Market supervision under the REMIT Regulation

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Elering, together with the Latvian and Lithuanian system operators, AST and Litgrid, organises the Baltic reserves capacity market (FCR, aFRR, mFRR) and mediates Estonian market participants’ offers to the mFRR (MARI) and aFRR (Picasso) energy markets. As market operators, it is in the interest of the Baltic system operators to ensure the smooth functioning of the markets and the most efficient use of resources.

Article 15 of REMIT imposes an obligation on market operators to conduct market surveillance with the aim of identifying attempts to manipulate the market or trading based on inside information. To ensure this, Elering has developed and implemented the necessary procedures for effective monitoring of reserve markets and cooperates with other Baltic system operators, regulators and exchange operators. If Elering notices a suspicious transaction or event, it may ask the market participant for an explanation. If, even after receiving explanations, suspicions regarding a violation of the rules of REMIT remain, Elering is obligated to notify the Estonian Competition Authority and, if necessary, ACER (Agency for the Cooperation of Energy Regulators).

Recommendations for market participants

To ensure market integrity, the Baltic transmission system operators have issued a Best Practice Guidance Document, which outlines important principles for traders in reserve markets. This document should be considered an explanatory recommendation, which Elering supplements from time to time as necessary, and should not be considered an exhaustive guideline. At this point, Elering recommends that you also familiarise yourself with the guidelines published by ACER on the REMIT portal at https://www.acer-remit.eu/portal/home.

The Baltic system operators, in cooperation with the Nord Pool market supervision team, organised a market supervision webinar for market participants, which can be viewed here:

Reporting suspicious activity

Elering notifies the Competition Authority of transactions and activities regarding which Elering’s market supervision team has identified a suspicion based on REMIT supervision procedures, and regarding which, after a more thorough analysis, there is still reason to suspect that the REMIT rules are being violated. To ensure market integrity and transparency, Elering’s supervision team also expects input from market participants and other interested parties.

Supervision team contact

If you have any questions or comments about the supervision of reserve markets or if you have any tips about suspected unfair trading practices, please contact [email protected].

All communication with the supervision team is confidential.