Protection against market manipulation in the wholesale energy market: Council and Parliament reach
The Council and the Parliament reached a provisional political agreement on the regulation to improve the EU’s protection against market manipulation in the wholesale energy market (REMIT).
The REMIT regulation supports an open and fair competition in the European wholesale energy markets and sets the ground for increased market transparency and integrity.
This is good news for consumers and companies, especially in times of volatile energy prices. The REMIT regulation will improve the protection of consumers and companies against market manipulation and will strengthen the framework to address and prevent market abuse.
Teresa Ribera Rodríguez, acting Spanish third vice-president of the government and minister for the ecological transition and the demographic challenge
REMIT is part of a wider reform of the EU’s electricity market design. The remaining parts of the reform, which will be agreed by the Council and the Parliament at a later stage, aim to make electricity prices less dependent on volatile fossil fuel prices, shield consumers from price spikes and accelerate the deployment of renewable energies and improve consumer protection.
Registration of market participants
Both co-legislators agreed that market participants from third countries must designate a representative in a member state in which the market participants are active in the wholesale energy market. The representative must be designated by a written mandate and authorised to act on behalf of the market participant.
In addition, market participants are obliged to ensure that their representative has the necessary powers and means to ensure the market participants’ efficient and timely compliance with the decisions and cooperation with the requests for information of the national regulatory authorities or the European Union Agency for the Cooperation of Energy Regulators (ACER).
ACER’s decision-making powers and competence to impose sanctions
The Council and the Parliament agreed on the scope of ACER’s decision-making powers to on-site inspections, requests for information and authorisations or withdrawal of authorisations of Inside Information Platforms (IIPs) and Registered Reporting Mechanisms (RRMs).
In addition, ACER has the power to impose periodic penalty payments in order to ensure compliance with on-site inspection decisions and requests for information.
The power to impose fines for infringements or breaches of the prohibitions or substantive obligations included in the regulation will remain in the hands of the member states.
Delimitation of cases with cross-border impact
The provisional agreement provides that ACER has the right to investigate cases with a cross-border dimension and to prioritise cases.
ACER has the right to investigate cases where the conduct affects at least two member states.
Objection to the exercise of ACER’s investigation power
Both institutions agreed that the national regulatory authorities (NRAs) will continue to be able to object to the exercise of the agency’s investigatory powers when the NRAs have formally opened or have conducted an investigation on the same facts. The NRAs will have a maximum of 3 months to object.
ACER’s tools to conduct investigations
In order to conduct investigations, ACER will make use of several tools. For example ACER will be able to conduct on-site inspections and to issue requests for information as well as the power to take statements.
Next steps
The provisional agreement reached today with the European Parliament now needs to be endorsed and formally adopted by both institutions.
Background
The reform of the electricity market design proposes to amend the relevant electricity market legislation and improve the EU’s protection against market manipulation through better monitoring and transparency (REMIT).
The Commission adopted the proposals on the reform of the EU's electricity market design on 14 March 2023.