For the monitoring of wholesale energy markets, the Regulation on Wholesale Energy Markets Integrity and Transparency (REMIT) aims to establish a sector-specific legal structure to highlight and deter market manipulation.
This revolutionary step means that energy trading will be scrutinised at EU level to monitor for abuses and ill-discipline, and should lead to more trusted and effective energy markets – thus regaining the confidence of both consumers and participants. It is the first time that an EU-wide framework has been established to define, monitor and investigate market abuse.
ACER, the Agency for the Cooperation of Energy Regulators, will be involved at all levels once REMIT is in place and will follow the principles below:
1) ACER will be responsible for collating and analysing the wholesale markets and other essential information to try and pinpoint any possible abuses within those.
2) ACER will also keep the National Regulatory Authorities (NRAs) informed after an initial evaluation if there is believed to be any grounds to show that abuses have been committed.
Once the NRAs have been notified of an offence, the national authorities in member states will examine and investigate the issues and data in great detail and implement the requisite penalties to prevent these abuses or manipulations from occurring again in the future.
For these elaborate monitoring procedures to take effect, a careful and diplomatic stance needs to be endorsed because they involve intricate traded products and markets: these actions need to be followed in a circumspect method that will not overly encroach with the functions of energy markets.
REMIT concerns anyone and everyone who participates in or whose role directly impacts upon the wholesale energy markets within the EU – including non-EU residents. Non-EU and non EEA market participants might come under the scope of REMIT if they are involved with transactions in at least one wholesale energy market within the EU. This also means the registration of such involved bodies or firms under REMIT is essential, regardless of their location.