Energy regulation at EU level. The role of the European Commission and ACER in the context of REMIT

The regulatory act of promulgating REMIT, the Regulation on Wholesale Market Integrity and Transparency, has highlighted the commanding position of both the European Commission and ACER, the Agency for the Cooperation of Energy Regulators, in the regulation of energy affairs in the European Union. Furthermore it has led to major changes in how surveillance is organized at the national level. The first part of this publication is dedicated to the organization of market surveillance following the promulgation of REMIT. It depicts the tasks of the European Commission and ACER in this context. The Regulation has accorded the authorities a central role in managing the European Union's responsibilities with regard to energy wholesale trade. The act of delegating such far-reaching competence to the authorities deserves careful review however. The article shows how, given ACER's lack of practical experience in market surveillance, as well as its lack of human resources, the task of surveilling the European energy wholesale market confronts the agency with a significant challenge. How successfully the EU energy agency will master this challenge will depend on a number of different factors. Stringent requirements will be needed for the data registration offices in order to ensure optimal data processing. National authorities and supervisory bodies should be made to participate in the data monitoring process. ACER's efficiency in surveilling the market will furthermore depend decisively on its IT infrastructure.