REMIT Reporting Services and Solutions - July 2015 updated March 2016
4.2.1
LNG trades
There has been a great deal of discussion as to the level of inclusion of LNG in REMIT. LNG is explicitly mentioned in
the REMIT Implementing Act with respect to fundamental data, but nowhere else.
In the 14th Questions and Answers document issued by ACER on 16th February 2016, it was stated by ACER that LNG
is “undoubtedly” in REMIT. As a result, where any rule refers to “gas” it would include LNG. This has some
implications that at the time of writing (Q1 2016) have still not been resolved. For example, gas transportation is to
be reported using table 4, but these are clearly not suitable for LNG. Another issue is identifying exactly which
contracts and trades are within scope, and for “delivery in the Union”, especially if the deal does not “land”.
These issues are unlikely to be resolved by the go live date of 7th April. In general LNG trades would be reported
using the “framework/execution” construct that is to be used for long-term gas trades. In the absence of concrete
examples from ACER market participant will need to form their own view on how to report or take the appropriate
advice.
4.3 WHO is covered by REMIT?
Unlike other regulations, REMIT is applied according to the location of the trade, rather than the market participant.
Therefore any market participant must register, report and comply with REMIT, even if they are based outside of the
EU.
The coverage extends to any wholesale market participant. This includes any market participant that executes
energy contracts on an Organised Market Place, and those who buy and sell energy bilaterally. There are two “ends
of the chain” that must also be considered:
-
Producers – generally only sell energy. There is an exemption for small producers which will be examined in
section 4.5.
Consumers – those who buy power or gas only for their own consumption. In general such trading is not
considered to be part of the wholesale market unless the economic unit in question has the capability to
consume more than 600 GWh per annum.
Outside of these exemptions, anyone transacting in the above product list is covered by REMIT and must report the
relevant data.
4.4 To be reported on demand
The REMIT Implementing Act (Article 4(1)) specifies that some types of trade only need to be reported “at the
request of the agency (ACER)”. These are as follows:
-
Intragroup contracts,
Contracts for the physical delivery of electricity produced by a single production unit with a capacity equal to or less than
10 MW or by production units with a combined capacity equal to or less than 10 MW
Contracts for the physical delivery of natural gas produced by a single natural gas production facility with a production
capacity equal to or less than 20 MW,
Contracts for balancing services in electricity and natural gas.
The intra group exemption is in contrast to EMIR, where such trades must be reported. Those who only engage in
internal and/or balancing trades must still register in the CEREMP.
The practical upshot of this exemption is that these types of data do not need to be reported to an RRM or via an
OMP. Instead the data must be kept and provided either to ACER or to the relevant NRA only when requested, and
in any reasonable format.
Copyright 2016 – ETR Advisory Ltd and Commodity Technology Advisory LLC
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