The Questions & Answers (‘Q&As’) on REMIT policy matters


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Q&As on REMIT – Introduction

This Q&A document contains a summary of frequently asked questions about 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) and the Agency for the Cooperation of Energy Regulators’ (The Agency’s) answers to those questions. Many of the questions were asked during the past years by market participants and other stakeholders. The Q&A document is directed to the public but in no way provides a legal interpretation of REMIT.

After the entry into force of Commission Implementing Regulation (EU) No 1348/2014 (EU), 7 January 2015, the Agency updated this Q&A on an almost monthly basis. The monthly updates covered all questions of a general nature sent to the Agency’s functional mailboxes or via the online REMIT query form available at Since the end of 2016 the number of questions received by the Agency has been decreasing and it is clear that the need for regular updates has diminished. Going forward, the Agency will update the Q&A document based on necessity to provide clarity to the market. The Agency will continue its policy of only answering individual queries in exceptional cases.

The Agency also publishes Guidance to assist National Regulatory Authorities (NRAs) in carrying out their tasks under REMIT in a coordinated and consistent way[1]. The Guidance is updated from time to time to reflect changing market conditions and the experience gained by the Agency and NRAs in the implementation of REMIT, including through the feedback of market participants and other stakeholders.

Market participants should bear in mind that they have to comply with the obligations and the prohibitions established in REMIT. The Agency recommends that in complying with REMIT, market participants should make their own research and set up a compliance system.

The Q&A document serves as guidance to REMIT stakeholders and does not constitute a binding legal interpretation of REMIT.

All REMIT related documents are published on the REMIT Portal at

[1] The ACER Guidance to NRAs is available on the ACER Website and REMIT Portal: and

Q&As on REMIT – Question II.1.1.

What is REMIT?


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), was published in the Official Journal of the European Union on 8 December 2011 and entered into force 20 days following its publication, i.e. on 28 December 2011. REMIT introduced, for the first time, a consistent EU-wide framework:

• defining market abuse, in the form of market manipulation, attempted market manipulation and insider trading, in wholesale energy markets;

• introducing the explicit prohibition of market manipulation, attempted market manipulation and insider trading in wholesale energy markets;

• establishing a new framework for the monitoring of wholesale energy markets to detect and deter market manipulation and insider trading; and

• providing the enforcement of the above prohibitions and the sanctioning of breaches of market abuse rules at national level.

REMIT prohibits market manipulation and trading on inside information in wholesale energy markets. The definitions of market manipulation and insider trading in REMIT are in line with those applying under Directive 2003/6/EC (Market Abuse Directive or MAD), though adapted for wholesale energy markets. The prohibitions of market manipulation and insider trading in REMIT does not apply to wholesale energy products which are financial instruments and to which Article 9 of MAD applies.

REMIT regulation is available here:

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Q&As on REMIT – Question II.1.2.

Who has obligations under REMIT?


All entities and persons who participate in, or whose conduct affects, wholesale energy markets within the Union should be compliant with REMIT. It makes no difference whether or not the person is resident within the EU or whether or not they are professional investors. Also non-EU and non-EEA market participants are covered by REMIT if entering into transactions, including the placing of orders to trade, in one or more wholesale energy markets in the Union. Accordingly, the obligations to register under REMIT with the competent NRA and to report data to the Agency according to Article 8(1) and (5) of REMIT also applies to such non-EU and non-EEA market participants. The same holds for the prohibitions of market abuse pursuant to Articles 3 and 5 of REMIT.

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Q&As on REMIT – Question II.1.3.

What are the benefits of greater transparency in wholesale energy trading?


Wholesale energy markets provide key price signals which affect the choices of producers and consumers, as well as investment decisions in production facilities and transmission and distribution infrastructure. It is therefore essential that these signals reflect a fair and competitive interplay between supply and demand, and that no profits can be drawn from market abuse.

Greater transparency in wholesale energy markets reduces the risk that markets are manipulated and the price signals distorted. Transparency in wholesale energy markets is thus crucial in ensuring that consumers pay the fair price for their gas and electricity. It also helps creating a level-playing field for all market participants.

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Q&As on REMIT – Question II.1.4.

Why is the EU framework for wholesale energy transparency and integrity necessary?


Wholesale energy markets in Europe are increasingly interlinked across the Union in that market abuse in one Member State can affect the price of energy in other Member States.

When REMIT came into force, only a few Member States had organised the monitoring of the wholesale energy markets within their own borders, trading venues often had no clear prohibition of market abuse. Most of the transactions were not reported and fundamental data was not accessible to NRAs. Therefore, the European Union judged it essential to set up a dedicated market integrity and transparency framework at Union level for the gas and electricity wholesale markets.

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Q&As on REMIT – Question II.2.1.

What is the role of the Agency under REMIT?


The Agency for the Cooperation of Energy Regulators plays a central role in the monitoring framework under REMIT.

As recognised in REMIT, the Agency is best placed to carry out efficient market monitoring at Union level as it has both a Union-wide view of electricity and gas markets, and the necessary expertise in the operation of electricity and gas markets and systems in the Union. Therefore the Agency has been tasked with collecting and screening wholesale market transaction data across the EU and performing an initial assessment of anomalous events, before notifying suspicious cases to NRAs for investigation.


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Q&As on REMIT – Question II.2.2.

Why centralise the monitoring at the Agency?


Wholesale energy markets are becoming increasingly interlinked across the Union. NRAs typically see only a part of these markets. A centralised approach to market monitoring with a holistic view of the markets is therefore essential to ensure effective detection and deterrence of abusive market practices. In addition, a centralised data collection will help to avoid double reporting of market participants active in several Member States will instead provide the Agency with a complete set of data on the EU wholesale energy market.

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Q&As on REMIT – Question II.2.3.

Will the Agency prosecute cases of market abuse?


Investigations of market abuse cases and prosecution of market participants are left to NRAs.

Member States had until 29 June 2013 (eighteen months from the date on which REMIT entered into force) to adapt their legislation in order to give their national authorities the necessary powers to enforce REMIT.

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Q&As on REMIT – Question II.2.4.

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