Update REMIT: more clarity about reporting obligations

26-02-2016

In our 2014 and 2015 newsletters, we already discussed the REMIT Regulation. This regulation specifies that market parties are prohibited from trading and/or manipulating the market on the basis of insider knowledge, and that market parties have to report certain information to the European Agency for the Cooperation of Energy Regulators (“ACER”). These reporting obligations of market parties are explained in the Implementing Acts (IA).

From October 7, 2015, contracts concluded on organised market places such as ICE ENDEX (or “standard contracts”) are already reported by the organised market place itself or via transaction matching or transaction reporting systems. ACER indicates that more than 1 million data records have already been submitted to the Agency since October 7.[1]

The next step is that from April 7, 2016, non-standard contracts should also be reported to ACER. This means that from that date, contracts concluded after April 7, 2016, have to be reported not later than one month after conclusion, modification or termination of the contract. Contracts that were already concluded before April 7, 2016, but that still apply on or after that date, have to be reported at the latest within 90 days after April 7, 2016. In addition, the transactions (“executions”) under non-standard contracts also have to be reported. In its Transaction Reporting User Manual (“TRUM”), ACER indicates that these transactions have to be reported if the price and volume are known. ACER sees the date of the invoice as the last moment that the price and volume can become known. For that reason, ACER expects that executions are reported at the latest 30 days after the date of the invoice, in principle 12 times per year (if the executions take place each month of the year).

Market parties can report the non-standard contracts themselves or transfer the reporting obligation to the other contract party or a third party. GasTerra is prepared to take over the reporting obligation of parties concluding contracts with GasTerra. If one of the other parties reports the contract, the advantage is that mismatches between the information supplied by the parties with respect to the same contract are no longer possible.

For the provision of the information GasTerra (and the other party) has to report to ACER, GasTerra uses the services of an RRM (Registered Reporting Mechanism). An RRM is an organisation accredited by ACER, who can report to ACER on their own behalf or on behalf of others. As part of this accreditation, the organisation has to comply with an extensive set of requirements drawn up by ACER with respect to information security. GasTerra supplies the information to the RRM through a secure communication channel, which uses state-of-the-art security systems.

For more information about REMIT and the reporting obligation, GasTerra refers to the REMIT portal, which was set up by ACER and where all the important documents can be found.

 


[1] See http://www.acer.europa.eu/Media/News/Pages/REMIT-implementation-enters-final-stage.aspx