ccr core

 

1. Are there in any Member State any energy exchanges which do not qualify as regulated markets or MTF as defined by MiFID (for instance act under specific national legislation divergent from financial markets regulations)?

2. Do the energy exchanges referred to under point 1 trade in physically settled commodity (electricity) forwards?

3. Are transactions mentioned in points 1 and 2 captured by MiFID?

 

 

It seems that there is no agreement between European Supervisory Authorities and non-financial market participants as regards draft Technical Standards on risk mitigation techniques for OTC derivatives not cleared by a CCP under the Regulation on OTC derivatives, CCPs and Trade Repositories (the draft RTS).

 

 

There are grounds for applying certain regulatory guidance elaborated under financial instruments’ market abuse regime to wholesale energy products regulated by the REMIT Regulation. The best practice for the treatment of rumours seems to be good example.

 

These points might also be of relevance for emitters of greenhouse gases, considering interdependencies between electricity and carbon price curves and the future potential covering of emissions allowances by the financial instruments legislation.

 

 

An existing generating unit which is not compliant with a provision of the Network Code should apply for derogation within 12 months from the day the requirement, of which it is not compliant with, becomes applicable.

 

The network operator will have the right to refuse the operation of the generating unit, if the 12 months period terminates without an application for derogation.

 


What precisely should be published under new disclosure scheme for wholesale energy products?

ACER Agency in its Guidelines built its list consisting of three main items:
- any planned outage, limitation, expansion or dismantling of capacity of one generation unit that equals or exceeds 100 MW, including changes of such plans,
- any unplanned outage or failure of capacity that equals or exceeds 100 MW for one generation unit, consumption or transmission facility, including updates on such outages or failures,
- any other information that is likely to have a significant effect on the prices of one or more wholesale electricity product if made public;

the last one however is quite spacious.

But ERGEG’s catalogue released in December 2010 as regards electricity generators stipulated the positions for disclosure far more extensively and specifically.


Is the publication on market participant’s own website the sufficient discharge of the disclosure obligation on wholesale energy market?

 

The main body of the REMIT Regulation applies from 28 December 2011. So, practically, it is useful to precisely define what arrangements energy firms should have in place as of that date.

The newly published ACER guidelines on REMIT coincide with the release of the ‘CEER final advice on the regulatory oversight of energy exchanges, A CEER Conclusions Paper’. Perceived jointly, the considerations of the Union and the national energy regulators, lean towards the  reflection what we find at the end of the regulatory direction started by REMIT. The problem particularly concerns vertically integrated undertakings.

 

 

The thorough re-calibration of energy trading licensing regime is looming. Besides standard registration required by the REMIT Regulation, the wholesale energy market participants will have the option for choosing either Europe-wide passport for wholesale trading in electricity and gas or MiFID passport – depending on the projected extent of business activity.

 

Market participants remaining beyond the scope of MiFID, will have to, however, regularly and on an ongoing basis, monitor exemptions foreseen by this Directive (currently undergoing the revision under the so-called MiFID II and MiFIR procedures) and the character of contracts concluded on the market so that not to run the risk of a charges of providing financial services without proper authorisation.

 

Attachments:
Download this file (remit en s. 10-11.pdf)remit en s. 10-11.pdf[ ]46 kB
Download this file (remit en s. 6-7.pdf)remit en s. 6-7.pdf[ ]48 kB

  

I have read recently one of multiple ESMA’s reports, and, I must say, it is pretty interesting to see how entirely subjective some important things are.

 

Consider REMIT carve-out: ESMA says it should be extinguished, it is bad, it flaws competition and a level-playing field between trading venues, etc.

 

Regulated markets - according to the ESMA - are the main victims because the electricity and gas products have been redirected to OTFs.

 

What’s funny, the same regulated markets say what an idea, they are happy with the REMIT carve-out.

 

 

Capacity withholding can sometimes be qualified as manipulative practice to artificially cause prices to be at a level not justified by market forces of supply and demand (including actual availability of production, storage or transportation capacity).

 

The precise delineation in this regard seems to be somewhat vague.

 

It is not a desirable situation from the perspective of legal certainty issues.
 

The recent ACER’s clarifications (Guidance on the application of REMIT (4th edition, updated on 15 October 2019, pkt 6.4.1 (i), p. 38, 39), although helpful, do not make the issue entirely comprehensive.

 

The ACER itself declares that the Agency “is committed to provide further clarifying guidance with respect to justifications mentioned in Section 6.4.1.(i)”.

 

Read more...

 

 

Merciful EU energy watchdog granted relief from REMIT reporting for tenants in shopping malls. More clients are waiting...

 

 

Imagine a manufacturer who who consumes 595 MWh yearly. He sleeps well since convinced that REMIT itself, REMIT registration and operationally burdensome REMIT transactions and orders reporting are beyond the scope of his affairs. And suddenly somebody comes and says, "You have serious legal problems, you are not credible business partner". What's the point?

 

 

ACER has established a new, costly law for companies.

 

 

Do you still deliberate how often the list of organised markets must be checked?

 

 

 

Is it formally correct to conclude a contract in the wholesale energy market with the counterparty that has not registered in the European Registry of Energy Market Participants and, consequently, does not have the ACER Registration Code?

 

 

The scope for final customers reporting under the REMIT Regulation occurs much more extensive than anyone could so far expect.

 

 

Under the REMIT reporting scheme trades based on index may, theoretically, be reported in two alternative ways.

 

Read more...