|Europe-wide passport for wholesale trading in electricity and gas, MiFID passport or REMiT registration – a field for analysis for energy traders - Page 3|
|Saturday, 17 December 2011 20:43|
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Registration under REMIT Regulation
REMIT applies to wholesale energy products which are defined as 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 for the supply and distribution of electricity or natural gas to final customers are treated as wholesale energy products only when a consumption capacity is greater than the threshold set out in the REMIT (for precise parameters of the threshold see the blue box).
Generally REMIT enters into force on 28 December 2011 but the implementation of the rules on the registration of wholesale market participants will take some additional time.
The obligation to register relates to these market participants that enter into transactions which are required to be reported to the ACER in accordance with Article 8(1) of the REMIT.
The details for the scope of information to be reported to ACER will be stipulated by the European Commission by means of implementing acts. The obligation for wholesale market participants to report data on transactions to ACER will generally apply with effect from 6 months after the date on which the Commission adopts the said implementing acts.
Not later than three months after the date on which the Commission adopts the implementing acts at issue, national regulatory authorities will establish national registers of the wholesale market participants.
Taking into consideration the above findings, when it comes to the registration of the wholesale market participants it follows that the starting date will be the adoption by the European Commission of implementing acts, in three months time thereafter the registers should be established. The reporting to ACER should start in the next three months time. Such a schedule does not, however, derogate the obligation to publish inside information under Article 4 of the REMIT which will be in force as early as on 28 December 2011.
Pursuant to the REMIT the registration should be with the national regulatory authority in the Member State in which the market participants are established or resident or, if they are
not established or resident in the Union, in a Member State in which they are active. A market participant will register only with one national regulatory authority and Member States won’t have the right to require a market participant already registered in another Member State to register again.
The register will contain sufficient information to identify the market participant, including relevant details relating to its value added tax number, its place of establishment, the persons responsible for its operational and trading decisions, and the ultimate controller or beneficiary of the market participant's trading activities. The register will give each market participant a unique identifier.
The wholesale market participants are obliged to submit the registration form to the national regulatory authority prior to entering into a transaction which is required to be reported to the ACER and communicate promptly to the national regulatory authority any change which has taken place as regards the information provided in the registration form.
Based on the information provided by national regulatory authorities, the Agency shall
establish a European register of market participants.
There is, however, an important distinction between the registration under the REMIT and the wholesale energy trading/MiFID licence because the first one is obligatory while the question which kind of EU-wide passport to choose is a business and strategic decision of each particular trader.
Furthermore, the registration of market participants under the REMIT is without prejudice to obligations to comply with applicable trading and balancing rules.
It should also be taken into account the obvious differentiation – REMIT is a legal act that is already published in the Official Journal of the European Union while the above-mentioned CEER recommendations are a preliminary stage of analysis and consultations which precede the initiation of the procedure in appropriate EU legislative bodies.