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REMIT

Regulation on Wholesale Energy Market Integrity and Transparency (REMIT)

The Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) is an EU regulation designed to increase the transparency and stability of the European energy markets while combating insider trading and market manipulation.

Objective

The main purpose behind REMIT is to outlaw market abuse in the wholesale gas and power market in Europe. REMIT is part of the “third package” of rules that are intended to move the EU towards a single wholesale market.

REMIT applies to all physical and financial trades, and also includes liquefied natural gas (LNG) where the supply is intended for the EU network.

REMIT provides a consistent EU-wide regulatory framework specific to wholesale energy markets that:

  • defines market abuse including market manipulation, attempted market manipulation or insider trading,
  • explicitly prohibits market abuse,
  • requires effective and timely public disclosure of inside information by market participants,
  • obliges firms professionally arranging transactions to report suspicious transactions.

Anyone who executes a trade for delivery inside the EU – no matter where in the world they are based – is subject to the rules. In this sense, REMIT is distinct from many financial regulations. REMIT is enforced by National Regulatory Authorities (NRAs), who are usually energy regulators. For example, in Germany the Market Transparency Unit for Wholesale Electricity and Gas Markets, a joint institution by the Bundesnetzagentur, Germany’s regulator for electricity & gas, telecommunications, post and rail markets, and the Bundeskartellamt, Germany’s competition regulator, is responsible for executing REMIT. The entire effort is coordinated on an EU-wide basis by ACER, the Agency for the Cooperation of Energy Regulators.

REMIT creates a very important framework for identifying and penalising market abuse in Europe. This helps consumers, industry and other participants have confidence that wholesale energy prices are open, fair and competitive, the foundations of an effectively functioning energy market.

All participants trading wholesale gas or electricity contracts for delivery in Europe are affected.  Since 2015, they have to report information about their trading activity on Organised Market Places to ACER as well as outside Organised Market Places.

Timeline

REMIT entered into force in December 2011, with reporting requirements being applicable from 2015 on.

REMIT: the highlighted parts of the value chain are affected


Joint REGIS-TR and EEX REMIT reporting

This enables the customers of the European Energy Exchange (EEX) to report data to ACER through the European trade repository to fulfil their obligations according to REMIT. For more information, please click here.

Legal basis

Find the most recent legal texts on this regulation here.