What is REMIT compliance? A quick guide for energy players

The wholesale energy market in the EU is tightly regulated to ensure transparency and fairness. One of the most critical frameworks governing this space is REMIT (Regulation on Wholesale Energy Market Integrity and Transparency). Introduced in 2011, REMIT is designed to curb market abuse, including insider trading and price manipulation.

By the end of Q4 2024, the Agency for the Cooperation of Energy Regulators (ACER) had 390 REMIT breach cases under review, indicating a continued focus on monitoring and enforcing compliance within the EU’s wholesale energy markets^[1]. 

As the energy sector integrates more real-time trading platforms, automated demand-response systems, and AI-driven forecasting tools, the complexity of adhering to REMIT regulation has grown exponentially. Let’s understand what REMIT is, why it exists, and who it applies to.

What is REMIT compliance?

REMIT (Regulation (EU) No. 1227/2011) is the EU’s foundational legal framework designed to ensure the integrity and transparency of wholesale energy markets. As the basis for REMIT compliance, it aims to:

• Increase transparency in wholesale electricity and gas transactions
• Prevent insider trading and market manipulation
• Foster competition and trust among market participants

Its regulation applies to both physical and financial transactions involving wholesale energy products. This includes contracts related to the supply and transport of electricity or natural gas, derivatives, and any delivery or distribution agreements with an annual volume of 600 gigawatt-hours (GWh) or more.

In the context of REMIT energy regulation, these rules have evolved significantly, particularly with the introduction of new REMIT regulation measures aimed at enhancing reporting accuracy and regulatory oversight. Enforced by the Agency for the Cooperation of Energy Regulators (ACER), REMIT requires market participants to:

• Register with their National Regulatory Authority (NRA)
• Report trades and orders via Registered Reporting Mechanisms (RRMs)
• Publicly disclose inside information that could influence market prices

Why was REMIT created?

REMIT was introduced to fix major gaps in how the energy market was being monitored and regulated. Before REMIT, there was no EU-wide standard for dealing with market manipulation or insider trading in the energy sector. This created opportunities for unfair practices that distorted prices and eroded consumer trust.

The financial crisis of 2008 was a key turning point. It highlighted the lack of regulatory oversight in key markets, including energy. Unlike the financial sector, which had regulations like the Market Abuse Directive (MAD), energy markets had no equivalent framework. REMIT compliance became essential in this context, helping ensure that energy trading practices remained transparent and lawful.

REMIT regulation was designed to fill that gap by:

• Bringing transparency and accountability
• Aligning energy market rules with financial market standards
• Supporting fair pricing mechanisms across the EU

History and evolution of REMIT compliance 

REMIT was not a one-time legislative move but part of the EU’s broader, long-term plan to establish a harmonized and resilient energy market. Its creation marked the beginning of a structured regulatory approach to ensure transparency, prevent abuse, and support cross-border energy integration. Since its adoption, REMIT has gone through several implementation phases—each strengthening oversight and improving REMIT compliance mechanisms in line with progressing REMIT regulations. 

Why REMIT matters today?

The importance of REMIT has grown significantly in the face of today’s rapidly evolving energy landscape. With the energy crisis triggered by geopolitical tensions, rising volatility in electricity and gas prices, and the EU’s accelerated transition to renewables, ensuring transparency and integrity in energy markets is no longer optional—it’s critical.

Here’s why REMIT compliance  is important in the 21st century:

• High market volatility: Events like the Russia-Ukraine conflict have created unprecedented fluctuations in gas and electricity prices. In 2022, wholesale electricity prices in the EU rose by more than 300% in some regions, increasing the risk of market manipulation. REMIT regulations provide the framework to monitor and flag unusual trading patterns during such volatility, making REMIT compliance a non-negotiable priority.
• Decentralization and digitalization: The growth of distributed energy resources (DERs), such as rooftop solar and battery storage, along with AI-driven trading algorithms, has introduced new layers of complexity. REMIT energy regulation helps ensure that these innovations don’t become blind spots for regulators.
• Cross-border trading and integration: As the EU moves toward a fully integrated energy market, cross-border transactions have increased. The new REMIT regulation facilitates consistent regulatory oversight across member states, enabling effective data-sharing and enforcement.
• Real-time market oversight: ACER now processes over 3 billion transaction records per year through automated surveillance systems. This scale of monitoring is crucial to detect manipulative behavior, such as layering, spoofing, or information leakage. The REMIT regulation 2024 updates reinforce ACER’s capabilities by addressing emerging trading tactics and improving transparency standards.
• Compliance risk and penalties: With the enforcement of intensified REMIT regulations, businesses face higher scrutiny and risk of penalties. In 2023, several energy firms received multi-million euro fines for failing to disclose inside information or attempting to distort prices.

REMIT regulation acts as a stabilizing force in the EU’s energy markets. As renewable integration grows, price signals become more dynamic, and trading becomes more algorithmic, the regulation ensures that market fundamentals—not manipulation—drive outcomes.

Simply put, REMIT compliance is the guardrail keeping Europe’s energy transition fair, transparent, and trustworthy.

Who does REMIT apply to?

REMIT regulations apply to all entities involved in the wholesale energy markets of the European Union. This includes a wide range of stakeholders across the electricity and natural gas value chains. Regardless of a company’s size or operational scale, if it engages in trading, transporting, or storing wholesale energy products in the EU, it must comply with REMIT.

Key categories of market participants include:

• Electricity and gas producers: Companies that generate and supply electricity or natural gas, whether from conventional sources or renewables.
• Energy traders and brokers: Entities that buy, sell, or facilitate trades in wholesale energy products, including physical contracts and financial derivatives.
• Storage system operators: Businesses that own or operate facilities for storing electricity (e.g., batteries) or natural gas (e.g., underground storage units).
• Transmission System Operators (TSOs): Organizations responsible for the bulk movement of electricity or gas across large infrastructure networks.
• Market platforms and exchanges: Digital or physical marketplaces that enable wholesale energy trading, such as energy exchanges or trading hubs.

Importantly, REMIT compliance is size-agnostic. Whether a business is a multinational utility or a small independent producer, the regulation applies uniformly. What matters is the nature of the activity—if it involves wholesale energy trading within the EU, REMIT regulations must be fulfilled. This ensures a level playing field, discouraging market manipulation regardless of the actor involved.

Core obligations under REMIT 

REMIT (Regulation (EU) No. 1227/2011) establishes a set of core obligations that all market participants must adhere to in order to promote transparency, fairness, and integrity within the wholesale energy markets of the European Union (EU). These obligations are designed to prevent market abuse, including insider trading, market manipulation, and the dissemination of false or misleading information, while also ensuring that market participants act in a way that supports fair competition and consumer protection.

Here are the key obligations under REMIT:

1. Registration with National Regulatory Authorities (NRAs)

All entities involved in wholesale energy markets within the EU must register with the appropriate National Regulatory Authority (NRA) in the country where they operate. This includes electricity and gas producers, traders, brokers, market platforms, transmission system operators (TSOs), and storage operators.

Why this is important: This registration requirement allows regulatory bodies to monitor and oversee market participants, ensuring compliance with REMIT regulations, resulting in a transparent energy market.

What must be done:

• Market participants must submit relevant information to their NRA, including the nature of their activities and the geographical scope of their operations.
• They must update their registration details whenever there are significant changes, such as a shift in their operational scope or business structure.

2. Reporting of trades and orders

Market participants must report all trades and orders for wholesale energy products to the Agency for the Cooperation of Energy Regulators (ACER) through Registered Reporting Mechanisms (RRMs). This includes both physical and financial transactions.

Why this is important: This obligation ensures that there is a comprehensive, real-time record of all energy trades within the EU, which is crucial for market surveillance. It allows regulators to monitor trading activity for signs of potential market manipulation or abusive behavior as defined under new REMIT regulation guidelines.

What must be done:

• All trades and orders must be reported within specific time frames (usually within one working day for most transactions).
• The data must include key details, such as the quantity of energy traded, the price, the date and time of the transaction, and the parties involved.
• Both executed trades and cancelled orders must be reported.

3. Disclosure of inside information

REMIT compliance obligates market participants to publicly disclose any inside information that could affect the price of wholesale energy products. This includes any non-public information that could significantly influence market prices, such as unexpected production outages, changes in supply or demand, or alterations in energy infrastructure.

Why this is important: The goal is to prevent market manipulation by ensuring that all participants have equal access to critical information, leading to a more transparent and efficient market aligned with remit energy regulation. 

What must be done:

• Participants must disclose inside information in a clear, timely, and accessible manner.
• Information should be made available to the public through approved channels, such as public exchanges or dedicated data platforms.
• The disclosure must be made as soon as the information is deemed to be inside information, and no later than when it is first made public.

4. Market monitoring and surveillance

ACER, in collaboration with national regulatory authorities (NRAs), is tasked with continuously monitoring the wholesale energy markets for potential market abuse or manipulation. This includes using advanced data analytics to track trading behavior and identify any suspicious activities that may indicate price manipulation or insider trading.

Why this is important: Proactive monitoring helps identify and prevent abusive practices that could distort market prices, ensuring that market participants play by the same rules as defined under REMIT compliance. 

What must be done:

• Market participants must cooperate fully with regulators during investigations into potential market abuse.
• They may be required to provide additional information or documentation upon request to assist in the investigation process.

5. Prevention of market manipulation and insider trading

REMIT explicitly prohibits market manipulation and insider trading within the wholesale energy market. This includes any activity intended to artificially manipulate prices or create false trading volumes that could mislead other market participants.

Why this is important: Market manipulation distorts fair competition, undermines market trust, and ultimately harms consumers by creating unjustified price volatility. Insider trading, where an individual uses confidential information to gain an unfair advantage in trading, also erodes trust in the market.

What must be done:

• Market participants must refrain from any activities that could be seen as manipulating market prices, such as spreading false or misleading information, engaging in fictitious trading, or executing trades to create the illusion of market activity.
• They must avoid using any inside information (non-public information that could influence prices) for personal gain.

6. Record keeping and transparency

Market participants are required to maintain records of all transactions, orders, and relevant communications related to their wholesale energy trading activities. These records must be kept for a minimum period of five years and be readily accessible for review by regulatory authorities.

Why this is important: Accurate and comprehensive records provide a clear audit trail that enables regulators to investigate potential market abuses and enforce compliance with REMIT regulations.

What must be done:

• Participants must ensure that their records are stored securely and are easily retrievable for regulatory inspection.
• The records should include trade contracts, confirmation notes, and any relevant internal communications that could shed light on trading strategies or market activities.

7. Cooperation with regulators

Under REMIT, market participants are expected to cooperate with regulatory authorities, both during routine monitoring and during investigations of potential breaches. This includes providing timely and accurate information when requested by ACER or national regulators.

Why this is important: A transparent and cooperative approach ensures that market oversight is effective, and that violations are identified and addressed promptly.

What must be done:

• Respond promptly to requests for information or data from regulators.
• Participate in investigations as needed, and assist in clarifying any potential breaches of REMIT compliance requirements.

The future of energy is transparent, and REMIT leads the way

REMIT compliance isn’t just another regulatory hoop to jump through. It is the reason why trust is maintained in Europe’s energy markets. And in a sector shaken by war, price shocks, and aggressive digital disruption, trust is currency.

With AI-driven surveillance, cross-border enforcement, and zero tolerance for opacity, REMIT regulations are no longer playing defense—they are fighting against manipulation and abuse.

The message from ACER and EU regulators is loud and explicit: comply, or get out of the game

If you trade, store, transmit, or generate energy within the EU, REMIT compliance applies to you. No exceptions. No workarounds. The days of selective compliance are over.

This isn’t about fear, it’s about foresight. The players that will dominate tomorrow’s energy markets are regulation-resilient. They know that real-time transparency isn’t a burden, it’s a competitive edge.

So if your systems are still duct-taped together with spreadsheets, if your compliance processes are reactive instead of proactive, it’s time to fix that. Because REMIT energy regulations aren’t waiting for anyone to catch up.

This is your shot to lead with integrity or risk becoming tomorrow’s cautionary tale.

References 

1.  REMIT Cloud