Brussels, 14/07/2011 (Agence Europe) - The European Parliament has approved in committee its agreement with the Council on the regulation on energy market integrity and transparency (REMIT), in the energy wholesale market. This opens the way to new rules on market behaviour and surveillance mechanisms in order to detect and prevent abuse and manipulation on wholesale markets.
On Wednesday 13 July, after gaining the Council's approval on several key points, the EP's energy committee adopted, by 42 votes in favour, none against and 3 abstentions, the report by German Liberal Jorgo Chatzimarkakis on the draft regulation proposed in November by the Commission to prevent abuse on the wholesale energy markets and to provide a better framework for derivatives and contacts relating to the provision, production and transport of natural gas and electricity in the EU.
The ban on the use of insider information and price manipulation will be ensured by the Agency for the Cooperation of Energy Regulators (ACER), which will play a key role in keeping records and monitoring all transactions. National regulatory authorities will have access to all this information, and will have enforcement powers to remedy breaches of the regulation. In the event of cross-border breaches, ACER will be able to establish and coordinate an investigatory group. Penalties will be applied by national regulators in member states.
At the behest of Parliament, the regulation will require an EU register to be drawn up of all energy traders, on the basis of national registers to be set up by national regulatory authorities. Furthermore, ample measures may be envisaged by the Commission, if necessary, to ensure equitable competition at European level for all market players.
When it comes to sanctions, the Commission is called on to present proposals aimed at harmonising minimum penalties for breaches of the regulation. In negotiations, the committee pressed for harmonised penalties, so as to avoid creating incentives for anyone breaching the regulation to move to member states where penalties are less severe. The Commission will also be requested to pursue its work on reinforcing sanctioning regimes in the financial sector. National penalties should reflect the damage caused to consumers.
In a concern to strike a balance between the powers of the ACER and those of national regulators, the agreement endorsed by the energy committee provides for the ACER director to consult the Board of Regulators on REMIT issues, without being bound by the opinions or guidance provided. ACER is obviously expected to have sufficient human and financial resources to carry out its new tasks. The agency will also have access to all information on emission trading transactions.
The draft regulation will be voted in plenary in Strasbourg during the September session. It will take effect 20 days after being published in the EU Official Journal. (E.H./transl.jl)