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Leonardo Meeus

Topic of the Month

17.04.2018

The golden decade of DSOs?

What’s in the EU Clean Energy Package #2 Written by Leonardo Meeus In this topic of the month, the author gives a teaser of the […] read more

Electricity

Leonardo Meeus

Topic of the Month

9.04.2018

What’s in the EU Clean Energy Package

Written by Leonardo Meeus In this topic of the month, the author will give you a teaser of the first three weeks of the FSR […] read more

Electricity

Toulouse School of Economics

13.03.2018

100% renewable energy: the climate in the courtroom

Written by S. Ambec and C. Crampes (Toulouse School of Economics) Is it possible to generate our electricity exclusively from renewable energy? This issue has […] read more

Electricity

Alberto Pototschnig

Event Highlights

24.01.2018

Market Abuse or Abuse of Market Power in Wholesale Energy Markets?

On 12 January 2018, the Florence School of Regulation held the second session of its 2017-18 Regulatory Policy Workshop Series on the topic ‘Market Abuse […] read more

Electricity

Toulouse School of Economics

15.01.2018

The European Commission’s green resolutions

Written by S. Ambec and C. Crampes (Toulouse School of Economics) The European Commission (EC) provided its contribution to the One Planet Summit in Paris […] read more

Electricity

News

15.01.2018

Design the electricity market(s) of the future – new ebook!

New publication online! Design the electricity market(s) of the future. Edited by Nicolò Rossetto (FSR) Proceedings from the Eurelectric-FSR Conference, 7 June 2017 Markets can […] read more

Electricity

Lights on WomenTopic of the Month

9.01.2018

Will the Bridge Span the Gap? The Political Debate on Governance

Written by Marie Vandendriessche   This Topic of the Month will zoom in on the EU’s Energy Union, and particularly a novel part of it: […] read more

Electricity

Toulouse School of Economics

20.12.2017

The collateral effects of electric cars

Written by S. Ambec and C. Crampes (Toulouse School of Economics) Electric cars consume clean energy, but this is generated using primary energy sources which […] read more

Electricityundefined

Formation sur la Régulation du Marché de l’Electricité

News

15.12.2017

FSR training regulators in Morocco

On the 31st of October and 1st of November 2017, the Florence School of Regulation supported the German Development Agency (GIZ) by creating and delivering […] read more

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Alberto Pototschnig

Market Abuse or Abuse of Market Power in Wholesale Energy Markets?

- Electricity

On 12 January 2018, the Florence School of Regulation held the second session of its 2017-18 Regulatory Policy Workshop Series on the topic ‘Market Abuse and Abuse of Market Power in Wholesale Energy Markets’.

Attended by academics, practitioners and representatives of European and national institutions, the seminar looked at two important pieces of European legislation on wholesale energy markets: the traditional pro-competition provisions of the Treaty on the Functioning of the EU (Articles 101 and 102) and the more recent EU Regulation No 1227/2011 on wholesale energy market integrity and transparency (REMIT).

The two pieces of legislation were fruitfully compared and contrasted as they address, among other things, behaviours that might look quite similar: abuse of market power on the one hand and market abuse on the other. Besides, the adoption of REMIT and its implementation are changing the duties and powers of national sector-specific regulatory authorities and the way they cooperate and coordinate with the national competition authorities.

The discussion highlighted the possibility of some overlaps between the concepts of market abuse in REMIT and abuse of market power in competition law. Nevertheless, the two pieces of legislation have different goals (transparent and non-manipulated price formation vs competitive prices), different approaches (focus on single trades vs focus on more structural and repeated behaviours), and different subjects (all decisive players acting on wholesale markets vs players with a dominant position on wholesale and/or retail markets).

Attendees agreed that the distinction between the ex-ante regulation carried out by sector-specific authorities and the ex-post remedies implemented by competition authorities is blurring. NRAs and competition authorities are improving their coordination and cooperation (the broader and more granular market monitoring allowed by the reporting obligations introduced by REMIT can, for instance, help competition authorities in the collection of evidence). However, additional efforts are needed to secure a consistent treatment of REMIT and competition cases. A consistency that is essential in order to promote market integration and ensure a level playing field for all the market players. In this regard, public authorities, both at the national and European level, are invited to provide more detailed guidelines about the proper implementation of REMIT, in particular with reference to what the “accepted market practices” are.

Finally, several participants shared a common remark. Independently from the fact that we consider the case of market abuse or abuse of market power, we need to further investigate the implications of the current transition towards a low carbon energy system. This is important because the deployment of more capital intensive generation technologies and the changes in market design will have relevant consequences on the concrete possibility to identify when prices for energy reflect the “fair” interplay of supply and demand or not. New benchmarking methodologies for assessing when prices are artificially (i.e. excessively) high or low will be strongly needed in the medium to long term.

180112 Policy Workshop: Market Abuse and Abuse of Market Power in Wholesale Energy Markets

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