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ElCom introduces its version of REMIT

Martin Liebi Director, Legal, PwC Switzerland 03 Oct 2018

Switzerland has introduced its version of reporting obligations regarding electricity – but not gas (as with REMIT) - that relate directly to the obligations of Swiss domiciled entities under REMIT.

Any Swiss domiciled entity that participates in the EU electricity wholesale markets and has to provide information to the European authorities according to Ordinance (EU) Nr. 1227/2011 (REMIT) must provide the same information in the same format to the Swiss ElCom.


It is noteworthy that the Swiss have their obligations very much aligned with the obligations under REMIT. The purpose was not to make market participants subject to an additional set of regulations. In accordance with REMIT, the Swiss obligations concern participants who conclude transactions or issue trading orders on wholesale electricity markets. A wholesale electricity market is under the Swiss rules any market on which wholesale electricity products are traded1. In addition to regulated markets under REMIT, also multilateral trading systems, over-the-counter transactions and bilateral contracts that are concluded directly or indirectly via brokers are covered2. Included are in particular also intra-group transactions.


ElCom must be provided in particular with the following information within T+1 for standardised energy wholesale transactions and T+30 for non-standardised energy wholesale transactions:3

  • Transactions in wholesale electricity products, meaning contracts related to the transfer and delivery of electricity that are not directly used by the end consumer as well as derivatives related to the production, the trade, delivery, and transport of electricity;
  • Capacities in installations for the production and transmission of electricity, their availability and non-availability and the utilisation of these facilities;
  • Insider information that has been published based on REMIT and potential delays of such publication;
  • Name, form of legal entity and place of domicile (Instead of the above data, the Centralised European Registry for Energy Market Participants (CEREMP) dataset may be uploaded in the ElCom registration process). This means in other words that affected market participants must register with ElCom. Such registration can be made online.4

1 See Art. 2 para. 4 Ordinance (EU) Nr. 1227/2011.
2 See Frequently Asked Questions regarding Art. 26a of the Energy Supply Ordinance (15 February 2018) https://www.elcom.admin.ch/elcom/en/home/topics/market-surveillance.html (accessed August 6, 2018).
3 Art. 26a EO.
4 There are currently 65 market participants registered with ElCom.

Market participants subject to the Swiss reporting obligations have to report news and insider information to existing platforms (e.g. EEX) or via RMMs (registered reporting mechanisms).5 No direct reporting to ElCom is possible. Market participants are at liberty to choose the RRM via which they report transaction data. If a market participant changes the RRM, ElCom must be notified about the change.6 ElCom encourages market participants to use the existing EEX transparency platform for the reporting of insider information. In exceptional cases, market participants may publish the information on their own website and submit it to ElCom by e-mail. In any case, during the registration process market participants must indicate to ElCom (in the registration system) where they will publish their insider information.

ElCom collects wholesale electricity trading data with a view to improving its supervision of the functioning of the wholesale electricity market and Switzerland’s supply security. It evaluates the submitted data, contacts market participants if it detects any irregularities and informs them about these activities.

5 See Frequently Asked Questions regarding Art. 26a of the Energy Supply Ordinance (15 February 2018) https://www.elcom.admin.ch/elcom/en/home/topics/market-surveillance.html (accessed August 6, 2018).
6 There are currently 6 RMMs registered with ElCom: EEX, EEX spot, Equias, Trayport, Webware Internet Solutions GmbH, JAO.
7 See Art. 2 para. 2 Ordinance (EU) Nr. 1227/2011.
8 See Art. 2 para. 1 Ordinance (EU) Nr. 1227/2011.

Summary

The reporting obligations should help to

  • increase transparency on wholesale electricity markets
  • reduce the risk of market manipulation and distortion of price signals
  • ensure that end consumers pay a fair price for their electricity.

Any activities that are illicit market manipulation7 or insider dealing8 under REMIT qualify correspondingly also as market manipulation and insider dealing under the Swiss obligations.
 

Contacts

Martin Liebi

Director, Legal, Zürich, PwC Switzerland

+41 58 792 28 86

Email