Deal on new EU rules to tackle electricity market manipulation

1 year ago 44

EU legislators agreed on new rules on Thursday (16 November) to tackle potential cases of manipulation or insider trading on the bloc’s wholesale electricity market, granting new powers for regulators to investigate potential cases and crack down on offenders.

The provisional agreement gives new rights to the EU’s Agency for the Cooperation of Energy Regulators (ACER) to investigate cases with a cross-border dimension and to prioritise cases.

ACER will also be conferred the right to investigate cases involving at least two EU countries, according to a statement released by the Council of the EU, the institution representing the bloc’s 27 member states.

“This is good news for consumers and companies, especially in times of volatile energy prices,” said Teresa Ribera, the Spanish ecological transition minister who represented EU member states in negotiations with Parliament.

“The REMIT regulation will improve the protection of consumers and companies against market manipulation and will strengthen the framework to address and prevent market abuse,” she said in a statement.

ACER’s decision-making powers will be extended to on-site inspections, requests for information and authorisations or withdrawal of authorisations of Inside Information Platforms (IIPs) and Registered Reporting Mechanisms (RRMs), according to a statement issued by the Council of the EU, which represents EU member countries.

While the new regulation gives new powers to ACER, national regulatory authorities (NRAs) will retain the ability to object ACER’s investigatory powers when the they have already formally opened or conducted an investigation on the same facts. NRAs will have a maximum of 3 months to object.

“For the first time, ACER is given enforcement powers, in the field of on-site inspection decisions and requests for information as well as the withdrawal of authorisation of information platforms and registered reporting mechanisms,” said Maria da Graça Carvalho, the Parliament’s lead negotiator on the file for the centre-right European People’s Party (EPP).

The political deal reached on Thursday will now be sent to legal experts for a formal write-up before it is forwarded to the European Parliament and the Council for final approval, a process which is usually a formality.

[Edited by Alice Taylor]