REMIT: A Study on the Effectiveness of Wholesale Energy Market Regulation
Authors
Frøkjær, Nicki ; Tornbo, Andreas Kamstrup ; Kirk, Patrick
Term
4. term
Publication year
2024
Submitted on
2024-05-15
Abstract
This thesis examines the effectiveness of the EU Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) against the backdrop of heightened price volatility, an influx of new market entrants, and the green transition, and assesses how the recent amendment (REMIT II, 2024/1106) may strengthen the framework. The core research question asks whether REMIT has achieved its objectives of ensuring market transparency and integrity, and how REMIT II seeks to improve effectiveness. Methodologically, the study applies doctrinal legal analysis and a comparative assessment of the original REMIT and REMIT II, supported by a review of enforcement practice. It maps key elements of the regime, including definitions of wholesale energy products, “inside information,” and market manipulation, the rules on disclosure and reporting, and the roles of key actors (e.g., market participants, ACER, TSOs, NEMOs, national regulators, and PPATs). The thesis situates REMIT within related EU legislation (MAR, MiFID II, EMIR) and reviews case law and decisions (including CORDIS and ARERA matters and an Engie case). It further analyzes new features introduced by REMIT II, such as algorithmic trading, fine levels, and on-site inspections, and discusses challenges around transparency of case law, jurisdiction, and non-binding guidance. The study aims to evaluate whether the amendments address identified gaps and their implications for future enforcement; definitive findings are presented in later chapters.
Specialet undersøger effektiviteten af EU-forordningen om engrosenergimarkeders integritet og gennemsigtighed (REMIT) i lyset af øget prisvolatilitet, flere nye aktører og den grønne omstilling, samt hvordan den nyligt vedtagne ændringsforordning (REMIT II, 2024/1106) kan styrke reguleringen. Den centrale problemstilling er, om REMIT har opfyldt sit formål om at sikre markedstransparens og integritet, og hvordan REMIT II søger at forbedre dette. Metodisk anvendes juridisk (retsdogmatisk) analyse og en komparativ gennemgang af den oprindelige REMIT og REMIT II, suppleret af praksisstudier. Specialet kortlægger reguleringens nøgleelementer, herunder definitioner af engrosenergiprodukter, “insiderinformation” og markedsmanipulation, regler for offentliggørelse og rapportering samt de involverede aktører (fx markedsdeltagere, ACER, TSO, NEMO, nationale tilsyn og PPAT). Der indgår kontekst om samspillet med anden EU-lovgivning (MAR, MiFID II, EMIR) og en gennemgang af afgørelser og håndhævelsestiltag (bl.a. CORDIS- og ARERA-sager samt en Engie-sag). Endvidere analyseres REMIT II’s nye elementer, herunder algoritmisk handel, bødeniveauer og on-site inspektioner, samt diskussionspunkter om gennemsigtighed i praksis, jurisdiktionsudfordringer og ikke-bindende retningslinjer. Afhandlingen søger at vurdere, i hvilket omfang den opdaterede regulering adresserer identificerede mangler og hvad det kan betyde for fremtidig håndhævelse; endelige konklusioner fremgår af de senere kapitler.
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