The EU Agency for the Cooperation of Energy Regulators (ACER) is establishing an Expert Group on LNG Price Assessment/Benchmarks.

Application deadline is 14 December 2022.

The proposed new Council regulation on enhancing solidarity through better coordination of gas purchases, exchanges of gas across borders and reliable price benchmarks tasks ACER with developing an LNG price assessment tool by collecting real-time information on all daily transactions.

The new Expert Group on LNG Price Assessment/Benchmarks will build on the experience of previous Expert Groups organised by ACER, providing expert views and opinions on the development of regulatory policies and measures related to LNG price assessments and/or benchmarks.   

The terms of reference for the Expert Group and the specific criteria for the experts are set out in the Open Letter on the Establishment of an Expert Group on LNG Price Assessment/Benchmarks. The work of the expert group shall begin following publication of the regulation in the Official Journal of the European Union.

Read the Open Letter on the Establishment of an Expert Group on LNG Price Assessment/Benchmarks.

The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today a progress report on European wholesale electricity market integration, as part of its 2021 Market Monitoring Report (MMR).

What is the progress report on European wholesale electricity market integration about?

The MMR presents the main results of monitoring the European electricity and gas markets and recommends further actions to foster their integration.

In 2022, unlike during previous years, ACER does not publish a single report gathering all monitored aspects of wholesale electricity markets but rather a series of brief overviews of electricity markets in 2021. The progress report on European wholesale electricity market integration is the third of these publications. It follows the ACER overview of the key developments in European wholesale electricity markets in 2021 (February 2022) and the ACER security of supply report (October 2022). In addition, ACER published its Final Assessment of the EU Wholesale Electricity Market Design in April 2022.

What are the main highlights?

The main wholesale electricity market integration trends identified in 2021:

• Moderate increases in levels of cross-zonal capacity where Net Transfer Capacity calculations apply, consistent with ACER's 70% monitoring report;
• Progress in the integration of EU markets in day-ahead, intraday (instrumental for the large scale integration of renewable energy resources) and in particular balancing markets;
• A European platform for operating the imbalance netting process was achieved (24 June 2021). The platform coordinates ‘imbalance netting’, a process optimising the use of frequency restoration reserves among Transmission System Operators (TSOs);
• Although forward market liquidity generally decreased in 2021, liquidity remained stable in day-ahead markets, and continued increasing in intraday markets. Overall, intraday liquidity has been increasing steadily since 2019; and
• TSOs need to make a further 40% of cross-zonal capacity on electricity interconnectors available to meet the minimum 70% target.

Access the ACER progress report on European wholesale electricity market integration.

Following extensive consultation with stakeholders launched in June 2022 that aimed to improve REMIT data reporting, the EU Agency for the Cooperation of Energy Regulators (ACER) publishes today:

• the updated Transaction Reporting User Manual (TRUM) and its Annexes;

• the updated Frequently Asked Questions (FAQs) on REMIT transaction reporting; and

• a new version (electronic format) for the reporting of REMIT Table 1 transactions.

ACER regularly updates its transaction reporting guidance for stakeholders who have to comply with REMIT data reporting obligations. Reporting parties are expected to comply with the updated guidance within six months of its publication (i.e. by mid-2023).

ACER thanks all the stakeholders who contributed to the consultation of the guidance documents and who tested and provided feedback on the new electronic format.

The amendments provided in the updated TRUM (version 5.1) mainly focus on clarifying the reporting obligations for broker organised market places (broker OMPs), and also for market participants entering into transactions on wholesale energy markets via third party accounts (focusing on Direct Market Access). Several Annexes of the TRUM have also been updated under the current guidance revision:

• Annex II to the TRUM, with new examples of transaction reporting related to spread trades and trades at settlement;

• Annex III to the TRUM, aligning the content with the TRUM related to Direct Market Access;

• Annex IV to the TRUM, aligning the Unique transaction identifier (UTI) Generator with the additional allowed values for contract type and quantity unit for REMIT Table 1 reporting;

• Annex V to the TRUM, with new abbreviations;

• Annex VII to the TRUM, including clarifications on lifecycle reporting of orders.

During the consultation process, ACER consulted with and considered the input from different stakeholders, including associations of market participants, organised market places, and registered reporting mechanisms.

Access the new versions of the Transaction Reporting User Manual and its Annexes.

The new (14th) edition of the FAQs on REMIT transaction reporting provides additional guidance on specific business scenarios to better reflect the development of the trading activity on the EU wholesale energy market (e.g. transactions concluded via Direct Market Access and trades cleared on exchanges).  

Access the new version of the FAQs on REMIT transaction reporting.

The new Version 3 of the electronic format for the reporting of REMIT Table 1 transactions implements selected changes from the Public Consultation on the Revision of electronic formats for transaction data, fundamental data and inside information reporting (PC_2017_R_03), as well as changes required for the alignment of the electronic format with the Transaction Reporting User Manual (TRUM).

In order to reflect the changes in the new electronic format, ACER also published updated versions of the Manual of Procedures on Data Reporting including its Annex III and Annex V, the ARIS Data Validation document, and the ARIS Data Validation Rules Configuration Document on ACER’s website.

ACER plans to retire the older versions of the electronic format for the reporting of REMIT Table 1 transactions after a transition period. Reporting entities can continue using Version 1 (REMITTable1_V1) until 16 May 2023, and Version 2 (REMITTable1_V2) until 16 October 2023.

Access the new Version 3 of the electronic format for the reporting of REMIT Table 1 transactions.

Access the new version of the Manual of Procedures on Data Reporting.

Access the new version of the ARIS Data Validation document.

Access the new version of the ARIS Data Validation Rules Configuration Document.

The EU Agency for the Cooperation of Energy Regulators (ACER) issued the long-term capacity calculation methodology for the Core capacity calculation region (Core region) with its Decision No 14/2021 of 3 November 2021.

Following the Board of Appeal’s Decision A-001-2022 of 7 July 2022, ACER will revise the methodology and amend its Decision.

What is the methodology about?

The Core region comprises of 13 countries: Austria, Belgium, Czech Republic, Croatia, France, Germany, Hungary, Luxemburg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

Long‐term cross border capacity calculation promotes effective long‐term cross‐zonal trade. It allows for long‐term planning and provides hedging opportunities by calculating reliable capacities and making them available to market participants at an early stage.

The long-term capacity calculation methodology for the Core region covers yearly and monthly capacity calculation processes by applying the flow-based approach, which is compatible with the day-ahead capacity calculation methodology applied since June 2022. The Core long-term capacity calculation methodology is planned to be implemented by the end of 2024.

What are the next steps?

In the amendment of the methodology, ACER plans to improve the provisions related to the validation process of calculated capacities by the Core transmission system operators.

ACER expects to reach its decision by 25 January 2023

The Agency for the Cooperation of Energy Regulators (ACER) publishes today a Study on the Future Regulatory Decisions on Natural Gas: Repurposing, Decommissioning and Reinvestments. ACER commissioned DNV as a consultant to carry out the study.

Europe’s ambitious energy transition and decarbonisation goals by 2050 point to a changing role for natural gas. Demand for natural gas is expected to decline over time as the decarbonisation goals lead to a substitution of natural gas with other energy vectors. Therefore national regulatory authorities (NRAs) will need to take regulatory decisions on a wide range of issues such as:

• The repurposing of natural gas assets for their use as part of hydrogen networks;
• The potential decommissioning of natural gas assets that become stranded; and
• The reinvestment of assets that reach the end of their regulatory lives and become fully depreciated.

What is in the Study?

The DNV Study provides an overview of current practices in Member States in addition to identifying challenges and offering possible solutions to future challenges that NRAs and the natural gas transmission system operators (TSOs) face with respect to the changing role of natural gas.

The analysis touches upon issues that are part of the European Commission’s Hydrogen and Decarbonised Gas Market Package of legislative proposals, such as the setting of the transfer value for repurposing assets, the forecasting of future transmission tariffs and the benchmarking of TSO costs. The report includes data collected from NRAs on the TSOs’ regulatory asset base, which helps increase understanding of how current TSOs’ costs are foreseen to evolve over time.

The DNV Study also identifies future challenges and suggests future possible legislative steps to be taken at the EU level on natural gas transmission and on hydrogen networks.

The information and the views set out in this study are those of the author (DNV) only and may not, in any circumstances, be regarded as stating ACER’s official position, opinion, or recommendation. ACER does not guarantee the accuracy of the data and the statements contained therein.

Access the Study on the Future Regulatory Decisions on Natural Gas: Repurposing, Decommissioning and Reinvestments

The EU Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER) publish today the 2021 Decarbonised Gases Volume of the Market Monitoring Report (MMR).

What is the Volume about?

This new Decarbonised Gases Volume describes the current state of EU decarbonised gases and hydrogen, and it examines the regulatory provisions and market context that may drive their evolution in the mid-term.

In particular, it looks at:

• Renewable and low carbon gases production, consumption and price levels, as well as their prospects from now until 2050;
• Key regulatory provisions governing the access of decarbonised gases to the market; and
• Infrastructure expansion required to facilitate the use of biomethane and hydrogen.

What are the main findings?

• Current production of renewable and low carbon gases is modest relative to future policy expectations;
• Production goals have been accelerated as a result of the supply diversification efforts due to the Russian invasion of Ukraine in 2022;
• Numerous challenges are being identified that may hinder the expansion of decarbonised gases and hydrogen production, including the need for:
  • improving infrastructure interconnections,
  • developing greater end-use demand,
  • new infrastructure investments; and
• Energy regulators see the need to clarify the regulatory, financial and technical aspects in time to ensure gas sector decarbonisation and clean hydrogen sector development.

Key recommendations

The Report includes a set of recommendations on how to facilitate the access of decarbonised gases to the market and how to strike a balance between enabling a decarbonised gases market and ensuring regulatory certainty. 

The main regulatory recommendations can be grouped into six areas:

• Technical rules – quality of gas must be defined;
• Market rules – access to networks should be facilitated;
• Access conditions – appropriate tariffing arrangements needed;
• Participation – identification of the appropriate bodies to undertake new roles needed;
• New investments – frameworks must be defined;
• Support – early phase technologies need to be identified.

Access the 2021 Decarbonised Gases Volume.

Explore the rest of the MMR publications.

High prices and high volatility on the wholesale energy markets has led the EU Agency for the Cooperation of Energy Regulators (ACER) and National Regulatory Authorities (NRAs) to reinforce their scrutiny (under REMIT) to detect and sanction possible instances of market abuse.

REMIT is the EU-wide framework for detecting market abuse established under the Regulation on Wholesale Energy Market Integrity and Transparency (EU No 1227/2011).

In the current crisis and exceptional market circumstances (characterised by scarce electricity and gas supplies, unprecedentedly high prices and price volatility), vigilance in detecting market manipulation and insider trading is more important than ever to ensure confidence in the integrity of the EU wholesale energy markets.

Formation of a cross-border investigatory group

ACER and the NRAs across Europe are actively analysing the behaviour of market participants, including non-EU companies, on the wholesale energy markets to:

• detect market manipulation that may have contributed to the current market situation and manipulative behaviours that may have emerged since the beginning of the energy crisis (due to the high price volatility);
• identify potential situations of inaccurate or misleading information provided to the market and/or insider trading.

ACER and the energy regulatory authorities of Austria, Germany and the Netherlands have established a cross-border investigatory group on the oversight of the gas markets. The aim of a cross-border investigatory group is to coordinate and strengthen the efforts on fact-finding and evidence gathering. The investigatory group will be closed when sufficient evidence is gathered to pursue a case or if NRAs conclude on the absence of a REMIT breach.

Neither ACER nor the NRAs are in a position to further comment on specific ongoing investigations, which can span over several years.

Background on role of ACER and NRAs under REMIT:

ACER’s activities

Under the REMIT framework, ACER is mandated to carry out data collection and the monitoring of wholesale energy markets at a Union-wide level. Further, ACER issues guidance and coordinates the activities of the NRAs to ensure a coherent application of REMIT and an effective approach to tackling market abuse. ACER has no direct role in investigation and enforcement.

What is the role of the NRAs under REMIT?

NRAs investigate potential insider trading and market manipulation cases and enforce REMIT through a range of remedies and sanctions determined by the national law of the respective Member States.

See the new table of REMIT breach sanction decisions adopted by NRAs.