Q&As on REMIT – Question II.4.49.

I am a REMIT market participant and I have a question in relation to my registration in the national register of REMIT market participants. Who should I contact?


Answer:

The registration of market participants is done on a national level. The Agency does not provide direct support to market participants for questions related to their registration in the national register of REMIT market participants. Market participants who have questions in relation to their registration, e.g. change/expiration of password, how to receive the ACER code, etc. should contact their relevant NRA. The contact details are available at: https://www.acer-remit.eu/portal/ceremp.

RSS_Icon Last update: 31/08/2016  

Q&As on REMIT – Question II.4.51.

A company in the housing industry procures gas and transforms it into heat for the supply to end consumers. Are these contracts from the perspective of the utility subject to reporting obligations under Article 8 of REMIT? Is the company a REMIT market participant?


Answer:

The Agency considers that transforming gas into heat does not qualify as a wholesale energy product under Article 2(4) of REMIT, thus, it is not reportable under REMIT. However, the Agency is of the view that this company in the housing industry is a final customer. If this company has a technical capability to consume 600 GWh/year or more, then the contract for the supply of natural gas is reportable pursuant to Article 3(1)(a)(vii) of Commission Implementing Regulation (EU) No 1348/2014. In that latter case, this company is a market participant entering into transactions which are required to be reported to the Agency under Article 8(1) of REMIT and shall register with the competent NRA pursuant to Article 9(1) of REMIT. Please note that final customers with a consumption capacity lower than 600 GWh/year should report all the contracts which are traded on an organised market place.

RSS_Icon Last update: 31/08/2016  

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.3.43.

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 II.4.48.

Company ‘A’ from Member State X creates a branch office (‘BO’) in Member State Y. The BO obtains a licence to operate in Member State Y and Member State Z (licence is in the name of BO, not A). The BO is still the same legal entity as the mother company A, however, BO and A hold two distinct energy licences granted by the NRA. The BO operates in Member State Y and Member State Z and is an interface towards the NRAs and TSOs in these Member States. However, at the same time, A is the counterparty to all BO’s framework agreements. Which entity should register as a market participant under Article 9(1) of REMIT: (i) company A, (ii) BO or (iii) both companies A and BO?

qas-on-remit-question-ii-4-48_figure


Answer:

The obligation to register with the relevant NRA under Article 9(1) of REMIT applies to market participants (natural or legal persons) entering into transactions which are required to be reported pursuant to Article 8(1) of REMIT. Within a group of companies, all legal entities who enter into transactions that are required to be reported must register with the relevant NRA(s). In the present case, provided that the company A is always party to the contract used by the BO, only the company A has an obligation to register with the relevant NRA pursuant to Article 9(1) of REMIT.

RSS_Icon Last update: 31/08/2016  

Q&As on REMIT – Question II.4.2.

I am a market participant. What obligations do I need to fulfil after Commission Implementing Regulation (EU) No 1348/2014 entered into force on 7 January 2015?


Answer:

After 7 January 2015, when Commission Implementing Regulation (EU) No 1348/2014 entered into force, market participants and third parties reporting on their behalf have to:

a) within nine months, i.e. by 7 October 2015, report transactions in wholesale energy contracts admitted to trading at organised market places and fundamental data from the ENTSOs central information transparency platforms; and,

b) within fifteen months, i.e. by 7 April 2016, report transactions in the remaining wholesale energy contracts (OTC standard and non-standard supply contracts; transportation contracts) and reportable fundamental data from TSOs, LSOs and SSOs.

Also, please note that market participants entering into transaction which are required to be reported to the Agency in accordance with Article 8(1) of REMIT and Commission Implementing Regulation (EU) No 1348/2014 are first obliged to register with the NRA in the Member State in which they are established or resident or, if they are not established or resident in the EU, in a Member State in which they are active. A market participant shall register only with one NRA. A list of all NRAs can be found here: https://www.acer-remit.eu/portal/ceremp.

RSS_Icon Last update: 18/08/2016  

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 II.4.47.

I am a market participant with reporting obligations pursuant to Article 8(1) of REMIT. However, I failed to register with the NRA of the Member State in which I am established before 7 April 2016 when the reporting obligations started. What should my actions be?


Answer:

In accordance with Article 9(1) of REMIT, market participants entering into transactions which are required to be reported to the Agency in accordance with Article 8(1) of REMIT are obliged to register with the NRA in the Member State in which they are established or resident or, if they are not established or resident in the EU, in a Member State in which they are active.

For market participants entering into transactions on an organised market place, the registration obligation takes effect, at the latest, prior to entering into such transaction which is required to be reported to the Agency as of 7 October 2015. For all other market participants, the registration obligation takes effect, at the latest, prior to entering into transactions which are required to be reported to the Agency as of 7 April 2016. This means market participants shall submit their registration form to the relevant NRA prior to the first day on which they enter into transactions which are required to be reported to the Agency.

Consequently, the Agency considers that any person who enters into a transaction which is required to be reported to the Agency as of 7 October 2015 or as of 7 April 2016, and without having submitted the registration form to the relevant NRA, is in breach of Article 9 of REMIT. Sanctions for the breach of REMIT provisions are defined and enforced at national level, pursuant to Article 18 of REMIT.

RSS_Icon Last update: 08/06/2016  

Q&As on REMIT – Question III.2.48.

If I am an already approved RRM or an RRM applicant in the registration process and would like to ask a question about the application of the Contingency Plan, who should I contact?


Answer:

All questions about the application of the Contingency Plan should be addressed to the Agency’s Central Service Desk: servicedesk@support.acer-remit.eu.

RSS_Icon Last update: 29/04/2016  

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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