III.7.24.

III.7.24.

Under which conditions does an information relating to a facility located outside the EU relate directly or indirectly to a WEP according to REMIT?


Answer: Pursuant to Article 2(1) of REMIT, inside information means information of a precise nature which has not been made public and which relates, directly or indirectly, to one or more wholesale energy products and which, if it were made public, would be likely to significantly affect the prices of those wholesale energy products (‘WEPs’).

Hence, only information that relates to a WEP according to REMIT can be qualified as inside information.

According to Article 2(4) of REMIT, WEP means the following contracts and derivatives, irrespective of where and how they are traded: (a) contracts for the supply of electricity or natural gas where delivery is in the Union; (b) derivatives relating to electricity or natural gas produced, traded or delivered in the Union; (c) contracts relating to the transportation of electricity or natural gas in the Union; (d) derivatives relating to the transportation of electricity or natural gas in the Union. REMIT does not apply to supply and distribution contracts for end customers, except for end customers with a consumption capacity of more than 600 GWh per year.

With respect to information relating to a facility located outside the EU, this information can be qualified as inside information if it fulfils the four cumulative criteria of Article 2(1), i.e. if it relates to a WEP as defined by Article 2(4) of REMIT. Indeed, if the information does not relate to a WEP pursuant to Article 2(4) of REMIT, there is no inside information according to REMIT.

A) Information related to the supply of electricity or gas

For example, information relating to a facility located outside the EU can relate to a WEP according to REMIT when it concerns a contract for the supply of electricity or natural gas, irrespective of where and how it is traded, provided that there is a delivery in the Union, or when it concerns a derivative relating to electricity or natural gas, provided that it is produced, traded or delivered in the Union.

Regarding the notion of ‘delivery in the Union’, the 6th edition of the ACER Guidance on the application of REMIT indicates that, concerning the contracts for the supply of electricity or natural gas under Article 2(4)(a) of REMIT, the key element of the geographical scope is that a delivery point of such electricity or natural gas must be in the EU. As a result, contracts for the supply of electricity or natural gas produced or generated outside the EU but delivered within the EU borders will fall under the scope of REMIT.

Consequently, information relating to a facility located outside the EU relates to a WEP according to REMIT if it concerns a contract for the supply of electricity or natural gas produced or generated outside the EU but delivered within the EU borders, or a derivative relating to electricity or natural gas if it is traded or delivered within the EU borders.

B) Information related to the transportation of electricity or gas

In the same way, information relating to a facility located outside the EU can relate to a WEP according to REMIT when it concerns a contract, irrespective of where and how it is traded, relating to the transportation of electricity or natural gas in the Union, or when it concerns a derivative relating to the transportation of electricity or natural gas in the Union.

The 6th edition of the ACER Guidance on the application of REMIT specifies that the notion of ‘transportation of electricity or natural gas’ in the EU shall be interpreted by NRAs as including at least one bidding zone or delivery point located inside the EU.

On the contrary, contracts or derivatives related to the transportation of electricity or natural gas (including LNG biogas and renewable gases) involving the transportation of electricity or natural gas between bidding zones or delivery points both located outside of the EU are beyond the geographical scope of REMIT.

Consequently, information relating to a facility located outside the EU relates to a WEP according to REMIT if it concerns a contract for transportation of electricity or natural gas (including LNG), or a derivative relating to the transportation of electricity or natural gas:

  • from a bidding zone or delivery point that is geographically located outside of the EU to a bidding zone or delivery point located (totally or partially) inside the EU;
  • from a bidding zone or delivery point that is geographically located inside of the EU (totally or partially) to a bidding zone or delivery point located outside the EU.
Updated: 
16/12/2022