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Key Responsibilities of Your REMIT Representative in the EU




The revised Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) introduced important new obligations for non-EU market participants active in EU wholesale energy markets. By November 8, 2024, these entities must take the following steps to ensure compliance:


Designate an EU Representative

Non-EU market participants that enter into transactions required to be reported to the Agency for the Cooperation of Energy Regulators (ACER) under REMIT must designate a representative established or resident in an EU member state where they are active. This representative can be a natural or legal person, but does not need to be a branch or subsidiary of the non-EU company.

Register the Representative

The non-EU participant must register the designated representative with the national regulatory authority of the member state where the representative is located. If active in multiple EU states, the participant can choose which state to register in, but the representative and registration must be in the same member state.


Provide Representative Contact Details


The non-EU participant must provide ACER and the relevant national regulator with the name, email, postal address, and phone number of the designated representative.


Obligations for PPAETsIn addition, the revised REMIT places new obligations on Persons Professionally Arranging Transactions (PPAETs). These entities must notify ACER and national regulators of any potential breaches of REMIT's core prohibitions on market manipulation and insider trading.


The goal of these new requirements is to enhance market integrity and transparency by ensuring non-EU entities participating in EU wholesale energy markets are properly represented and can be effectively overseen by regulators. Non-compliance could result in enforcement actions, so it is crucial for affected market participants to take the necessary steps before the November 2024 deadline.


Who needs to appoint a European Representative: Case Studies

Here are 5 hypothetical scenarios for UK funds that would need to appoint an EU representative under the revised REMIT regulation:

Scenario 1: A UK-based fund that is active in the wholesale energy markets in Germany, France, and the Netherlands. This fund would need to designate an EU representative in one of those three member states where it is active, and register with the national regulatory authority of that same member state.

Scenario 2: A UK fund that is already registered with the German national regulatory authority under REMIT. This fund has the option to either keep its existing registration in Germany and designate its representative there, or it can choose to designate a representative in another EU member state where it is active, such as Spain or Italy, but would then need to re-register with the regulatory authority of that new member state.

Scenario 3: A UK fund that is active only at the borders of the EU, with delivery of energy products occurring within the EU. Even though it is not directly participating in the EU wholesale energy markets, this fund would still be required to designate an EU representative in one of the member states where its energy products are delivered.

Scenario 4: A UK fund that is part of a larger corporate group with other subsidiaries established outside the EU. Each non-EU subsidiary of the group that is active in EU wholesale energy markets would need to individually designate an EU representative, even if another group member has already done so.

Scenario 5: A UK fund that does not currently have any presence or activity in the EU wholesale energy markets. However, if this fund decides to start participating in those markets in the future, it would then be required to designate an EU representative and register with the relevant national regulatory authority at that time.


In summary, under the revised REMIT regulation, UK funds that participate in EU wholesale energy markets will be required to designate an EU-based representative by November 2024. There do not appear to be any exemptions or exceptions to this requirement for UK funds. The goal is to ensure non-EU entities active in the EU markets are properly represented and can be effectively overseen by regulators.


"participation in EU wholesale energy markets"


The revised REMIT regulation defines "participation in EU wholesale energy markets" quite broadly. It covers:

  1. Contracts and derivatives related to the supply of electricity, natural gas (including LNG), and the storage of electricity and gas, where the delivery or potential delivery is within the EU. This includes contracts that may result in delivery in the EU due to cross-border market coupling.

  2. Any natural or legal person, regardless of their place of incorporation or domicile, that engages in trading of these wholesale energy products. This includes both EU-based and non-EU entities.

For non-EU market participants, the regulation requires them to designate an EU-based representative and register with the national regulatory authority of the member state where the representative is located. This is to ensure these entities can be effectively overseen and comply with REMIT's requirements.


The regulation also places new obligations on "Persons Professionally Arranging Transactions" (PPAETs) to report any suspected breaches of REMIT's prohibitions on insider trading and market manipulation. This includes entities like trading platforms, brokers, and others that arrange or execute transactions in wholesale energy products.

So in summary, the criteria for "participation in EU wholesale energy markets" is quite broad and encompasses a wide range of entities and transactions related to the supply, trading, and storage of electricity, natural gas, and LNG within the EU market.


The revised REMIT regulation introduced a clear requirement for non-EU market participants, including UK funds, to designate an EU representative in order to participate in EU wholesale energy markets. There does not appear to be any legitimate way for these companies to avoid this requirement.


The regulation was likely put in place to enhance market oversight and transparency, so attempting to circumvent the rules could result in enforcement actions. The best approach for these companies is to fully comply by designating an appropriate EU representative and registering them with the relevant national regulatory authority by the November 2024 deadline.


Appointing House of Companies as REMIT Representative

House of Companies offers a comprehensive service for entities requiring a Designated Representative under the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT). For a fixed annual fee of 1,500 EUR, House of Companies will act as your Designated Representative in the Netherlands, fulfilling crucial compliance requirements. 

Their services include maintaining a current physical postal address in the Netherlands for receiving communications from the National Regulatory Authority (NRA) or the Agency for the Cooperation of Energy Regulators (ACER) related to Article 9 REMIT. Upon receipt of any physical communications, House of Companies will promptly acknowledge receipt, physically date stamp the documents, digitize them (e.g., scan to PDF), and email the date-stamped, digitized communications to your designated email address on the same day. This efficient process ensures that you remain fully compliant with REMIT regulations while providing you with timely access to all important regulatory correspondence.


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