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REMIT Implementation in DONG Energy. DERA Seminar, 27 April 2012 Marie-Louise Piil Christensen. Agenda. 1. Challenges in relation to REMIT Implementation. 2. Overall Approach in DE. 3 . Insider Trading Policy – Main content. 4. What have we done – step by step. - PowerPoint PPT Presentation
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REMIT Implementation in DONG Energy
DERA Seminar, 27 April 2012
Marie-Louise Piil Christensen
Agenda
3. Insider Trading Policy – Main content
6. Next steps
1. Challenges in relation to REMIT Implementation
2. Overall Approach in DE
4. What have we done – step by step
5. Outstanding issues to be clarified by ACER/Regulatory Authorities
REMIT Implementation – Main Challenges
REMIT Regulation came into force
across Europe on 28 December
2011
Main Challenges:
1)Short time frame for implementation
2)Framework Regulation => Broad and vague wording => Grey areas and uncertainty e.g. in relation to definitions
3)Numerous requirements in order to be compliant
4)Change of "Culture" in some areas of the energy sector
3
'REMIT' Implementation
Overview/Elements/Hierarchies
Overall Compliance Officer (Legal)
Responsible for establishing the overall general guidelines and procedures in cooperation with the
different Business Units
Business UnitCompliance Officer for
EM
Business UnitCompliance Officer for POWER
Business UnitCompliance Officer for
REN
Business UnitCompliance Officer for
GTRM
Business UnitCompliance Officer for
S&D
Business UnitCompliance Officer for
E&P
Responsible for the practical implementation on BU level and compliance
Contains general guidelines for the handling of inside information and other precautions and procedures necessary to ensure DE's compliance with new and existing insider rules
6
Insider Trading Policy
Insider Rules
Market Abuse Directive(MAD)
Financial Instruments
REMITPower & Gas Products
7
Insider Trading Policy
Who are covered?
What is covered?
Establishment of Chinese Walls
Insider lists
Procedures for handling of inside information
Publication of inside information
Sanctions
All directors, managers and employees
Power + gas, transport agreements and related derivatives + financial instruments
Production and trading separated (physically, IT systems etc.)
All employees with inside information are listed on an insider list
Inside information may not be shared with anyone until published to the market
Insider information is published on our websites immediately or ASAP
Not yet known, but probably fines and imprisonment (+ bad publicity)
General information on REMIT + MAD Description on primary obligations and prohibitions, e.g. against insider trading
MAIN CONTENT
8
Implementation Process – Step by Step I
Preperation of Insider Trading Policy for external consultants
Short section on handling of inside info and market abuse rules in overall DE Compliance Program
Development of e-learning programs
Publication meassures
Info meetings and educational sessions for relevant employees
Used when DE engage external consultants, e.g. external lawyers, auditors etc.
Mandatory – Will be rolled out to all DE employees
Short case in overall compliance program and more detailed REMIT specific program for relevant employees
DE Websites and in the future also Energinet.dk
Has been carried out for all relevant employees in DK and abroad.
Deployment of overall DE Insider Trading Policy
Has been published on the Intranet in a Danish and English version + sent out to all relevant employees
Internally in DE
9
Implementation Process – Step by Step II
Compliance Officers have been appointed in all departments
Specific written procedures for handling of inside information etc.
Establishment of overall DE Compliance Log
Participation in working groups and industry organisations
Registration of DE as Energy Trader with Energitilsynet
Bi-weekly meetings have been held with these regarding the implementation process
Have been made and distributed in all departments
And department specific Compliance Logs
To ensure that DE's implementation level is aligned with level in other EU countries and available recommendations
Postponed until mid 2012
Establishment of Insider lists Centrally managed by HR
Internally in DE
Participate in DERA Working Groups(at present WGs on Upstream)
On-going
'DE Register book' – The framework of implementation
10
11
Outstanding issues to be clarified by authorities
Identification of the markets relevant for compliance of the Regulation
Hedging exemption clarification
Publication of availability
Publication Platforms
LNG
Power, gas, balancing markets etc. – European, National or even more local?
Intention and relevance of "unable to meet contractual obligations" condition
Is this technical or commercial availability
There should be one European or National Website, where all inside info must be published
LNG storage is covered by the Regulation – what about LNG Trading?
Definition of Inside Information still unclear
Primarily in relation to thresholds on gas, "precise nature" and "any other information"
Next Steps in the REMIT Implementation Process
Level II – Reporting Obligation•Expected to come into force mid 2013
• Details on the reporting obligation still lacking• Energy companies in EU currently awaiting further details/guidelines
•Internal implementation process expected to last at least 12 months
On going follow-up and monitoring of compliance
Necessary adaptions of internal policies based on coming ACER Guidelines
Registration of DE as Energy Trader with DERA - probably earliest mid 2012
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