On 30 December 2022, Council Regulation (EU) 2022/2576 “Enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders” has entered into force.

The Regulation tasks ACER with producing and publishing a new daily Liquefied Natural Gas (LNG) price assessment starting no later than 13 January 2023, and grants ACER the powers to collect LNG market data.

LNG market data collection

As of today, 20 December 2022, LNG market participants who need to comply with their reporting obligation under the Regulation will be able to register and submit their LNG market data to ACER via a dedicated data collection platform, called TERMINAL.

ACER provides step by step guidance to LNG market participants on how to register.

To collect the LNG market data in accordance with the Regulation, ACER has:

• Set up a dedicated webpage on LNG price assessment;

• Created a data collection system for reporting LNG market data (TERMINAL); and

• Prepared guidance for LNG market participants to fulfil their reporting obligations (List of Documents).

Registration of LNG market participants

To submit their data, LNG market participants must register and create a user account at TERMINAL. Since LNG market participants should be subject to the obligations and prohibitions that apply to market participants according REMIT, LNG market participants shall also be registered in the Centralised European Register of Energy Market Participants (CEREMP). LNG market participants not registered in CEREMP are advised to register with their relevant EU National Regulatory Authority (NRA) as soon as possible.

Detailed information on the registration process of LNG market participants in CEREMP and TERMINAL is available here.

Read more on LNG Price Assessment here.

The EU Agency for the Cooperation of Energy Regulators (ACER) has published the 28th edition of the Questions & Answers (Q&As) on REMIT (Regulation on Wholesale Energy Market Integrity and Transparency). This edition includes new reporting guidance on:

• battery storage contracts (Q&A III.3.51);

• electric vehicle charging stations (Q&A III.3.52);

• reliability options contracts (Q&A III.3.53); and

• metering data-based nominations (Q&A III.4.7).

The updated Q&As also clarify the reporting of external factors affecting the production of a unit (Q&A III.7.16) and the qualification of inside information for non-EU facilities (Q&A III.7.24).

Additionally, the updated Q&As on REMIT recall that as of 1 January 2023 the disclosure of inside information is expected to take place exclusively through Inside Information Platforms, meaning that market participants will no longer be able to use their corporate websites for that purpose either as a primary or backup solution. ACER’s REMIT Portal provides a list of available Inside Information Platforms that comply with the minimum quality requirements for effective disclosure of inside information, as per the ACER Guidance, and ensure that inside information is disclosed to as wide a public as possible on a non-discriminatory basis[1].Moreover, the market participants may consider the use of Inside Information Platforms and Transparency platforms as effective backup solutions.

Find out more here. 

_______________________________________________________________________________

[1] For more information on the use of Inside Information Platforms and the development of minimum quality requirements for effective disclosure of inside information, see ACER Guidance on the application of REMIT, p 44 et seq.

The EU Agency for the Cooperation of Energy Regulators (ACER) is establishing an Expert Group on LNG Price Assessment/Benchmarks.

Application deadline is 14 December 2022.

The proposed new Council regulation on enhancing solidarity through better coordination of gas purchases, exchanges of gas across borders and reliable price benchmarks tasks ACER with developing an LNG price assessment tool by collecting real-time information on all daily transactions.

The new Expert Group on LNG Price Assessment/Benchmarks will build on the experience of previous Expert Groups organised by ACER, providing expert views and opinions on the development of regulatory policies and measures related to LNG price assessments and/or benchmarks.   

The terms of reference for the Expert Group and the specific criteria for the experts are set out in the Open Letter on the Establishment of an Expert Group on LNG Price Assessment/Benchmarks. The work of the expert group shall begin following publication of the regulation in the Official Journal of the European Union.

Read the Open Letter on the Establishment of an Expert Group on LNG Price Assessment/Benchmarks.

Following extensive consultation with stakeholders launched in June 2022 that aimed to improve REMIT data reporting, the EU Agency for the Cooperation of Energy Regulators (ACER) publishes today:

• the updated Transaction Reporting User Manual (TRUM) and its Annexes;

• the updated Frequently Asked Questions (FAQs) on REMIT transaction reporting; and

• a new version (electronic format) for the reporting of REMIT Table 1 transactions.

ACER regularly updates its transaction reporting guidance for stakeholders who have to comply with REMIT data reporting obligations. Reporting parties are expected to comply with the updated guidance within six months of its publication (i.e. by mid-2023).

ACER thanks all the stakeholders who contributed to the consultation of the guidance documents and who tested and provided feedback on the new electronic format.

The amendments provided in the updated TRUM (version 5.1) mainly focus on clarifying the reporting obligations for broker organised market places (broker OMPs), and also for market participants entering into transactions on wholesale energy markets via third party accounts (focusing on Direct Market Access). Several Annexes of the TRUM have also been updated under the current guidance revision:

• Annex II to the TRUM, with new examples of transaction reporting related to spread trades and trades at settlement;

• Annex III to the TRUM, aligning the content with the TRUM related to Direct Market Access;

• Annex IV to the TRUM, aligning the Unique transaction identifier (UTI) Generator with the additional allowed values for contract type and quantity unit for REMIT Table 1 reporting;

• Annex V to the TRUM, with new abbreviations;

• Annex VII to the TRUM, including clarifications on lifecycle reporting of orders.

During the consultation process, ACER consulted with and considered the input from different stakeholders, including associations of market participants, organised market places, and registered reporting mechanisms.

Access the new versions of the Transaction Reporting User Manual and its Annexes.

The new (14th) edition of the FAQs on REMIT transaction reporting provides additional guidance on specific business scenarios to better reflect the development of the trading activity on the EU wholesale energy market (e.g. transactions concluded via Direct Market Access and trades cleared on exchanges).  

Access the new version of the FAQs on REMIT transaction reporting.

The new Version 3 of the electronic format for the reporting of REMIT Table 1 transactions implements selected changes from the Public Consultation on the Revision of electronic formats for transaction data, fundamental data and inside information reporting (PC_2017_R_03), as well as changes required for the alignment of the electronic format with the Transaction Reporting User Manual (TRUM).

In order to reflect the changes in the new electronic format, ACER also published updated versions of the Manual of Procedures on Data Reporting including its Annex III and Annex V, the ARIS Data Validation document, and the ARIS Data Validation Rules Configuration Document on ACER’s website.

ACER plans to retire the older versions of the electronic format for the reporting of REMIT Table 1 transactions after a transition period. Reporting entities can continue using Version 1 (REMITTable1_V1) until 16 May 2023, and Version 2 (REMITTable1_V2) until 16 October 2023.

Access the new Version 3 of the electronic format for the reporting of REMIT Table 1 transactions.

Access the new version of the Manual of Procedures on Data Reporting.

Access the new version of the ARIS Data Validation document.

Access the new version of the ARIS Data Validation Rules Configuration Document.

High prices and high volatility on the wholesale energy markets has led the EU Agency for the Cooperation of Energy Regulators (ACER) and National Regulatory Authorities (NRAs) to reinforce their scrutiny (under REMIT) to detect and sanction possible instances of market abuse.

REMIT is the EU-wide framework for detecting market abuse established under the Regulation on Wholesale Energy Market Integrity and Transparency (EU No 1227/2011).

In the current crisis and exceptional market circumstances (characterised by scarce electricity and gas supplies, unprecedentedly high prices and price volatility), vigilance in detecting market manipulation and insider trading is more important than ever to ensure confidence in the integrity of the EU wholesale energy markets.

Formation of a cross-border investigatory group

ACER and the NRAs across Europe are actively analysing the behaviour of market participants, including non-EU companies, on the wholesale energy markets to:

• detect market manipulation that may have contributed to the current market situation and manipulative behaviours that may have emerged since the beginning of the energy crisis (due to the high price volatility);
• identify potential situations of inaccurate or misleading information provided to the market and/or insider trading.

ACER and the energy regulatory authorities of Austria, Germany and the Netherlands have established a cross-border investigatory group on the oversight of the gas markets. The aim of a cross-border investigatory group is to coordinate and strengthen the efforts on fact-finding and evidence gathering. The investigatory group will be closed when sufficient evidence is gathered to pursue a case or if NRAs conclude on the absence of a REMIT breach.

Neither ACER nor the NRAs are in a position to further comment on specific ongoing investigations, which can span over several years.

Background on role of ACER and NRAs under REMIT:

ACER’s activities

Under the REMIT framework, ACER is mandated to carry out data collection and the monitoring of wholesale energy markets at a Union-wide level. Further, ACER issues guidance and coordinates the activities of the NRAs to ensure a coherent application of REMIT and an effective approach to tackling market abuse. ACER has no direct role in investigation and enforcement.

What is the role of the NRAs under REMIT?

NRAs investigate potential insider trading and market manipulation cases and enforce REMIT through a range of remedies and sanctions determined by the national law of the respective Member States.

See the new table of REMIT breach sanction decisions adopted by NRAs. 

The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today the 30th edition of its REMIT Quarterly, covering the third quarter of 2022.

REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) sets the ground for increased market transparency and integrity of the energy markets to ensure trust in the functioning of these markets and fosters market integration. It also deters market participants from manipulating the market. Thus it has an important role in protecting the interests of companies and consumers.

What is the REMIT Quarterly?

The REMIT Quarterly is ACER’s main channel of communication with stakeholders on REMIT-related matters, and provides updates on ACER’s REMIT activities.

The new edition features:

• An article on a REMIT breach in the Netherlands which resulted in a fine imposed on a Dutch company for failure to publish inside information;
• The statistics on registered reporting mechanisms’ (RRM) contingency reports;
• The recent updates of the REMIT documentation; and
• An updated overview of the sanction decisions for the last four quarters.

Read more. 

• New joint ACER–ESMA Task Force
• Enhanced market surveillance and enforcement

The EU Agency for the Cooperation of Energy Regulators (ACER) and the European Securities and Markets Authority (ESMA) are strengthening their cooperation to further improve information exchange and avoid potential market abuse in Europe’s spot and derivative markets.

The two EU agencies have a long-established cooperative relationship considering the interlinkages between spot and derivative energy markets. One of the fora where this cooperation takes place is the Energy Trading Enforcement Forum (ETEF) where the energy National Regulatory Authorities (NRAs), the financial National Competent Authorities (NCAs), ESMA and ACER discuss implementation issues concerning market abuse rules and share their experience in relation to their supervisory activity and enforcement actions to ensure consistency across the EU.

New joint ACER–ESMA Task Force

Market manipulation and its effects may occur across borders, between electricity and gas markets and across financial and commodity markets, including in emission allowances. Regulatory oversight of potential market abuse of the trading in energy and financial products falls under two EU regulatory frameworks, namely the EU Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) and the Market Abuse Regulation (MAR).

While leveraging existing cooperation tools, ACER and ESMA are establishing a joint Task Force to reinforce their cooperation and enhance coordination in respect of the exchange of data and knowledge among their staff and respective national authorities.

This enhanced coordination will further support the investigations and enforcement so that the rules are applied with vigour and in a convergent and holistic way in all national jurisdictions.

Enhanced market surveillance and enforcement

In the current energy crisis characterised by high prices and price volatility, vigilance in detecting market manipulation and insider trading is more important than ever to ensure confidence in EU wholesale energy and financial derivatives trading.

NRAs and NCAs have both supervisory and enforcement responsibilities at national level. At EU level, ACER maintains its own market surveillance system whilst both ESMA and ACER have supervisory convergence and coordination responsibility.

The joint ACER–ESMA Task Force will provide a framework for broadening cooperation on the monitoring of energy and energy derivatives markets. ACER and ESMA are also ready to cooperate in additional areas in the future. This could notably be the case in the context of the possible new LNG benchmark currently under consideration by the European Commission, and with an enhanced monitoring of risks in energy markets, helping to preserve financial stability in EU markets.

ACER and ESMA are committed to promoting supervisory oversight of wholesale markets for energy and financial derivatives by supporting NRAs and NCAs in effective enforcement of possible breaches of the rules and in assisting the European Commission in its work.

Access the Press Release.

The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today the minutes of the latest Roundtable meetings on REMIT data reporting and transparency of wholesale energy markets.

The Roundtable meetings were held from 13 to 16 June 2022, with representatives from Organised Market Places (OMPs), Registered Reporting Mechanisms (RRMs), Inside Information Platforms (IIPs) and Associations of Energy Market Participants (AEMPs).

What are the REMIT Roundtable meetings?

The Roundtable meetings allow ACER and stakeholders to discuss the state of play of data collection under the REMIT regulation and consult on any outstanding issues at least on a yearly basis.

The recent meetings were an opportunity for ACER to share the latest updates on REMIT data collection, as well as to discuss the ongoing consultation on the updated versions of the transaction reporting guidance (TRUM) and the electronic schemas.

The Roundtables’ conclusions also reflect the latest findings on data quality analysis, which focused on the transactions concluded on the brokers’ platforms and the related reporting guidance, as well as the present and future challenges, and next steps to be taken.

To learn more, access the Roundtable's meetings with:

• AEMPs

• OMPs

• IIPs

• RRMs.

The new REMIT Documents section went live

During the meetings, ACER also announced the recent go-live of the new REMIT Documents section on its website. The aim of this section is to provide an easy and centralised access to the main REMIT documents on ACER’s website. As such, it replaces the previous document repository on the REMIT Portal.

Take a look at the new REMIT Documents section.

On 23 June 2022, CNMC adopted a sanction decision imposing fines of:

• €6 million on GASELA GMBH (GASELA)

• €6 million on SOLSTAR Limited (SOLSTAR)

for manipulating the Spanish wholesale gas market in breach of Article 5 of the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT).

CNMC found that, especially between 15 and 21 April 2019, GASELA and SOLSTAR carried out pre-arranged transactions on the Spanish wholesale gas market (MIBGAS) aimed at keeping prices at an artificially higher level than what would have resulted from the oversupply caused by GASELA during Easter week (which is typically characterised by lower demand and liquidity).

GASELA and SOLSTAR issued pre-arranged orders and performed transactions in the within-day, daily, and weekend gas products to keep prices high. They also colluded to prevent other market participants from benefiting from the abnormally high prices.

Hence, according to CNMC, their actions breached Article 5 of REMIT by:

• sending misleading signals on the supply, demand, and price of the gas wholesale products and

• setting the prices of such gas wholesale products at an artificial level.

Access CNMC’s decisions (in Spanish).

The decision can be subject to an appeal.

ACER Guidance

ACER provides guidance to National Regulatory Authorities (NRAs) on implementation of the REMIT regulation.

In 2021, ACER updated its Guidance on REMIT (6th Edition) to anticipate upcoming NRA decisions on market manipulation such as sending false/misleading signals and setting prices at an artificial level, including new examples on collusive behaviours between market participants and on pre-arranged trades.

ACER welcomes CNMC’s decision under REMIT.