21/12/2012 Procedure for compliance with the obligations referred to in art. 8.4 of AEEG’s Decision ARG/elt 115/08 (TIMM) - Additions and amendments 1. Foreword Article 8, para. 8.4 of Decision ARG/elt 115/08, adopted by “Autorità per l’Energia Elettrica e il Gas” (electricity & gas regulator, hereafter AEEG), as subsequently amended and supplemented (hereafter TIMM), provides that within the fifteenth (15th) day of the month following the one of trading, market operators qualifying as “operatori rilevanti” (relevant operators) shall notify GME - under the procedures established by GME itself - of the data relevant to sales and purchases of forward contracts for electricity traded in the electricity market, whether directly or indirectly through any type of intermediation. With a view to acquiring the above data and in compliance with art. 3, para. 3.4ter of TIMM, GME developed a “Piattaforma Dati Esterni” (External Data Platform, hereafter PDE). Through the PDE, which went into operation on 1 January 2010, market operators report the contracts referred to in para. 8.4 of TIMM, under the procedure established by GME itself. In subsequent joint notices, AEEG and GME defined and specified the data to be included in the contracts to be reported, the reporting procedure through the PDE, as well as the list of “relevant operators”, i.e. those subject to the reporting obligation referred to in art. 8.4 of TIMM (http://www.mercatoelettrico.org/en/Statistiche/Monitoraggio/comunicazioniOperatori.aspx). As directed by AEEG, GME carried out a qualitative analysis of the contracts collected so far on the PDE. The analysis was aimed at identifying notifications which - based on the reporting specifications jointly established by AEEG and GME - had material errors or required actions by the reporting operator. As a result of the above analysis and as directed by AEEG, GME identified areas of action in the PDE management process (as described in detail in the following paragraphs), with a view to improving the quality of the data collected under para. 8.4 of TIMM and giving more assurances to the reporting operators about the adequate fulfilment of their obligations. 2. Changes of the data collection procedure and improvement of the functionality of verification of notifications entered into the PDE With regard to the procedure for collection of data that are instrumental for AEEG’s monitoring activities, GME will - as of 1 Feb. 2013 -: i) change the procedure for completing some fields of the xml file through which the contracts referred to in para. 8.4 of TIMM are reported; and ii) improve the verification and messaging functionality of the PDE. In particular: · The “Mercato organizzato” (regulated market) field, so far free and optional, will become mandatory for contracts of “Tipologia” (type) OTCO or STD. The items to be specified in this field will be as follows: GFI, ICAP, IDEX, MAN, OTCEX, SPC, TFS, TULLET PREBON, VANILLA, VOICE [1]. The STD type must be assigned to all contracts traded in a regulated market, whereas the OTCO type must be assigned to all over-the-counter trades for which brokerage platform services have been used [2]. · It is worth pointing out that the “Piattaforma dei Conti Energia a termine” (OTC Registration Platform - PCE) is neither a regulated market nor a brokerage platform for trading contracts. It is merely a platform for registering OTC contracts that have been previously concluded. Therefore, the PCE should not be included among the items of the regulated market field. · It is worth recalling that, for reasons of efficiency, all trades carried out in GME’s “Mercato a termine” (Forward Electricity Market - MTE) are excluded from the reporting obligation. In this connection - in correction of what has been indicated in the notices of 2 Apr. 2009 (note 1, page 2) and of 27 Jul. 2009 and in addition to what has been reported in the notice of 4 Dec. 2009 (in the paragraph “Operators subject to reporting obligations”) - all OTC/OTCO contracts subsequently registered into the MTE for clearing purposes must be entered into the PDE in accordance with the procedure specified in the notice of 27 Jul. 2009. The regulated market field must be left empty for OTC contracts, whereas it will be completed with the name of the brokerage platform (list provided by GME) for OTCO contracts. Therefore, to avoid duplications of already reported contracts, the subsequent registrations must not be entered into the PDE. · For reporting import contracts, the Struttura (structure) field of the contract must be completed with the ALTRO (other) item. Operators are also prompted to use the Descrizione (description) field for specifying the country of origin of the reported contract (e.g.: Import – France). The specifications for completing all other fields of the contract (in accordance with the notices previously published by AEEG and GME and mentioned in para. 5 below) will remain unaltered. With a view to reducing the amount of notifications with information and data that are formally inconsistent with the completion criteria established by AEEG and GME, the PDE verification functionality will be improved. The PDE will not only verify the technical adequacy on the structure of the xml file, but also formally check the contents of the entered notifications. Upon registration, the PDE will reject all formally irregular notifications and, at the same time, return a message to the operator involved with the reasons for the rejection. Therefore, the following notifications will not be accepted: · those with the Mercato organizzato field equal to MTE, as previously explained; · those with the Mercato organizzato field completed and the Tipologia field equal to OTC, as contracts of this type are not concluded in a regulated market; · those with the Tipologia field equal to STD/OTCO and the Mercato organizzato field empty or completed with an item not included in the list, as the STD and OTCO types are concluded in a regulated market; · those with the Mercato organizzato field equal to IDEX and the Tipologia field different from STD, or the Struttura field different from FUTURE, or the Prezzo di riferimento (reference price) field different from PUN, or the Indicizzato (indexed) field equal to 1, or the Flessibile (flexible) field equal to 1. By their nature, contracts traded in a regulated market have a fixed price which is settled in cash, have the reference price of the spot market (PUN or Pz) and are neither indexed nor flexible; · those with the Struttura field equal to OPZIONE (OPTION) and the Premio (premium) field empty or equal to 0; by its nature, an option must have a premium; · those with the Premio field completed and the Struttura field different from OPZIONE, since the premium is set only in case of options; · those with the Indicizzato field equal to 1 and the Frequenza di indicizzazione (indexing frequency) field empty, since the indexing frequency is necessary to quantify the number of ex-post submissions for indexed contracts; · those with the Frequenza di indicizzazione field completed and the Indicizzato field equal to 0; · those with the Controparte elettrica (electric counterparty) field equal to 0 and the Controparte (counterparty) field completed with an SDC code; · those with the Tipologia field equal to STD and the Struttura field equal to ALTRO, or the Indicizzato field equal to 1, or the Flessibile field equal to 1; by their nature, contracts of STD type have a defined structure and are neither indexed nor flexible; · those with the Flessibile field equal to 0 and the Quantità ex-post (ex-post volume) field completed and higher than zero, since ex-post volumes can only be entered for flexible contracts; · those with the Data di stipula (signature date) field completed with a date following the first date entered into the Data (date) field of the contract; by its nature, the contract signature date comes before the contract start date; · for contracts reported by non-institutional operators, those with the Controparte field completed with an SDC code belonging to an institutional operator (IDGME, IDGRTN, IDAU, IDTSO), since these contracts must be entered into the PDE by institutional operators. To familiarise operators with the changes, a testing stage will begin on 1 Jan. 2013. During this stage, by connecting to https://provepde.ipex.it, operators will be able to test whether their xml files meet the above-mentioned specifications. On 1 Feb. 2013, the changes will become operational on the platform made available by GME at https://pde.ipex.it 3. Management of PDE users The procedure for authorising PDE users described in GME’s notice of 27 Jul. 2009 will remain valid. As regards the authorisation process, web security tools (certified e-mail and digital signature affixed by the legal representative of the applying company) will ensure the privacy needed by the sensitive nature of the data to be reported (Home/MediaGME/NewsArchive?id==31). The application for revoking obsolete users must be sent - by certified e-mail - by the applying company to GME’s certified e-mail address monitoraggio@pec.mercatoelettrico.org. GME will revoke the users and send an e-mail message to confirm the revocation. The applying company will be responsible for controlling authorised users and for possibly revoking them. GME will develop a procedure for periodically verifying the validity of the users’ authorisations associated with the companies operating on the platform. To do so, GME will - through its certified e-mail address monitoraggio@pec.mercatoelettrico.org - send a request for verification of PDE users associated with each company to the certified e-mail address of the same company. The company involved will notify GME of the outcome of the verification, by using the same certified e-mail addresses. Any application for revoking the authorisation of obsolete users must comply with the previously described procedure. Failure to answer the request of GME or to send messages to GME will be interpreted as a confirmation of existing users’ authorisations. 4. List of notices jointly published by AEEG and GME in support of contract reporting to GME under art. 8.4 of TIMM Notice of 2 Apr. 2009 Presentations of 30 Jun. 2009 Notice of 27 Jul. 2009 Notice of 4 Dec. 2009 Notice of 15 Dec. 2009 Notice of 12 Feb. 2010 For any doubts and/or clarifications, contact: - monitoraggio@mercatoelettrico.org - alberto.garino@mercatoelettrico.org, tel. no.: +39-06-80124164. [1] If the contract to be reported has been traded on platforms other than the above-mentioned ones, the operator must notify GME thereof. GME will extend and update the list of items. [2] Just to give an example, a trade concluded on IDEX must be reported with the STD type, whereas a trade concluded on TFS must have the OTCO type. Brokerage platforms are all those listed in the regulated market field, except for IDEX.