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 Hot Topics 

 
1. When will updated information on Market Registration be available?


2. What is the I-SEM Stocktake Report?



3. Will this affect the Project Plan Timeline?



4. What are the VAT amounts based on, in the Balancing Market / Capacity Market?



5. What VAT information is required as part of the Balancing Market / Capacity Market registration?



6. What is a ‘place of establishment’ for VAT purposes?



7. Does a Party need to provide a VAT registration number as part of registration for the Balancing Market / Capacity Market?





1. When will updated information on Market Registration be available?

The I-SEM Project recently hosted a NEMO Settlement and Banking information Session on the 16th of February, 2017 and a Business Liaison Group Meeting on the 19th of October, 2016 to provide the latest information on the registration process for the I-SEM markets. For more information, please see the links below for the documents from the meetings or visit the Registration page here.

    1) Presentation - BLG Oct 19th, 2016
    2) Meeting Notes - BLG Oct 19th, 2016
    3) Transitional Registration Plan
    4) Presentation - NEMO Settlement and Banking Info Session Feb 16th, 2017

    For queries on Registration, you can contact the I-SEM Registration Helpdesk by emailing I-SEMRegistration@sem-o.com. Alternatively, please visit the Registration FAQs page for further information.

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    2. What is the I-SEM Stocktake Report?

    Some time ago the SEMC asked that a Stocktake exercise be conducted, to identify design and delivery risks associated with the I-SEM Programme, and to formulate a recommendation relating to whether an October 2017 Go-Live should still be pursued. You can view the Report, a Summary and the Draft Revised Level 1 Milestones here.

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    3. Will this affect the Project Plan Timeline?

    Yes, this will affect the timelines. Final details of the Stocktake and updates to the timeline were communicated to Participants at the Project Managers Group (PMG) on Feb 1st, 2017. Please see the links below for more information:

    1) Presentation - PMG Feb 1st, 2017
    2) Meeting Notes - PMG Feb 1st, 2017
    3) I-SEM Level 2 Plan
    4) I-SEM Level 2 Plan - Milestone Descriptions
    5) I-SEM Status Report

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    4. What are the VAT amounts based on, in the Balancing Market / Capacity Market?

    The I-SEM Balancing Market / Capacity Market Design is based on a wholesale pool concept. In this context SEMO as the Market Operator does not take title to the energy as part of the buying and selling of energy in the Balancing Market / Capacity Market.

    As approved by the Revenue Authorities of both the Republic of Ireland (ROI) and United Kingdom (UK) jurisdictions, SEMO calculate VAT amounts for the purposes of Participants completing VAT returns.

    These VAT amounts are based on the proportion of energy charges and payments in the Balanicng Market / Capacity Market relative to the place of establishment for VAT purposes of the buyer or seller.

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    5. What VAT information is required as part of the Balancing Market / Capacity Market registration?

    For determination of the applicable VAT treatment, SEMO need to know who is the party to the transaction and where they are established for VAT purposes. i.e. the legal entity who is buying and the legal entity that is selling in the associated transaction and where these legal entities are established for VAT purposes.

    Parties in the I-SEM are required to provide their place of establishment for VAT purposes as part of the registration of the Party and its Participants.

    Parties do not have to provide proof of the place of establishment for VAT purposes to SEMO. It is each Party’s responsibility to ensure that the correct place of establishment for VAT purposes is provided so that the corrrect VAT treatment is applied to the transactions. Where a Party has doubt over where it is established for VAT purposes, they should seek professional taxation advice considering the significant VAT consequences that such a position may have.

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    6. What is a ‘place of establishment’ for VAT purposes?

    This is governed by legislation and case-law of the Court of Justice of the European Union.
    Broadly speaking, an establishment for VAT purposes exists in the country where the functions of the business’s central administration are carried out i.e. the place where:

    - The essential decisions concerning the general management of the business are taken;
    - Its registered office is located; and
    - Its management meets.

    The above sets out factors which should be considered when determining where a business is established for VAT purposes. However, in instances where one or more of the above factors is not present, a VAT establishment in a jurisdiction may still exist. Each case should be assessed on its own merits.

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    7. Does a Party need to provide a VAT registration number as part of registration for the Balancing Market / Capacity Market?

    A Party should provide its VAT registration number for the jurisdiction in which it is established for VAT purposes in relation to the supply/purchase of energy in the Balancing Market and Capacity Market.

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    SEMO is a joint venture between EirGrid PLC and SONI Limited