New law to protect European energy consumers from market manipulation

This new text is part of an overall reform of the electricity market in Europe and amends the 2011 regulation on the integrity and transparency of wholesale energy markets (REMIT). The Council and Parliament first reached an agreement in November 2023.

The Commission proposed the rule changes in response to the high and volatile energy prices in 2022, to prevent the risks of market manipulation and insider trading (taking advantage of privileged private information to carry out financial transactions).

Under the new regulation, the Agency for the Cooperation of Energy Regulators in the European Union (ACER) is given the right to investigate cross-border cases (where at least two member states are involved), carry out on-site inspections, issue requests for information, and collect statements.

ACER will have the power to impose periodic penalty payments to ensure compliance with on-site inspection decisions and requests for information.

However, ACER will not have the power to impose fines for infringements, breaches of prohibitions or substantial obligations, which remains the remit of national authorities.

The regulation also requires that EU wholesale energy market players resident in a third country appoint a representative in a member state in which they are active.

The regulation will now be signed and published in the Official Journal of the EU and will enter into force 20 days later.