If you are a market participant in the wholesale energy market, you must complete your REMIT registration and be ready to fulfil your reporting obligations by 7 April 2016.
The REMIT Regulation was introduced in order to prohibit market manipulation and insider trading in wholesale energy markets. Ofgem has warned that there will be "visible and meaningful consequences" for businesses who fail to register on time or who provide inaccurate information.
The definition of a 'market participant' is extremely wide and covers "any person, including transmission system operators, who enter into transactions, including the placing of orders to trade in one or more wholesale energy markets".
This means that many organisations in the sector will be affected. Even project companies which had not previously considered themselves to be trading directly in the wholesale energy market, for example, unlicensed generators entering into power purchase agreements with licensed suppliers, will be impacted by REMIT.
The only exception from registration covers market participants who only enter into contracts for physical delivery of electricity or gas produced by a single production unit under a certain size (10MW for electricity and 20MW for gas).
For further information on registration, please see Ofgem's user guide.
REMIT registration and reporting has been divided into two phases. The first phase started on 7 October 2015 and covered reporting in relation to wholesale energy contracts admitted to trading at organised market places.
All other wholesale energy contracts, including bilateral contracts and power purchase agreements, are reportable when the second phase starts on 7 April 2016.
Ofgem has published a REMIT penalties statement which makes it clear that market participants risk being given a restitution order and/or a significant financial penalty in the event of non-compliance.
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at April 2016. Specific advice should be sought for specific cases. For more information see our terms & conditions.