market participant. The ACER Code and the name of the market participant should be clearly stated in that request.

ACER will process the request and untick the relevant option in the market participant’s profile. Following that, the market participant will be able to select the RRM it wishes to delegate its reporting responsibility to.

RSS_Icon Last update: 30/09/2015  

Q&As on REMIT – Question II.4.39.

When does a company that only engages in intragroup trading need to register by?


Answer:

Market participants who engage in intragroup trading via an organised market place shall register by 7 October 2015. Unless concluded on an organised market place, intragroup contracts shall be reportable only upon reasoned request of the Agency and on an ad-hoc basis.

While the Agency has provided time-limited no-action relief from the requirement to report upon reasoned request for such contracts until 31 December 2016, market participants are required to submit the registration form to the national regulatory authority prior to entering into a transaction that is required to be reported to the Agency in accordance with Article 8(1) of REMIT.

As such, market participants that only engage in intragroup trading outside of an organised market place should register by 7 April 2016, in line with the start of transaction reporting for any contracts which have been concluded outside an organised market place.

RSS_Icon Last update: 30/09/2015  

Q&As on REMIT – Question II.4.40.

If a party enters into a contract that falls under both Article 4(1)(a) [intragroup contract] and Article 4(1)(b) [contract for physical delivery of electricity produced by single production unit with a capacity equal to or less than 10MW etc.] of Commission Implementing Regulation (EU) No 1348/2014, would that party be required to register as a market participant under REMIT?


Answer:

According to Article 4(2) of Commission Implementing Regulation (EU) No 1348/2014, market participants only engaging in transactions in relations to the contracts referred to in Article 4(1)(b) and (c) shall not be required to register with the NRA. The Agency considers that this applies irrespective of whether the contract is intragroup or not. Therefore, the party only entering into intragroup transactions in relation to a contract under Article 4(1)(b) or (c) shall not be required to register.

RSS_Icon Last update: 30/09/2015  

Q&As on REMIT – Question II.4.31.

The owners of underground storage participate as counterparties in the auctions related to the purchase of cushion gas. Shall the owners of underground storage companies register as market participants?


Answer:

Yes, the owners of underground storage are counterparties of transactions related to wholesale energy products under REMIT that shall be reported to the Agency. Therefore, they will be required to register as market participants under REMIT.

Please note that Article 3(1)(vi) of Commission Implementing Regulation (EU) No 1348/2014, refers to other contracts for the supply of natural gas with a delivery period longer than two days where delivery is in the European Union irrespective of where and how they are traded, in particular regardless of whether they are auctioned or continuously traded.

RSS_Icon Last update: 31/07/2015  

Q&As on REMIT – Question II.4.32.

Could you please clarify the registration/reporting obligation under Article 4(1) and (2) of Commission Implementing Regulation (EU) No 1348/2014 in relation to contracts for the physical delivery of electricity produced by wind turbines? Which contracts for the physical delivery of electricity remain below the threshold of 10MW?


Answer:

In line with Article 4(1)(b) of Commission Implementing Regulation (EU) No 1348/2014, contracts for the physical delivery of electricity produced by a single production unit with a capacity equal to or less than 10MW or by production units with a combined capacity equal to or less than 10MW shall be reportable only upon reasoned request of the Agency, unless concluded on organised market places. Thus, market participants who only complete such transactions do not have to register at the relevant NRA.

According to Article 2(13) of Commission Implementing Regulation (EU) No 1348/2014, production unit means a facility for generation of electricity made up of a single generation unit or of an aggregation of generation units. Thus, a production unit is not always a single production unit (e.g. one wind turbine) but it can also be a combination of units (e.g. several wind turbines). In defining a production unit the spatial proximity and the ownership structure are relevant. Thus, a production unit might be a part of a wind farm (e.g. 5 wind turbines) owned by one market participant.

That leads to the following specific examples for wind power plants (accordingly for other types of production):

– A) Contracts for the physical delivery of electricity of a wind farm (or parts of the wind farm) with a total production capacity of equal to or less than 10MW are reportable only upon reasoned request of the Agency and on an ad-hoc basis (diagram at the top left).

– B) Contracts for the physical delivery of electricity of a wind farm (or parts of the wind farm) larger than 10MW are reportable on a regular basis (diagram at the top right).

– C) If a market participant has more than one wind farm (or parts of a wind farm) at his disposal which are spatially separated and each of it has a production capacity of equal to or less than 10MW and which are marketed in different contracts, these contracts are not reportable (diagram at the bottom left).

– D) If a market participant has more than one wind farm (or parts of a wind farm) at his disposal which are spatially separated and each of it has a production capacity of equal to or less than 10MW and which are marketed in one common contract, this contract is reportable (diagram at the bottom right).

If the marketing of the production capacity is performed by a third-party – e.g. the operator of a wind farm – and the wind farm has got a total production capacity larger than 10MW, this third-party has to register as market participant and to report the corresponding contracts.

Q&As on REMIT - Question II.4.32_table

 

 

RSS_Icon Last update: 31/07/2015  

Q&As on REMIT – Question II.4.33.

In a consortium for the purchase of electricity and gas in the energy wholesale market, each associate member owns a share of 0,93% or less. None of these members is: i) able to exercise a significant influence over the management of the market participant through a controlling interest in the consortium or its parent undertaking; ii) entitled to control or exercise control of 10% or more of the voting power in the market participant or its parent undertaking; iii) able to exercise significant influence over the management of the market participant through their voting power in the market participant or its parent undertaking. Who is/are the beneficiary/ultimate controller(s)? How should the corresponding fields (compulsory) in the market participant registration form be filled in?


Answer:

Please note that, where ownership of shares in a market participant is beneficially held by individuals who do not meet ultimate controller criteria, it is unlikely that the market participant will have an ultimate controller and therefore the company itself will be its own ultimate controller and shall be inserted as ultimate controller.

RSS_Icon Last update: 31/07/2015  

Q&As on REMIT – Question II.4.34.

Should final customers contracts traded at the organised market be reported? Should the final customer who is party to the contract traded at the organised market be required to register?


Answer:

It is the Agency’s understanding that all contracts traded at organised market places are reportable records of transactions of wholesale energy products and should be reported in line with Article 8 (1) of REMIT and with the rules defined in Commission Implementing Regulation (EU) No 1348/2014. Therefore final customers’ contracts traded at organised market places should be reported to the Agency and the final customer is required to register in line with Article 9(1) of REMIT.

RSS_Icon Last update: 31/07/2015  

Q&As on REMIT – Question II.4.36.

In case of a market participant which is not established in Europe (for example in the USA), how should the market participant fill in the field “VAT number” of the registration form?


Answer:

In case the market participant does not have a VAT number, it should insert in the data field ’’VAT number’’ its equivalent of the VAT number. If it does not have the VAT’s equivalent number, ‘’XXXXXXXXXX’’ (10 times X) should be entered in the registration form.

RSS_Icon Last update: 31/07/2015  

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