The application shall contain the following information1:
I. Contact information:
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Name
Address
Corporate identification number
Telephone number
E-mail address
Contact person in the entity who can provide information about the application
Contact person's position, direct telephone number and e-mail address
II. Contact information for a representative:
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Name
Address
Telephone number
E-mail address
Power of attorney proving that the representative has the right to represent the entity
III. Information demonstrating compliance with Article 6 of CACM Regulation:
1. The applicant shall report if it has applied to be designated or already has been designated in
another Member State. A copy of all decisions of designation must accompany the application.
2. The entity shall report if it is a party to any current legal dispute or arbitration which might
affect the assessment.
3. The entity shall report if it intends to perform both the single day-ahead and intraday coupling,
or only one of them.
4. The entity shall report if it intends to operate only in bidding zone in Latvia or also in other
bidding zones of other countries (please indicate them).
5. The entity shall report any considerations and risks that have been taken into account when
assessing that the total capital and its structure (equity share versus borrowed capital) in the
entity is adequate. This shall be done in relation to the nature and scope of a market operator.
6. The entity shall report where and how market participants will have open access to information
regarding the tasks of NEMO in accordance with Article 7 of CACM Regulation.
7. The entity shall present a detailed plan on how (by using a chart of accounts and distribution
keys) it intends to separately report its costs for NEMO functions and MCO functions described
in Article 7(1) and 7(2) of CACM Regulation in relation to other operations. The entity shall
also present its accounting processes and how it intends to financially distinguish an operation
that is exposed to competition from possible legal monopoly revenues.
8. The entity shall report if the entity is a joint venture that owns power exchanges in several
Member States, or if any fractional ownership or other interests exists with other market
participants.
9. The entity shall report its procedures, processes and allocated resources for carrying out market
surveillance, especially with regard to identifying and reporting any potential issues related to
Regulation (EU) No 1227/2011 of 25 October 2011 on wholesale energy market integrity and
transparency (REMIT).
10. The entity shall report any contractual agreements/arrangements (MoUs) with regulatory
authorities and the Agency for the Cooperation of Energy Regulators (ACER) regarding
commitments for market surveillance.
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The list contains the minimum information to be submitted and shall not be considered as exhaustive
list
11. The entity shall report its clearing services, clearing agreements with its clients and clearing
fees.
12. The entity shall present the collateral requirements imposed on its clearing members/clients.
IV. Information demonstrating compliance with Article 7 of CACM Regulation:
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Board meetings minutes showing that the entity's board has approved the application.
Proof of completed tax payments.
The annual report for the entity/entities to which the application relates.
A forecast for the next three fiscal years. The forecast is to be specified per type of activity:
NEMO tasks, MCO tasks and the entity's other operations, and shall include:
a) A balance sheet and profit and loss statement
b) An analysis of the entity's capital.
A forecast shall be signed by the CFO or equivalent. A forecast shall be accompanied by a
disclosure of the assumptions on which it is based.
A sensitivity analysis shall also be submitted showing the impact of a changing assumption
(e.g. on volumes) on the specified forecasts and on the entity´s capital.
The entity shall also describe how they intend to finance the operation. If there are parent
entity guarantees or similar, the circumstances surrounding these shall be reported.
5. Information that includes the following:
a) The entity’s operation
The entity shall describe its operation in detail and how it corresponds to the designation that
the entity is applying for.
For each operation the entity is seeking designation for, the business plan shall include
detailed flowcharts with the most central processes that exist. Each flowchart must show how
the entity's internal control will be organized and conducted.
b) Organisation
The entity shall present how the NEMO functions are organized, using a schematic overview.
The overview shall indicate how many people will be working within these areas or functions.
It shall also be indicated whether the entity has staff employed in other companies, if the
entity shares premises and technical equipment with others, and, where appropriate, how the
entity intends to deal with any resulting privacy issues.
c) Compliance
The entity shall specify the person/s and their contact information specifically assigned
internally for monitoring that the regulatory framework concerning the NEMO tasks is
observed. Updated information in this respect shall be continually provided to PUC.
d) Assignment agreements
The entity shall report whether they intend to engage a third party to perform work or
functions that are essential for carrying out the functions of NEMO. A report shall include the
nature and scope of the assignment and how the entity intends to ensure that the outsourced
operation will be run in accordance with the applicable rules of operation. The entity is
responsible for all activities subject to designation requirements, whether all functions are
performed within the organization or by a third party.
e) Technical systems and operational reliability
The entity shall present the most central IT systems and resources that the operation depends
on in terms of, inter alia, ownership and/or access via operating and service agreements. The
entity shall also specifically report which systems and procedures that are in place to
communication with the Latvian TSO AS ”Augstsprieguma tīkls”.
The plan shall also include a risk analysis with respect to the IT systems, a description of
backup systems, and procedures for the ongoing monitoring and documentation of the IT
systems' performance and availability.
f) Management of conflicts of interest
The business plan shall include a description on how the entity will deal with potential
conflicts of interest between the entity and its owners, as well as conflicts of interest between
performing an efficient MCO function and other operations.
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If the entity has adopted guidelines or other internal rules for identifying and managing
conflicts of interest, these should be attached to the business plan.
A list of the shareholders who control more than 5 per cent of the votes in the entity. A
detailed description of the shareholder/s who exercise control in accordance with the concept
of control, as it is specified in Council Regulation (EC) No 139/2004 of 20 January 2004 on
the control of concentrations between undertakings.
A list of the entity's board members, managing director, corresponding chief financial officer
and authorised signatories, and a detailed description for each one concerning any other
commitments and business that relates to other market participants.
Rules and contract terms that guarantee that all market participants are treated equally and in
a non-discriminatory manner.
A written confirmation from the Latvian TSO AS ”Augstsprieguma tīkls” that necessary ITsystems and routines are in place between the entity and AS ”Augstsprieguma tīkls” .
V. A declaration is to be attached as a separate appendix with the following information included:
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I hereby certify that the information provided in this application is true, correct and complete.
Place and date
Signatory or authorised representative's signature
Name clarification