ACER invites you to the 7th REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) Forum – REMIT II: Improving integrity and transparency in wholesale energy markets.

The REMIT Forum is a yearly event bringing together ACER and its stakeholders to discuss the implementation and potential evolution of REMIT, including topics like transaction reporting, data quality, and market surveillance.

When?

On Tuesday 5th December 2023, from 9.00 to 16.30 CET.

Where?

Online.

2023 Forum explores the main changes the REMIT revision would bring

In March 2023, the European Commission proposed to amend the REMIT Regulation. The proposal came as a response to the high energy prices experienced in 2021 – 2022 and aims to align the scope of REMIT with the evolving market dynamics.

2023 REMIT Forum will focus on the main changes this revision would bring, including:

• Expanded scope of data reporting.
• Extension of the scope of REMIT’s market abuse provisions to wholesale energy products that are also financial instruments.
• Harmonization of fines across National Regulatory Authorities (NRAs).
• Reinforced cooperation between energy and financial authorities.
• Strengthened ACER oversight over Registered Reporting Mechanisms (RRMs) and Inside Information Platforms (IIPs) to improve the collection of inside information and market transparency.
• Enhanced role of ACER in complex cross-border cases with a European dimension.
• Permanent extension of ACER’s power on the implementation of the Liquefied Natural Gas (LNG) price assessment and benchmark.

Read more and register to the event.

On 5th July 2023, ACER has received a proposal by transmission system operators (TSOs) to amend the congestion income distribution methodology for European electricity markets.

What is the congestion income distribution methodology about?

Congestion arises when there is limited capacity to transport electricity between different areas. The congestion income distribution methodology makes sure financial settlements are allocated when congestion occurs in the electricity transmission grid. It determines how the resulting revenues, generated from congestion, are distributed among the TSOs to ensure fairness and efficient operation of the electricity market.

Why change the rules?

The amendment proposal contains two main changes. In particular, it:

• Aims at providing solutions to address unintuitive flows (i.e. when electricity flows from an expensive zone to a cheaper one), in order to guarantee a non-discriminatory treatment of all TSOs (as required by the capacity allocation and congestion management (CACM) Regulation).

• Specifies how congestion incomes generated from the exchange of balancing capacity and the sharing of reserves should be distributed among TSOs.

What are the next steps?

ACER will reach a decision on the proposal by 5th January 2024.

To take an informed decision, ACER will engage in discussions with TSOs and national regulatory authorities (NRAs) as part of its decision-making process.

Access the public notice initiating the procedure.

ACER and the Council of European Energy Regulators (CEER) publish today their Energy Retail and Consumer Protection 2023 Market Monitoring Report (MMR).

On annual basis, ACER and CEER monitor the European internal energy markets of electricity and natural gas. 2022 was an unprecedented year for EU energy consumers and retail markets, as the post-pandemic recovery and Russia’s invasion to Ukraine caused wholesale energy prices to spike, which then heavily impacted consumers’ bills.

Against this background, this year’s energy retail and consumer protection MMR (based on 2022 data) looks at:

• The number of measures implemented in EU Member States as a response to the energy crisis, the budget allocated for financial support to consumers and how this evolved during the year in different countries.
• The status of retail energy markets across Europe.
• The European energy consumption and energy retail price patterns over 2022.
• The level of consumer information provided via energy bills and the number of consumer complaints handled during 2022.
• The level of consumer protection and engagement (including how the role of consumer and the definition of energy poverty changed) across Europe.

What are the main findings?

• In most Member States, retail electricity and gas prices rose significantly in response to wholesale price spikes. Despite the recent (2023) wholesale electricity prices reductions, end-user prices are falling at slower rates.  
  During the crisis, governments in each Member State stepped in to support their residential and industrial consumers. Such support comes at a cost to national budgets. An important lesson from 2022 is the need to further target support measures (if needed) and to incentivise cutting energy consumption.
• The crisis triggered demand reductions, particularly among industrial customers. On the contrary, energy demand in the household sector was not highly affected by the energy crisis.
• While in some Member States the uptake for fixed price contracts increased (compared to 2021), in others, customers switched to a variable price or other type of price contracts.
• The number of consumer complaints increased during the 2022 crisis.
• Thirteen Member States have successfully rolled out smart meters, while five countries have not yet started the roll-out. Hence not all consumers have the same opportunities to actively engage in energy markets.
• Consumer bills and comparison tools fail to meet the criteria as set out in EU laws. High-quality tools are needed for consumers’ informed choices.
• Practice shows that electricity household consumers are willing to reduce peak-time usage. 

The report also provides a series of recommendations, including:

• A list of possible targeted support measures that Member States could opt for in the future.
• The need to enhance monitoring and simplify access to information, so consumers can be more engaged, even in rapidly evolving market situations.
• The requirement for comparison tools covering the entire market to meet the standards set by EU law. It is key that consumers are able to understand their bills and are in a position to take informed decisions about their energy consumptions.

Would you like to find out more?

Access the 2023 energy retail and consumer protection market monitoring report.

Check out the MMR publications and energy market data from previous years.

Access the report's infographic.

What’s next?

Join our ACER-CEER webinar: Monitoring energy retail markets and consumer protection on Thursday, 14 September 2023. You will learn more about the report’s findings and can interact with our experts!