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.

RSS_Icon Last update: 16/02/2016  

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.

RSS_Icon Last update: 16/02/2016  

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.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.3.33.

Are transfers of transport capacity between a market participant and an end user with a site which does not have the capacity to consume more than 600 GWh/year to be reported, although the gas delivery contracts themselves are not to be reported?


Answer:

The Agency believes that usually for a consumption unit with a maximum technical capability to consume less than 600 GWh/year a supply contract will normally be a contract with a single delivery point to the customer and without any transfer of transport capacity. Please note that the threshold of 600 GWh/year refers to the supply contracts pursuant to Article 3(1)(a)(vii) of Commission Implementing Regulation (EU) No 1348/2014 and not to the transportation contracts.

If the market participant and the end user, in addition to the supply contract, agree on the transfer of transport capacity, this contract has to be reported as a wholesale energy product pursuant to Article 3(1)(b)(i) or (ii) of Commission Implementing Regulation (EU) No 1348/2014.

RSS_Icon Last update: 22/10/2018  

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.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.3.35.

A final customer has a single consumption unit with: (i) a technical capability to consume 600 GWh/year of gas, but (ii) a technical capability to consume less than 600 GWh/year of electricity; is it necessary to report contracts concluded outside an organised market place for the supply of electricity to that unit? And vice-versa?


Answer:

If final customers have a single consumption unit with a technical capability to consume 600 GWh/year or more of gas, but a technical capability to consume less than 600 GWh/year of electricity, they are required to report: (i) all transactions concluded on an organised market place (both gas and electricity), and (ii) if trading outside an organised market place, all their contracts for gas.

Similarly, if final customers have a single consumption unit with a technical capability to consume 600 GWh/year of electricity, but a technical capability to consume less than 600 GWh/year of gas, they are required to report (i) all transactions concluded on an organised market place (both gas and electricity), and (ii) if trading outside an organised market place, all their contracts for electricity.

RSS_Icon Last update: 24/03/2016  

Q&As on REMIT – Question III.3.36.

What constitutes delivery of LNG into the European Union?


Answer:

Article 3(1) of the Commission Implementing Regulation (EU) No 1348/2014 provides a list of reportable contracts, according to which contracts in relation to the supply of electricity or natural gas with delivery in the European Union shall be reported to the Agency.

As far as liquefied natural gas (LNG) contracts are concerned, the Agency considers any importation or offloading of liquefied natural gas in any LNG facility (including flanges that connect the LNG vessel to the LNG terminal) as ‘delivery in the Union’ as far as the delivery of the product takes place in the European Union.

In the situation described above, assuming the delivery of the liquefied natural gas is in the European Union, both parties to the contract will need to register with the relevant National Regulatory Authority/ies as the contract is reportable to the Agency.

Reload-contracts at a regasification terminal or at a vessel where the delivery of the product is not the European Union are not reportable.

RSS_Icon Last update: 24/03/2016  

Q&As on REMIT – Question III.3.37.

Article 3(1)(a)(vii) of Commission Implementing Regulation (EU) No 1348/2014 identifies contracts for the supply of single consumption units with a technical capability to consume 600 GWh/year or more as reportable under REMIT. How are these terms to be understood in a context where a number of different legal entities share one connection to the grid, if they once were one “single consumption unit”, but each individual legal entity (company A, B etc.) has now individual contracts for the purchase of electricity? For example, a formerly integrated industrial site now is separated into different companies and legal entities. All entities still share a common grid connection and the site as a whole exceeds the 600 GWh-threshold, however no single entity is close to the threshold.

How should this situation be treated in terms of transaction reporting and registration of market participants under REMIT?


Answer:

As each company holds individual contracts for the purchase of electricity, the yearly capability of each individual company to consume at this site should be taken into consideration by the companies. Reporting and registration obligations under REMIT would only apply to those companies which have a single consumption unit with a technical capability to consume above the 600 GWh-threshold, provided that they are not trading other wholesale energy products (e.g. including but not limited to contracts for the supply of energy traded on an organised market place or derivative contracts).

RSS_Icon Last update: 24/03/2016  

Q&As on REMIT – Question III.3.38.

I am uncertain whether I am a market participant and whether I am obliged to report transactions or not. What shall I do?


Answer:

In case of doubt, you should register as a market participant with the competent NRA and report your records of transactions to the Agency through a Registered Reporting Mechanism.

RSS_Icon Last update: 24/03/2016  

Q&As on REMIT – Question III.3.39.

Company A and company B are market participants. Company B has a contract for supply of electricity with a final customer C. In order to provide electricity to the final customer C, company B has a contract with A, according to which A supplies electricity to B at the delivery point of the final customer C (metering point of the final customer’s premises). There is no contractual relationship between company A and the final customer C. Is the contract between A and B subject to the reporting obligation pursuant to 3(1)(a) of Commission Implementing Regulation (EU) No 1348/2014?

Q&As on REMIT - Question III.3.39_picture


Answer:

It is the Agency’s understanding that the contract between the companies A and B is the supply contract that is reportable to the Agency pursuant to Article 3(1)(a) of Commission Implementing Regulation (EU) No 1348/2014.

RSS_Icon Last update: 29/04/2016  

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