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 (WEPs) and which, if it were made public, would be likely to significantly affect the prices of those 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, including LNG, where delivery is in the Union, or contracts for the supply of electricity which may result in delivery in the Union as a result of single day-ahead and intraday coupling;

b)derivatives relating to electricity or natural gas produced, traded or delivered in the Union, or derivatives relating to electricity which may result in delivery in the Union as a result of single day-ahead and intraday coupling;

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.

e)contracts relating to the storage of electricity or natural gas in the Union;

f)derivatives relating to the storage 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.

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.

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.

Further information on the application of the obligation to disclose inside information can be found in Chapter 4 of the ACER Guidance on the application of REMIT.