A company in the housing industry procures gas and transforms it into heat for the supply to end consumers. Are these contracts from the perspective of the utility subject to reporting obligations under Article 8 of REMIT? Is the company a REMIT market participant?
Answer: The Agency considers that transforming gas into heat does not qualify as a wholesale energy product under Article 2(4) of REMIT, thus, it is not reportable under REMIT. However, the Agency is of the view that this company in the housing industry is a final customer. If this company has a technical capability to consume 600 GWh/year or more, then the contract for the supply of natural gas is reportable pursuant to Article 3(1)(a)(vii) of Commission Implementing Regulation (EU) No 1348/2014. In that latter case, this company is a market participant entering into transactions which are required to be reported to the Agency under Article 8(1) of REMIT and shall register with the competent NRA pursuant to Article 9(1) of REMIT. Please note that final customers with a consumption capacity lower than 600 GWh/year should report all the contracts which are traded on an organised market place.