What is REMIT?

REMIT is Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency.

It entered into force on 28 December 2011. REMIT introduces, for the first time, a consistent EU-wide framework that:

  • explicitly prohibits market manipulation, attempted market manipulation and insider trading in wholesale energy markets
  • establishes a new framework for monitoring wholesale energy markets to detect and deter market manipulation and insider trading
  • enforces these prohibitions and sanctions breaches of market abuse rules at national level
  • mandates  registration of market participants of wholesale energy products and reporting of transactions in such contracts to ACER (the European Agency for the Cooperation of Energy Regulators)

What does this mean for me?

If your organisation is in scope of the REMIT regulations then you need to register as a market participant with the relevant national regulator (i.e. Ofgem for the UK) and where applicable, report the relevant contractual information to ACER.

As your energy supplier, Gazprom Energy is also required to report the relevant contractual information in relation to your energy supply contract to ACER.

How do I determine if I am in scope?

Registration

You will have to register as market participant with the relevant national regulator (i.e. Ofgem for the UK) by 07 April 2016 and begin reporting from this date if you have:

-          a site which consumes more than 600 GWh; or

-          multiple sites, each of which may consume less than 600GWh/year, but in total may consume 600GWh or more

I am in scope. How do I register?

If you have identified yourself as a market participant you need to register with Ofgem. The system for registration is called the Centralised European Registry for Energy Market Participants (CEREMP). CEREMP is a web-based platform developed by ACER and national energy regulators for use by market participants to fulfil their REMIT registration obligations.

You can find more information and the link to the registration website at:

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

What next?

Reporting

If you have an energy supply contract in place with Gazprom Energy for a single site which has a contracted annual consumption of 600GWh or above we will automatically identify the contract and report accordingly to ACER. We may need some information from you, including the registration code, so we will contact you if necessary. In this case you have also an obligation to report the details of the contract to ACER.

If you believe you have an energy supply contract in place with us for a single site which is less than 600 GWh then you will need to determine if you fall in scope of REMIT and advise us accordingly.

If you have a site with a consumption unit which is defined as “a resource which receives electricity or natural gas for its own use” e.g. plant that consumes less than 600 GWh but which could consume in excess of 600 GWh then you will need to notify us so we can identify this contract to be reportable under REMIT and provide the relevant information to ACER.

-          In determining this, you should consider the maximum amount of energy that the facility could consume in a year i.e. if the facility was run fully at all times throughout the year. 

-          In making the calculation you can also take into account if the network could support such operation and if any network constraints exist which constrains the maximum consumption below 600 GWh, then this would not be reportable under REMIT.

-          The consumption of gas and/or electricity should be assessed separately to estimate whether it reaches the 600 GWh/year when the facility is running at all times. This is because Article 2(5) of REMIT refers to the consumption of “either electricity or natural gas” meaning one or the other. 

Review

Of course, if the arrangements on site change materially then you will need to re-evaluate your position in relation to the scheme and notify us of any changes accordingly.

Where can I find out more?

Ofgem has provided a useful FAQ document which can be found at:

www.ofgem.gov.uk/gas/wholesale-market/european-market/remit

Additional guidance can also be found at:

www.acer-remit.eu/portal/custom-category/remit_questions

A member of our Corporate Accounts team will be happy to assist you further and answer any questions you may have:

Phone: 0845 873 2291
Email: corporate@gazprom-energy.com