The Council adopted a new framework for monitoring of energy markets. The monitoring wholesale energy markets will be done in order to effectively detect and deter market abuse and manipulation, thereby ensuring the integrity and transparency of those markets.

A new framework for monitoring of energy markets has been adopted by the Council following a first-reading agreement reached with the European Parliament. The agreement was previously voted by the Parliament in September 2011. The new regulation sets up a framework for monitoring wholesale energy markets in order to effectively detect and deter market abuse and manipulation, thereby ensuring the integrity and transparency of those markets. The Commission welcomed the approval because for the first time energy trading will be screened at EU level to uncover abuses. National authorities in Member States will put in place penalties to help stop and prevent market manipulation.

In energy, market prices are highly sensitive to the availability of production and transmission capacities. This is due to the fact that electricity cannot be stored on an industrial scale. For this reason prices can be influenced easily by creating a false impression about the availability of capacities or indeed by reducing actual production. Europe's wholesale energy markets are also increasingly cross-border in nature. Therefore, the new framework adopted was needed in order to prevent market manipulation.

The key element of this framework is the establishment of a market monitoring function at European level, a task which will be carried out by the Agency for the Cooperation of Energy Regulators (ACER). The ACER will monitor trading activity in wholesale energy products in close collaboration with national regulatory authorities. It will collect the data needed to assess and monitor wholesale energy markets. The ACER will also establish a European register of market participants based on the information provided by national regulatory authorities.