REMIT reshape: EU’s updated rules to safeguard wholesale energy markets

Background and reform of the electricity market

Open and fair competition in electricity and gas markets requires transparency and integrity. Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (“REMIT Regulation”) aimed to achieve this purpose, but it nevertheless needs amending to address current deficiencies, enhance transparency, and improve monitoring. The new amendments are intended to stabilize energy prices, protect consumers, and improve cross-border market abuse investigations and enforcement.

The updates to the REMIT Regulation are part of a reform of the electricity market that was first presented by the European Commission in March 2023. In November 2023, the Council and the European Parliament reached a provisional political agreement and afterwards, the Regulation 2024/1106 of the European Parliament and of the Council of 11 April 2024 amending Regulations (EU) No 1227/2011 and (EU) 2019/942 to improve the Union’s protection against market manipulation in the wholesale energy market (“Updated REMIT”) was published in the Official Journal of the European Union and entered into force on 7 May 2024.

Below are several important changes that we have addressed and which we expect to further impact the actual way the REMIT Regulation is to be enforced in practice.

The full article can be read here.