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Q&As on REMIT – Question II.4.24.

If a supplier does not purchase electricity/gas directly in wholesale energy markets (for example at an organised market place) but its energy needs are purchased from a larger supplier through a bilateral contract, shall the smaller supplier be considered as market participant and be obliged to register with an NRA under Article 9(1) of REMIT?


Answer:

In line with Article 2(4)(a) of REMIT, contracts for supply of electricity/gas, where delivery is in the EU, are considered as wholesale energy products. Furthermore, in line with Recital (5) of REMIT, wholesale energy markets encompass, among others, bilateral contracts. Therefore, the smaller supplier trading contracts under Article 2(4)(a) of REMIT will be considered as a market participant under REMIT.

In line with Article 9(1) of REMIT, market participants entering into transactions, which are required to be reported to the Agency, shall register with the relevant NRA. If the bilateral contract is reportable to the Agency then the supplier will be obliged to register with the relevant NRA.

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Q&As on REMIT – Question II.4.25.

Shall a final customer party to a contract as referred to in Article 3(1)(a)(vii) of Commission Implementing Regulation No 1348/2014 (i.e. supply to single consumption unit ≥ 600 GWh) be obliged to register?


Answer:

If a supply contract fulfils the criteria under Article 3(1)(a)(vii) of Commission Implementing Regulation No 1348/2014, such contract should be reported to the Agency. Consequently, a final customer being counterparty will be obliged to register as a market participant in line with Article 9(1) of REMIT.

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Q&As on REMIT – Question II.4.26.

What should the market participant insert in the market participant registration form field of the ultimate controller’s VAT (No 316 of Agency Decision No 1/2012) if its ultimate controller has no VAT number or is a state/public authority?


Answer:

In case of a market participant whose ultimate controller does not obtain a VAT number, “XXXXXXXXXX” (10 times X) should be put in the aforementioned field of the market participant registration form where the VAT number is required.

The state, municipality or other public entity should be registered as an ultimate controller by providing the name and the VAT number of the state or municipality or other public entity.

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Q&As on REMIT – Question II.4.27.

Concerning Section 5 of the market participant registration form, should market participants select themselves as potential RRMs in case they intend to report directly only part of the trade data (OTC contracts) and through third party RRMs the remaining data (standard contracts on organised market places)?


Answer:

Yes, the market participants who intend to report part of the trade data themselves should indicate in Section 5 of the market participant registration form that they intend to report their own data.

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Q&As on REMIT – Question II.4.28.

Concerning Section 5 of the market participant registration form, at what stage should the agreement between a market participant and an RRM be sent to ACER?


Answer:

There is no requirement to send the contracts between a market participant and an RRM to the Agency. However, the Agency may, at any stage of the registration process and during the lifetime of the RRM’s registration with the Agency, request from applicants and existing RRMs any information it deems necessary to assess compliance with the requirements as per Chapter 7 of the Requirements for the registration of Registered Reporting Mechanisms (RRMs) document. This information may include, in particular, the internal documentation, such as an agreement between a market participant and an RRM.

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Q&As on REMIT – Question II.4.29.

How to identify market participants that play several roles (e.g. a TSO that has also a capacity trading platform)? Does the Agency allow one organisation to have several ACER codes?


Answer:

The ACER code does not distinguish by roles, but aims at uniquely identifying market participants. A market participant with several roles will therefore still be identified by one unique ACER code.

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Q&As on REMIT – Question II.4.30.

Should the BIC code be entered in the market participant registration form only if it belongs to the market participant i.e. the market participant is a Bank? Hence, it is not the BIC code where the market participant has a bank account?


Answer:

According to Agency Decision No 01/2012, the definition of field 114 foresees that the BIC code should contain the Bank Identifier Code of the Market Participant (only if available). Please note that the BIC code can be attributed to financial and non-financial institutions. The list of BIC codes can be accessed via http://www.swift.com/bsl/. The BIC code of the bank where the market participant has its bank account is not a unique code issued for a market participant as it belongs to the bank (not to the market participant) and thus it should not be provided.

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Q&As on REMIT – Question II.4.31.

The owners of underground storage participate as counterparties in the auctions related to the purchase of cushion gas. Shall the owners of underground storage companies register as market participants?


Answer:

Yes, the owners of underground storage are counterparties of transactions related to wholesale energy products under REMIT that shall be reported to the Agency. Therefore, they will be required to register as market participants under REMIT.

Please note that Article 3(1)(vi) of Commission Implementing Regulation (EU) No 1348/2014, refers to other contracts for the supply of natural gas with a delivery period longer than two days where delivery is in the European Union irrespective of where and how they are traded, in particular regardless of whether they are auctioned or continuously traded.

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Q&As on REMIT – Question II.4.32.

Could you please clarify the registration/reporting obligation under Article 4(1) and (2) of Commission Implementing Regulation (EU) No 1348/2014 in relation to contracts for the physical delivery of electricity produced by wind turbines? Which contracts for the physical delivery of electricity remain below the threshold of 10MW?


Answer:

In line with Article 4(1)(b) of Commission Implementing Regulation (EU) No 1348/2014, contracts for the physical delivery of electricity produced by a single production unit with a capacity equal to or less than 10MW or by production units with a combined capacity equal to or less than 10MW shall be reportable only upon reasoned request of the Agency, unless concluded on organised market places. Thus, market participants who only complete such transactions do not have to register at the relevant NRA.

According to Article 2(13) of Commission Implementing Regulation (EU) No 1348/2014, production unit means a facility for generation of electricity made up of a single generation unit or of an aggregation of generation units. Thus, a production unit is not always a single production unit (e.g. one wind turbine) but it can also be a combination of units (e.g. several wind turbines). In defining a production unit the spatial proximity and the ownership structure are relevant. Thus, a production unit might be a part of a wind farm (e.g. 5 wind turbines) owned by one market participant.

That leads to the following specific examples for wind power plants (accordingly for other types of production):

– A) Contracts for the physical delivery of electricity of a wind farm (or parts of the wind farm) with a total production capacity of equal to or less than 10MW are reportable only upon reasoned request of the Agency and on an ad-hoc basis (diagram at the top left).

– B) Contracts for the physical delivery of electricity of a wind farm (or parts of the wind farm) larger than 10MW are reportable on a regular basis (diagram at the top right).

– C) If a market participant has more than one wind farm (or parts of a wind farm) at his disposal which are spatially separated and each of it has a production capacity of equal to or less than 10MW and which are marketed in different contracts, these contracts are not reportable (diagram at the bottom left).

– D) If a market participant has more than one wind farm (or parts of a wind farm) at his disposal which are spatially separated and each of it has a production capacity of equal to or less than 10MW and which are marketed in one common contract, this contract is reportable (diagram at the bottom right).

If the marketing of the production capacity is performed by a third-party – e.g. the operator of a wind farm – and the wind farm has got a total production capacity larger than 10MW, this third-party has to register as market participant and to report the corresponding contracts.

Q&As on REMIT - Question II.4.32_table

 

 

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Q&As on REMIT – Question II.4.33.

In a consortium for the purchase of electricity and gas in the energy wholesale market, each associate member owns a share of 0,93% or less. None of these members is: i) able to exercise a significant influence over the management of the market participant through a controlling interest in the consortium or its parent undertaking; ii) entitled to control or exercise control of 10% or more of the voting power in the market participant or its parent undertaking; iii) able to exercise significant influence over the management of the market participant through their voting power in the market participant or its parent undertaking. Who is/are the beneficiary/ultimate controller(s)? How should the corresponding fields (compulsory) in the market participant registration form be filled in?


Answer:

Please note that, where ownership of shares in a market participant is beneficially held by individuals who do not meet ultimate controller criteria, it is unlikely that the market participant will have an ultimate controller and therefore the company itself will be its own ultimate controller and shall be inserted as ultimate controller.

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