Remit, operation transparency
Operation Transparency. Enel's “privileged information” is publicised, in line with Remit (Regulation on Wholesale Energy Market Integrity and Transparency), the European Standards Regulation to Prevent Abusive Practices on Wholesale Electricity and Natural Gas Markets.
On the Remit section and the Privileged Information Platform (PIP) of the Electric Market Managing Authoriy, the data regarding - directly or indirectly - the wholesale energy products, and can significantly affect their prices, are now available. Among these, it can be specified the capacity and use of the facilities for electricity or natural gas production, storage, consumption and transport, as well as the capacity and use of LNG (Liquefied Natural Gas) plants, including their planned unavailability. In general, all the information on which market operators base their decisions to close commercial transactions.
Less risks for everyone
The draft of the Enel document, inspired by the European Remit Regulation, offers great transparency on the company's business and resources, not allowing any alteration of the ‘rules of the game’: from the possible exploitation of non-public domain information (insider trading) to price or market manipulation.
For years the European Union has been occupying in a simplification process of the market rules, in order to conform national regulations and the European ones: a network of laws whose breach produces very heavy penalties, even criminal ones. Therefore, it was necessary to rewrite the rules of transparency and fairness while also strengthening the internal business policies that guarantee integrity and transparency.
Enel's regulatory compliance expert Stefano Falsone explained that integration and proper market operation have become essential values to pursue.
Creating new skills
In 2014 the company created a Trading Conformity unit with the goal of moving smoothly into internal and external regulatory environments and finding quick solutions. “In times of economic crisis and market turbulence” - said Paola Pescapé of the Trading Conformity area - “Compliance, which addresses the risk of non-observance, allows to minimise costs, ensuring that all units behave according to the system of rules.”
When the market operator communicates effectively and timely information on businesses or establishments that are of interest, the benefits are twofold: greater company credibility and reliability on the market and positive effects on wholesale and retail prices. In the end it’s win-win situation for everyone: Enel, consumers, businesses.
Because of the tight time imposed by Remit, several business areas in the company have had to work simultaneously, integrating their systems with the support of Information Technology. The Head of Business Support and System Improvement
Marco Virigili confirms the involvement not only of different power plants located in Italy, but also of the Enel Communications function for real-time data on the institutional site and the Energy Exchange Control Room, which is active 24 hours a day. The process also involved the Energy Markets Managing Authority (GME), creating synergies useful for future developments.
The Open Power values
Trust, responsibility, innovation and proactivity are the principles that, under the control of the Global Trading division – which drafts the Enel document - have inspired the action of the various business areas. According to Enel's Energy Trading Professional Paolo Fabiano, the first step was to analyse the specificities of the market today: thus, it was possible to understand how to enforce regulatory obligations and information control systems in the punctual respect of timing and operative modalities set by the European Regulator.
The latter were then defined with the collaboration of Energy Management Italy, Business Support and System Improvement of Global Trading and Thermal Generation Italy/Renewable Energies Italy. In addition, cases of planned and unplanned availability of installations, whose information is to be provided – according to the law - by the European Network of Network Operators for Electricity or Gas Transmission Systems, were also regulated with very tight timelines: communication is provided at most within one hour and is published both in Italian and in English. Data on the site remains accessible to the public for two years, free of charge.
Therefore, for Enel, adjusting to the European regulation is not only a legal obligation, but also a new opportunity for better integration into European markets. A decisive turning point for achieving Open Power goals.