2 Legal framework
In December 2011, the EU adopted a dedicated market integrity and transparency regulation for the gas and electricity wholesale markets with an EU-wide monitoring scheme: Regulation (EU) No 1227/2011 on wholesale energy market integrity and transparency (hereinafter: REMIT). REMIT introduces a sector-specific framework for the monitoring of European wholesale energy markets, with the objective of detecting and deterring market manipulation.
It defines prohibitions of market manipulation, attempted market manipulation and insider trading. It introduces obligations to disclose inside information and it provides for the monitoring of wholesale energy markets by the Agency in close cooperation with national regulatory authorities (hereinafter: NRAs), the European Securities and Markets Authority (hereinafter: ESMA), financial authorities and other relevant authorities.
For the purpose of market monitoring, Article 8(1) of REMIT imposes an obligation on market participants, or third parties or authorities acting on their behalf, to provide the Agency with a record of wholesale energy market transactions, including orders to trade. Furthermore, Article 8(5) of REMIT requires that market participants shall report to the Agency and NRAs information related to the capacity and use of facilities for production, storage, consumption or transmission of electricity or natural gas and use of LNG facilities, including planned or unplanned unavailability of these facilities (’fundamental data’).
REMIT also gives NRAs the option to monitor wholesale energy markets at national level and calls on Member States to provide them with appropriate investigatory and enforcement powers (see Article 13 of REMIT). REMIT also requires that the Agency shall establish a mechanism to share information it receives in accordance with Article 8 with NRAs and other relevant authorities (see Article 7(2) and 10 of REMIT).
According to Article 8(2) and 8(6) of REMIT, the European Commission shall, by means of Implementing Acts, adopt uniform rules on the reporting of records of transactions, including orders to trade.
As regards the reporting of transactions, Article 8(2) of REMIT states that the Commission shall, by means of Implementing Acts:
a) draw up a list of the contracts and derivatives, including orders to trade, which are to be reported in accordance with paragraph 1 and appropriate de minimis thresholds for the reporting of transactions where appropriate;
b) adopt uniform rules on the reporting of information which is to be provided in accordance with paragraph 1;
c) lay down the timing and form in which that information is to be reported.
As regards the reporting of fundamental data, Article 8(6) of REMIT states that the Commission shall, by means of Implementing Acts:
a) adopt uniform rules on the reporting of information to be provided in accordance with paragraph 5 and on appropriate thresholds for such reporting where appropriate;
b) lay down the timing and form in which that information is to be reported.
On 17 December 2014 the Commission adopted the REMIT Implementing Regulation according to Article 8(2) and 8(6) of REMIT. According to Article 5(2) of the REMIT Implementing Regulation, the Agency shall explain the details of the reportable information in relation to standard and non-standard contracts for the supply and transportation of electricity and gas in a user manual and after consulting relevant parties make it available to the public upon the entry into force of the REMIT Implementing Regulation. On this basis, the Agency has developed this Transaction Reporting User Manual (TRUM), in which the details of the reportable information are explained.
On 31 March 2014, the Agency launched a first public consultation on the TRUM which was open until 5 May. The first public consultation document was prepared on the basis of the draft REMIT Implementing Regulation presented by the Commission in October 2013 and also took into account the feedback received during the public consultation on Technical Standards in spring 2013.
Following the end of the first consultation, the Agency further elaborated the TRUM, taking into account the input received during the first consultation in spring 2014. On 22 July 2014, the Agency launched a second public consultation on the TRUM which was open until 2 September 2014. The second public consultation document was prepared on the basis of the draft REMIT Implementing Regulation presented by the Commission in July 2014. In addition to the public consultations, the Agency organised a number of roundtable meetings and workshops with relevant stakeholders in order to consult on the topics of the TRUM.
An ACER staff working document version was published on 9 December 2014 and presented in a public workshop on 10 December 2014.