Brussels, 10/10/2011 (Agence Europe) - Trading activity in wholesale energy products will now be monitored at EU level to detect abuses, such as use of privileged information market rigging, with the adoption by the Council of a new regulation on 10 October. Member states will be required to put sanctions in place to prevent anti-competitive practices. The role of monitoring markets will be for the new Agency for the Cooperation of Energy Regulators (ACER).
Following the first reading agreement with the European Parliament, the Council adopted the keenly awaited regulation on wholesale energy market integrity and transparency on 10 October. This regulation puts in place a framework for monitoring wholesale energy markets in order to effectively detect and deter market abuse and manipulation, thereby ensuring the integrity and transparency of those markets. The central element of this framework is the establishment of a market monitoring function at European level, a task which will be carried out by the ACER, in close cooperation with national regulatory authorities. The ACER will collect the data needed to assess and monitor wholesale energy markets. It will establish a European register of market participants based on the information provided by national regulatory authorities. The new rules also prohibit insider trading and market manipulation and establish provisions on an obligation to publish inside information. Member states must impose penalties applicable to infringements of this regulation, which must be proportionate, effective and dissuasive, and reflect the gravity of the infringements, the damage caused to consumers and the potential gains from trading on the basis of inside information and market manipulation. The regulation will come into force 20 days after its publication in the Official Journal of the European Union. (EH/transl.rt)