If a supplier does not purchase electricity/gas directly in wholesale energy markets (for example at an organised market place) but its energy needs are purchased from a larger supplier through a bilateral contract, shall the smaller supplier be considered as market participant and be obliged to register with an NRA under Article 9(1) of REMIT?
Answer: In line with Article 2(4)(a) of REMIT, contracts for supply of electricity/gas, where delivery is in the EU, are considered as wholesale energy products. Furthermore, in line with Recital (5) of REMIT, wholesale energy markets encompass, among others, bilateral contracts. Therefore, the smaller supplier trading contracts under Article 2(4)(a) of REMIT will be considered as a market participant under REMIT.
In line with Article 9(1) of REMIT, market participants entering into transactions, which are required to be reported to the Agency, shall register with the relevant NRA. If the bilateral contract is reportable to the Agency then the supplier will be obliged to register with the relevant NRA.