More checks and fines, EU launches crackdown on energy market manipulation

Brussels – More checks on the market, more monitoring and more fines for the smart guys. The European Union takes action against energy price speculation and high bills affecting businesses and households. The  EU Parliament closes the legislative process of the proposed regulation against energy market manipulation, approving definitively (440 yes, 32 no, and 31 abstentions) the text already agreed upon with the council, which will enter into force almost immediately. Unlike the directive, which usually gives governments two years to implement new provisions, the regulation takes effect immediately. The rules against price and bill manipulation will take effect 20 days after publication in the official journal.

Protecting the EU wholesale energy market from short-term market price fluctuations will be made possible by introducing stricter financial market transparency criteria, including even new trading practices such as algorithmic trading, and strengthening reporting and monitoring provisions to protect consumers from market abuse.

The Agency for the Cooperation of National Energy Regulators (ACER), based in Ljubljana, will play a role in this regard, having the power to initiate inspections, request information and authorizations of internal information platforms and registered reporting mechanisms. Should the Agency fail to receive the necessary requested information related to cross-border cases, it may impose sanctions for repeated non-compliance.

All these new provisions update the existing regulation on wholesale energy market integrity and transparency, known as “Remit”. The regulation was approved in 2011 to combat insider trading and market manipulation, ensuring transparency and stability in EU energy markets. The new rules only reinforce the regulatory framework, tackling the phenomenon of high bills that often result in real stingers for consumers.

Satisfied, therefore, Maria da Graça Carvalho (EPP), the file’s rapporteur. “This regulation is an essential tool that can help prevent and combat unfair practices in the energy market,” she argues. “With this legislation, European consumers, as well as small operators, will be better protected, and we will have stronger energy markets.”

Also pleased Patrizia Toia (PD/S&D), member of the industry committee and head of the file in the committee. She explains that the war between Russia and Ukraine “has only brought the problems to their current acute stage.” However, for high utility bills, “one of the main causes of this unacceptable situation has been energy market manipulations within our Union.”