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Q&As on REMIT – Question III.3.17.

If a market participant owns a 5MW production unit and sells this output to a second market participant is that contract reportable (by either counterparty)? Furthermore, if the second market participant sells this output on to a third market participant under another contract, is that contract reportable?


Answer:

Article 4 of Commission Implementing Regulation (EU) No 1348/2014 stipulates a list of contracts reportable at request of the Agency. Article 4(1)(b) and (c) of Commission Implementing Regulation (EU) No 1348/2014 defines certain thresholds for contracts reportable at request.

For electricity, only contracts where a counterparty can show that the electricity was 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 would meet the definition set out in Article 4(1)(b) of Commission Implementing Regulation (EU) No 1348/2014, unless concluded on organised market place.

For example, if market participant A owns a 5MW production unit and sells this output to market participant B, this contract would fall under Article 4(1)(b) of Commission Implementing Regulation (EU) No 1348/2014 and only be reportable upon the reasoned request of the Agency and on an ad-hoc basis.

If market participant B sold this output to market participant C under another contract then this contract would not fall under Article 4(1)(b) of Commission Implementing Regulation (EU) No 1348/2014 and therefore would be reportable.

The same principle applies to gas contracts under Article 4(1)(c) of Commission Implementing Regulation (EU) No 1348/2014.

Please note that the Agency’s Market Monitoring Department 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 a reasoned request of the Agency. The No-action letter is available on the REMIT Portal: https://www.acer-remit.eu/portal/acer-staff-letters-doc.

Last update: 30/06/2015   RSS_Icon Subscribe to this Page’s RSS