ACER's document "Examples of transaction reporting" (Annex II to the Transaction Reporting User Manual - TRUM) is of key significance for energy trading, not only for its educational attribute, but also for REMIT reporting responsibility.
ACER underlines it is the responsibility of the reporting parties to make sure their transaction reports comply with the examples set out in the document at issue.
In case where reporting parties cannot find trading examples representing their own transactions therein, they should contact the ACER and submit a respective query.
Hence, the operational procedure for REMIT reporting has been simplified to a certain extent.
It means, in ambiguous cases firms are not required to invent creative modes of reporting, but to undertake the following consecutive steps:
1. to verify and place under scrutiny ACER's document "Examples of transaction reporting",
2. in case where there are not trading examples representing their own transactions, to submit query to the ACER,
3. to follow ACER's instructions.
For the purpose of the reporting on non-standard contracts that do not have a defined price and quantity (at the time entering into the contract), ACER in the attached document draws a distinction between non-standard contracts having different characteristic and differentiates:
a) volume scenarios (V1) to (V5),
b) price scenarios (P1) to (P5), and
c) delivery scenarios (D1) to (D4).
Each of the above scenarios is supplemented by some variations.
The specification of the respective scenarios is included below.
Volume Scenarios
Fixed Flat Volume Scenario (V1)
Supply to a customer in Europe for a term of one calendar year (e.g. 2015) with a fixed daily supply. No customer volume optionality.
Simple Nominated Volume Scenario (V2)
The customer must nominate changes in offtake within a defined period prior to delivery period. In this example, the delivery is for calendar year 2015 and customer sends a monthly nomination three days before the start of the delivery month. Offtake nomination must be within a contract defined MIN /MAX range.
Cascade Nominated Volume Scenario (V3)
The customer can choose to nominate changes in offtake using a time-cascade of deadlines. Customer could nominate next month delivery three days before the end of the month prior to delivery month or choose to nominate volume day ahead or could use a combination of both, nominating "certain" volume month ahead and refining that offtake with day ahead nominations. In this example delivery is for calendar year 2015. Offtake nomination must be within a contract defined MIN /MAX range.
Not Nominated (full supply) Volume Scenario (V4)
Customer takes the volume required at the factory gate without giving any prior nomination of offtake. There will be an estimated profile provided before the contract deliveries begin but on any day offtake can be anywhere between zero and the capacity of the pipeline feeding the plant.
Fixed Shape Volume Scenario (V5)
Customer contract defines the daily volume that will be delivered during the summer and a separate (different) daily volume that will be delivered during the winter. The customer has no flexibility to change the defined seasonal deliveries - daily delivered volume will be the same for every day of the season.
Price Scenarios
Fixed Price Scenario (P1)
Supply customer for a term of one calendar year at a fixed price of Eur20 / unit for the year.
Trigger Price Scenario (P2)
The customer can choose to fix the price of a future delivery period at the closing forward price (e.g. as published by Heren) for that forward period on the day the trigger is pulled. However if the price is not fixed, the contract price will default to a contract specified index, say day ahead.
Index Basket Scenario (P3)
Contract price is determined by a basket of indexes where for the index basket there is a specified period (for calculation of average of closing prices), a specified period between the end of the calculation period and the beginning of the delivery period (the "lag") and a specified delivery period that the calculated price applies to. This example would be a Calendar year 2015 delivery with calculation averaging over three months and delivery beginning immediately after end of averaging period and calculated price applied to three month period (3-0-3).
Index Switch Scenario (P4)
Contract price is determined by one of two defined indexes where the customer can nominate 3 days prior to the pricing period which of the two indexes should be used for the calculation. For the chosen index there is a specified period (for calculation of average of closing prices), a specified period between the end of the calculation period and the beginning of the delivery period (the "lag") and a specified delivery period that the calculated price applies to. This example would be a Calendar year 2015 delivery with calculation averaging over three months and delivery beginning immediately after end of averaging period and calculated price applied to three month period (3-0-3).
Simple Index Scenario (P5)
Contract for calendar 2015 delivery Contract price for the month of delivery is calculated as the average closing price of the front month futures contract for the last calendar month of trading days prior to the month of delivery i.e. January 2015 delivery price is the average of the January 2015 Futures closing prices during the month of December 2014.
Delivery Scenarios
Fixed Delivery Scenario (D1)
Delivery to a single identified delivery point, over one year period with same volume delivered every hour of every day.
Delivery Point Switching Scenario (D2)
Customer can choose to be 100% supplied at one of two contract specified location's (with two separate EIC codes) and must nominate choice 3 days before delivery starts for the next month and choice will remain until earlier of either end of contract or new nomination 3 days before new month when new choice will take effect.
Multiple Fixed Point Delivery Scenario (D3)
Same as Fixed Delivery scenario but delivery is split using fixed percentages (that add up to 100%) between three different locations and the fixed percentages cannot change during the contract term.
Multiple Variable Point delivery Scenario (D4)
Same as Multiple fixed point delivery scenario but the customer can change the percentage split (possible for up to two percentages to be 0% but total must add up to 100%) between three different locations and the customer must nominate choice 3 days before delivery starts for the next month and choice will remain until earlier of either end of contract or new nomination 3 days before new month when new choice will take effect.