In a letter published on Tuesday 19 September as part of the review of the REMIT Regulation aimed at improving the integrity and transparency of EU wholesale energy markets (see other news), the Joint Energy Associations Group (JEAG) calls on the co-legislators to provide clear instructions, a reasonable implementation deadline, the absence of trade barriers and non-binding ACER guidelines.
Creating binding legal clarity
JEAG supports the European Parliament’s proposal to empower the European Commission to define minimum thresholds for the disclosure of inside information, detailed examples of market manipulation behaviour and definitions of “protracted processes”.
However, they are concerned about certain changes that could introduce uncertainty into the interpretation and application of REMIT, such as broadening the scope of market manipulation.
Need for a reasonable implementation period
The group of associations insists on the need for an 18-month implementation period for the new obligations, including the reporting of suspicious orders and transactions, the regulation of algorithmic trading and the requirements for non-EU firms.
It supports the EU Council’s proposal that provisions subject to EC implementing acts should apply 6 months after their adoption.
Enable other information channels
JEAG stresses the importance of allowing market players to use other disclosure channels in the event of technical problems with inside information platforms. They support Parliament’s proposal to allow market players to use their websites to disclose inside information.
Reducing barriers to market access
JEAG is opposed to the establishment of a European office for the trading activities of third country players, arguing that this could create barriers to trade, adversely affecting “competitiveness, market liquidity and security of supply”. It advocates the EU Council’s approach of appointing a representative in a Member State rather than establishing a full-fledged European office.
Non-binding ACER guidelines
The group of associations agrees with Parliament’s proposal to extend the scope of the ACER guidelines, but stresses that these guidelines should remain non-binding. Any binding interpretation “should remain the competence of the European Commission through delegated or implementing acts”.
JEAG also highlights the effectiveness of the national regulatory authorities in supervising and applying REMIT. It proposes that ACER should play a supporting role in investigations at the request or with the agreement of the national regulator, particularly in cross-border cases.
Finally, it calls for more effective integration of LNG data reporting into the REMIT reporting system and supports a revision clause to assess the impact of REMIT on energy markets and players within 3 years of its adoption.
To see the letter: https://aeur.eu/f/8ou (Original version in French by Pauline Denys)