Is the contract between market participant and the Transmission System Operator (TSO), concluded as a result of the auction run in the framework of a capacity mechanism based on Reliability Options, reportable to ACER?
Answer: Pursuant to Article 3(1)(a) of the Commission Implementing Regulation (EU) No 1348/2014, contracts in relation to the supply of electricity or natural gas with delivery in the Union should be reported to ACER on a continuous basis.
Furthermore, the ACER Guidance on the application of REMIT indicates that ‘Contracts for the supply of electricity and any derivative related to electricity resulting from generation capacity markets, capacity remuneration mechanisms, and flexibility markets where applicable, shall be considered wholesale energy markets according to REMIT’ (Section 2.2.1 of ACER Guidance on the application of REMIT, 6th edition).
Reliability options represent capacity mechanisms where the Transmission System Operator (TSO) concludes long-term contracts with the selected capacity providers by running periodic auctions years ahead of the delivery date. Based on the contract in place between the TSO and the capacity providers, the latter are required to make an offer of supply of electricity in the spot market, with the underlying obligation of a physical delivery in the Union.
Under these circumstances, it is ACER’s understanding that the contracts concluded between the TSO and the capacity providers within the reliability option capacity mechanisms qualify as wholesale energy products in relation to the supply of electricity with delivery in the Union as per Article 3(1)(a) of the Commission Implementing Regulation (EU) No 1348/2014, and are therefore reportable to ACER.