Additional information on how to correctly report the Delivery point or zone

1  Background

The Agency has already provided its guidance in the Transaction Reporting User Manual (TRUM), in relation to Data Field No (48) Delivery point or zone (Table 1) and Data Field No (41) Delivery point or zone (Table 2) for electricity or gas supply and derivative contracts. The following is explained in the TRUM:

Data Fields No (48) Table 1 and No (41) Table 2 Delivery point or zone

This field identifies the commodity delivery point or zone. This field reports the EIC Y code (or an alternative code to be agreed with the Agency if the EIC is not available) to identify the delivery and/or balancing point for the contract.

Example: A contract for the supply of gas at the NBP hub (GB market) will report the EIC Y code to identify that balancing area. A contract for the supply of electricity in the German-Austrian area shall be reported using the EIC Y code to identify the balancing area where the supplier/consumer is located which in this case can be either in Germany or Austria.

However, since gas can also be delivered at the interconnection point, then the EIC-Z Code for that interconnector may be used.

Please note that this guidance will affect a very small number of transactions reported to the Agency as about 95% of reported transactions refer to valid Delivery point or zone codes.

2  Additional clarification to be provided to reporting parties

This guidance provides additional information on how to correctly report the Delivery point or zone.

Any contract related to the supply of electricity or gas, irrespective of whether the contract is a spot, a physical forward, a future or an option contract has a reference to a delivery point or zone. Also financial derivatives related to EU electricity or gas have a reference price or other attributes which relates to the delivery of the commodity.

The Agency has published the list of accepted EIC codes for REMIT transaction reporting purposes on the Agency’s REMIT portal attached to this Annex. No other codes should be reported unless listed on the Agency’s REMIT portal.

Additional codes that represent delivery points for REMIT transaction reporting purposes currently not listed should be notified to the Agency.

3  Electricity delivery point or zone

The delivery point or zone of a contract for the supply of electricity can be of two types:

1. Balancing zone: This is the zone for which the system operator is responsible to keep the electricity in balance. Market participants will deliver and take the delivery (transfer of ownership of the commodity) of the electricity through their nominations, e.g. the notification of the electricity delivered or withdrawn into or from the system to the System Operator;

2. Market area: This is the area that the specific contract refers to. It can be the same as the balancing area or it can encompass several balancing areas.

4  Gas delivery point

The delivery point or zone of a contract for the supply of gas can be of four types:

1. Balancing zone: This is the zone where the system operator is responsible to keep the gas in balance. Market participants will deliver and take the delivery (transfer of ownership of the commodity) of the gas through their nominations, e.g. the notification of the gas delivered or withdrawn into or from the system to the system operator;

2. Market area: This is the area that the specific contract refers to. It can be the same as the balancing area or it can encompass several balancing areas.

3. Interconnection or entry point (e.g. terminal):

a. The interconnection point is the point where gas is delivered and then transferred to the other side of the interconnection point by the system operator. This case applies to unbundled interconnection capacity only. E.g. Interconnection between area (A), managed by system operator (TSO_X), and area (B), managed by the neighbouring system operator (TSO_Y):

i. Market participant (MP1) delivers and balances its position at point (A) with TSO_X. Market participant (MP1) makes its nomination at point (A) with TSO_X;

ii. The system operators TSO_X and TSO_Y transfer the energy from point (A) to point (B);

iii. Market participant (MP2) delivers the gas and balances its position at point (B) with TSO_Y while the market participant (MP2) makes the nomination at point (B).

iv. Delivery at interconnection points across two EU member states have to be reported only in case of unbundled capacity. In all other cases the balancing zone or market area should be reported (see point 3(a) above;

v. Delivery at interconnection points across a NON-EU and an EU member state with unbundled capacity has to be reported only in case of flow in the direction to the EU member state. Example: two counterparties have a gas contract for the delivery at interconnection point with unbundled capacity (also called at the border). If the gas flows from the NON-EU to the EU member state, the contract is reportable under REMIT as the counterparty (in the contract) receiving the gas is registered in the EU member state.

On the contrary if the gas flows from the EU to the NON-EU country, the contract is NOT reportable under REMIT as the counterparty receiving the gas is based in an NON-EU country.

b. The entry point (e.g. terminal) is the physical delivery point where the commodity changes hands at an entry point. For example this can be a terminal e.g. St. Fergus in Scotland (GB) where a seller delivers the gas to the buyer before the gas flows into the NBP hub (balancing zone).

4. Storage or LNG facility: This is the gas facility the contract refers to and it is a physical location.

5  How to read the spreadsheet

The “List of accepted EICs_Table_1_and_2” for REMIT transaction reporting purposes spreadsheet available on the Agency’s REMIT portal as an attachment to this Annex is formed of four sheets:

1. EIC Validity Check: this sheet has the following columns:

a. EICs: List of all Delivery point or zone EIC codes reported to the Agency with Table 1 and Table 2;

b. Country: The country the EIC refers to. This is a look-up from “Full List” sheet on the EIC listed in column “EICs”;

c. EL/NG: The type of energy commodity the EIC refers to;

d. Valid/Invalid: This column confirms the Agency understanding of the validity of the code.

e. EL Balancing Zone: The electricity balancing zone the EIC refers to. This is a look-up from “EL Codes” sheet (see below) on the EIC listed in column “EICs”;

f. EL Market Area: The electricity market area that the EIC code refers to. This is a look-up from “EL Codes” sheet (see below) on the EIC listed in column “EICs”;

g. NG Balancing Zone: The gas balancing zone that the EIC code refers to. This is a look-up from “NG Codes” sheet (see below) on the EIC listed in column “EICs”;

h. NG Market Area: The gas market area that the EIC code refers to. This is a look-up from “NG Codes” sheet (see below) on the EIC listed in column “EICs”;

i. Interconnection Points or entry point (e.g. terminal): The interconnection point or entry point that the EIC code refers to. This is a look-up from “Z Codes” sheet (which includes some Y codes too) on the EICs listed in column “EICs”;

j. LNG/Storage: The LNG/Storage facility that the EIC code refers to. This is a look-up from “W Codes” sheet on the EICs listed in column “EICs”;

k. ENTSO-E Website: When none of the above is applicable, the description of the EIC code refers to is checked with the one available on the ENTSO-E website;

l. Last digit check: When none of the above are applicable, the EIC code is checked for its integrity according to the EIC check logic. The tool is available on the ENTSO-E website (https://www.entsoe.eu/data/energy-identification-codes-eic/eic-code-lists/Pages/default.aspx)

2. List of Accepted EICs: This sheet lists:

• EU’s electricity balancing zones and the electricity market areas the Agency is aware of. Each balancing zone or market area has one code.
  
• EU’s gas balancing zones and the gas market areas the Agency is aware of. Each balancing zone or market area has one code.
• EU’s interconnection points or entry points the Agency is aware of. Each interconnection or entry point has one code.
• EU’s LNG/Storage facilities the Agency is aware of. Each LNG/Storage facility has one code and it will not be change in the future.

Should the Agency have not included any code mentioned in (2), (3) and (4), reporting parties should notify the code through the web form available at http://surveys.acer.europa.eu/eusurvey/runner/EICs_mapping

3. Invalid Codes: The list of invalid reported EIC codes identified by the Agency so far.

4. Full list: The list of Y-Z-W EIC codes available on ENTSO-E website at https://www.entsoe.eu/fileadmin/user_upload/edi/library/eic/EICRegistry.htm on 31 January 2017.

6  Actions to be taken by Organised Market Places and Market Participants

Reporting parties should take the following actions:

Valid: For EIC codes listed in column “EICs” of the sheet “EICs Validity Check” and flagged as “Valid” in column “Valid/Invalid” of the same sheet, in limited cases reporting parties may need to take corrective action (see below).

Where the EIC code is labelled as “Valid”, it is possible that reporting parties have submitted a code that belongs to another zone/area. For example: if a contract delivers gas at a balancing zone/market area in a specific country and the code for the electricity balancing zone/market area for the same country was reported instead, reporting parties should notify the Agency of such errors.

Invalid Code: For EIC codes listed in column “EICs” of the sheet “EICs Validity Check” and flagged as “Invalid” in column “Valid/Invalid” of the same sheet, reporting parties have to take action.

EICs listed in column “EICs” are labelled as “Invalid Code” when checked for their integrity according EIC checker available on the ENTSO-E website. As they are invalid they have to be corrected. In order to do so the online form should be used.

ENTSO-E: For EIC codes listed in column “EICs” of the sheet “EIC Validity Check” and flagged as “ENTSO-E” in column “Valid/Invalid” of the same sheet, reporting parties have to take action.

When EIC codes listed in column “EICs” do not have a match in the sheet “List of Accepted EICs” then the EIC is searched within the list of available codes published by ENTSO-E. Most of the codes published on the ENTSO-E website represent the same delivery point/area of those listed in “List of Accepted EICs”.

For example, the GB balancing zone is identified by the EIC code “10YGB———-A”. For the same balancing zone, reporting parties are also reporting “10Y1001A1001A58E” for Bidding Zone – Great Britain (APX) and “10Y1001A1001A57G” for Bidding Zone – Great Britain (N2EX). While this may be clear in the example above, there are thousands codes that may cause confusion to reporting parties.

Another example is when EIC codes are used to represent a market coupling area which does not specify the balancing zone where delivery takes place but the market coupling area. Example: if a market participant trades in country “A” and bids on a contract for delivery to “A” which is part of a market coupling area “A-B-C”, the EIC code for “A” should be reported.

Since it is not possible to identify the delivery area from these codes, and since different reporting parties may have interpreted these codes in a different way, reporting parties have to map these codes to existing codes available in “List of Accepted EICs” sheet. This will be a one-of time exercise.

In order to provide the mapping to the Agency reporting parties have to use the online form. The online form is self-explanatory and reporting parties have to fill in all the mandatory fields. No other communication channel will be made available.

Missing: For EIC codes listed in column “EICs” of the sheet “EIC Validity Check” and flagged as “Missing” in column “Valid/Invalid” of the same sheet, reporting parties have to take action.

When EICs listed in column “EICs” do not have a match in the sheet “List of Accepted EICs” then reporting parties have to map these codes to existing codes available in “List of Accepted EICs” sheet.

Missing codes, although may be valid codes issued by Local Issuing Office (LIO), may be interpreted, and reported in a different way and reporting parties have to map these codes to existing codes available in “List of Accepted EICs” sheet.

7  Corrective Action

In order to provide the mapping to the Agency, reporting parties have to use the online form. Reporting parties may also report new EIC codes not listed yet in the Agency’s list of accepted codes.

8  The way forward

As soon as possible reporting parties should use only EICs published in the Agency’s REMIT portal as attachment to this Annex.

As of 1 September 2017 a new validation rule will prevent the reporting of EICs not listed in the Agency’s list of accepted codes.

In case any new delivery point or zone has been created which will be relevant for REMIT transaction reporting purposes, reporting parties should notify them to the Agency using the on line form to update the ARIS validation rules with a least 10 working days’ notice.

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Last update: 14/11/2018