The Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) provides an EU framework for ensuring the transparency and integrity of energy markets and deters market participants from manipulating the market. It has also an important role in protecting the interests of companies and consumers and ensuring trust in energy markets.

The REMIT Quarterly is ACER’s main channel of communication with stakeholders on REMIT-related matters. It provides updates on quarterly basis.

What are the updates of the 3rd quarter (July – September) of 2023?

This 34th edition releases the programme of the 7th ACER REMIT Forum (5 December, online) and provides insights into the following topics:

• an updated overview of the sanction decisions for the past year, with 364 REMIT cases under review at the moment;
• a fine of €80,000 for non-timely disclosure of inside information relating to the French electricity market;
• statistics for registered reporting mechanisms’ (RRMs’) contingency reports;
• an assessment of trading on organised market places.

Access the 34th issue of REMIT Quarterly.

Access all issues of REMIT Quarterly.

Today, ACER releases its report on the progress of EU electricity wholesale market integration, which is part of the 2023 Market Monitoring Report series.

The report evaluates the functioning of the EU’s internal electricity market in 2022, with a focus on the performance of the forward and balancing markets. The report also assesses whether the electricity markets were contributing to the delivery of clean, affordable, and reliable energy and therefore effectively pushing towards the decarbonisation targets set by the European Green Deal.  

In 2022, electricity markets saw significant price spikes, mainly due to the Russian invasion of Ukraine. In its analysis, the report underscores how market integration is essential to reinforce the electricity wholesale markets’ resilience.

What are the benefits of having an integrated EU electricity wholesale market?

Reinforcing the cross-border interconnector capacity between Member States allows to advance the integration of the European electricity wholesale market. This offers several benefits, such as:

• Consumers can benefit from more competitive (larger) markets.
• Reinforced long-term security of supply (at lower cost) and mutual assistance in case of crises.
• More efficient resource utilisation (balancing of demand and supply at EU level).
• Promotion of renewable energy sources (RES).
• Increased resilience and network stability.
• Encouraged innovation and infrastructure investments.

What are the report's key findings?

The report analyses the status of the electricity wholesale market integration in 2022, taking into account the exceptional circumstances caused by the energy crisis:

• Interconnected electricity markets provided increased resilience against the energy crisis and ensured security of supply.
• Ukrainian power system is synchronised with Continental Europe (since 16 March 2022) under the emergency regime. Cross-border capacity allocation and commercial exchanges contribute to market functioning. While progress was achieved, joint cross border capacity allocation is yet to be implemented.

    Main challenges of market integration

• The main challenge of electricity market integration is long-term markets. It is important to improve liquidity in the European forward markets. Member States’ Transmission System Operators (TSOs) must ensure sufficient capacity is available for cross-zonal trading when needed, especially in the short-term markets, which are now developed (coupled) throughout Europe, and face the challenge of ensuring cross-zonal capacity availability. The next significant step in the market evolution is the development of long-term markets.
• Scarce forward hedges have increased liquidity in the spot market. Hedging is a simple way to manage crisis uncertainty. However, measures like collateral requirements and high bank guarantees forced some market participants to switch from organized forward trading to spot or bilateral trading (potentially increasing volatility).
• On balancing markets, the limited engagement of TSOs and data availability are hindering the success of balancing platforms.
• In 2022, congestion income (i.e. the revenue generated as a result of congestion in electricity transmission systems) increased by more than three times compared to 2021 across Europe, accompanied by a surge in remedial costs (challenging overall price stability). Member States can address congestions without additional operating costs (i.e. grid topology change, phase shifter transformer usage). On the other hand, remedial measures (like re-dispatching, countertrading, or curtailment of allocated capacities) can come at a significant cost – potentially discouraging the deployment of renewable energy sources (RES).

Role of ACER and National Regulatory Authorities (NRAs)

ACER and the NRAs are exploring developments in the European forward electricity markets, continuing the debate which started in February 2023 (with the publication of ACER Policy Paper on the further development of the EU electricity forward market).

What are ACER’s recommendations?

• Improve cross-border electricity trade to strengthen market integration (and its resilience).
• Advance the progress of forward electricity markets by expanding their development and utilizing Long-Term Transmission Rights (LTTRs) for hedging.
• Reinforce the engagement of TSOs in balancing markets. This could be done by considering slower balancing reserves to manage price fluctuations more effectively.
• Manage re-dispatching expenses and promote the deployment of renewable energy sources, particularly in those regions with high RES-generation potential. This will clearly support the energy transition goals and ensure compliance with the legal requirement to stay below the 5% curtailment limit.

What are the next steps?

On 7 November 2023, ACER will organise a webinar to present its report and discuss with stakeholders. Register here.

Access the Progress of EU electricity wholesale market integration report.

On 24 October 2023, the National Regulatory Authorities (NRAs) of the Core capacity calculation region requested from ACER an extension of three months to agree on the Transmission System Operators’ (TSOs’) second proposed amendment to the Core day-ahead electricity capacity calculation methodology.

The Core region comprises 13 countries: Austria, Belgium, Croatia, Czech Republic, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

What is the methodology about?

The day-ahead capacity calculation methodology describes the rules of each Capacity Calculation Region (CCR) on how to calculate the amount of capacity available for trading between bidding zones at day-ahead market time frame.

What are the NRAs asked to decide about?

The TSOs’ proposal suggests an implementation of the Advanced Hybrid Coupling (AHC) aiming at reducing the volume of unscheduled allocated flows on the Critical Network Elements with Contingencies (CNECs) of the Core CCR. These unscheduled flows result from electricity exchanges on the bidding zone borders of adjacent CCRs.

What are the next steps?

ACER intends to act promptly on this request, aiming to reach a decision by mid-December.

Access the Public notice.

Today the annual report monitoring the internal gas market in 2022 and 2023 is published.

This ACER-CEER report provides an overview of the latest developments in European gas markets and examines the drivers of the gas price spikes in summer 2022. The report draws lessons from the crisis and identifies forward-looking implications to offer strategic perspective for policy makers to make the market more resilient. 

What are the key findings and lessons?

• The EU's integrated gas system showed a certain resilience against the energy crisis. Yet, the severe supply shock led to highly congested access to LNG terminals and pipelines, causing price surges, hub price disparities and trading disruptions.
• After the 2022 shock, the European gas market supply and demand balance improved thanks to consistent imports of Liquified Natural Gas (LNG) and a significant decreased gas demand. This resulted in gas prices to trend closer to pre-crisis levels.
• Global gas supply overall is still tight, exposing prices to unexpected developments. China’s LNG demand recovery remains an important influencing factor on EU gas prices going forward.
• The report highlights the lasting impact of the Russian supply shock on the EU energy market and the steps done to overcome the supply dependence. It draws some lessons for the future around the EU gas markets’ future resilience factors: increased EU reliance on LNG; reducing gas demand; revenue redistribution; and the enhanced security of supply role of underground storages.
  • European gas prices will be more exposed to global competition and hence will be more volatile.
  • The reduction in conventional gas demand shall assist the EU’s decarbonisation goals. Yet, it needs to be done smoothly in order to preserve the economic activity and the security of supply that gas offers to the EU’s energy system.

Also today, the European Securities and Markets Authority (ESMA) publishes its report examining the development of gas trading activity in summer 2022. ESMA analyses reveal a well-maintained trading activity despite a more challenging trading environment.

What’s next?

• Save the date: on 16 November 2023, ACER and CEER are organising a webinar on evolving trends in the European gas market. Register here.
• Early 2024: Analysis of LNG market developments.

Access the ACER-CEER European gas market trends and price drivers report.

Dive into ACER’s interactive dashboard and explore the evolution of price and demand supply metrics for the period 2015 to 2023.

ACER is seeking for applicants to join two new expert groups which will be established to advise and contribute to ACER’s work under REMIT. The expert groups will seek to build on the good experience of previous REMIT expert groups organised by ACER.

The expert group on wholesale energy market integrity and transparency will advise on REMIT surveillance, conduct, integrity, and transparency (including assessing the obligation to disclose inside information); as well as on how other EU legislation, or new technologies, could impact energy trading and the functioning of the internal energy market.

The expert group on wholesale energy market data reporting will contribute to improving data collection, in particular how market participants can better comply with the data reporting requirements foreseen by the regulation.

How to apply?

We are seeking for a diverse group of experts with experience in wholesale energy market integrity and transparency, trading, and reporting of REMIT data. We will also be seeking to ensure representation of the stakeholders impacted by the work of ACER (e.g. market participants, organised markets and other persons professionally arranging transactions, Registered Reporting Mechanisms, Inside Information Platforms, etc.).

To apply, please follow the instructions in the Open Letters and make sure you fulfil all the application criteria.

Deadline to apply is Monday 20 November 2023.

Access the Open Letter on the establishment of an expert group on wholesale energy market integrity and transparency and the Open Letter on the establishment of an expert group on wholesale energy market data reporting.

EU Member States need to massively ramp up their renewable power capacity in the coming years. This increase in renewables from variable sources, such as wind and solar, will also increase the need for ‘flexibility’ in the EU electricity system. A joint report released today by two EU agencies, EEA and ACER, demonstrates how Member States could exploit collaboration synergies to unlock flexibility and enhance energy security while contributing to long-term climate neutrality. Key levers include better cross-border planning and forecasting, enhanced use of interconnectors as well as financial incentives and reliable information for electricity consumers to adapt demand when needed.

With the EU 2030 renewables target of 42.5% (compared with 22% in 2021), this decade will see an accelerated decarbonisation of EU electricity supply. A joint report by the EU Agency for the Cooperation of Energy Regulators (ACER) and the European Environment Agency (EEA) underlines the need to double the 'flexibility' of Europe’s power system to keep pace with the growth in renewables from variable sources, such as wind and solar.

Flexibility is the power system’s ability to adjust to the fluctuating generation and consumption of energy. Flexibility can be provided in different timeframes, such as days, weeks or seasons and by different technologies. Currently, peak generation gas plants provide much of the flexibility but with the clean energy transition, other types of flexibility resources are needed from both the demand and supply side. Meeting the flexibility challenge facilitates the deployment of renewables and brings benefits to European Member States and consumers.

The report underlines that: 

• Flexibility in the EU power system needs to almost double by 2030 compared to today to keep up with the growth of variable renewable electricity sources.
• Enhanced electricity interconnection is key. More grids should be built across borders and the existing grid capacity used better. Interconnectors facilitate the efficient flow of electricity across borders to where it is most needed. Existing and planned interconnectors facilitate flexibility to be shared across border and in 2030 could prevent the forced curtailment of variable renewable power (to balance the system) by an amount equivalent to the 2022 electricity consumption of Sweden.
• A combination of demand response and energy savings not only reduces energy bills but also provides much needed flexibility, thus facilitating renewables and supporting Europe’s security of energy supply. In 2030, better demand response and energy savings could reduce the need for power supply from sources other than wind and solar by an amount equivalent to the 2022 electricity consumption of Spain.
• Allowing price signals to drive investments and consumer behaviour is key. Consumers also need reliable information to make well-informed choices.
• The ACER-EEA report calls for Member States to better assess and have complementary national and EU-wide assessments of flexibility needs (as currently being discussed by Europe’s co-legislators in the electricity market design reforms).
• To foster common policies across borders, Member States could introduce regional cooperation on flexibility into their National Energy and Climate Plans (NECPs), and include detailed energy data in their greenhouse gas emission projections.

The ACER-EEA report 'Flexibility solutions to support a decarbonised and secure EU electricity system' is presented by the EU Agencies at today’s (20th October) meeting of Member States’ Energy Director Generals in Madrid, under the Spanish Presidency of the Council of the EU.

What’s next?

Today's joint ACER-EEA report highlights demand response as a key flexibility solution. In December 2023, ACER will publish a report on barriers to demand response that should help Member States unlock its potential.

Read the report.

See the report’s infographic.