On 20 January 2025, the Dispute Settlement and Sanctions Committee (CoRDiS) of the French energy regulatory authority (CRE) imposed an €8 million fine on Danske Commodities A/S and a €4 million fine on Equinor ASA for manipulating annual capacity auctions at the virtual interconnection point between France and Spain (PIR Pirineos) in 2019 and 2020.

These penalties come 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.

In its decision, CoRDiS found that Danske Commodities A/S, in collusion with Equinor ASA, had booked higher volumes of transmission capacity than those offered in the first round of PRISMA annual gas capacity auctions for PIR Pirineos in July 2019 and July 2020. This was done without the intention of acquiring such capacity, sending false or misleading signals regarding the demand for annual gas transmission capacity from France to Spain via the PIR Pirineos interconnection point.

The investigation revealed that the objective of this behaviour was to create market congestion and prevent the application of multipliers to the prices of gas transmission capacities on the infra-annual market, which are meant to incentivise the booking of annual transmission capacities. By placing non-genuine offers in the first round of auctions for annual gas transmission capacity and creating congestion, Danske Commodities A/S and Equinor ASA prevented the application of multipliers, reducing the price of gas transmission capacities on the infra-annual market and setting the market price at an artificial level.

CoRDiS considers this behaviour a violation of REMIT Article 5, which prohibits actions that give or are likely to give false or misleading signals about the supply, demand, or price of wholesale energy products, or which secure or are likely to secure the price at an artificial level.

ACER welcomes this first REMIT decision of 2025 and appreciates CRE’s continued efforts to strengthen market integrity.

Access the CoRDiS decision, CoRDiS' press release and CRE's press release (all in French).

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

Check the ACER REMIT Guidance (6.1st edition) for more information on the types of trading practices which could constitute market manipulation under REMIT.

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

Today, ACER releases its report on the Romanian gas transmission tariffs directed at the Autoritatea Naţională de Reglementare în domeniul Energiei (ANRE), the National Regulatory Authority (NRA) of Romania.

The report assesses whether the proposed reference price methodology (RPM) complies with the requirements of the Network Code on Harmonised Transmission Tariff structures (NC TAR). 

What are the key findings?

After analysing the NRA’s consultation document, ACER finds that, while most of the required information is available, the absence of important elements prevents a complete assessment of the proposed methodology’s compliance with the Network Code requirements. In particular:

• ANRE did not provide sufficient justification for choosing the proposed postage stamp methodology, making it difficult for stakeholders to evaluate its suitability.
• While the postage stamp methodology may be appropriate, ACER cannot determine its compliance with the NC TAR principles (e.g. cost-reflectivity, preventing cross-subsidisation, and avoiding cross-border trade distortions) without further clarification.
• While the transparency and volume risk criteria of the NC TAR are not directly addressed in the consultation document, ACER could still conclude that the proposed methodology meets these requirements. Additionally, ACER did not identify any discriminatory elements in the proposed RPM.
• Although the criteria for setting non-transmission charges are met, the non-transmission revenue is not included in the allowed revenue, contrary to Network Code requirements.
• Finally, the criteria for setting commodity charges align with NC TAR requirements.

What does ACER recommend?

ACER recommends that the NRA, when adopting its decision, further justify the choice of the proposed RPM by including the following elements:

• Further considerations on the system’s technical characteristics and flow dynamics, focusing on distance as a potential cost driver.
• The conclusions drawn from the comparison of the proposed RPM with the Capacity Weighted Distance (CWD) methodology.
• A detailed assessment of the proposed RPM against all requirements outlined in Article 7 of the NC TAR.

ACER also invites ANRE to clarify how costs associated with the inclusion of the “transit” pipeline (part of the Trans-Balkan pipeline infrastructure) in the national transmission system have been taken into account.

Access all ACER reports on national tariff consultation documents.

The EU’s Hydrogen and decarbonised gas market package (2024) aims to support the development of a competitive hydrogen market and the integration of renewable gases into Europe’s energy system. To achieve this, the package extends the role of ACER to include new hydrogen-related tasks.

One of these tasks, set out in the Regulation on hydrogen and decarbonised gas market, requires ACER to issue a recommendation on the methodologies for setting the inter-temporal cost allocation by 5 August 2025 and update it at least every two years. 

To inform the drafting of this recommendation, ACER will seek stakeholder input through a public consultation from 10 to 31 March 2025.

What is inter-temporal cost allocation?

Developing a European hydrogen market will require significant infrastructure investment to transport hydrogen from supply sites to end users. However, funding this infrastructure through traditional regulated tariffs (fees paid by network users) could result in extremely high fees for early users, making hydrogen less affordable and potentially discouraging further demand.

To address this issue, the Regulation on hydrogen and decarbonised gas market grants Member States the authority to allow hydrogen network operators to recover infrastructure costs over time through inter-temporal cost allocation mechanisms. These aim to ensure a fair distribution of costs between early and future hydrogen consumers, ensuring that the former are not disproportionately burdened.

ACER’s recommendation will provide guidance to Transmission System Operators (TSOs), Distribution System Operators (DSOs), hydrogen network operators, and National Regulatory Authorities (NRAs) on how to develop and implement these mechanisms effectively.

ACER’s REMIT Quarterly provides updates on the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) and related activities, including insights into the 2024 revision of the REMIT Regulation to help stakeholders stay informed on changes that enhance transparency and integrity in the European energy market.

What is in the latest REMIT Quarterly?

The 39th edition covers the fourth quarter of 2024 and includes:

• ACER’s work on data reporting following the revised REMIT.
• Key takeaways from two joint roundtable meetings (26 and 28 November 2024) with Registered Reporting Mechanisms (RRMs), Inside Information Platforms (IIPs), Associations of Energy Market Participants (AEMPs) and Organised Market Places (OMPs), which discussed the upcoming revision of the REMIT Implementing Regulation, and shared updates on data reporting guidance.
• Minutes of the 3rd and 4th Expert groups’ meetings on Wholesale Energy Market Data Reporting and on Wholesale Energy Market Integrity and Transparency.
• Obligations for hydrogen market participants to disclose inside information.
• Updates on guidance documents on REMIT transaction reporting and trends in data reporting, including top 5 reporting entities.
• Overview of REMIT breach cases in 2024, with 390 cases under review at the end of Q4.
• Summary of 2024 trading activities on Organised Market Places.

Today, 31 January, marks the final day of the EU’s gas Market Correction Mechanism (MCM).

Established by the MCM Regulation in December 2022, in the midst of the energy crisis, this mechanism was designed to protect EU citizens and the economy against excessively high energy prices.

It tasked ACER with the calculation and publication of a daily MCM reference price. It entered into force on 1 February 2023 for an initial year and was later extended to 31 January 2025.

What is the MCM?

The MCM was a safeguard to cap gas prices in the EU. It would activate only if:

1. Gas prices at EU hubs exceeded €180/MWh for three consecutive working days.
2. These prices were at least €35/MWh higher than the MCM reference price during the same period.

Upon activation, a bidding limit would cap gas trading prices to protect the market from further escalation.

The MCM was never activated, as market conditions never met these thresholds.

The MCM’s effects on energy and financial markets have been closely monitored by ACER and by ESMA (European Securities and Markets Authority) respectively - no significant impacts on the market have been directly attributed to it. 

Read more about the MCM.

ACER has updated its data dashboard, which tracks monthly changes in household energy prices across EU Member States and Norway from January 2019 to December 2024.

The dashboard provides valuable insights for policymakers, consumer protection groups, and EU citizens by highlighting trends in end-user electricity and gas prices, supporting informed decisions on energy affordability and system costs.

What are the key findings?

Electricity prices: In 2024, household electricity prices decreased by 5% compared to 2023. This was mainly due to a 17% fall in the energy component of prices. However, this decline was partially offset by higher network costs and the phasing out of certain subsidies. In Q4, prices and their composition remained steady, showing no significant changes compared to the previous quarter.

Gas prices: Similarly, household gas prices fell by an average of 7% in 2024, driven by the 20% drop in the energy component. Removal of subsidies contributed to a rise in the tax component, partially offsetting the decrease. In the last quarter, the average end-user gas prices slightly increased.

What lies ahead?

The drop in energy costs reflects the impact of Europe's growing use of renewable energy. However, as renewable energy generation expands, there will be a need for substantial investment in energy infrastructure, which could lead to higher network costs in the future.

The European Commission’s upcoming Action Plan on Energy Affordability will be key in addressing these challenges. The current trends highlight the importance of looking at the overall costs of the energy system (including network and infrastructure expenses), rather than focusing solely on commodity costs.

ACER will continue updating the dashboard quarterly to monitor the developments in energy affordability for European consumers.

In July 2024, ACER received a proposal from Transmission System Operators (TSOs) to amend the methodology for harmonising cross-zonal capacity allocation for the exchange of balancing capacity or sharing of reserves.

After consulting with stakeholders in the autumn of 2024, ACER revised the TSOs’ proposal. Today, with its Decision 01-2025, ACER has adopted the amended methodology.

The methodology (approved by ACER in 2023) harmonises the processes (i.e., market-based and co-optimisation) that compare the market value of cross-zonal capacity between balancing capacity and day-ahead electricity markets. These processes rely on an algorithm that optimises the allocation of available cross-zonal capacity in a way that maximises overall market welfare.

Why did ACER amend the methodology and what’s new?

The updated methodology:

• clarifies the governance of the market-based process to ensure its efficient implementation and operation;
• allows to establish rules for distributing congestion income resulting from cross-zonal capacity allocation among TSOs.

ACER’s Decision also grants TSOs more time to develop the harmonised market-based software and offers flexibility to those already operating regional market-based processes to adapt to the methodology’s new requirements.

What are the next steps?

TSOs are required to develop the harmonised market-based software by June 2026.

Full implementation of the harmonised market-based allocation process is not expected before September 2027, pending approval from the relevant National Regulatory Authorities (NRAs).

ACER is establishing an Expert Group to assess flexibility needs in the EU electricity system. We are looking for professionals with expertise in power market modelling, energy markets, energy systems, energy economics, energy policy and energy regulations.

What will be the Expert Group’s focus?

Due to the massive ramp up of renewable energy, the EU’s power system flexibility needs are expected to double by 2030. The recently adopted Electricity Market Design (EMD) Regulation (2024) mandates ACER to conduct a pan-European flexibility needs assessment. The assessment, expected to be published in July 2027, will be based on the methodology currently being developed by the European Network of Transmission System Operators for Electricity (ENTSO-E) and DSO Entity.

Through this assessment, ACER will evaluate how well the EU’s electricity system can adapt to fluctuating demand and generation patterns to cost-effectively integrate increasing shares of variable renewables while ensuring security of supply. It will also evaluate the potential impact of introducing new measures to unlock flexibility on the European electricity markets.

This harmonised assessment will further provide the European Commission and other stakeholders with essential data and insights to inform policy decisions aimed at enhancing the resilience, stability, and efficiency of the EU's electricity market.

The Expert Group will support ACER in the development of a robust analytical tool to complete this assessment.

Experts will provide valuable insights and recommendations on:

• modelling techniques and their implementation;
• solutions to simulate and quantify the flexibility needs of the system; and
• other key topics related to improving system flexibility. 

The group will operate for two years, i.e. until April 2027, with the possibility of extension if further engagement is needed.

How to apply?

Follow the instructions in the Open Letter, ensuring that you fulfil all the criteria. The deadline for applications is 10 February 2025.

Today, ACER releases a new tool to simulate price correlations for electricity forward trading with potential virtual hub prices.

The ACER’s electricity virtual hub price simulator tool shows correlations between prices in any EU electricity bidding zone and various configurations of a virtual hub price. A virtual hub price is currently in use in the Nordic market region (i.e., the Nordic System Price), and could potentially also be introduced for Continental Europe as part of the upcoming revision of the Forward Capacity Allocation (FCA) Regulation by the European Commission. The Commission will assess whether there is a need for regional virtual hubs for forward markets. This ACER virtual price correlation simulators helps inform the debate on this topic.

Why did ACER develop this simulator?

The 2022 energy crisis revealed the high vulnerability to extreme day-ahead electricity prices in the absence of effective hedging, highlighting the importance of well-functioning electricity forward markets.

In 2023, ACER published its policy paper to further develop the EU electricity forward market. The paper identified the need for better allocation of long-term cross-zonal capacities to support forward electricity trading. It proposed shifting away from long-term transmission rights (LTTRs) for individual bidding zone border towards LTTRs between bidding zones and a virtual regional hub. To enable this approach (should the Commission decide to go this route), the revised FCA Regulation would need to establish a methodology that defines virtual hub prices.

What is proxy hedging and why could a virtual hub price be relevant?

Market participants who lack sufficiently liquid forward electricity products for their bidding zone may want to address their hedging needs via a similar but more liquid electricity forward product. The efficiency of using such an alternative forward electricity product (known as ‘proxy hedge’) depends on:

• Liquidity: the proxy product must be actively traded to ensure it can be easily bought and sold.
• Price correlation: the proxy’s price must closely reflect price movements in the bidding zone where the market participant has an open risk position.

Currently, many market participants use the (large and liquid) German forward market as a proxy for their hedging needs. A virtual hub forward electricity product, with better price correlation to EU bidding zones, may offer an efficient alternative for proxy hedging under a future integrated European forward electricity market design.

How can a market participant use ACER’s electricity virtual hub price simulator?

ACER’s virtual hub price correlation simulator is based on real day-ahead prices and enables users to explore different geographical configurations for potential hubs to hedge electricity prices. It shows how the prices of these virtual hubs would have correlated with current EU bidding zones over the past years.

The dashboard also displays the correlations between EU bidding zone prices and the currently used proxy hedging products (such as the German bidding zone price).

Can any initial findings be drawn from the data?

ACER’s virtual hub price correlation simulator provides statistical insights that support the recommendations in ACER’s (2023) policy paper. The data suggests that a well-designed virtual hub price would have stronger correlations with most bidding zone prices than the forward products currently used as proxies for hedging.

What are the next steps?

The European Commission is conducting an impact assessment to identify ways to improve the forward electricity market. Based on this assessment, the FCA Regulation is expected to be revised in 2026.