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Q&As on REMIT – Question III.3.37.

Article 3(1)(a)(vii) of Commission Implementing Regulation (EU) No 1348/2014 identifies contracts for the supply of single consumption units with a technical capability to consume 600 GWh/year or more as reportable under REMIT. How are these terms to be understood in a context where a number of different legal entities share one connection to the grid, if they once were one “single consumption unit”, but each individual legal entity (company A, B etc.) has now individual contracts for the purchase of electricity? For example, a formerly integrated industrial site now is separated into different companies and legal entities. All entities still share a common grid connection and the site as a whole exceeds the 600 GWh-threshold, however no single entity is close to the threshold.

How should this situation be treated in terms of transaction reporting and registration of market participants under REMIT?


Answer:

As each company holds individual contracts for the purchase of electricity, the yearly capability of each individual company to consume at this site should be taken into consideration by the companies. Reporting and registration obligations under REMIT would only apply to those companies which have a single consumption unit with a technical capability to consume above the 600 GWh-threshold, provided that they are not trading other wholesale energy products (e.g. including but not limited to contracts for the supply of energy traded on an organised market place or derivative contracts).

Last update: 24/03/2016   RSS_Icon Subscribe to this Page’s RSS