Q&As on REMIT – Question II.4.46.

Is an operator of a refuelling station of natural gas for vehicles obliged to register in CEREMP?


Answer:

ACER’s view is that the provision of fuel to individual vehicles at a retail level is not a contract for the supply of energy in the scope of REMIT.

If an operator of a refuelling station of natural gas for vehicles enters only into a bilateral contract for the supply of natural gas for its refuelling station, it is obliged to register with its national regulatory authority only if this contract meets the criteria of Article 3(1)(a)(vii) of Commission Implementing Regulation (EU) No 1348/2014. However, if the operator of a refuelling station of natural gas for vehicles enters into other reportable contracts listed in Article 3(1) of Commission Implementing Regulation (EU) No 1348/2014 (e.g. including but not limited to contracts for the supply of energy traded on an organised market place or derivative contracts), then it is obliged to register with the relevant National Regulatory Authority.

RSS_Icon Last update: 24/03/2016  

Q&As on REMIT – Question II.4.43.

I am no longer a REMIT market participant with a reporting obligation and will not enter into any further wholesale energy transactions pursuant to REMIT. Can I de-register from the National Register of market participants?


Answer:

Should a market participant no longer enter into reportable transactions and should its reporting obligations pursuant to REMIT and Commission Implementing Regulation (EU) No 1348/2014 have been completely fulfilled (i.e. its contracts have been delivered and are no longer valid), the market participant can request the relevant NRA to delete its registration from the National Register of market participants.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question II.4.44.

What obligations does a market participant have under REMIT if the market participant owns or controls multiple sites as a single economic entity, each of which has a consumption capacity less than 600GWh, but which have a total technical capability to consume 600GWh or more?


Answer:

Pursuant to Article 2(4) of REMIT, any contract for the supply and distribution of electricity or natural gas to such a final customer is considered as a wholesale energy product, so the final customer entering into these contracts is a market participant.

In this example there is no obligation for the market participant to report contracts for the supply of energy to its consumption sites. The final customer contracts that are reportable to the Agency are those under Article 3(1) (a) (vii) of Commission Implementing Regulation (EU) No 1348/2014 where the contract is for the supply to a single consumption unit with a technical capability to consume of 600GWh/year or more, or the market participant trades these contracts on an organised market place, or the market participant enters into sale contracts outside an organised market place.

In the case where the market participant only buys these contracts for consumption outside an organised market place, the market participant will not have to register with the relevant NRA as the market participant is not entering into transactions which are required to be reported to the Agency in accordance with Article 8(1) of REMIT. However, such a final customer as a market participant is still subject to REMIT, including the obligation to publish inside information according to Article 4 of REMIT and the prohibition of market manipulation, including attempted market manipulation, according to Article 5 of REMIT.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question II.4.45.

In case a market participant, which is trading at several organised market places, wants to have a consolidated view of all records of transactions, including orders to trade, how can this be achieved other than reporting through one single RRM?


Answer:

Rather than selecting one single third-party RRM for their reporting services to the Agency, market participants could benefit from the above-mentioned relief of taking reasonable steps if reporting through organised market places, as an RRM, or through a third-party RRM selected by the organised market place concerned. Since RRMs are obliged, under the Agency’s RRM requirements, to share all data reported to the Agency with the market participant on their request, the market participant could choose one single third-party entity to collect any such already reported records of transactions, including orders to trade, from the various organised market places concerned in one consolidated way. This would also enable the market participant to report any life-cycle events through such single third-party entity and would enable them to build on the relevant reference IDs from the reports provided by the organised market place concerned to the Agency. Thus, with all necessary information from the organised market place concerned being provided through the single third-party entity, the reporting of lifecycle events can be linked to the originally reported information from the organised market place concerned. This can also include the information on the third party beneficiary.

Accordingly, for compliance purposes, the market participant may select a third party to collect all information reported by its different organised market places as RRMs in order to monitor the reported data through one single tool. But such compliance monitoring tool should not be confused with changing the reporting channel to the Agency.

As described above, the Agency believes that the reporting of organised market place data through the organised market place concerned, or through a third-party RRM selected by the organised market place concerned, is the best way to ensure the necessary completeness, accuracy, timeliness and data quality for market monitoring purposes (‘single order book’) and the market participant is relieved from taking further steps necessary in order to verify completeness, accuracy and timeliness of the data submitted to the Agency to a minimum necessary.

RSS_Icon Last update: 16/02/2016  

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.1.1.

What is REMIT?


Answer:

Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (REMIT), was published in the Official Journal of the European Union on 8 December 2011 and entered into force 20 days following its publication, i.e. on 28 December 2011. REMIT introduced, for the first time, a consistent EU-wide framework:

• defining market abuse, in the form of market manipulation, attempted market manipulation and insider trading, in wholesale energy markets;

• introducing the explicit prohibition of market manipulation, attempted market manipulation and insider trading in wholesale energy markets;

• establishing a new framework for the monitoring of wholesale energy markets to detect and deter market manipulation and insider trading; and

• providing the enforcement of the above prohibitions and the sanctioning of breaches of market abuse rules at national level.

REMIT prohibits market manipulation and trading on inside information in wholesale energy markets. The definitions of market manipulation and insider trading in REMIT are in line with those applying under Directive 2003/6/EC (Market Abuse Directive or MAD), though adapted for wholesale energy markets. The prohibitions of market manipulation and insider trading in REMIT does not apply to wholesale energy products which are financial instruments and to which Article 9 of MAD applies.

REMIT regulation is available here: https://www.acer-remit.eu/portal/custom-category/remit_doc.

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  

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