II.1.1.

What is REMIT?

Answer: REMIT was published for the first time 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 then introduced, 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. 

In 2024, REMIT has been amended by 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. The revision introduces new measures to better protect EU citizens and businesses from market abuse:

•The revised REMIT brings a closer alignment of the EU rules on transparency and integrity of energy markets with those in the financial markets.

• The scope of REMIT is expanded. For example, it now also covers energy (electricity and gas) storage, and the market abuse provisions under REMIT also apply to wholesale energy products that are also financial instruments.

• ACER regular surveillance scope is expanded to EU platforms covering electricity balancing markets and more information is provided about algorithmic trading.

• The REMIT reform creates a new setting for investigations and enforcement. ACER has been granted investigatory powers in specific cross-border cases (involving delivery of wholesale energy products in 2 or more Member States). These powers complement the national regulators’ investigatory powers, with ACER and NRAs working closely together.

• Enforcement continues to be at national level. The power to impose fines for infringements of the REMIT prohibitions or the substantive obligations included in the regulation will remain in the hands of the Member States.

REMIT and related documents can be found here: www.acer.europa.eu/remit-documents