GasTerra has complied with all reporting obligations but while doing so observed that open questions still remain
The new REMIT Regulation (Regulation on wholesale Energy Market Integrity and Transparency), which we previously reported on in the February 2016 newsletter, stipulates that market parties must not trade on inside information and/or they must not manipulate the market and they must report certain information to the European Agency for the Cooperation of Energy Regulators (ACER). Market parties' reporting obligations are explained in the Implementing Acts (IA). What does all this mean for GasTerra and how do our customers feel about it?
Up till now, GasTerra has complied with all reporting obligations within the specified period. While doing so, GasTerra has, however, observed that open questions still remain and certain parts of the reports cannot always be interpreted unambiguously.
ACER is aware of this and the European Agency recently sent an open letter to all market parties concerned announcing its intention to monitor data quality more effectively. ACER also mentioned the most common errors in an annex to the open letter. The Agency asks participants to examine these errors carefully and to come up with solutions themselves, if applicable, in consultation with reporting organisations and ACER. In the same letter, ACER also informs market parties that if they do not cooperate with the Agency it will take enforcement action. GasTerra is, of course, happy to be involved in improving data quality.
Market parties may transfer the reporting obligation to the counterparty to the contract or to a third party. This has the advantage of ensuring that information provided separately to ACER by contractual partners will not be inconsistent. GasTerra has informed its business partners that it would like to provide this service. There appears to be a lot of interest: GasTerra is currently reporting on behalf of approximately seventy customers. This ensures that the risk of inaccurate transfer of data is minimised and that can only be beneficial for data quality.
GasTerra uses a Registered Reporting Mechanism (RRM) to supply information to ACER. An RRM is an organisation accredited by ACER which supplies reports to ACER on behalf of itself or other parties. There are currently 111 RRMs to choose from. GasTerra supplies the information to the RRM via a secure communication channel.
You can find more information about REMIT and reporting obligations on the REMIT portal opened by ACER; this contains all the relevant documents.
Please also read the letter from ACER about common errors in the reports.