Which Ukrainian wholesale energy market participants are required to appoint representatives in the EU?

Market participants recently received an email from ACER regarding the requirement to appoint an authorized representative in the EU country where they obtained their ACER code by November 8, 2024.

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These notifications stem from recent amendments to the REMIT regulation concerning the representation of companies that are not registered in the EU but operate in wholesale energy markets.

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Regarding the appointment of EU representatives, ACER has published an open letter addressing questions from wholesale energy market participants. (Link to the open letter:   https://www.acer.europa.eu/sites/default/files/REMIT/Guidance%20on%20REMIT%20Application/Open%20Letters%20on%20REMIT%20Policy/25092024_3rd_Open_Letter_Third_Countries_PPAETs.pdf )

The FEDOTOV&PARTNERS team has analyzed the ACER open letter. Given the European regulator's current position, we can now answer a question of interest to many market participants: is it necessary to appoint an EU representative if a Ukrainian company that has obtained an ACER code does not trade on European markets, but only exports and imports energy resources at the Ukrainian border?

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As of the date of this publication, ACER's position is that even if companies from third countries (including Ukraine) do not conduct direct operations within the EU and trade exclusively at the Ukrainian border, such market participants are still required to appoint a representative in the EU country where they obtained their ACER code.

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The representative must be a resident of an EU country and have a permanent place of residence in the country where the market participant obtained their ACER code.

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The law firm FEDOTOV&PARTNERS offers market participants comprehensive legal solutions for operating in wholesale energy markets in accordance with the REMIT regulation, including, but not limited to: obtaining, re-registering, and cancelling ACER codes, as well as providing representation in EU countries.

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