House of Companies: Your Designated REMIT Representative

As the revised Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) comes into effect, non-EU entities participating in EU wholesale energy markets must designate a representative established within the EU. This representative will serve as the point of contact for national regulators and the Agency for the Cooperation of Energy Regulators (ACER), ensuring compliance and facilitating oversight.

House of Companies offers a comprehensive REMIT representative service to help you navigate these new regulatory requirements. For a fixed annual fee of 1,500 EUR, we will act as your Designated Representative in the Netherlands, handling all necessary compliance tasks on your behalf. Aternatively, we can assist you to register a branch office in the Netherlands, or set up a local entity.

Key Responsibilities of Your REMIT Representative

As your Designated Representative, House of Companies will:

1. Maintain a Current Physical Address: We will provide and maintain a physical postal address in the Netherlands for receiving all communications from the National Regulatory Authority (NRA) or ACER related to Article 9 of REMIT.

2. Promptly Process Regulatory Correspondence: Upon receiving any physical communications, we will:

   • Acknowledge receipt on the same day

   • Physically date stamp the documents

   • Digitize the communications (e.g., scan to PDF)

   • Email the date-stamped, digitized documents to your designated email address

3. Facilitate Regulatory Oversight: By serving as your local representative, we will ensure you remain fully compliant with REMIT regulations and provide regulators with a direct point of contact within the EU.

Benefits of Outsourcing REMIT Representation

Appointing House of Companies as your REMIT representative offers several key advantages:

• Compliance Assurance: You can be confident that your REMIT obligations are being properly fulfilled, avoiding potential enforcement actions.

• Efficient Communication: Our prompt processing of regulatory correspondence ensures you receive timely access to important information.

• Cost-Effective Solution: Our fixed-fee service provides a cost-effective alternative to establishing your own EU-based representative entity.

• Scalability: Whether you are a small trading firm or a large energy conglomerate, our services can be easily scaled to meet your needs.

REMIT Non-Compliance Penalties

The revised Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) introduced stricter enforcement mechanisms and penalties for entities that fail to comply with its requirements. Some of the key penalties and potential breaches are outlined below:

Penalties for Non-Compliance

• Administrative Fines: National Regulatory Authorities (NRAs) can impose administrative fines of up to 10% of the total annual turnover of the legal person in the preceding business year for the most serious infringements.

• Daily Penalty Payments: NRAs can also impose daily penalty payments of up to 5% of the average daily turnover in the preceding business year per day, in order to compel the person to comply with REMIT obligations.

• Criminal Sanctions: Member States may lay down rules on criminal sanctions for the infringement of the prohibition of insider trading and market manipulation under REMIT.

Potential Breaches

The most serious potential breaches under REMIT include:

Breach	Description
Insider Trading	Using inside information to enter into transactions, or disclosing inside information to others.
Market Manipulation	Engaging in practices that give false or misleading signals about the supply, demand or price of wholesale energy products.
Failure to Register	Not designating an EU representative or failing to register with the relevant NRA as required.
Failure to Report	Not reporting transactions as mandated under Article 8 of REMIT.
Obstruction of Investigation	Obstructing or impeding NRA or ACER investigations into potential REMIT breaches.

Entities found in breach of REMIT face significant financial and legal consequences. Ensuring full compliance with all REMIT requirements is crucial to avoid these penalties.

To learn more about how House of Companies can assist with your REMIT compliance requirements, please contact us or visit our website at www.houseofcompanies.io.