One of the key features of the EU Regulation on Wholesale Energy Markets Integrity and Transparency (REMIT) is the requirement for certain participants in the EU wholesale energy markets to register with the national energy regulator in a given EU Member State. Registration is closely connected to the related requirement to report certain wholesale energy market transactions, including orders to trade, to the European Agency for the Cooperation of Energy Regulators (ACER).

A penalty for failing to register under REMIT can include a significant financial fine, with the exact amount depending on the jurisdiction and the severity of the non-compliance, potentially reaching up to a percentage of a company’s turnover; in addition to the fine, regulatory bodies may also issue public censures or take other enforcement actions to address the breach.

The Netherlands Authority for Consumers and Markets (ACM) has recently sent letters to market parties in relation their potential registration obligations under REMIT. The ACM is investigating whether companies that are trading in wholesale energy products in the EU are compliant with their registration obligations and the ACM has provided a deadline of 3 January 2025 to either respond and explain why no registration should be required or to get registered with the ACM. The ACM makes reference to the fact it may impose enforcement actions.

For further information on REMIT please see the REMIT section of our Markets Library.

We have also recently published a podcast on REMIT II which can be found here.