Last month saw the commencement of data reporting under the European Regulation on Wholesale Energy Market Integrity and Transparency ("REMIT"). It is reported that the Agency for the Cooperation of Energy Regulators ("ACER") has successfully started collecting data and had received more than one million records of transactions of wholesale energy market contracts.
REMIT came into force on 28 December 2011 and provides for an EU-wide monitoring regime to detect and deter market abuse in wholesale energy market. REMIT is an attempt by the European Parliament to create a similar framework to that which exists under the Market Abuse Directive in respect of financial services products.
REMIT provides for a shared responsibility between ACER and the National Regulatory Authorities (the "NRAs") including the Commission for Energy Regulation (the "CER") in Ireland. ACER has been tasked with collecting and reporting wholesale market transaction data across the EU and performing an initial assessment of anomalous events, before notifying suspicious cases to the NRA.
REMIT applies to "market participants" which means any person, including transmission system operators, who enters into transactions including the placing of orders to trade in one or more wholesale market.
The 3 Pillars
REMIT consists of 3 pillars:
(i) the prohibition on insider trading and market abuse;
(ii) the mandatory requirement to register with NRAs, to report trading information to ACER and to publish inside information to market; and
(iii) the implementation of new monitoring enforcement and investigation roles for the NRAs.
The 3 Phases
The REMIT registration and reporting process has been divided into 3 phases, as follows.
(i) registration of market participants as Registered Reporting Mechanisms ("RRMs") with the NRAs, including the CER, was required by 17 March 2015;
(ii) reporting to ACER of wholesale energy supply and derivatives contracts admitted to trading at organised market places such as the Single Electricity Market commenced on 7 October 2015; and
(i) reporting to ACER of the remaining wholesale energy contracts (over the counter standard and non-standard supply and derivatives contracts and transportation contracts), and fundamental data applies from 7 April 2016.
The CER launched a link to ACER's online REMIT portal (the "CEREMP") earlier this year which allows the market participants to register as RRMs and makes various supporting...