REMIT breach: Italian energy regulator (ARERA) fines ENET Energy S.A. €940,000 for gas market manipulation

ARERA, the Italian energy regulator, has imposed a €940,000 fine on ENET Energy S.A. (ENET) for sending false and misleading signals on the Italian gas market.

According to ARERA’s decision, on a single trading day in 2022, ENET nominated very high volumes of gas storage capacity (i.e. over-nomination), both for injections  and for withdrawals. This, together with ENET’s trading activity, sent false and misleading signals regarding the overall system imbalance, prompting the gas Transmission System Operator (TSO) Snam Rete Gas S.p.A. (Snam) to trigger balancing actions to ensure the system’s stability.

Under the REMIT Regulation (EU) No 1227/201, practices that distort the energy market are strictly prohibited. This includes the use of any fictitious devices (in this case a misuse of the over-nomination mechanism) or deceptive actions designed to mislead market participants about the true state of supply, demand, or prices of wholesale energy products.

ARERA found that ENET’s conduct breached Article 2.2.a.iii and Article 5 of REMIT Regulation. ACER welcomes this decision by ARERA, promoting the transparency and integrity of the Italian gas market.

Access ARERA’s Decision (in Italian).

See the latest table of REMIT breach sanction decisions adopted by national regulatory authorities.

Check the ACER REMIT Guidance (6th edition) for more information on the types of trading practices which could constitute market manipulation under REMIT.

Interested in further information on enforcement decisions under REMIT? Check out ACER’s REMIT Quarterly reports.