Are gas and electricity transportation contracts for export from the EU and import to the EU reportable according to REMIT ? If so, are the contracting parties of such contracts considered REMIT Market Participants, even if they can only accept / deliver energy on the NON-EU side of the border, where they are registered in ?

Answer: Article 2(4)(c) of REMIT defines wholesale energy products as contracts relating to the transportation of electricity or natural gas in the Union, irrespective of where and how they are traded.

In ACER’s understanding, as long as the contract for transportation of electricity or natural gas entails transportation in the Union (i.e. transportation between EU and EU, transportation between EU and non-EU, transportation between non-EU and EU) and as long as there is delivery in the EU at a given time, the concerned transportation contract is a REMIT reportable wholesale energy product.

According to Article 2(7) of REMIT, a market participant is any person who enters into transactions in one or more wholesale energy markets. This applies irrespective of the location of the person. Accordingly, persons from non-EU and non-EEA countries are also covered by REMIT, provided that they enter into transactions in wholesale energy markets. Hence, parties to the above mentioned transportation contracts (either concluded in primary explicit capacity allocation or on secondary markets) are REMIT market participants regardless of whether or not they are located outside the Union.

EU TSOs or third parties acting on their behalf shall report details of contracts referred to in Article 3(1)(b)(i) of the REMIT Implementing Regulation. The only exception concerns the gas transport capacity contracts related to upstream pipeline networks which are wholesale energy products but out of the reporting scope according to the interpretation given in Q&A III.3.40.