On this page you can find information on REMIT and our role under the EU framework as Britain’s national regulatory authority (NRA) on wholesale energy markets.
You can also find information on registration requirements for REMIT market participants and how to report suspected market abuse to us.
What is REMIT?
REMIT is an EU regulation on energy market integrity and transparency (No 1227/2011). It has been in force since 28 December 2011.
It provides a consistent EU-wide regulatory framework specific to wholesale energy markets that:
- defines market abuse. This includes market manipulation, attempted market manipulation or insider trading
- explicitly prohibits market abuse
- requires effective and timely public disclosure of inside information by market participants
- obliges firms professionally arranging transactions to report suspicious transactions.
REMIT creates a very important framework for identifying and penalising market abuse in GB and across the rest of Europe. This helps consumers, industry and other participants have confidence that wholesale energy prices are open, fair and competitive; the foundations of an effectively functioning energy market.
Our role in REMIT
As Britain’s NRA, we have powers through The Electricity and Gas (Market Integrity and Transparency) (Enforcement etc) Regulations 2013 to monitor, investigate and enforce against breaches of REMIT.
This allows us to:
- oblige any regulated person to record and retain records, including relevant communications, for a period of at least six months from the date the record was created
- require that these records are kept for longer, until a specified date
- require those we regulate under REMIT to provide us with information in connection with monitoring the integrity and transparency of the wholesale energy market
- investigate where circumstances suggest a failure to comply with REMIT. In this context, we can:
o require any person to provide information or documents relevant to an investigation.
o summon people to attend a meeting and answer questions, and to apply for a warrant to enter premises.
Our work with other regulators
Given the nature of market trading, we work closely with the Financial Conduct Authority. We also work with the Agency for the Co-operation of Energy Regulators (ACER) and with other European NRAs to detect and investigate cross-border market abuse.
How we enforce REMIT
We can publicly censure or place unlimited financial penalties on those who break the rules. We can also demand payment for profits, or losses suffered, from non-compliance with REMIT.
For full details of our REMIT penalties and policy procedures, or for further general information, please see the publications and updates list below, or contact us at REMIT@ofgem.gov.uk.
Registering as a market participant
Registration is a requirement for REMIT market participants. We have established an online registration system. REMIT market participants must register before entering into reportable transactions, with transaction reporting starting from 7 October 2015. Find out more on how to register at Registering as a market participant under REMIT.
Reporting suspected market abuse or suspicious transactions under REMIT
We take seriously any allegation of abuse in the wholesale energy market and will consider carefully any evidence that is brought to our attention. You can find out about the obligations on firms arranging transactions on GB wholesale energy products and how to report suspected abuse, such as insider dealing or market manipulation, at Reporting suspected market abuse or suspicious transactions under REMIT.
For information on use of exemptions and when reporting can be delayed, please see Use of exemptions and delaying publication of inside information under REMIT.
All participants trading wholesale gas or electricity contracts for delivery in Europe on Organised Market Places have an obligation to report information about their trading activity to ACER from 07 October 2015. More information can be found on ACER’s website, and ACER should be the first point of contact for questions about transaction reporting.