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.

 

 

If a person enters into a transaction on a derivative contract related to EU gas and electricity (such as a futures contract only for financial settlement that is traded on exchange located outside the EU), that person is not a REMIT market participant. 

 

However, according to the European energy market regulator, if that person also enters into transactions, including the placing of orders to trade, in one or more wholesale energy markets, e.g. enters on a physical trade (or derivative) for the delivery of gas or electricity (or transportation of gas or electricity) within the EU, that person is a market participant and has to report all the transactions on wholesale energy products including those trades outside the EU that are only for financial settlement.

 

This interpretation imposes REMIT reporting requirements on the - quite extensive - category of extra-EU financial derivatives trades and counterparties.

 

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REMIT-caution

 

So, given that the final TRUM is already adopted and published, the key point for any engaged in energy trading is now to establish whether:

(1) the trading platform at issue qualifies as an "organised market place", and

(2) the contract at issue is a "standard contract" or a "non-standard" one.

 

While the former determination looks like not so difficult (but, sometimes, surprising), the latter appears quite a complex task.

 

Finally, the identification of "non-standard contracts specifying at least an outright volume and price" (for which specific reporting rules apply) is really a puzzle!

 

 

Do the intragroup brokers qualify as organised market places for REMIT reporting purposes and what are potential consequences?

 

 

REMIT Implementing Regulation specifying responsibilities' allocation for power and gas transactions' and orders' reporting has gone through the comitology procedure and awaits for adoption by the European Commission. 

 

Emissions-EUETS.com has looked into details of the new reporting scheme.

 

Read more...

 

 

Intra-group transactions and orders' reporting are areas where both schemes should not be commuted for...

 

 

It appears from the latest embodiment of the REMIT draft Trade Reporting User Manual (TRUM) that in the REMIT compliance system ACER code and the LEI may be used interchangeably. 

 

Read more...

 

 

It appears, energy regulators have gathered sufficient knowledge, and are keen now to acquire experience in practical aspects of REMIT functioning.

 

Recent Ofgem communication indicated the regulators' key areas of interest for REMIT compliance checking.

 

 

Market participants may choose either to become an RRM themselves or to use one or more third party RRMs to submit transaction reports to the ACER.

 

 

From practical point of view the important task for market participant when it comes to REMIT reporting will be  the qualification whether the contract is standardised or not.

The ACER' list of standardised wholesale energy contracts would specify types of contracts for which standard reporting is mandatory.

 

Decisive for the reporting as standardised or non-standardised contract will be the fact whether a contract is or is not listed in the Agency's REMIT database.

 

All non-listed energy commodity contracts would be considered non-standardised and are to be reported with the non-standard reporting form, but including a copy of the contract as such in order to enable the Agency to revert to it in the market monitoring of wholesale energy markets in case of suspicious behaviours.

 

 

Market participants may disclose REMIT inside information on their own website either as a fall-back option or simultaneously to a disclosure of inside information through an inside information platform, however, the updated regulatory guidelines appear to treat the publication of inside information on the market participant's own website as an interim measure, allowed only under multiple conditions and unless otherwise specified.

 

 

Relation of the Electricity Market Transparency Regulation to the Regulation No 714/2009 and REMIT may rise some doubts as all the regulations mentioned lay down specific requirements on publishing data on the availability of networks, capacities of cross-border interconnectors and generation, load and network outages.

  

 

Standards for the reporting framework as well as the taxonomy of wholesale energy market transactions are currently being decided under REMIT.

 

 

The company internal documentation and procedures on definitions of roles and responsibilities in the organisation (e.g. responsibilities for the REMIT requirements (centralised vs. decentralised), internal vs. external reporting lines, internal vs. external interfaces, provision of resources: human/technical IT Systems) resources), as well as the identification/assessment of concrete compliance risks will inevitable be in the first place the subject of the detailed scrutiny and examination of the relevant authorities in case of any suspected REMIT non-compliance.

 

 

Classifying connection agreements as REMIT fundamental data item is not obvious and does not follow literally from the regulatory language. However, if such classification is correct, the electricity generators should immediately include such data in their REMIT reports.

 

 

Reporting for non-standardised wholesale energy market contracts under REMIT Regulation will not be an easy task for market participants.

 

Given the non-standardised contracts are to be reported to ACER directly by market participants (and not by trading venues), the former are allowed more time for contract verification against reporting schedule. The one-month period seems to be sufficient for such an assessment even when it comes to complex and complicated contracts. Moreover, mandatory submitting to the ACER the pdf file of the entire contract enables additional examination of the contract by ACER services.