European Union: REMIT Registration: What Do You Need To Know?

The EU Regulation on Wholesale Energy Market Integrity and Transparency (REMIT)1 came into force on 28 December 2011. It establishes an insider trading, market manipulation, disclosure, registration and transaction reporting regime governing trading in wholesale gas and power and related transportation contracts and derivatives.

The timing of the registration regime is based on the entry into force of the REMIT Implementing Regulation, which was published on 17 December 2014 and entered into force on 7 January 2015. National regulatory authorities (NRAs) are required to have registration procedures in place three months after publication (i.e., 17 March 2015). The Agency for the Cooperation of Energy Regulators (ACER) has previously mentioned2 that it expects market participants to have submitted all registration information by 17 June 2015.

Other requirements under REMIT are subject to phased-in implementation and a timeline is included outlining the upcoming requirements.

This client alert provides you with:

  • an overview of the registration process
  • guidance regarding which entities need to register
  • timeline for registration and transaction reporting
  • points for EU and non-EU firms to consider ahead of registration

1. Summary overview REMIT is the first tailor-made legal framework for the EU energy sector. It is intended to prevent market abuse and the use of insider information in the wholesale electricity and gas markets and in related transportation contracts and derivatives. REMIT introduces an EU-wide regime for gas and power trading in the EU that encompasses:

  • prohibitions on insider trading and market manipulation of "wholesale energy products"
  • a disclosure regime for inside information in relation to "wholesale energy products"
  • a registration regime for "market participants"
  • transaction reporting for transactions in "wholesale energy products"3

ACER is responsible for monitoring trading activity to detect and prevent trading based on inside information and market manipulation. ACER will collaborate with NRAs in each Member State.

The obligations currently in force include:

  • prohibitions on insider trading
  • the obligation to publish insider information
  • the obligation for persons professionally arranging transactions to report suspected breaches

The phase-in of requirements for registration and transaction reporting (and reporting of fundamental data) will begin in the coming months. A subsequent alert will provide details of the transaction reporting regime.

Below is an overview of the REMIT registration regime, information on timing and some issues for firms to consider where they have a choice about where to register.

2. Who must register? A "market participant" (MP) entering into reportable transactions under REMIT must register with its appropriate NRA4.

Unlike under EMIR, an entity does not need to be a principal to a transaction to be regarded as entering into a trade, and so to be an MP under REMIT.

Market participant Under Article 2(7) of REMIT, a "market participant" is a person who enters into transactions (or places orders to trade) on "wholesale energy markets" that are required to be reported to ACER.

Even if a parent or subsidiary or other related undertaking of the MP is already registered or in the process of registering, the MP must still register.

All transactions that are required to be reported to ACER are in "wholesale energy products" (WEPs). Some WEPs are currently the subject of a "no-action" letter and are thus not reportable to ACER until at least 31 December 2016: https://www.acer-remit.eu/portal/acer-staff-letters-doc.

Wholesale energy products Under Article 2(4) of REMIT, WEPs means:

"the following contracts and derivatives, irrespective of where and how they are traded:

(a) contracts for the supply of electricity or natural gas where delivery is in the Union;

(b) derivatives relating to electricity or natural gas produced, traded or delivered in the Union;

(c) contracts relating to the transportation of electricity or natural gas in the Union;

(d) derivatives relating to the transportation of electricity or natural gas in the Union."

Contracts where the energy is for the use of final consumers (below a consumption capacity threshold5) are excluded. ACER has issued guidance6 which suggests that entities in the same group may need to aggregate their consumption capacity across all of their plants in the EU where they can be regarded as a "single economic entity". This may turn on the group structure in question and how decisions are taken.

WEPs include LNG contracts where they are for delivery in the EU.

Does my entity need to register?

Whether a specific entity is an MP will depend on the types of transactions the entity enters into. All entities entering into a reportable transaction, even if they are not a principal to the transaction, will be considered MPs and required to register.

An entity will need to register even if its parent company or subsidiary company is registered.

As both EU and non-EU entities may be classified as MPs, firms will need to examine the activities of both EU and non-EU entities to determine if they will be considered MPs under ACER's guidance.

Points to consider for non-EU entities:

  • Are EU gas and power trades booked to a non-EU entity?
  • Even if trades aren't booked to the non-EU entity, does the non-EU entity act as agent for any other entity in reportable WEPs?

If yes to either of those points, the entity may be an MP for REMIT purposes and would need to register.

3. Where do MPs need to register?

MPs established or resident in the EU

MPs are required to register with the NRA in the EU Member State where they are established or resident. According to ACER and EU case law, "established" means "pursues a professional activity on a stable and continuous basis."

If an MP is established in more than one member state, ACER expects the MP to register with the NRA located in the Member State in which the MP has its primary establishment.

MPs not established or resident in the EU

For MPs not established or resident in the EU may choose with which NRA to register, so long as the MP is active in the NRA's Member State.

Do I have a choice where to register?

If you are an EU entity and are established or resident in only one Member State, you will be required to register in that Member State.

If you are an EU entity and are established inmore than one Member State, you will be required to register in the Member State in which you have your primary establishment.

If you are a non-EU entity, you may choose in which Member State to register, as long as you are active in that Member State.

REMIT is a regulation and is directly applicable in each Member State (and therefore does not require implementation by the Member States); however, certain Member States may choose to "gold-plate" the REMIT standards. MPs that have a choice where to register should consider the local implementation of REMIT. Where an MP has a choice as to where it registers, it may want to take any locally- enhanced standards (e.g. on record-keeping and recording) into consideration.

In addition, Member States may introduce different sanctions (including criminal sanctions) for breach of the REMIT insider trading and market manipulation prohibitions and MPs may wish to consider whether registration in a Member State increases its exposure to, for example, criminal sanctions in that jurisdiction.

4. How do MPs register? MPs register via a web-based platform developed by ACER and the NRAs called the "Centralised European Registry for Energy Market Participants" (CEREMP)7.

The MP can complete the registration form on its own or it may allow a third party to submit its registration information on its behalf.

When using the CEREMP system, an individual will first need to register as a user of the CEREMP system and will then receive a User ID that will allow them to log into the system.

Once this User ID has been received, the individual will then be able to register MPs on the CEREMP system.

5. By when do MPs need to register? The registration process must be completed before the MP can enter into any transaction which is required to be reported to ACER under REMIT. Although the REMIT reporting obligation starts on 7 October 20159, it is technically possible for an MP to enter into a reportable trade before this date. This is because under a "backloading" reporting requirement, trades entered into before the reporting start date are reportable if they are still outstanding on the reporting start date for that type of trade. These trades must be reported within 90 days of the relevant reporting start date.

So, for practical purposes, MPs should regard 17 June 2015 as their effective deadline to submit registration information to their NRA10.

6. What information do MPs need to provide? The registration process consists of five sections11 of information that need to be completed by or on behalf of the MP:

Section 1: Data about the MP

Section 2: Data about natural persons linked to the MP

  • To be completed for each natural person having a management role responsible for trading decisions, operational decisions or if they are the contact person for communications for the MP

Section 3: Data about the ultimate controller of the MP

  • To be completed for each of the MP's ultimate controllers or beneficiaries

Section 4: Data about the corporate structure of the MP

  • To be completed for each related undertaking of the MP

Section 5: Data about the delegated parties for reporting on behalf of the MP12

  • For those MPs who will be delegating reporting to a third party, this is to be completed for each third party delegated to report on behalf of the MP

MPs are required to submit all of the information related to Sections 1, 2, 3, and 4 and Section 5 (if applicable) before the registration form can be considered to be correctly submitted to the NRA. Only once these sections have been completed will MPs receive their ACER code.

7. Ongoing Requirements MPs are required to update their registration form with "any change which has taken place as regards the information provided in the registration form"13.

If this information is not updated promptly, the MP's registration may be considered incomplete and the MP may be found to be in breach of Article 9 of REMIT14.

What should I be doing now?

  1. Review activities of non-EU and EU entities to determine which are regarded as MPs under REMIT and who needs to register. It is the entity, and not the group, which is required to be registered. An entity needs to register even if its parents and/or subsidiaries are registered.
  2. Determine in which EU member states entities must be registered and where there is an option, review the local implementation of REMIT to decide in which jurisdiction to register.
  3. Begin to collect the information required for the registration process.
  4. REGISTER by 17 June 201515.

Some other useful links:

EU:

https://www.acer-remit.eu/portal/home

https://www.acer-remit.eu/portal/public-documentation

UK:

https://www.ofgem.gov.uk/gas/wholesale-market/european-market/remit/registering-market-participant-under-remit

REMIT REGISTRATION AND TRANSACTION REPORTING TIMELINE 

17 March 2015:

First publication of European register of Market Participants

17 June 2015:

Market Participants to have submitted all registration information to relevant NRA

7 October 2015:

Start of reporting of Standard Contracts admitted to trading on OMPs

7 January 2016:

Deadline for backloading of Standard Contracts admitted to trading on OMPs

7 April 2016:

Start of reporting for OTC Standard Contracts, non-standard supply contracts and transportation contracts

7 July 2016:

Backloading of outstanding OTC Standard Contracts, non-standard supply contracts and transportation contracts

Footnotes

1 Regulation on Energy Market Integrity and Transparency (Regulation (EU) No 1227/2011).

2 ACER 3rd edition guidance to NRAs on the application of REMIT, para 4.6 (https://www.acer-remit.eu/portal/document-download?documentId=2652).

3 It also includes a requirement to report fundamental data related to capacity and use of facilities for production, storage or consumption of electricity or natural gas or related to the capacity and use of LNG facilities. This information is expected to be reported by ENTSO-E, ENTSO-G, TSOs, LNG Systems Operators and Storage System Operators on behalf of market participants, wherever possible.

4 Article 9(1) of REMIT.

5 Less than 600 GWh per year.

6 ACER 3rd edition guidance to NRAs on the application of REMIT, para 3.2 (https://www.acer-remit.eu/portal/document-download?documentId=2652).

7 As of 1 December 2014, market participants have been able to register as MPs in the UK on CEREMP, via the Ofgem website.

8 The relevant NRA may require the third party to provide evidence of its permission to register on the MP's behalf.

9 For "Standard Contracts" admitted to trading on an organised market place (OMP). These types of contracts are defined in Article 3 of the REMIT Commission Implementing Regulation (EU) No 1348/2014 (known as the Implementing Acts) https://www.acer-remit.eu/portal/remit-implementing-regulation-doc.

10 This is the date indicated by para 4.6 ACER 3rd edition guidance to NRAs on the application of REMIT (i.e. 6 months after adoption of the implementing acts and 3 months after first publication of the European Register of Market Participants by ACER - see https://www.acer-remit.eu/portal/document-download?documentId=2652).

11 The detailed list of the information required in each section can be found here: http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/Directors%20decision/ACER%20Decision%2001-2012.pdf or in Appendix 1 of the Ofgem Registration User Manual (https://www.ofgem.gov.uk/ofgem-publications/91622/remitregistrationuserguidedecember2014.pdf)

12 An MP must identify which "registered reporting mechanisms" it will use as its reporting channel(s) into ACER's reporting database, ARIS.

13 Article 9(5) of REMIT.

14 Currently Ofgem does not have enforcement powers in relation to breaches of the registration requirement, but it has indicated that it expects to obtain those powers before 7 October 2015.

15 ACER 3rd edition guidance to NRAs on the application of REMIT, para 4.6 (https://www.acer-remit.eu/portal/document-download?documentId=2652).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.