you're reading...
REMIT, Uncategorized

ACER issues 12th REMIT Q+A document

ACER yesterday issued the 12th version of their Questions and Answers document on REMIT, which can be found here. Commentary on the previous edition can be found here.

There are several new answers which include some notes on the often discussed topics of third party delegation, and responsibility for checking data sent on a market participant’s behalf by another party.

Use of RRMs

If delegating all reporting to another counterparty (e.g if a smaller market participant trades with larger ones who offer a delegated service), which RRM should be logged in the market participant’s entry in the CEREMP, if the  counterparty is not itself an RRM? (III.2.31) – The ultimate RRM that forms the final link in the chain when reporting to ACER.

When delegating to a third party, who is responsible for the “completeness, accuracy or timely submission of data” under the REMIT Implementing Act Article 11(2)? (III.2.32) – The third party is responsible provided that the data submitted to it was correct. The market participant is responsible for ensuring that the data sent to the third party is correct. If an OMP delegates reporting to another RRM, the OMP is responsible for ensuring that accurate data is submitted to the RRM.

What are “reasonable steps” required to be taken by market participants’ in order to ensure “completeness, accuracy and timeliness of the data” submitted through third parties as defined by the REMIT Implementing Act Article 11(2)? (III.2.33) – RRMs should provide Market Participants with access to their data in the format defined by ACER (i.e. “ACER XML”), so that the information can be verified. Such access should be provided either to the market participant or to a nominated third party, in a non-discriminatory transparent and fair manner. Verification should be undertaken at least quarterly, and more often for larger market participants.

Timing

When does the “clock start ticking” in terms of the T+1 next day obligation to report? (III.3.27) – The data must be reporting the next working day, where working day is defined by the market of the participant, rather than that of the RRM.

Does the 600 GWh pa limit refer only to the burning of gas, or also to other purchases e.g. feedstock (III.3.28)?  – The purpose is irrelevant in the calculation.

How to report when a continuous explicit intra day cross border capacity allocation method is in place? (III.3.29)?  – If the allocation and nomination are the same, only the nomination need be reported. If they differ, both must be reported.

Fundamental Data

If a single point mechanism exists between two bidding zones under the jurisdiction of two TSOs, who would report? (III.4.5) – Only one TSO need report.

Concluding thought

The answers on delegation and data checking will address some of the issues being experienced by market participants. Answers on the second phase of REMIT reporting, relating to off venue trades, are now eagerly awaited.

 

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.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s