REMIT breach: Energi Danmark fined for manipulating the Nordic wholesale electricity market

The fine imposed on Energi Danmark A/S (Energi Danmark) is based on a report made by the Danish energy regulatory authority (Danish Utility Regulator, DUR) in March 2024, which was referred to the Danish State Prosecutor for Serious Economic and International Crime. 

This penalty comes under the REMIT Regulation (EU) No 1227/2011, which prohibits market manipulation and seeks to protect the integrity and transparency of the EU’s wholesale energy markets.

According to energy regulator (DUR) and the Danish state prosecutor, the misconduct, which took place on 3 January 2020, included five cases of electricity market manipulation and one attempt to do so in violation of Article 5 of REMIT. Through its behaviour, called 'cross-zonal capacity hoarding', the company acquired all, or a significant share of, the capacity available on an electricity transmission connection between two bidding areas by trading with itself. In this way, Energi Danmark prevented other market participants from using the capacity, thereby creating or increasing a price difference between the two bidding areas. 

DUR estimated the financial gain from the conduct at DKK 80,693 (approximately EUR 10,800). The prosecutor fined Energi Danmark 380,000 DKK (approximately EUR 50,900), which Energi Danmark has accepted to pay. 

In December 2018, Energi Danmark had already agreed to pay a fine of DKK 750,000 (approximately EUR 100,500) for violating the same REMIT regulation prohibition of market manipulation, which DUR emphasised as an aggravating circumstance in its report. 

The EU Agency for the Cooperation of Energy Regulators (ACER) welcomes this third decision related to the hoarding of cross-border electricity transmission capacity in Denmark. ACER emphasises the importance of vigorous enforcement to enhance public trust in the EU’s electricity markets and protect European consumers from market abuse.

Access DUR’s press release (in Danish).

Access ACER’s Guidance Note on cross-zonal capacity hoarding. Also check the ACER REMIT Guidance (6.1^st edition) for more information on the types of trading practices which could constitute market manipulation under REMIT.

See the latest table of REMIT breach sanction decisions adopted by national regulatory authorities.

Interested in further information on enforcement decisions under REMIT? Check out ACER’s REMIT Quarterly reports.