REMIT has been in effect since December 2011 and allows to:

– Specifically define the concept of inside information for energy markets,
particularly in relation to the physical characteristics of supply and demand. The players in market must publish the inside information they hold (Article 4).
– Prohibit market abuse: insider dealing (Article 3) and market manipulation
(Article 5)
– Setting up a monitoring system for energy markets :

  • Registration of market participants (Article 9)
  • Centralised data collection (Article 8)

REMIT applies to wholesale energy products

It is defined as : The following contracts and derivatives, regardless of where and how they are traded (Article 2.4) :

˗ contracts for the supply of electricity or natural gas with delivery within the Union ;
˗ derivatives relating to electricity or natural gas produced, traded or delivered within the Union; ˗ derivatives relating to electricity or natural gas produced, traded or delivered in the Union;
˗ contracts for the transmission of electricity or natural gas within the Union;
˗ derivatives relating to the transmission of electricity or natural gas within the Union;
˗ contracts for the supply and distribution of electricity or natural gas to final customers with a consumption capacity of more than 600 GWh/year.

A market player is defined as follows

Any person, including transmission system operators, who carries out transactions, including the issuance of orders on one or more wholesale energy markets. With regard to wholesale energy products that are also financial instruments :
– MAD applies for the prohibition of insider trading and the prohibition of market manipulation
REMIT reporting applies for the obligation to disclose inside information and the obligation to report insider data  information.

Roles of the different actors in the monitoring of markets

ACER:

– Monitors wholesale energy trading to detect and prevent market abuse by
cooperation with national regulators (Article 7)
– Collects data to assess and monitor markets (Article 8)
– Sharing information with other authorities in a secure manner (Articles 10 and 12)
– May coordinate a group composed of several regulators in the case of a suspected violation of
REMIT with cross-border effects (Article 16)

National regulators :

– Register market participants (Article 9)
– The following may also monitor the market at national level (Article 7)
– Ensure compliance with Articles 3, 4 and 5 by having powers of investigation and sanction (Article
13)

Persons arranging transactions in a professional capacity:

– shall without delay notify the national regulatory authority if they suspect a breach of Articles 3
and 5
– Establish and maintain effective provisions and procedures to detect such infringements

The Implementing Regulation for the Implementation of REMIT

The Implementing Regulation:

– Define the fundamental data, standard and non-standard contracts, places for organised markets etc. targeted by REMIT ;
– Differentiate the REMIT reporting of contracts traded on organised and non-organised marketplaces;
– Specify which entities will transmit the different data (market players, RRM, ENTSO, TSO…) ;
– Specify the different recipients of the REMIT data collection flows (ACER and, for certain data, national regulators at their request) ;
– Define the list, format and frequency of data to be transmitted to ACER.