Q&As on REMIT – Question III.2.44.

Reasonable steps that a market participant has to undertake are stipulated in Article 11(2), third subparagraph, of Commission Implementing Regulation (EU) No 1348/2014 in order to verify the completeness, accuracy and timeliness of data which they submit through third parties to the Agency. Do these reasonable steps differ depending on the reporting channel that the market participant selects – i.e. OMP, RRM, etc.?


Answer:

The Agency’s understanding is that the only reporting channels for transactions executed at organised market places, including matched and unmatched orders under Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014, are the organised market places concerned, trade matching and trade reporting systems.

The aim of the limitation to the above-mentioned three reporting channels for reporting under Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 is to ease the reporting for the market participants as specified in Recital 5 of Commission Implementing Regulation (EU) No 1348/2014: ‘’Since market participants cannot be expected to record such data with ease, matched and unmatched orders should be reported through the organised market place where they were placed or through third parties who are able to provide such information’’.

Taking into consideration Recital 5, it seems that the organised market place concerned and/or market participants can choose another organised market place, a trade matching and/or a trade reporting system, i.e. a third-party Registered Reporting Mechanism (RRM), to report data under Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014.

In the registration of market participants through NRAs, the reporting through the organised market place concerned is considered as the default solution for reporting of records of transactions, including orders to trade, to the Agency, according to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014. This is based on the underlying principle of the REMIT reporting regime set in Article 8 of REMIT that the reporting obligations on market participants shall be minimised by collecting the required information or parts thereof from existing sources where possible.

As a consequence of data collection according to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 from organised market places as existing sources, the Agency believes that this will ensure a high degree of data quality.

Against this background, the reasonable steps a market participant shall take to verify the completeness, accuracy and timeliness of the data, which they submit through third parties, have to be distinguished depending on the reporting channel selected:

a) Reporting of wholesale energy products through the organised market place where the transactions were executed or the orders to trade were placed (‘organised market place concerned’):

The organised market place concerned, as an RRM, will have responsibility for the completeness, accuracy and timely submission of the data to the Agency according to Article 11(2) of Commission Implementing Regulation (EU) No 1348/2014 itself. Since the organised market place concerned is the existing source, it is difficult to imagine any additional steps market participants could take to verify the completeness, accuracy and timeliness of the data which they submit through the organised market place concerned. Accordingly, the market participant selecting the organised market place concerned for data reporting according to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 will be relieved from taking reasonable steps to verify the completeness, accuracy and timeliness of the data which organised market places concerned submit as RRMs on their behalf to the Agency to the minimum necessary.

b) Reporting of wholesale energy products through a third-party RRM selected by the organised market place concerned:

The same as above applies if the organised market place concerned selects a third party RRM and thereby outsources the service for market participants of data reporting according to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 to the Agency. Since the organised market place concerned is the existing source, it is the organised market place concerned that will have to take reasonable steps to verify the completeness, accuracy and timeliness of the data which they submit through third party RRMs. The market participant would again be relieved from taking reasonable steps to verify the completeness, accuracy and timeliness of the data which organised market places concerned submit as RRMs on their behalf to the Agency to the minimum necessary.

c) Reporting of wholesale energy products through a third-party RRM other than the organised market place concerned selected by the market participant (i.e. another organised market place, trade matching or trade reporting system):

Firstly, it is important to note that such third-party RRM must be able to provide the complete data set to the Agency i.e. to report all data fields, e.g. Contract IDs, as defined by Commission Implementing Regulation (EU) No 1348/2014, and as explained in detail in the Agency’s REMIT Reporting User Package. If this is not the case, the Agency will give a warning to the RRM reporting incomplete data in line with the rules laid down in the RRM Requirements document. Furthermore, if adequate data quality standards and/or compliance with RRM requirements are still not met within the time-frame indicated in the warning, the Agency may, after a certain period of time, which shall not be shorter than six months, discontinue access to the ARIS system for the RRM concerned and inform the market participants affected by the RRM’s non-compliance.

In addition, if the market participant chooses to report its transactions executed at organised market place not through the organised market place concerned, but through a third-party RRM selected by the market participant (i.e. another organised market place, trade matching or trade reporting system), the Agency points out that the market participant will have to ensure the following in order to comply with its obligation to take reasonable steps in order to verify the completeness, accuracy and timeliness of the data which it submits through the third-party RRM to the Agency:

Whilst the organised market place concerned will still be responsible for the completeness and accuracy of the relevant source data, the market participant will be responsible for accuracy, completeness and timeliness of the data concerning (1) the transfer of the data from the organised market place concerned to the third-party RRM selected by the market participant, (2) the handling of the data by the third-party RRM and (3) the transfer of the data from the third-party RRM to the Agency. Both transfers entail a significant risk to undermine the completeness, accuracy and/or timely submission of data to the Agency. Regarding the transfer of the data from the third-party RRM to the Agency, the market participant will not be responsible for failures in the completeness, accuracy or timely submission of the data in cases where these failures are clearly attributable to the respective third party. Nevertheless, the market participants will have to prove to National Regulatory Authorities, on their request, that they have undertaken reasonable steps to verify the completeness, accuracy and timeliness of the data submitted to the Agency.

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Q&As on REMIT – Question III.2.45.

Can organised market places limit their responsibilities according to Article 11(2) of Commission Implementing Regulation (EU) No 1348/2014 and contractually delegate their responsibilities to the market participants concerning the completeness, accuracy, and timeliness of data to be submitted to the Agency according to Article 6(1) of the said regulation?


Answer:

Article 11(2) of Commission Implementing Regulation (EU) No 1348/2014 stipulates that persons required to report data referred to in Articles 6, 8 and 9 shall have the responsibility for the completeness, accuracy and timely submission of data to the Agency and, where required, to national regulatory authorities. Where a person required to report data reports data through a third party, then the person shall not be responsible for failures in the completeness, accuracy or timely submission of data which are attributable to the third party. In those cases, the third party shall be responsible for failures, without prejudice to Articles 4 and 18 of Regulation (EC) No 543/2013 on submission of data in electricity markets.

Accordingly, should an organised market place offer a data reporting agreement according to Article 6(1), second subparagraph, of Commission Implementing Regulation (EU) No 1348/2014, to a market participant, it will not be possible to limit the responsibility, with such a data reporting agreement, of the organised market place concerned being a third party for the reporting of data in the meaning of Article 11(2), second subparagraph, of Commission Implementing Regulation (EU) No 1348/2014. Any such contractual delegation of responsibilities from an organised market place to a market participant would be in breach of a directly applicable EU regulation and therefore illegal.

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Q&As on REMIT – Question III.3.30.

Should gas storage nominations be reported as trades?


Answer:

No, storage contracts are not considered wholesale energy products under REMIT (please see the definition of wholesale energy products under Article 2(4) of REMIT). Storage system operators are required to report nomination data as defined in Article 9(7) of Commission Implementing Regulation (EU) No 1348/2014 as fundamental data. In addition, the market participants or storage system operators (on their behalf) are required to report gas storage data as specified in Article 9(9) of Commission Implementing Regulation (EU) No 1348/2014.

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Q&As on REMIT – Question III.3.31.

If a market participant is short or long relative to their notified position to the TSO, they will be exposed to the cash out price. For example, if they ‘spill’ additional electricity onto the network, the market participant receives the cash out price for this electricity. Is this a reportable contract under REMIT?


Answer:

Yes, but it is the Agency’s current view that such payments are part of the process for balancing and would fall under Article 4(1)(d) of Commission Implementing Regulation (EU) No 1348/2014 and are only reportable upon reasoned request of the Agency on an ad-hoc basis. In addition, please note that the Market Monitoring Department of the Agency adopted a ‘No-action letter’ to provide time-limited no-action relief from the requirement to report contracts and details of transactions in relation to those contracts listed in Article 4(1) of Commission Implementing Regulation (EU) No 1348/2014 upon reasoned request of the Agency. The No-action letter is available here: https://www.acer-remit.eu/portal/acerstaff-letters-doc.

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Q&As on REMIT – Question III.3.32.

What contracts are final customers required to report?


Answer:

Final customers with a single consumption unit with a consumption capacity of 600 GWh/year or more should report all their contracts for the supply of energy, derivatives and transportation which fall under Article 3(1) of Commission Implementing Regulation (EU) No 1348/2014.

The Agency currently considers that final customers with a single consumption unit with a consumption capacity lower than 600 GWh/year should report all the contracts for the supply of energy they traded on an organised market place and, if traded outside an organised market place, they should report only contracts for the sale of energy (considering that this energy is therefore not for consumption use). In addition, final customers with a single consumption unit with a consumption capacity lower than 600 GWh/year should report all their contracts for transportation and derivatives as such contracts are not considered as contracts for the supply and distribution of electricity or natural gas for the use of final customers.

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Q&As on REMIT – Question III.3.34.

Are contracts for the supply of liquefied natural gas (LNG) with delivery in the Union covered by the scope of REMIT?


Answer:

The Agency has already specified in its 1st, 2nd and 3rd editions of ACER guidance on the application of REMIT that ‘for further guidance on general definitions stipulated in Article 2 of REMIT (e.g. final customer, consumption etc.) reference is made to the relevant definitions in Directive 2009/72/EC, Directive 2009/73/EC, Regulation (EC) No 714/2009 and Regulation (EC) No 715/2009’. Pursuant to Article 2(7) of Directive 2009/73/EC, ‘supply’ means the sale, including resale, of natural gas, including LNG, to customers. Accordingly, it is therefore without doubt that contracts for the supply of LNG, where delivery is in the Union, are wholesale energy contracts pursuant to Article 2(4)(a) of REMIT.

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Q&As on REMIT – Question III.7.2.

Taking into consideration that the reporting obligations referred to in Commission Implementing Regulation (EU) No 1348/2014 will enter into force only on 7 October 2015 or on 7 April 2016 respectively, as the case may be, please indicate when are the market participants/service providers expected to start providing the web feeds?


Answer:

In line with Article 10(1) of Commission Implementing Regulation (EU) No 1348/2014, (i) market participants disclosing inside information on their website or (ii) service providers disclosing such information on market participants’ behalf, shall provide web feeds to enable the Agency to collect these data efficiently. In principle, this obligation applies as of 7 January 2015 when Commission Implementing Regulation (EU) No 1348/2014 entered into force. However, the Agency will only start collecting such data as of 1 January 2017 from Inside Information Platforms listed on the REMIT Portal. On 30 September 2015 the Agency published guidelines for the technical implementation of web feeds updating the Manual of Procedures on data reporting following a public consultation.

Furthermore, in line with the same Article 10(1), a market participant shall identify itself, or shall be identified by the third party reporting on its behalf, using (i) the ACER registration code or (ii) the unique market participant code which the market participant provided while registering with the competent NRA under Article 9 of REMIT.

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Q&As on REMIT – Question III.2.37.

A registered market participant would like to report its non-standard contracts. Does this entity need to register as an RRM and fulfill all criteria concerned in order to be able to report its contracts: (a) for itself and (b) on behalf of its counterparties?


Answer:

If a market participant intends to report directly its non-standard contracts (for self-reporting purposes and/or to offer reporting services to others), it should indicate this in the electronic registration form when registering as a market participant with the competent NRA (Section 5 of the registration form ‘Intention to become a Reporting Entity’). The RRM registration process will then begin directly from there. The market participant is required to fulfil all criteria for the RRM as specified in the RRM Requirements document.

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Q&As on REMIT – Question III.2.38.

I am a market participant currently in the process of registering as an RRM in order to be able to report data in the second phase of reporting as of 7 April 2016. Which reporting interface do I have to choose for testing?


Answer:

With regard to the reporting of data as of 7 April 2016, the Agency requests self-reporting market participants that are already in the RRM registration process to limit themselves to the ARIS WEBGUI interface for their registration. This will significantly simplify their testing phase during the RRM registration and therefore accelerate their approval as an RRM in due time before 7 April 2016. Once approved as an RRM and if they decide later, the RRM may choose more interfaces for reporting (Web Services or and SFTP) through the change request functionality in ARIS.

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Q&As on REMIT – Question III.2.39.

With regard to the reporting of data as of 7 April 2016, would the Agency recommend market participants to start the RRM registration process in order to report their own data or to use reporting services of already registered RRMs?


Answer:

Please note that all entities reporting data to the Agency should be registered as RRMs. In order to decide whether to become an RRM and report its own data or use an already registered RRMs the market participant should take into account the complex and detailed process of RRM registration. Please note that the registration as an RRM is not a unique exercise, but being an RRM will require the market participant to comply with the Agency’s RRM requirements on an ongoing basis and to adapt to future upgrades of the Agency’s REMIT Information System and changes of the transaction reporting regime. Therefore, the Agency strongly recommends market participants to report their data through already registered RRMs. The list of already registered RRMs is accessible at https://www.acer-remit.eu/portal/list-of-rrm.

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