On 14 September 2011, the European Parliament took an important
step towards the approval of the EU Regulation on Energy Market
Integrity and Transparency (REMIT). REMIT will cover all wholesale
energy trading in the EU, including contracts and derivatives for
the supply and transportation of natural gas and electricity.
This will be of interest to all stakeholders in wholesale gas and
electricity markets and others, in addition to those involved in
commodity and emissions trading, as well as the aviation
sector.
REMIT aims to protect end consumers and prevent market abuse in
wholesale energy trading through creating more transparent pricing
across the EU. The President of the European Parliament, Jerzy
Buzek, said of REMIT, "I welcome this important regulation
which guarantees transparency and prevents abuses in wholesale
energy trading ensuring affordability and fairness in the
market."
These outcomes are to be achieved through the implementation of new
rules, including:
- prohibiting abusive practices affecting wholesale energy
trading markets, such as the use of insider information and market
manipulation;
- requiring Member States to implement penalties for the
infringement of REMIT;
- drawing up an EU register based on national registers listing
market participants; and
- independently monitoring all wholesale energy trading deals across the EU.
The newly established Agency for the Cooperation of Energy
Regulators (ACER) will undertake the monitoring of all trade
deals.
Next steps
The text of REMIT, as adopted by the European Parliament, is
available here. REMIT will now need to be approved by the
Council of Ministers. This is expected to take place in
October.
REMIT as a whole will enter into force 20 days after its
publication in the EU Official Journal but a number of provisions
will have effect at the times set out in the Regulation.
As REMIT is an EU Regulation, it will have direct effect in the EU
Member States, meaning it will be enforceable directly against EU
enterprises, regardless of whether the relevant Member State has
introduced national implementation measures.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 28/09/2011.
