09/13/2012, Berlin

BDEW on the law on market transparency units submitted to the Bundestag:

Ensuring transparency – avoiding administrative burdens

BDEW: Draft law leads to considerable costs for companies and regulatory authorities / Price reducing effect cannot be achieved

The German Association of Energy and Wa-ter Industries (Bundesverband der Energie- und Wasserwirtschaft - BDEW) considers that there is a considerable need for correction regarding the draft law on the establishment of a market transparency unit for wholesale trading in electricity and gas, that has been discussed today in first reading in the German Bundestag. "In its present form, the draft law goes far beyond the EU requirements and is partly inconsistent with European legislation. The draft would give rise to unnecessary costs and additional administrative burdens on companies. The government should fun-damentally review the law because the implementation of effective, EU-wide control of European wholesale energy trading has already made great progress by entry into force of the EU REMIT (Regulation on wholesale energy market integrity and transparency)", Hildegard Müller, Chairwoman of the BDEW General Executive Management Board said today in Berlin.

"Fortunately, the integration of the European energy markets is making good progress. The markets of the different EU States are closely inte-grated, the decisions taken by participants in the wholesale market have cross-border effects. The law on the establishment of a market transpar-ency unit in Germany disregards this development and is restricted to a mere national look on energy trading. But pure national energy trading has not existed any more for a long time", Müller criticised.
According to Müller, it is not comprehensible why a national market trans-parency unit should additionally collect company data about trading trans-actions and fundamental data on e.g. the availability of power stations or lines as the companies will make this data already available in the frame-work of REMIT for a Europe-wide register. "This leads to the risk of un-necessary bureaucratic double regulation. The Federal Government should instead concentrate on the practical implementation of existing European provisions", Müller emphasised. The EU Regulation already created transparency and strengthened the confidence in fair competition in European energy trading. Moreover, the draft law was inconsistent with European legal provisions because it transferred responsibility for a parallel collection of trade data to the market transparency unit. The EU REMIT, on the other hand, provides that national market monitoring authorities adapt especially in this point to the overall European framework. Unlike national regulatory authorities, the respective national institution for market monitoring should not have any investigative or enforcement powers.

"REMIT as the EU-wide regime for the strengthening of market transparency and safeguarding of the integrity of energy wholesale markets must be consistently applied. Costs and administrative burdens attributable to unnecessary parallel structures should however be avoided. The market transparency unit should therefore be charged with a strictly observing and analysing function", Hildegard Müller underlined.


REMIT background:
Due to the growing integration of energy trading markets, the European Union adopted last year the "Regulation on Energy Market Integrity and Transparency - REMIT" which is already now directly applicable in all Member States without any further acts of transposition. The most important points of REMIT are the creation of specific rules for avoiding market abuse and further improvement of transparency in the market and with respect to authorities, and the creation of a Europe-wide register for companies becoming active in the wholesale energy trading market. The European Agency for the Cooperation of Energy Regulators (ACER) in cooperation with national regulatory authorities and the European Commission will be the central supervisory authorities under REMIT. By the centralised notification of trade data and data on the availability of energy infrastructure to a new European register, supervisory authorities hope to gain a better insight into wholesale energy trading. Apart from ACER, other authorities at national and European level, such as fiscal and competition authorities will have access to these data. The future regular electronic provision of trade data by the companies will make it easier for authorities to gain an overview of the daily market activities. The timetable for the implementation of obligatory reporting under REMIT currently provides that the European Commission submits its proposals on the implementation of REMIT at the end of 2012 and adopts them in mid-2013.

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