Company deconsolidation from the group perimeter
The companies “XXX” and “YYY” are part of the same group and both registered MPs subject to REMIT. The companies “XXX” and “YYY” entered into transactions but accordingly to Article 4(1) of Commission Implementing Regulation (EU) No 1348/2014 they did not send on a regular basis any reporting related to the contracts.
On 1 July the company “XXX” is going to be deconsolidated from the consolidated financial statement of the company “YYY”. From a reporting point of view, should the contracts in place be reported to ACER? With which timetable? What is the contract date that should be used?
With reference to the reporting of the outstanding contracts, our interpretation is that they should not be reported because agreed out of normal market rules in an infra group context.
In case the Agency believes that those contracts have to be reported, our interpretation is that
- the reporting should be done in T+1 month from the date of deconsolidation of company “XXX”
- the contract date should be the same of T.
As on 1 July the company “XXX” is going to be deconsolidated from the consolidated financial statement of the company “YYY” and it changes status, in the Agency’s view it is reasonable that company XXX should report all its contracts on T+1 month from its status change with the date of its status change.