|Final customers' REMIT reporting - D-Day 7 April 2016|
|Monday, 07 March 2016 06:04|
The scope for final customers reporting under the REMIT Regulation occurs much more extensive than anyone could so far expect.
If the final customer re-sells even a small part of the energy to its own customers (given, for example, specific circumstances of local infrastructure and network), the threshold of 600 MWh does not apply and the said final customer must report all such contracts.
There is also a backloading requirement that may occur in practice particularly burdensome for final customers.
Pursuant to the ACER comments of 16 February 2016, REMIT reporting obligations resting on final customers are as follows:
I. Final customers with a single consumption unit with a consumption capacity of 600 GWh/year or more should report all their contracts for the supply of energy, derivatives and transportation which fall under Article 3(1) of REMIT Implementing Regulation.
II. In turn, final customers with a single consumption unit with a consumption capacity lower than 600 GWh/year must report with respect to energy and natural gas:
1. contracts for the supply they traded on an organised market place, and,
2. if traded outside an organised market place:
a. contracts for the sale (considering that this is not for consumption use),
b. contracts for the transportation,
c. derivatives on the respective underlying.
To understand the complexities involved with the final customers treatment under REMIT reporting scheme refer in particular to answers to questions II.4.44, III.3.32, III.3.33 and III.4.6 of the ACER's Q&As on REMIT.
Mindful of complications involved with the EMIR reporting phase-in, where entities covered were much more professionally prepared for the whole process, there is the risk the data obtained under the REMIT from the final customers' category of market participants will not be of satisfactory quality.
There is also serious doubt whether all final customers have identified already that they are subject to the REMIT reporting requirements.
In such case, it can be assessed as an extremely challenging task for these customers to build the necessary reporting infrastructure in the prescribed period until 7 April 2016.