What is REMIT?

What is REMIT?

REMIT was introduced on 28 December 2011 and provides a regulatory framework specific to wholesale energy markets 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.

How has REMIT been affected by BREXIT?

Following the UK’s departure from the European Union, Market Participants trading wholesale energy products for delivery in Great Britain are no longer required to report information about their trading activity to ACER (the European Agency for the Cooperation of Energy Regulators).

Ofgem will monitor trading in GB wholesale energy markets using data collected from Organised Market Places under Regulation 9 of the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013

Please note that counterparties who fall in scope of REMIT Reporting should still be registered: 

• For Market Participants who wish to continue trading wholesale energy products where delivery is in the EU, they should re-register with an EU member state.
• Otherwise if they only trade wholesale energy products where delivery is in the UK, they should register with Ofgem.

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.

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

How do I determine if I am in scope?

Registration

You will have to register as a Market Participant with the relevant national regulator (i.e. Ofgem for the UK) and begin reporting if you have a single consumption unit which consumes, or has the technical capability to consume, 600 GWh/year of more.

I'm in scope for Registration in the UK with Ofgem. How do I register?

If you have identified yourself as a Market Participant, you need to register with Ofgem.

Ofgem have published a REMIT Registration User Guide, which provides information and instructions.

You can find more information about the registration process at: 

https://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 SEFE Energy for a single site which has a contracted annual consumption of 600GWh or above, we will automatically identify the contract and report accordingly. 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.

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. a 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.

• 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 whether 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?

Further information about REMIT and how it applies in Great Britain can be found at:

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

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

Phone: 0161 837 3356
Email: corporate@sefe-energy.com