REMIT importance for the European energy market
As it is mentioned in the REMIT, the most important goal is to have fair and competitive prices on wholesale energy markets in Europe. Another ambitious goal that REMIT sets is to increase the integrity and the transparency of the wholesale energy markets and that prices that are set on wholesale energy markets reflect a fair and competitive interplay between supply and demand, and that no profits can be drawn from market abuse.
Main obligations resulting from REMIT for market participants, National Regulatory Authorities and ACER
According to REMIT, a market participant means any person, including transmission system operators, who enters into transactions, including the placing of orders to trade, in one or more wholesale energy markets.
Starting from the above cited definition we understand that REMIT has a wide scope of application and the European energy market entered in a new phase of its evolution. The goal of EU, to have fair prices on energy, and the results of this goal are expected by every citizen of European Union, taking into account that we have REMIT Regulation in force and that the Agency for the Cooperation of Energy Regulators is responsible for monitoring and collecting the data from the wholesale energy markets.
Until we have precise data on these results, we can say with certainty which are the main obligations and the deadline for compliance.
Therefore, starting from 7 October 2015 OMP and ENTSOs have the obligation to report to the ARIS system the following:
OMPs – have the obligation to report data from the records of transactions in wholesale energy contracts, including orders to trade, admitted to trading at organised market places (OMP) and
The ENTSOs have the obligation to report fundamental data from their central information transparency platforms
Starting from 7 April 2016, market participants, TSOs, LSOs and SSOs, have the obligation to report to the ARIS system, data resulting from Over-The-Counter, standard and non-standard supply contracts and transportation contracts from market participants, as well as reportable fundamental data from Transmission System Operators (TSO), LNG System Operators (LSO) and Storage System Operators (SSO).
Not for least, starting from 1 January 2017 market participants need to comply with the obligation to disclose inside information on their website or other service providers and to enable the web feeds so Agency can collect the data efficiently. On ACER website a document with common minimum standard may be found in order to ensure fair, effective and transparent reporting of inside information. Read full report
ACER’s role in the implementation of REMIT
REMIT plays an important role in the completion of a well-functioning internal energy market in the European Union. Well-functioning markets should work on the basis of reliable price signals, namely price signals which reflect the demand and supply fundamentals and are not distorted by abusive market behavior. Security of supply also benefits from well-functioning markets.
One of ACER’s major role of is to collect data from wholesale energy market participants, analyze those data and to monitor wholesale energy market participants according to Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 of the European Parliament and of the Council on wholesale energy market integrity and transparency.
REMIT was enacted by the European Parliament and the European Commission adopted its implementing legal framework, meaning Regulation (EU) No 1348/2014 on 17 December 2014. The implementing regulation granted ACER important roles and responsibilities in order to assure the transparency and the integrity of the European wholesale energy market.
European citizens are eager to find out the results of ACER’s monitoring activity on energy market. Especially in ACER’s reports which should be more detailed in this respect. Read full report