Q&As on REMIT – Question III.3.13.

[** Question number changed to Q III.2.49. **]

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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.

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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.

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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.

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Q&As on REMIT – Question III.5.3.

[** Question number changed from Q II.3.7. **]

Do you consider person professionally arranging transaction in wholesale energy product as an organised market place?


Answer:

Under Article 8(4)(d) of REMIT: “for the purposes of paragraph 1, information shall be provided by: [..] (d) an organised market, a trade-matching system or other person professionally arranging transactions;.”

In line with the above provision of REMIT, organised market places fall under the definition of persons professionally arranging transactions.

Having said that, and under Article 15 of REMIT, organised market places are required to:

  1. notify transactions that might breach Articles 3 and 5 of REMIT; and
  2. establish and maintain effective arrangements and procedures to identify breaches of Articles 3 and 5 of REMIT.

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Q&As on REMIT – Question III.6.2.

[** Question number changed to Q III.3.45. **]

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Q&As on REMIT – Question III.7.1.

[** Removed **]

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Q&As on REMIT – Question III.8.1.

[** Removed **]

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Q&As on REMIT – Question III.8.2.

[** Removed **]

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Q&As on REMIT – Question III.8.3.

[** Removed **]

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