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Q&As on REMIT – Question III.3.40.

Is the upstream transport capacity for gas covered by the reporting obligation under Article 3(1)(b) of Commission Implementing Regulation (EU) No 1346/2014?


Answer:

Article 3 of Commission Implementing Regulation (EU) No 1346/2014 defines a list of contracts reportable to the Agency.

As for the wholesale energy products in relation to the transportation of electricity or natural gas in the Union (Article 3(1)(b) of Commission Implementing Regulation (EU) No 1346/2014), the following contracts are reportable to the Agency:

(i) contracts relating to the transportation of electricity or natural gas in the Union between two or more locations or bidding zones concluded as a result of a primary explicit capacity allocation by or on behalf of the TSO, specifying physical or financial capacity rights or obligations;

(ii) contracts relating to the transportation of electricity or natural gas in the Union between two or more locations or bidding zones concluded between market participants on secondary markets, specifying physical or financial capacity rights or obligations, including resale and transfer of such contracts;

(iii) options, futures, swaps and any other derivatives of contracts relating to the transportation of electricity or natural gas in the Union.

The question whether upstream transport capacity contracts for gas are covered by the reporting obligation under Article 3(1)(b) of Commission Implementing Regulation (EU) No 1346/2014 refers to the capacity of gas upstream pipeline networks specified under Article 2(2) of Directive 2009/73 as ‘any pipeline or network of pipelines operated and/or constructed as part of an oil or gas production project, or used to convey natural gas from one or more such projects to a processing plant or terminal or final coastal landing terminal’.

It is the Agency’s current understating that the list of reportable contracts in relation to the transportation of gas as laid down in Article 3(1)(b) of Commission Implementing Regulation (EU) No 1346/2014 does not include gas transport capacity contracts related to upstream pipeline networks. This means that although such contracts are covered by the scope of Article 2(4) of REMIT, they are currently not reportable to the Agency according to Article 8(1) of REMIT in connection with Commission Implementing Regulation (EU) No 1348/2014.

RSS_Icon Last update: 08/06/2016  

Q&As on REMIT – Question III.3.41.

Is a market participant obliged to report transactions for the supply of natural gas with delivery point at offshore platforms, located on a continental shelf in the EU, to the Agency? The transactions in question are between gas producers (sellers) and shippers (buyers) who resell the gas in the wholesale market or to final customers.


Answer:

Pursuant to Article 2(4)(a) of REMIT, ‘wholesale energy products’ means the following contracts and derivatives, irrespective of where and how they are traded: (a) contracts for the supply of electricity or natural gas where delivery is in the Union […].

Therefore, contracts for the supply of natural gas where delivery is at the offshore platforms situated on a continental shelf in the EU are contracts reportable under Article 3(1)(a) of Commission Implementing Regulation (EU) No 1348/2014.

RSS_Icon Last update: 31/08/2016  

Q&As on REMIT – Question III.3.42.

What are the reporting obligations of a final customer with a single consumption unit with a technical capability to consume less than 600 GWh/year if the energy bought by the final customer is not for its consumption use?


Answer:

In order to reply to the above question, the Agency analysed and designed the three following examples. Please note that the examples present the Agency’s current understanding and form a non-exhaustive list.

Furthermore, it is to be noted that final customers with a single consumption unit with a consumption capacity of less than 600 GWh/year should report all the contracts they trade on an organised market place.

qas-on-remit-question-iii-3-42_figure1

Scenario I: Energy was purchased by the final customer but not consumed. The final customer sells the energy under a different contract to a different Supplier B (i.e. the final customer becomes a supplier). In this case, the final customer is a market participant entering into transactions which are required to be reported to the Agency under REMIT. Therefore, the final customer is required to report both contracts for supply of energy 1 and 2.

 

qas-on-remit-question-iii-3-42_figure2

Scenario II: Energy was purchased by the final customer from the Supplier A, but not consumed because there is a volume optionality for the execution of their non-standard supply contract. The energy has not been physically delivered yet. In this case, the contract for supply of energy is not reportable and the final customer is not a market participant entering into transactions which are required to be reported to the Agency under REMIT regarding such contracts. However, it can still be subject to REMIT with regard to the prohibition of market manipulation, including attempted market manipulation, according to Article 5 of REMIT, with regard to insider trading, according to Article 3 of REMIT and with regard to the obligation to publish inside information according to Article 4 of REMIT.

Finally, please note that this scenario does not apply if Supplier A resells the energy in the wholesale energy market on behalf on the final customer. In such case, the final customer is a market participant entering into transactions which are required to be reported to the Agency under REMIT.

 

Scenario III: Energy was purchased by the final customer B. However, the final customer B consumes only a part of the energy and the rest of it is provided to other final customers (C, D, E) that are all within the same closed distribution system or on the same site (e.g. shopping mall, airport). In addition, it is important to note that (i) the final customers C to E can buy the energy only from the final customer B (for example, energy is bought as a part of the tenancy agreement) and (ii) overall technical capability to consume of final customer B to E is below 600 GWh/year.

In this case, the contracts between (i) supplier A and the final customer B and (ii) final customer B and final customers C to E are not reportable. In addition, final customer B is not considered a market participant entering into transactions which are required to be reported to the Agency under REMIT regarding such contracts. However, if the overall technical consumption capability of final customers B to E is 600 GWh/year or more, then the contract for supply of energy between supplier A and final customer B will be reportable and they will both have to be considered market participants.

RSS_Icon Last update: 22/10/2018  

Q&As on REMIT – Question III.3.43.

What does the notion of production capacity under Article 4(1)(b) and (c) of Commission Implementing Regulation (EU) No 1346/2014 mean?


Answer:

In line with the understanding provided in the Manual of Procedures (MoP) on data reporting, the production capacity pursuant to Article 4(1)(b) and (c) of Commission Implementing Regulation (EU) No 1348/2014 means:

a) For electricity production units: Installed capacity means the maximum electrical power the production unit can produce continuously under normal conditions and relevant security standards. If the production capacity is equal to 10 MW, the production unit would be able to produce a maximum daily amount of 240MWh per day (24h*10MW).

b) For gas production units: Technical capacity means the maximum net sustained (flow) capacity that the production unit can produce continuously under normal conditions, and relevant security standards. If the production capacity is equal to 20 MW, the production unit would be able to produce a maximum daily amount of 480MWh per day (24h*20MW).

RSS_Icon Last update: 31/08/2016  

Q&As on REMIT – Question III.3.44.

Are Virtual Trading Points (VTPs) considered as organised market places (OMPs) under Article 2(4) of Commission Implementing Regulation (EU) No 1348/2014? If not, is the contract for the supply of natural gas to a single consumption unit with a technical capability to consume below 600 GWh/year concluded on the VTP reportable to the Agency?


Answer:

As result of the public consultation on the List of organised market places (PC_2014_R_07), the Agency is of the view that VTPs are currently not to be considered organised market places unless they fall under the definition of organised market place as defined by Article 2(4) of Commission Implementing Regulation (EU) No 1348/2014. In the latter case, VTPs should be included in the List of organised market places. Please see question No 3.2 in the Evaluation of responses available at:
http://www.acer.europa.eu/Official_documents/Public_consultations/PC_2014_R_07/ACER_REMIT_PC%20on%20OMPs_Evaluation%20of%20Responses.pdf

Therefore, if the VTP does not qualify as organised market place, market participants are required to analyse if their contracts for supply of natural gas fall under Article 3(1)(a)(vii) of Commission Implementing Regulation (EU) No 1348/2014, i.e. contracts for the supply of electricity or natural gas to a single consumption unit with a technical capability to consume 600 GWh/year or more. If the technical capability to consume is below 600 GWh/year the contract for the supply of natural gas to such single consumption unit will not be reportable.

RSS_Icon Last update: 14/11/2016  

Q&As on REMIT – Question III.3.45.

[** Question number changed from Q III.6.2. **]

Is balancing contract reference data also to be reported to ACER?


Answer:

ACER will currently not be collecting reference data for balancing contracts as Article 3(2) of Commission Implementing Regulation (EU) No 1348/2014 only applies to the standard contracts according to Article 3(1) of the same Implementing Regulation.

RSS_Icon Last update: 22/10/2018  

Q&As on REMIT – Question III.4.1.

How can I report fundamental data?


Answer:

The legal basis for the fundamental data reporting is laid down in Article 8 and 9 of the Commission Implementing Regulation (EU) No 1348/2014. While Article 8 defines the rules for reporting of fundamental data on electricity, Article 9 specifies the rules for reporting of fundamental data on gas including also data on LNG and gas storage.

In order to explain the details of reporting, the Agency has prepared the Manual of Procedures on transaction and fundamental data reporting (MoP). The MoP is available here: https://www.acer-remit.eu/portal/custom-category/acer_remit_reporting_user_package.

The Agency’s intention with the MoP is to provide advice for reporting entities concerning the reporting of fundamental and transaction data. The MoP explains the details of procedures, standards and electronic formats for reporting of fundamental data. In particular, the document includes information on the data submission channels, the data validation rules and the XML-schemas to be used for the reporting.

The focus of the first edition of the MoP is to explain the details of the data fields and reportable schemas related to the electricity and gas fundamental data. Examples of data fields and schemas for the LNG and gas storage data will be included in the MoP in the coming months.

RSS_Icon Last update: 08/01/2016  

Q&As on REMIT – Question III.4.2.

Are RRMs allowed to report fundamental data directly to ACER on behalf of market participants for “Unloading and Reloading of LNG” and for “Amount of gas stored” or, on the contrary, are the TSOs and SSOs the only entities that can delegate their reporting of this kind of data to another RRM?


Answer:

In line with Article 9(5) 9(7) and 9(9) of Commission Implementing Regulation (EU) No 1348/2014, the market participants can delegate the reporting obligation to LSO/SSOs respectively or to any other registered RRM.

RSS_Icon Last update: 29/05/2015  

Q&As on REMIT – Question III.4.3.

Could you please specify who should report different types of fundamental data defined in Articles 8 and 9 of Commission Implementing Regulation (EU) No 1348/2014, and when?


Answer:

The following tables illustrate the reporting of different types of fundamental data and relevant reporting timelines:

RSS_Icon Last update: 29/05/2015  

Q&As on REMIT – Question III.4.4.

Should the TSOs report fundamental data to the Agency directly, or through the ENTSOs’ platforms? Is there an overlap between data sent by TSOs directly to the Agency and through ENTSOs?


Answer:

Article 8(5) of REMIT indicates that the reporting obligations on market participants shall be minimised by collecting the required information or parts thereof from existing sources where possible. For this reason, fundamental data is reported to the Agency through:

(i) ENTSO-E in line with Article 8(1) and (2) of Commission Implementing Regulation (EU) No 1348/2014; and

(ii) ENTSOG in line with Article 9(1) of Commission Implementing Regulation (EU) No 1348/2014.

TSOs are required to report the fundamental data defined in Articles 8(3) and 9(2) of the same Implementing Regulation.

Taking into consideration the above division of reporting, there should be no overlap between data sent by TSOs directly to the Agency and through ENTSOs.

RSS_Icon Last update: 29/05/2015  

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