Please insert at least 3 characters

Q&As on REMIT – Question III.3.26.

Could you please explain the concepts of ‘intragroup contracts’ and ‘consolidation on a full basis’ mentioned in Article 2(6) of Commission Implementing Regulation (EU) No 1348/2014?


Answer:

Pursuant to Article 2(6) of Commission Implementing Regulation (EU) No 1348/2014, an ‘intragroup contract’ is a contract on wholesale energy products entered into with a counterparty which is part of the same group provided that both counterparties are included in the same consolidation perimeter on a full basis.

Article 2(5) of Commission Implementing Regulation (EU) No 1348/2014 defines that the concept of group to be taken into consideration is the one included in Article 2 of Directive 2013/34/EU on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings.

Article 2(6) of Commission Implementing Regulation (EU) No 1348/2014 details that ‘consolidation on full basis’ is the relevant criterion to assess if the contracts are intragroup. If a company ‘consolidates on a full basis‘, its assets, liabilities, income and expenses are all shown in full in the consolidated financial statements of the parent company, with the exclusion of the ones related to intercompany transactions that are eliminated in the consolidation process.
Further details on the rules and interpretations can be found in Directive 2013/34/EU and its implementing laws in the relevant Member State(s).

Last update: 30/10/2015   RSS_Icon Subscribe to this Page’s RSS