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ACER 2015 work plan – more staff needed for REMIT

Yesterday ACER issued their 2015 work plan. While the document deals with all of their activities, REMIT is very prominent throughout. This is with respect to both the implementation of the data collection that ACER must run, and also the market monitoring that they must perform.

The theme is very much one of a lack of resources starting in the introductory section (page 13) and onward. REMIT is turning out to involve a great deal more effort than first thought  because of the additional responsibilities acquired(pages 36 and 43). This is both in the complexity of implementing the system and also monitoring. Pages 42 to 46 detail all of the extra work that ACER will have to perform to properly run REMIT.

For example on page 17 the report states that monitoring: “will have inevitably to be conducted by highly qualified experts, whom the Agency does not have at present and would therefore have to be authorised to recruit.”and on page 30: “Without additional human resources the market monitoring of trading activity in wholesale energy markets by the Agency will be endangered

In terms of staff numbers page 38 shows that for all ACER activities, they would like an increase in headcount next year from 77 people to 118.  This includes 30 extra people for REMIT. Similarly page 39 asks for a 68% budget increase.

ACER has gone through a great deal of effort in order to ensure that REMIT goes as smoothly as possible, trying to learn from the issues encountered under EMIR. This includes running a large number of “input” meetings in the form for round tables and expert groups, as well as trying to ensure that the manner in which reporting should occur is as clear as possible.

Anyone involved in these initiatives can see that ACER are clearly stretched. Hopefully they will be granted the budget and resources they need and deserve in order to properly carry out the job.

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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