REMIT II is Regulation (EU) 2024/1106, which amended the EU Regulation on Wholesale Energy Market Integrity and Transparency (REMIT). For companies outside the EU, the most important change is in Article 9(1): if you enter into transactions that must be reported to ACER, you must designate a representative in an EU member state where you are active, and register with the regulator of that same member state.
Key dates
- 11 April 2024: Regulation (EU) 2024/1106 adopted
- 7 May 2024: the revised REMIT enters into force (the twentieth day after publication in the Official Journal)
- 8 November 2024: deadline for non-EU market participants to designate a representative and notify its details
The deadline has passed, so the obligation applies now. Companies that are only now entering EU wholesale energy markets must meet it before their first reportable transaction.
What non-EU market participants must do
Article 9(1) of the revised REMIT applies to market participants established or resident outside the EU that enter into transactions required to be reported to ACER under Article 8(1). They must:
- Designate a representative by written mandate in a member state where they are active on the wholesale energy markets, and register with the national regulatory authority of that member state
- Mandate the representative so that national regulators and ACER can address it, in addition to or instead of the company, on everything needed to receive, comply with and enforce decisions and requests for information
- Give the representative the powers and means to cooperate efficiently and on time with regulators, including providing access to requested information
- Notify the representative's details (name, email address, postal address and telephone number) to ACER and to the regulator of the member state where the representative is established
In practice, the notification is made by updating your registration in CEREMP, ACER's register of energy market participants, including the written mandate. Market participants registered in Italy, Romania and Slovenia notify their regulator directly.
Registration and representative must be in the same member state
You can choose your representative's member state among those where you are active, but you must be registered with the regulator of that same member state.
- Registered with the Bundesnetzagentur and active in Germany: you can designate a representative in Germany and update your registration.
- Registered in another member state: if you want a representative in Germany, you must be active in Germany and move your registration to the Bundesnetzagentur using the CEREMP function "Change Member State". You then receive a new ACER code and must report lifecycle events (novations) for outstanding trades and contracts.
- Active in several member states: one representative in the EU is enough.
Who can be your representative
According to ACER's guidance of 25 September 2024:
- The representative can be a natural or a legal person
- It does not have to be a branch or subsidiary of your company
- It does not have to be active in wholesale energy markets itself
- It must be established or resident in the EU, in a member state where you are active
- Third-party companies such as consultancies or law firms can act as representatives, with a contractual arrangement that reflects the Article 9 obligations
The representative is registered in CEREMP by the market participant itself, as the "market participant user".
Group companies
ACER assesses the obligation for each non-EU legal entity separately. If two entities of the same group trade in the same member state, each needs its own designation, but both can appoint the same representative. A non-EU subsidiary of an EU company is not covered by its parent's registration: if it trades REMIT products, it must designate a representative itself, and it may appoint its EU parent.
Entering EU energy markets now
If your company is setting up trading in EU gas or power markets, plan registration and representation together:
- Choose the member state where you will be active and register, for example Germany
- Sign the written mandate with your representative in that member state
- Register with the regulator through CEREMP, with the representative's details, before your first reportable transaction
- Receive your ACER code, which identifies you in REMIT reporting
In Germany, registration with the Bundesnetzagentur costs a one-off fee of €350. Failing to register, registering late or registering with more than one regulator is a regulatory offence under section 95(1d) of the Energy Industry Act (EnWG).
We support companies from the start: we prepare your registration with the Bundesnetzagentur and act as your designated representative in Germany from day one. See our notes for non-EU companies by country.
Other changes in REMIT II
REMIT II also introduced obligations for persons professionally arranging or executing transactions (PPAETs), who must notify ACER and national regulators of potential breaches of Articles 3, 4 or 5 of REMIT. These obligations applied from 7 May 2024 for persons arranging transactions and from 8 November 2024 for persons executing them. ACER has also published guidance on notifications of algorithmic trading and direct electronic access.