2 Legal framework

In December 2011, the EU adopted a dedicated market integrity and transparency regulation for the gas and electricity wholesale markets with an EU-wide monitoring scheme: Regulation (EU) No 1227/2011 on wholesale energy market integrity and transparency (hereinafter: REMIT). REMIT introduced a sector-specific framework for the monitoring of European wholesale energy markets, with the objective of detecting and deterring market manipulation.

Entry into force of the Regulation amending REMIT and its implications on data reporting

Due to the significant evolution of the EU wholesale energy markets since REMIT was first introduced, on 14 March 2023 the European Commission published its proposal to amend REMIT. The interinstitutional negotiations (trilogues) were concluded on 14 December 2023, and the Regulation (EU) 2024/1106 of the European Parliament and of the Council of 11 April 2024 amending Regulations (EU) No 1227/2011 and (EU) 2019/942 as regards improving the Union's protection against market manipulation on the wholesale energy market has entered into force on 7 May 2024.

The Regulation amending REMIT introduces several new or revised provisions which expand the scope of the reporting parties’ data reporting obligations to ACER under the revised REMIT. Certain provisions are expected to be further elaborated in the revised REMIT Implementing Regulation, i.e. the reporting of certain contracts or information, not currently foreseen in the REMIT Implementing Regulation in force (e.g. storage contracts for gas and electricity, contracts for balancing markets, reporting of exposures), needs to be incorporated before the data reporting for such contracts can commence. The adoption of the revised REMIT Implementing Regulation is expected within 12 months from the entry into force of the amended REMIT, as per Article 8(1a) of the amended REMIT. Until the enter into force of the revised REMIT Implementing Regulation, the data reporting shall continue based on the current REMIT Implementing Regulation n.1348/2014.

Reporting parties shall refer to the Annex of ACER’s Open letter on the implications of the revision of Regulation (EU) No 1227/2011 on REMIT data reporting aspects and notification obligations describing the changes in the revised REMIT impacting data reporting.

Reporting parties shall note that in line with the indications specified in the above-mentioned Open letter, the current TRUM and its Annexes do not provide reporting guidance for transactions related to contracts that are not foreseen in the current REMIT Implementing Regulation. The transaction reporting guidance documents will be updated accordingly (after consulting with stakeholders), once the revised REMIT Implementing Regulation is adopted.

REMIT defines prohibitions of market manipulation, attempted market manipulation and insider trading. It introduces obligations to disclose inside information and it provides for the monitoring of wholesale energy markets by the Agency in close cooperation with national regulatory authorities (hereinafter: NRAs), the European Securities and Markets Authority (hereinafter: ESMA), financial authorities and other relevant authorities.

For the purpose of market monitoring, Article 8(1) of REMIT imposes an obligation on market participants, or a person or an entity listed in paragraph 4, points (b) to (f) acting on their behalf, to provide the Agency with a record of wholesale energy market transactions, including orders to trade. In particular, with reference to the transactions that are entered into, concluded or executed at organised marketplaces, Article 8(1a) of the revised REMIT imposes an obligation on organised marketplaces to make available to the Agency data relating to the order book, in accordance with the specifications set out in the REMIT Implementing Regulation (EU) No 1348/2014, thereby fulfilling on behalf of market participants their data reporting obligations. Furthermore, Article 8(5) of REMIT requires that market participants shall report to the Agency and NRAs information related to the capacity and use of facilities for production, storage, consumption or transmission of electricity or natural gas or related to the capacity and use of LNG facilities, including planned or unplanned unavailability of those facilities, and with inside information that is publicly disclosed pursuant to Article 4, for the purpose of monitoring trading on wholesale energy markets.

REMIT also gives NRAs the option to monitor wholesale energy markets at national level and calls on Member States to provide them with appropriate investigatory and enforcement powers (see Article 13 of REMIT). REMIT also requires that the Agency shall establish a mechanism to share information it receives in accordance with Article 8 with NRAs and other relevant authorities (see Article 7(2) and 10 of REMIT).

According to Article 8(2) and 8(6) of REMIT, the European Commission shall, by means of Implementing Acts, adopt uniform rules on the reporting of records of transactions, including orders to trade.

As regards the reporting of transactions, Article 8(2) of REMIT states that the Commission shall, by means of Implementing Acts:

a) draw up a list of the contracts and derivatives, including orders to trade, which are to be reported in accordance with paragraph 1 and appropriate de minimis thresholds for the reporting of transactions where appropriate;

b) adopt uniform rules on the reporting of information which is to be provided in accordance with paragraph 1;

c) lay down the timing and form in which that information is to be reported.

As regards the reporting of fundamental data, Article 8(6) of REMIT states that the Commission shall, by means of Implementing Acts:

a) adopt uniform rules on the reporting of information to be provided in accordance with paragraph 5 and on appropriate thresholds for such reporting where appropriate;

b) lay down the timing and form in which that information is to be reported.

On 17 December 2014 the Commission adopted the REMIT Implementing Regulation according to Article 8(2) and 8(6) of REMIT. According to Article 5(2) of the REMIT Implementing Regulation, the Agency shall explain the details of the reportable information in relation to standard and non-standard contracts for the supply and transportation of electricity and gas in a user manual and after consulting relevant parties make it available to the public upon the entry into force of the REMIT Implementing Regulation. On this basis, the Agency has developed this Transaction Reporting User Manual (TRUM), in which the details of the reportable information are explained.

On 31 March 2014, the Agency launched a first public consultation on the TRUM which was open until 5 May. The first public consultation document was prepared on the basis of the draft REMIT Implementing Regulation presented by the Commission in October 2013 and also took into account the feedback received during the public consultation on Technical Standards in spring 2013.

Following the end of the first consultation, the Agency further elaborated the TRUM, taking into account the input received during the first consultation in spring 2014. On 22 July 2014, the Agency launched a second public consultation on the TRUM which was open until 2 September 2014. The second public consultation document was prepared on the basis of the draft REMIT Implementing Regulation presented by the Commission in July 2014. In addition to the public consultations, the Agency organised a number of roundtable meetings and workshops with relevant stakeholders in order to consult on the topics of the TRUM.

An ACER staff working document version was published on 9 December 2014 and presented in a public workshop on 10 December 2014.