Regulation (EU) 2024/1106 amending Regulations (EU) No 1227/2011 and (EU) 2019/942 as regards improving the Union’s protection against market manipulation on the wholesale energy market

Author (Corporate) ,
Series Title
Series Details (L) 2024/1106
Publication Date 17/04/2024
Content Type ,


Regulation (EU) 2024/1106 - adopted by the co-legislators on 11 April 2024 - introducing amendments to Regulation (EU) No 1227/2011 and Regulation (EU) 2019/942 to improve the European Union's (EU) protection against market manipulation in the wholesale energy market. This is a text with EEA relevance.

Further information:

Regulation (EU) No 1227/2011 - also known as the Wholesale Energy Market Integrity and Transparency (REMIT) Regulation - established a framework for monitoring wholesale energy markets. Regulation (EU) 2019/942 updated the role of the EU Agency for the Cooperation of Energy Regulators (ACER).

This Act addresses concerns over exposure to volatile short-term prices, driven by high prices of fossil fuels. It seeks to complement the short-term markets with a greater role for longer-term instruments, through Power Purchase Agreements (PPAs) and more prudential obligations for energy suppliers. It aims to clarify access to longer term contracts for developers. It also introduces measures to improve the way variable renewable and low carbon energies are integrated into the short-term market.

The draft law was adopted by the European Commission on 14 March 2023 as part of a legislative package seeking to reform the EU's electricity market design and following up an announcement at the State of the European Union (SOTEU) address in 2022. Energy prices had increased significantly by then. They were felt by households, industry and businesses across the EU, and national governments tried to address them. At an EU-level, a Toolbox was provided to tackle high prices, in particular for the most vulnerable consumers, as well as the REPowerEU action plan comprising further measures and funding to boost energy efficiency and renewable energy. This was followed by the creation of a temporary State Aid regime to allow certain measures to soften the impact of high prices, among other measures. All together, the measures helped Member States to deal with the immediate impact of the energy crisis. However, the crisis also highlighted the lack of resilience to energy price spikes. The Regulation seeks to address those challenges.

The Council of the European Union adopted its general approach to the proposed text on 19 June. The European Parliament's relevant committee adopted a negotiating position on the proposal on 7 September. An informal agreement between the co-legislators on a compromise text for this file was reached on 16 November. This was formally endorsed by Parliament on 29 February 2024 and by the Council on 18 March. The Act was signed by the co-legislators on 11 April 2024 and published in the Official Journal on 17 April 2024.

Source Link
Related Links
Commentary and Analysis
Centre for European Reform (CER): Insights, 13/06/2023: Reform of Europe's wholesale power markets: in need of a jolt?
Politico, 22/06/2023: How Spain (almost) got its way on power market reform

EurActiv, 17/11/2023: Deal on new EU rules to tackle electricity market manipulation
EurActiv, 18/03/2024: New law to protect European energy consumers from market manipulation

EUR-LEX: COM(2023)147: Proposal for a Regulation amending Regulations (EU) No 1227/2011 and (EU) 2019/942 to improve the Union’s protection against market manipulation in the wholesale energy market
EUR-LEX: SWD(2023)58: Staff Working Document accompanying the Proposal - Reform of Electricity Market Design
European Parliament: Legislative Observatory: Procedure File for Proposal on Wholesale energy market: Union’s protection against market manipulation (2023/0076(COD))
European Parliament: Legislative Train Schedule: Protection against wholesale energy market manipulation
European Commission: DG Energy: Topics: Electricity market design
General Secretariat of the Council: Policies: Electricity Market Reform
European Commission: DG Energy: Topics: Wholesale energy market
European Commission: Press Release, 14/03/2023: Commission proposes reform of the EU electricity market design to boost renewables, better protect consumers and enhance industrial competitiveness
European Commission: Questions and Answers on the revision of the EU's internal electricity market design (14 March 2023)
European Commission: Opening remarks by Commissioner Simson at the press conference on the reform of the EU's electricity market design (14 March 2023)
UK Government: Policy Papers, 21/04/2023: Explanatory Memorandum on EU law regarding the wholesale energy market (COM(2023)147)
Council of the European Union: Press Release, 19/06/2023: Council reaches agreement on parts of electricity market reform
European Parliament: Press Release, 16/11/2023: Protection of the energy market against manipulation: deal with Council
EPP EP Group: Newsroom, 16/11/2023: Better protection against energy market manipulation
Council of the European Union: Press Release, 16/11/2023: Protection against market manipulation in the wholesale energy market: Council and Parliament reach deal
European Parliament: Press Release, 29/02/2024: Parliament adopts plan to protect the EU energy market from manipulation
S&D EP Group: Newsroom, 29/02/2024: S&Ds: Putting an end to manipulations on energy markets will bring the bills down
Council of the European Union: Press Release, 18/03/2024: Wholesale energy markets: Council adopts law to protect against market manipulation

Subject Categories
Subject Tags
International Organisations