ACER recommends, REMIT publication schema should include, among others, the field "impact on carbon permit prices" as well as "decision time" in order to allow users to evaluate the timeliness of the disclosure.


Energy and financial regulators try to cope with overlapping legal frameworks for publishing inside information under REMIT and the Market Abuse Regulation (MAR).


Emission allowances are not, in principle, subject to REMIT since carbon units are not included in the scope of "wholesale energy products" (as they do not fulfil the requirements set out in Article 2(4) of REMIT).


Nevertheless, information about the same incidents, such as, for example, a power plant outage, needs to be publically revealled to satisfy an obligation to publish inside information under REMIT, and, in parallel, due to its impact on carbon prices, is considered inside information subject to MAR (when the relevant thresholds are reached - see: MAD/MAR application to the carbon market).


The Agency for the Cooperation of Energy Regulators (ACER) has added to this complexity, revealing recently, on occasion of public consultation conducted, the regulators' conception for the common model for REMIT publications.


As ACER recommends, REMIT publication schema should include, among others, the field "impact on carbon permit prices'.


The European energy regulators's intention is to allow readers of the Urgent Market Message (UMM) to evaluate the impact of the event on carbon permit contracts.


ACER underlines, moreover, adding this field "is the first step for websites and platforms, to be able to disclose inside information according to the Market Abuse Regulation standards avoiding double publication of the same inside information".


The indication of likelihood of having significant effect on the price of emission allowances or actioned products based thereon has been proposed in the consultation document as the optional information only, nevertheless, contrary to ACER's expectation to avoid duplicative frameworks, there is visible overlap between REMIT and MAR transparency rules in this respect.


Another point recommended by ACER for disclosure in the REMIT publication scheme is 'Decision Time'. ACER gives as an example the company's management board resolution on the production plan of a power plant for the year ahead that includes maintenance periods.


ACER argues, the traders of that same asset owner should be aware of the maintenance periods at the time of publishing of the UMM together with the rest of the interested public. According to this example, the management board decides on the maintenance plan on Date1 and the UMM is published later on Date2. The traders of the same company and the public would be informed on Date2, therefore the decision time (Date1) is publicly known on Date2.


Disclosure duties for both points - on carbon impact as well as on "decision time" may, to some extent, be burdensome for market participants covered by REMIT transparency requirements, however, for different reasons (practical difficulties in assessing carbon price impacts of particular events relating to electricity production assets on the one part and procedural complexities involved with identifying exact date for the relevant decision in the course of decision-taking processes within market participants' organisational structures, particularly within corporate groupings, on the other).




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