On 16 November 2023, the European Commission, the European Parliament and the Council reached a provisional political agreement on the review of the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT). We discussed the scope of the review in our earlier blog. In accordance with an official statement, the co-legislators agreed on the following:
- Registration of market participants: the co-legislators agreed on the key contentious issue in the course of the review, which considered the potential location requirement for third-country market participants. In accordance with the provisional agreement, third-country market participants will have to “designate a representative in a member state in which the market participants are active in the wholesale energy market. The representative must be designated by a written mandate and authorised to act on behalf of the market participant. In addition, market participants are obliged to ensure that their representative has the necessary powers and means to ensure the market participants’ efficient and timely compliance with the decisions and cooperation with the requests for information of the national regulatory authorities or the European Union Agency for the Cooperation of Energy Regulators (ACER).”
- ACER’s decision-making powers and competence to impose sanctions: the co-legislators agreed on the scope of ACER’s decision-making powers to on-site inspections, requests for information and authorisations or withdrawal of authorisations of Inside Information Platforms (IIPs) and Registered Reporting Mechanisms (RRMs). ACER will be given power to impose periodic penalty payments in order to ensure compliance with on-site inspection decisions and requests for information, whilst the power to impose fines for REMIT infringements or breaches of the prohibitions or its substantive obligations will remain with Member States.
- ACER’s investigation powers: ACER will have the right to investigate cases with a cross-border dimension, involving at least two Member States, and to prioritise cases. National regulatory authorities (NRAs) will continue to be able to object to the exercise of the agency’s investigatory powers when the NRAs have formally opened or have conducted an investigation on the same facts. ACER will be able to conduct on-site inspections and issue requests for information as well as the power to take statements.
In terms of next steps, the provisional agreement must be formally approved by the Council and by the European Parliament, which is expected to take place in early 2024. Once finalised, the revised REMIT will enter into force 20 days following its publication in the EU Official Journal, subject to any agreed transitional provisions.
