On 7 February 2024, ACER has received the transmission system operators’ (TSOs’) proposal to amend:

• the common methodology for harmonising the pricing balancing energy and cross-border capacity; and

• the implementation framework for a European platform for the exchange of balancing energy from frequency restoration reserves with automatic activation (aFRR).

The pricing methodology establishes a harmonised approach for calculating prices across the different EU balancing platforms and increases the efficiency of the balancing energy markets.

The aFRR implementation framework describes the design of the platform for the international coordination of automated frequency restoration and stable system operation (PICASSO), which is a key element in the European balancing markets integration.

What are the amendments about?

In relation to the pricing methodology, the TSOs are proposing to:

• Reduce the technical price limits of the integrated balancing energy markets from 99,999 to 15,000 EUR/MWh. This implies that balance service providers will not be allowed to bid below -15,000 EUR/MWh or above 15,000 EUR/MWh, after July 2026.

• Lower the transitional price limit (valid until July 2026) to 10,000 EUR/MWh. Similarly, during this transitional period, balance service providers will only be allowed to bid between the price range from -10,000 to 10,000 EUR/MWh.

• Use an alternative way to compute the prices from the PICASSO platform to better reflect the bids activated by the TSOs.

In terms of the aFRR implementation framework, the TSOs propose introducing the possibility of using an elastic demand. This would allow them to price a segment of their demand and therefore establish a threshold beyond which they are unwilling to activate balancing energy. This would improve the TSOs' ability to manage the balance between cost efficiency and the need for maintaining high-quality frequency.

How does ACER contribute?

ACER will review the TSOs’ proposals to ensure they align with the Regulation on electricity balancing and fulfil the obligations set out by the Regulation on the internal market for electricity.

What are the next steps?

To gather inputs from stakeholders and inform its decision-making process, ACER will:

• run a public consultation from 26 March to 23 April 2024;

• hold a webinar on 8 April 2024 to present and discuss the main elements of ACER’s public consultation.

ACER will reach a decision by 7 August 2024.

ARERA, the Italian energy regulator, has imposed a €940,000 fine on ENET Energy S.A. (ENET) for sending false and misleading signals on the Italian gas market.

According to ARERA’s decision, on a single trading day in 2022, ENET nominated very high volumes of gas storage capacity (i.e. over-nomination), both for injections  and for withdrawals. This, together with ENET’s trading activity, sent false and misleading signals regarding the overall system imbalance, prompting the gas Transmission System Operator (TSO) Snam Rete Gas S.p.A. (Snam) to trigger balancing actions to ensure the system’s stability.

Under the REMIT Regulation (EU) No 1227/201, practices that distort the energy market are strictly prohibited. This includes the use of any fictitious devices (in this case a misuse of the over-nomination mechanism) or deceptive actions designed to mislead market participants about the true state of supply, demand, or prices of wholesale energy products.

ARERA found that ENET’s conduct breached Article 2.2.a.iii and Article 5 of REMIT Regulation. ACER welcomes this decision by ARERA, promoting the transparency and integrity of the Italian gas market.

Access ARERA’s Decision (in Italian).

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

Check the ACER REMIT Guidance (6th 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.

CRE’s Dispute Settlement and Sanctions Committee (CoRDiS) has imposed a EUR 500,000 fine on Engie for insider trading on the French wholesale electricity market and for failing to publicly disclose inside information in an effective and timely manner.

REMIT Regulation (EU) No 1227/201 prohibits insider trading in Europe’s wholesale energy markets and establishes rules for the obligation to publish inside information.

Between 1 January 2019 and 31 December 2020, Engie breached Articles 3 and 4 of the REMIT Regulation on several occasions:

• Breach of the prohibition of insider trading by:
  • Carrying out trading operations based on inside information (234 times); and
  • Disclosing inside information outside the normal scope of the exercise of their duties (1 time).
• 22 instances of failing to publicly disclose, in an effective and timely manner, inside information related to the unavailability of their electricity generation facilities.

Insider trading, along with the failure to publicly disclose in an effective and timely manner inside information, severely compromises the integrity and transparency of the EU electricity market.

ACER welcomes this decision of the French energy regulatory authority promoting the transparency and integrity of the French electricity market.

Access the Decision and CRE’s press release (both in French).

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

Check the ACER REMIT Guidance (6th edition) for more information on the types of trading practices which could constitute market manipulation under REMIT.

Additional material on enforcement decisions under REMIT is accessible in the REMIT Quarterly reports that ACER publishes each quarter.

REMIT (Regulation on Wholesale Energy Market Integrity and Transparency) provides an EU framework for the transparency and integrity of energy markets and deters market participants from manipulating the market. It has an important role in protecting the interests of companies and consumers and ensuring trust in energy markets.

What is the REMIT Quarterly?

The REMIT Quarterly is ACER’s main channel of communication with stakeholders on REMIT-related matters, providing updates on ACER’s REMIT activities.

The 35th edition covers the fourth quarter of 2023 and features:

• A summary of the 7th REMIT Forum (5 December 2023), which focused on the REMIT revision (trialogue results were published in 2023).

• An analysis on the hydrogen wholesale market, looking at relevant developments in light of the envisaged expansion of ACER’s market surveillance mandate to hydrogen and renewable gases.

• The statistics for Registered Reporting Mechanisms’ (RRMs’) contingency reports.

• An updated overview of the sanction decisions under REMIT for 2023, with 379 cases under review at the end of the fourth quarter.

• An assessment of the operation and transparency of different categories of market places and ways of trading in 2023, analysing:

  • trends in data reporting;

  • statistics on REMIT and Single Intraday Coupling (‘SIDC’) transaction records; and

  • trading on organised market places.

• Other REMIT updates.

Access the 35th issue of the REMIT Quarterly.

Access all issues of REMIT Quarterly.