The law, already informally agreed upon with Council, introduces new measures to better protect the EU’s wholesale energy market, better protecting the energy bills of European households and businesses from potential short-term market price fluctuations.
The Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) introduces a closer alignment to EU rules on the transparency of financial markets. It also covers new trading practices, such as algorithmic trading, and strengthens provisions on reporting and monitoring to protect consumers from market abuses.
Timely and transparent information dissemination
During negotiations with Council, MEPs reinforced the EU dimension and the supervisory role of the Agency for the Cooperation of Energy Regulators (ACER). The Agency will be tasked with adopting decisions on inspections, requests for information and authorisations of Inside Information Platforms (IIPs) and Registered Reporting Mechanisms (RRMs).
If ACER does not receive the necessary informationduring investigations concerning cross border cases, it can impose periodic penalty payments.
Quote
“REMIT is a very important tool in our efforts to prevent and fight malpractices in the energy market,” said lead MEP Maria da Graça Carvalho (EPP, PT).”With this legislation, European consumers, as well as small operators, will be served better. We will have stronger energy markets.”
Next steps
The regulation was adopted with 440 votes to 32, with 31 abstentions. It will now have to also be formally endorsed by Council in order to become law.
Background
In response to the energy crisis exacerbated by Russia’s invasion of Ukraine, the European Commission introduced the legislative proposal along with a reform of the Electricity Market Design on 14 March 2023. The proposal updates the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT), established in 2011 to combat insider trading and market manipulation, ensuring transparency and stability in the EU Energy markets.
Discussion about this post