Friday, April 12, 2024
HomeElectricityEU Council reaches partial agreement on power market reform

EU Council reaches partial agreement on power market reform

Energy Ministers from the EU’s 27 member states have agreed (general approach) on a proposal for regulation on wholesale energy market integrity and transparency (REMIT), following yesterday’s meeting of the EU Energy Council (19 June).

The proposal aims to support open and fair competition in the European wholesale energy markets, by banning trading based on inside information and deterring market manipulation.

“I’m glad we found an agreement on the REMIT regulation. It is an important piece of the electricity market reform that will ensure transparency and integrity in the EU’s energy market,” said Ebba Busch, Swedish Minister for Energy, Business and Industry.

The proposal on REMIT is part of a wider reform of the EU’s electricity market design. The remaining parts of the reform, which aim to make electricity prices less dependent on volatile fossil fuel prices and shield consumers from price spikes and accelerate the deployment of renewable energies and improve consumer protection, will be agreed upon at a later stage, the European Council said via a press release.

The Council made the requirements for market participants in the EU that are residents in a third country clearer and stricter. As part of this, the Council agreed to increase the role of the Agency for the Cooperation of Energy Regulators (ACER) in investigations of significant cross-border cases to fight against REMIT breaches.

The Council sought to these new powers by strengthening the role of national regulatory authorities (NRA) so that ACER would not exercise its investigative powers if NRAs are conducting, or have already conducted, an investigation based on the same facts. On-site inspections would be done in close coordination and cooperation with national authorities under certain conditions.

The Council also added flexibility regarding the issuing of administrative fines by member states. It included a list of criteria to set fines and gave member states the possibility to set lower fines.

The general approach will serve as a mandate for negotiations with the European Parliament on the final shape of the legislation. The outcome of the negotiations would have to be formally adopted by the Council and the Parliament.

The power market design reform proposes to amend the relevant electricity market legislation and improve the Union’s protection against market manipulation through better monitoring and transparency (REMIT).  

The European Commission adopted the proposals for the reform of the EU’s electricity market design on 14 March 2023.

Sign up for our newsletters

    Monthly newsletter – Delivering the most important energy stories of the month selected by our Editor-in-chief
    Weekly Oil&Gas roundup - All major news about the oil and gas industry, LNG developments, the upscaling of new gases and related EU regulations arriving in your mailbox every Monday.
    Weekly Renewables&Climate roundup - All major news about investments in renewable energy sources, environment protection, green hydrogen and new innovative ways to tackle the climate crisis arriving in your mailbox every Tuesday.

    Most Popular