Any contract related to the supply of electricity or gas, irrespective of whether the contract is a spot, a physical forward, a future or an option contract has a reference to a delivery point or zone.
This is the stance of the European energy market regulator - ACER (see TRUM, Annex VI, p. 1 and ACER's Frequently Asked Questions (FAQs) on REMIT transaction reporting, Answer to the Question 1.1.35).
Also financial derivatives related to EU electricity or gas have a reference price or other attributes which relates to the delivery of the commodity.
ACER’s guidance in this regard can be found in Annex VI to the Transaction Reporting User Manual - Additional information on how to correctly report the Delivery point or zone:
- delivery at interconnection points across two EU member states have to be reported only in case of unbundled capacity (all other cases the balancing zone or market area should be reported);
- delivery at interconnection points across a NON-EU and an EU member state with unbundled capacity has to be reported only in case of flow in the direction to the EU member state;
- example: two counterparties have a gas contract for the delivery at interconnection point with unbundled capacity (also called at the border) - if the gas flows from the NON-EU to the EU member state, the contract is reportable under REMIT as the counterparty (in the contract) receiving the gas is registered in the EU member state.
ACER's Frequently Asked Questions (FAQs) on REMIT transaction reporting
Reference to documents: Annex Table 1 (details of reportable contracts) of Regulation (EU) No 1348/2014
Please be advised of the following data issue which has been identified by our company (OMP)
For pure financial products which never result in physical delivery, what should be filled in for field 48 (delivery point or zone).
1. Spread Dutch TT / Italian PSV
2. German Power Financial
Please note that there is no consistency between the OMPs. For example for German Power.
There are 4 different EIC codes used, but also not applicable and blank.
Because there is no physical delivery, the most logical approach is to make this field not applicable. To avoid misunderstanding (parties forgot to add a EIC code where applicable), it is advisable to use a fictive EIC code, for example 99X-NOT-APPLIC--
It is our understanding that every contract related to the supply of electricity or gas, irrespective of if the contract is a spot, a physical forward, a future or an option contract has a reference to a delivery period and a delivery point. Also financial products that are settled in cash and never result in physical delivery have a reference price or other attributes which relate to the commodity. In this case, reporting parties should refer to the reference price or other attributes which relate to the electricity or gas and report its delivery point.
For contracts that involve more than one delivery point, all of them should be reported.
Annex VI to the Transaction Reporting User Manual - Additional information on how to correctly report the Delivery point or zone