Due to the energy crisis that began in 2021, European authorities started developing solutions to reform the design of the electricity market, with the aim of protecting consumers from electricity price volatility and increasing market competitiveness. As part of these efforts, Regulation No. 1227/2011 on wholesale energy market integrity and transparency (REMIT) was amended, which is now considered a key instrument for restoring trust in the benefits of a unified and integrated European electricity market.
This master's thesis focuses on the amendment of the REMIT regulation, which is part of the reform of the common European electricity market. REMIT II sets out rules for preventing market abuses in the energy market and introduces new definitions of inside information, market manipulation, and wholesale energy products. Among other things, REMIT II includes updated provisions on increased data reporting obligations to the Agency for the Cooperation of Energy Regulators (ACER), an enhanced role for ACER in investigating cross-border market abuse cases, and rules for harmonizing penalties in the event of breaches of REMIT II at the national level. Additionally, REMIT II covers new rules for algorithmic trading and the registration of market participants from third countries.
The revision of the REMIT regulation was urgently needed, as the previous legal framework no longer effectively kept pace with current energy trends. The European Commission and ACER have taken a step towards more successfully combating market abuses with the updated rules and have recognized the need for harmonized enforcement of the REMIT II provisions. The reform of the REMIT regulation will restore confidence in the common European electricity market.
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