Regulation 2011/1227 - Wholesale energy market integrity and transparency - Main contents
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official title
Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency Text with EEA relevance| Legal instrument | Regulation |
|---|---|
| Number legal act | Regulation 2011/1227 |
| Original proposal | COM(2010)726  |
| CELEX number i | 32011R1227 |
| Document | 25-10-2011 |
|---|---|
| Publication in Official Journal | 08-12-2011; Special edition in Croatian: Chapter 12 Volume 004,OJ L 326, 8.12.2011 |
| Effect | 01-01-1001; Application Partial application Art 8P1 01-01-1001; Application Partial application Art 8P3L1 01-01-1001; Application Partial application Art 8P4 01-01-1001; Application Partial application Art 8P5 28-12-2011; Entry into force Date pub. + 20 See Art 22 |
| Deadline | 28-12-2016; See Art 20.2 08-11-2024; See Art 9.1 08-05-2025; See Art 4.4a And 4a.8 And 12.2 01-06-2025; See Art 21a.2 08-05-2027; See Art 15.5 And 18.9 01-06-2027; See Art 21a.1 07-05-2029; See Art 20.2 |
| End of validity | 31-12-9999 |
8.12.2011 |
EN |
Official Journal of the European Union |
L 326/1 |
REGULATION (EU) No 1227/2011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 25 October 2011
on wholesale energy market integrity and transparency
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on Functioning of European Union, and in particular Article 194(2) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee (1),
After consulting the Committee of the Regions of the European Union,
Acting in accordance with the ordinary legislative procedure (2),
Whereas:
(1) |
It is important to ensure that consumers and other market participants can have confidence in the integrity of electricity and gas markets, that prices set on wholesale energy markets reflect a fair and competitive interplay between supply and demand, and that no profits can be drawn from market abuse. |
(2) |
The goal of increased integrity and transparency of wholesale energy markets should be to foster open and fair competition in wholesale energy markets for the benefit of final consumers of energy. |
(3) |
The advice of the Committee of European Securities Regulators and the European Regulators Group for Electricity and Gas confirmed that the scope of existing legislation might not properly address market integrity issues on the electricity and gas markets and recommended the consideration of an appropriate legislative framework tailored to the energy sector which prevents market abuse and takes sector-specific conditions into account which are not covered by other directives and regulations. |
(4) |
Wholesale energy markets are increasingly interlinked across the Union. Market abuse in one Member State often affects not only wholesale prices for electricity and natural gas across national borders, but also retail prices to consumers and micro-enterprises. Therefore the concern to ensure the integrity of markets cannot be a matter only for individual Member States. Strong cross-border market monitoring is essential for the completion of a fully functioning, interconnected and integrated internal energy market. |
(5) |
Wholesale energy markets encompass both commodity markets and derivative markets, which are of vital importance to the energy and financial markets, and price formation in both sectors is interlinked. They include, inter alia, regulated markets, multilateral trading facilities and over-the-counter (OTC) transactions and bilateral contracts, direct or through brokers. |
(6) |
To date, energy market monitoring practices have been Member State and sector-specific. Depending on the overall market framework and regulatory situation, this can result in trading activities being subject to multiple jurisdictions with monitoring carried out by several different authorities, possibly located in different Member States. This can result in a lack of clarity as to where responsibility rests and even to a situation where no such monitoring exists. |
(7) |
Behaviour which undermines the integrity of the energy market is currently not clearly prohibited on some of the most important energy markets. In order to protect final consumers and guarantee affordable energy prices for European citizens, it is essential to prohibit such behaviour. |
(8) |
Derivative trading, which may be either physically or financially settled, and commodity trading are used together on wholesale energy markets. It is therefore important that the definitions of insider trading and market manipulation, which constitute market abuse, be compatible between derivatives and commodity... |
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