The Industry, Research and Energy Committee at the European Parliament approved by a large majority to ban energy market manipulation. With the new rules, the consumers will be more protected.

The MEPs approved the regulation that would apply to trading on the wholesale energy market and more specifically to contracts and derivatives relating to the supply, production and transportation of natural gas or electricity in the EU. It would prohibit the use of inside information and market manipulation. Jorgo Chatzimarkakis, Parliament's responsible for the report assured that the regulation is a step forward because it ensures market transparency and prevents market abuse. He also added that within REMIT the European dimension of energy trading is clearly highlighted.

A key role would be played by the Agency for the Cooperation of Energy Regulators (ACER), which started to be operative in March, in keeping records and monitoring all transactions, and national regulatory authorities would have access to all this information. National authorities would have enforcement powers to remedy breaches of the regulation. In the event of cross-border breaches, ACER would be able to establish and coordinate an investigatory group. MEPs sought to strike a balance between the powers of the ACER and those of national regulators. Thus, the agreement says that ACER's Director will consult the Board of Regulators on REMIT issues, but he will not be bound by their opinions or guidance provided. ACER will also have access to all records on emission trading transactions, so as to ensure full transparency of all energy market-related transactions.

The Energy Committee called on the Commission to consider presenting proposals to harmonise Member States' minimum penalties for breaches of the regulation. In addition, a joint statement by the Parliament, the Council and the Commission says that the Commission will further pursue its work on reinforcing sanctioning regimes in the financial sector in the context of upcoming legislative initiatives.

The regulation would require an EU register to be drawn up of all energy traders. This register would be based on national ones, to be set up by national regulatory authorities. MEPs added that the Commission should assess the possibility of introducing further instruments in the future, in order to ensure an EU-wide level playing field for all market participants.

The plenary vote on REMIT regulation will be in September 2011. The provisions on the reporting of information from traders to ACER (the list of contracts and derivatives which should be reported and uniform rules to be applied), will enter into force six months after the Commission approves implementing acts in this field.