What does REMIT mean?
REMIT stands for the Regulation on Wholesale Energy Markets Integrity and Transparency. Pertaining to the gas and power markets, it requires market contributors to report agreements with regard to the supply and transportation of electricity and gas within the EU. Reports will be made to the newly formed ACER (Agency for the Cooperation of Energy Regulators).
The purpose of the directive is to deliver a deeper clarity and transparency in the wholesale energy business, therefore lowering any chance of manipulation within the markets and highlighting any evidence of falsified pricing.
Although the exact date has not yet been confirmed, the approximate time frame for go-live is 2014-2015. It will affect all companies or participants who have involvement with wholesale energy markets.
You and REMIT: five key points
In essence, the five key pieces of information that must be disclosed by companies / participants are:
1) Identification of the purchase and trade of market products
4) Details of the negotiation, with date and time
5) Details of the dealings with the seller, buyer and recipient
REMIT covers all contracts for the supply of electricity and natural gas to areas of distribution within the European Union, including transportation contracts. In addition, REMIT is responsible for maintaining both contracts for actual delivery or monetary agreements. The regulation’s requirements, which include data collection and recording, refer to every type of wholesale energy product on the market.
One key area to take note of within REMIT is Article 4’s general rule. It requires market contributors to openly reveal, both clearly and within the time criteria, any inside knowledge that they might have regarding business or facilities that affect the market participant, its architect contract or associated contract. The information must be a detailed account pertaining to production, containment, usage or transmission of electricity or natural gas.
There are dispensations that can be made in exceptional circumstances – especially if the material has not been printed within the required time frame.