Eidgenössische Elektrizitätskommission ElCom Fachsekretariat ElCom

Frequently asked questions (FAQs) regarding Article 26a, Electricity Supply Ordinance (“REMIT”) Introduction In order to increase transparency, the Federal Council has introduced regulations according to which data relating to the wholesale electricity market have to be reported to the Swiss Federal Electricity Commission (ElCom). The data that have to be reported mainly concern the details that have to be reported in the European Union in accordance with EU Regulation No. 1227/2011 on wholesale energy market integrity and transparency (EU-REMIT Regulation). For this purpose, on 30 January 2013 the Federal Council added a section to the Electricity Supply Ordinance of 14 March 2008 (SR 734.71). The new section concerns the provision of data relating to the wholesale electricity market, and encompasses Articles 26a to 26c of the Electricity Supply Ordinance. The new regulations in the Electricity Supply Ordinance entered into force on 1 July 2013. The main reporting and notification obligations apply as of 2015. The EU-REMIT Regulation obliges market participants to report information about wholesale energy trading to the relevant authorities of the European Union or the member states. Its purpose is to increase transparency and combat unlawful activities (e.g. market manipulation, insider trading) and thus to contribute towards the smooth and efficient functioning of the market. ElCom collects electricity-trading data within the scope of its supervision of electricity supply security. It evaluates the data, contacts the involved market participants in the event of any irregularities and informs them about these activities. In the event of possible infringements of legal provisions that it is not responsible for enforcing, ElCom passes on the details to the relevant authority.

FAQs GENERAL QUESTIONS:

1. If I have any questions regarding Articles 26a to 26c of the Electricity Supply Ordinance, to whom should I address them? To the Market Supervision section of ElCom, by phone (+41 58 461 89 26) or by e-mail: [email protected].

Eidgenössische Elektrizitätskommission ElCom Effingerstrasse 39, CH-3003 Bern Tel. +41 31 322 58 33, Fax +41 31 322 02 22 [email protected] www.elcom.admin.ch

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2. Who is required to supply data in accordance with the revised Electricity Supply Ordinance? Participants in a wholesale electricity market in the EU with domicile or residence in Switzerland who, in accordance with EU-REMIT, are obliged to supply data (Article 26a, paragraph 1, Electricity Supply Ordinance). According to EU-REMIT, this concerns those players who conclude or issue trading transactions in wholesale electricity markets (cf. EU-REMIT, Article 2 [7]).

3. When does the obligation to supply data to ElCom enter into effect? ElCom stipulates when data have to be submitted for the first time (Article 26b, paragraph 2, Electricity Supply Ordinance), and bases its decision regarding timing on the procedure implemented by the EU. [NEW]: Like the EU, ElCom defined the time span from 7 October until 2 December 2015 as the starting period from which on affected Swiss market participants are due to submit data to ElCom for the first time. In case of data reporting beginning after 7 October 2015, a backloading of all the data related to the period from 7 October 2015 until the respective starting date is to be guaranteed.

4. What is a wholesale electricity market? The term “wholesale electricity market” refers to any market on which wholesale electricity products are traded. The definition of wholesale electricity market products is based on Article 2 (4) of EUREMIT. Wholesale electricity markets include regulated markets, multilateral trading systems, overthe-counter transactions and bilateral agreements that are concluded directly or via brokers (cf. Article 2 [6] and deliberation 5, EU-REMIT).

5. What are the advantages of greater transparency on wholesale electricity markets? Greater transparency on wholesale electricity markets reduces the risk of market manipulation and distortion of price signals, and ensures that end consumers pay a fair price for their electricity. Wholesale markets generate significant price signals that influence not only the choices of suppliers and consumers, but also decisions concerning investments in production facilities and the transmission network infrastructure. It is therefore essential to ensure that these signals result from smoothly functioning market forces.

6. Are a company’s internal transactions also regarded as wholesale energy products? The definition of wholesale energy products encompasses contracts and derivatives, regardless of where and how they are traded. Thus internal transactions, e.g. over-the-counter contracts that are concluded with an internal counterparty, are classified as wholesale energy products.

7. What does the term “market abuse” refer to? In EU-REMIT, “market abuse” is the generic term for insider information and market manipulation, both of which are illegal under REMIT.

8. What is market manipulation?

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Market manipulation refers to a situation in which a market participant carries out false and misleading transactions, provides signals, distributes information or makes attempts at deception in connection with supply, demand or prices on the wholesale market (cf. Article 2 (2), EU-REMIT).

9. What action should be taken in the event of the suspicion of market manipulation? If you suspect that market manipulation has taken place, please contact the Market Supervision section of ElCom without delay: phone no. +41 58 461 89 26, e-mail [email protected]. INSIDER INFORMATION

10. What is insider information (Article 26a, paragraph 3, Electricity Supply Ordinance)? According to EU-REMIT, the term “insider information” refers to precise information that is not public knowledge and directly or indirectly concerns one or more wholesale electricity products and which, if it were public knowledge, would probably have a significant influence on the prices of the wholesale electricity products in question (cf. Article 2 [1], EU-REMIT).

11. Who is obliged to report insider information in Switzerland? The obligation to report insider information to ElCom applies to all entities that are subject to a reporting requirement in accordance with EU-REMIT (Article 26, paragraph 3, Electricity Supply Ordinance). The reporting obligation also includes the requirement to state where the data have been published in accordance with EU-REMIT. The reporting of insider information may also be delegated to third parties.

12. Does ElCom still have to be notified if the market participant postpones the publication of insider information? Yes. ElCom must also be notified simultaneously if use is made of the option of postponing the publication of insider information (cf. Article 4 [2] EU-REMIT).

13. What action does ElCom take in response to a case of market manipulation or insider information? Depending on the case in question, ElCom examines whether there is a need for action based on the applicable electricity supply legislation. If the case involves actions governed by financial market, cartel or tax law, ElCom passes the matter on to the relevant authority. DATA TO BE REPORTED TO ELCOM

14. Which data have to be reported to ElCom? The following data in particular have to be reported to ElCom: - Transactions concerning wholesale electricity products, especially electricity supply agreements (though excluding agreements with end consumers) and derivatives relating to electricity (Article 26a, paragraph 2a and Article 26a, paragraph 6, Electricity Supply Ordinance). - Capacities in installations for the production and transmission of electricity, their availability and non-availability and the utilisation of these facilities (Article 26a, paragraph 2b, Electricity Supply Ordinance).

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Insider information which has been published in accordance with EU-REMIT (Article 26a, paragraph 3, Electricity Supply Ordinance), plus details of where the information has been published. Company name, legal form and domicile. Instead of the above data, the Centralised European Registry for Energy Market Participants (CEREMP) dataset may be uploaded in the ElCom registration process (cf. Article 26a, paragraph 4, Electricity Supply Ordinance).

15. Are Swiss market participants required to supply data to more than one authority (dual reporting)? Yes. Market participants have to supply the same data to both the European Agency for the Cooperation of Energy Regulators (ACER) and to ElCom. On the basis of the existing reporting channels, ElCom will use the same data in order to effectively supervise the electricity market.

16. In which form do the data have to be supplied? Data must be supplied in the same form (i.e. in the same format) as specified in EU-REMIT. In accordance with the requirements of ACER, data must be supplied in electronic form (XML diagram). This does not apply to data intended specifically for the registration process (https://www.gate.elcom.admin.ch/regtool/index.html).

17. What action should be taken if a foreign regulatory authority officially requests information from a market participant in Switzerland? ElCom should be notified about the request. Regardless of the content of the request for information, direct provision of information from Swiss sovereign territory is prohibited. Responding to such a request for information can represent an infringement of Article 271 of the Swiss Penal Code. It is possible to obtain a special permit to respond to a request for information. Please contact the Market Supervision section of ElCom, by phone (+41 58 461 89 26) or e-mail: [email protected]. REGISTRATION

18. Is it necessary to notify or register with ElCom? Yes, notification or registration with ElCom is required (cf. Article 26a, paragraph 4, Electricity Supply Ordinance). The company name, legal form and domicile have to be registered with ElCom, or the dataset has to be uploaded in the registration tool which has been submitted in the EU for registration in accordance with EU-REMIT.

19. By when does this have to be done? Registration with ElCom has been possible since 8 May 2015, and has to be concluded by midSeptember 2015 so that market participants can prepare for the phase of data reporting after 7 October 2015. In accordance with EU-REMIT, market participants who carry out standard transactions on the organised markets are required to report them from 7 October 2015 onwards. The deadline for non-standard transactions carried out on other markets is 7 April 2016.

20. Does a fee apply for registration with ElCom? No, registration is free of charge.

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21. How does the registration process function? A web-based registration system is available on the ElCom website. The explanatory notes regarding the registration system, which is available for market participants to register online, contain all the necessary information for step-by-step registration. The ElCom website (http://www.elcom.admin.ch/themen/00215/index.html?lang=de) also contains contact details for asking questions or making suggestions.

22. How can a market participant’s own data be downloaded from ACER? By clicking on the following link on the ACER website: https://www.acer-remit.eu/portal/europeanregister. Log in as market participant and select “Historical Report” from the “MP” tab. Data can be downloaded from this website by clicking on the “Export” button. 23. What action should be taken if the market participant provides ACER with additional information? Steps 4 and 5 in the ElCom registration process can only be carried out if the registration with ACER has been completed. The definitive CEREMP dataset can be downloaded from ACER and subsequently uploaded to ElCom. REGISTERED REPORTING MECHANISM (RRM)

24. Can Swiss market participants change their RRM if they have decided to use another reporting mechanism? Yes. Market participants are at liberty to choose the RRM via which they report transaction data. If a market participant changes the RRM, ElCom must be notified about the change. Steps 4 and 5 in the registration system have to be updated to reflect the change. GAS TRADING

25. Do companies that only trade in gas or focus on data relating to gas trading also have to register with ElCom? No, the existing electricity supply legislation and Article 26a of the Electricity Supply Ordinance only apply to electricity trading.

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