Brussels, 07/12/2010 (Agence Europe) - In order to prevent inappropriate practice on wholesale energy markets, the European Commission is to put forward a regulation on the integrity and transparency of these markets. The aim is to set standards in place by 2012 to govern market behaviour, as well as surveillance mechanisms to detect and prevent misuse and manipulation on wholesale markets. The European executive arm plans to give powers of inspection to the future European Agency for the Cooperation of Energy Regulators (ACER).
Energy Commissioner Günther Oettinger is determined to put an end to insider dealing and rate manipulation on wholesale electricity and gas markets. It is on these wholesale markets that public gas and electricity services, including banks and specialised firms, trade energy, and that energy retailers and companies that sell their gas and/or electricity to end-users buy energy. Today, major wholesale market segments are not covered by clear rules banning market abuse, which makes prices higher than they should be. On Wednesday, Oettinger will be proposing to make ACER the guardian of the integrity of “spot and future markets” for these products. The organisation, which is to be created in Ljubljana in early 2011, would be able to request any relevant information and carry out on-the-spot inspections in order to ensure there is no production rationing. The Commission also hopes to compel companies to be able to keep documentary trace of their electricity transactions with regards quantity, implementation, area of interest, as well as those signing up to the contract. The European executive's approach can also be explained by the exponential growth of spot and future contracts in the EU, where volumes increased from 4,000 to 9,000 terawatts/hour between 2000 and 2009 (of which 75% is in Germany and France), with three-quarters being exchanged from one party to another, and the remaining 25% being on the 15 European stock markets. The manipulation of rates and insider dealing are particularly targeted. The commissioner told the German press last week that he was contemplating civil and criminal penalties, with offenders liable to imprisonment in cases of infringement.
The regulation to be presented on Wednesday is expected to win the approval of Council and Parliament. (E.H./transl.jl)