REMIT stands for Regulation (EU) 1227/2011 on wholesale energy market integrity and transparency which establishes a framework for monitoring of wholesale energy markets in the EU.
REMIT came into effect in 2011 to promote open and fair competition in wholesale energy markets in the EU. The regulation prohibits insider trading and market manipulation, including its attempts. In order to detect such practices, foster trust in the functioning of the markets and protect the interests of both companies and consumers, the EU Agency for the Cooperation of Energy Regulators (ACER) set up an EU-wide market surveillance system, which is complemented by the investigative powers of national regulators. The system is constantly being upgraded in response to evolving markets, with ACER and individual national regulators working closely together to analyse, detect and deter suspicious market behaviour.
Pursuant to Article 8 of REMIT, wholesale energy market participants are obliged to provide to ACER records of wholesale energy market transactions, including orders to trade (reporting obligation). The information may also be reported on behalf of market participants by another person or authority (Article 8(4)(b) to (f)) of REMIT), e.g. registered reporting mechanisms (in Slovakia, companies OKTE, a.s. or Solien, s.r.o.).
The list of reportable contracts and derivatives, the uniform rules for the reporting of the information in question and the timing and form in which that information is to be reported are laid down in the Commission Implementing Regulation (EU) No 1348/2014 on data reporting implementing Article 8(2) and Article 8(6) of REMIT (the "Implementing Regulation"), which has been in effect since 2015.
Before entering into transactions which are required to be reported to ACER, participants in the wholesale energy markets are obliged (pursuant to Article 9 of REMIT) to register with the national regulatory authority in the Member State in which they are established or resident or, if they are not established or resident in the EU, in a Member State in which they are active.
Market participants which are established or resident in the Slovak Republic are required to register in the national register of market participants (CEREMP) administered by URSO before entering into transactions on the wholesale electricity or gas market.
It should be noted that registration in CEREMP does not constitute a permit or licence to enter into wholesale energy market transactions, but is a necessary requirement for entering into such transactions. Once the registration is approved, the market participant will be assigned an 'ACER code' which is an identifier for the market participant to report its transactions to ACER.
REMIT complements and extends the regulation of financial markets as, in the broadest sense, energy products are also traded as financial instruments. Regulation (EU) No 596/2014 on market abuse (market abuse regulation, MAR) establishes a common regulatory framework on insider trading, unauthorised disclosure of inside information and market manipulation (market abuse) as well as measures to prevent market abuse in order to ensure the integrity of financial markets in the Union and to enhance investor protection and trust in these markets.
It should be stressed that energy markets, as well as financial markets and their behaviour, are rapidly evolving and European (and national) legislation needs to respond accordingly. Therefore, discussions and approval processes are currently underway for the revision of the REMIT Regulation, which should be published by the end of 2023.