Clemens Wagner-Bruschek, Energy Market Specialist, E-Control will sit on the Q&A session with other NRAs, he agreed to let us have a preview at some of his comments on REMIT and the challenges faced by NRAs.
1. How is E-Control working together with ACER to ensure the compliance of Austrian companies?
Due to ACER's role as a data hub for (most) REMIT data and its coordinative role in market surveillance of European power and gas wholesale markets, intensive cooperation between ACER and the NRA is necessary from a technical perspective and highly beneficial for a consistent interpretation and enforcement of the regulatory framework across the Union. The actual collaboration is organised via various working groups and task forces in which a diverse set of issues are discussed. The results of these discussions often lead to new guidelines, updates on Q&A and technical documents and are regularly discussed with market participants in joint workshops and fora.
2. What are the technological challenges you as a National Regulator – collecting very large volumes of data – are facing?
"The typical data processing lifecycle [...] had to be implemented by the NRA in a complexity that I guess was rarely needed before."
The typical data processing lifecycle - data retrieval, data preparation, data analysis and reporting of results - had to be implemented by the NRA in a complexity that I guess was rarely needed before.
Even with the buffer presented by ACER's ARIS system, the task is substantial. Key challenges lie in (a) the preparation of the data in a way which allows for later analysis and (b) the
implementation of semi-automated surveillance software.
The data that is reported to ACER and then forwarded to the NRA comprises daily Gigabytes of xml-files. Bringing this large amount of diverse - but often indirectly linked - data into a context which allows for an efficient analysis of market behaviour requires both, significant technical know-how as regards the xml-specifications as well as deep understanding of European energy markets and their interrelations.
"Key challenges lie in:
(a) the preparation of the data in a way which allows for later analysis and
(b) the implementation of semi-automated surveillance software."
Due to the large amount and diversity of the data to be analysed in a relatively short time period (daily data analysis), support by highly specialized software is necessary. Shaping such software e.g. from existing solutions in financial markets in order to make it ready for the special needs in energy market surveillance (e.g. linking trade data with physical data e.g. nominations, outages, etc.) was an important but tedious process. Moreover, the calibration of the automated data analysis ("alert system") is a sophisticated process but vital for a useful automation.
3. In your opinion, what direction could take a review of REMIT?
Albeit the regulation itself is already in place for some years, its technical and practical implementation - data collection started just two years ago - is still young. Before thinking about updates on REMIT one should continue finalizing its implementation (there are still some data quality issues to be clarified), get more experience in surveillance of energy markets and only then evaluate the current approach.
Of course, regulators have already started collecting ideas about future improvements (e.g. on measures to improve data reporting mechanisms) but it is too early for an update of REMIT.
"It is too early for an update of REMIT."
Related sessions from ETRC 2018:
National Regulator’s update
• Feedback on data collection quality and analysis
• Cases in progress
• Is REMIT review in the cards?
Q&A with the Energy Regulators
This exclusive Q&A session will enable the audience to address issues and ask questions on topics around REMIT implementation, such as:
Cooperation amongst the NRAs and with the Financial Regulators
Overcoming data quality challenges
Market monitoring: Tools and procedures
Enforcement: Investigation process; Cases
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