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REMIT

Looking at the latest version of the REMIT Implementing Act

As announced here, the latest version of the REMIT Implementing Act has finally been published to the DG Energy web site. It is still marked as “Draft”.

The main change is  that the time between publication and the reporting of “standard trades” is now 9 months, and to “non standard 15 months (Article 12). This is the first officially published version of this timeline although it was reported here previously. The rules will still come in 20 days after the Act is published in the official journal.

Some points to note (changes from the last version of the Act are in bold):

  • Venues, rather than market participants, are expected to report orders (Recital 5 and Article 6)
  • If a trade is reported under EMIR it does not have to be reported under REMIT. However Recital 6 indicates that “reporting systems” may be asked to forward such data straight to ACER(Recital 6 and Article 6)
  • The Act now gives ACER the right to assess a reporting party’s (i.e. RRM or Venue) ability to meet the requirements(Recital 10)
  • Confirmation information is no longer required (missing from Article 2 and “Action Type” list)
  • Final customers must now inform the counterparty as to whether the consumption unit in question in over the 600Gw/h pa limit(Article 3)
  • The list of exempt contracts in Article 4 remains the same, including intra-group contracts
  • Those who only trade contracts under the 10/20Mw limit do not need to register (Article 4)
  • Backloading is still required within 90 days for open contract. However only information held by the market participant needs to be reported (Article 7)
  • A web feed for inside information will still be required. However ACER must now run a consultation for material changes (Article 10)

In terms of the fields listed:

  • Tables 1 and 2  are the same as before (in a different order) except that confirmations are not required as an action type.
  • A duplicated field has been removed from Table 3(Classification Category)
  • In table 4 the field for details of conditional capacity has been removed.

Expect further information to filter out over the coming days.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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