REMIT Requirements: At a Glance

REMIT, an acronym for regulation on wholesale energy markets integrity and transparency, enclose a set of regulations stipulated by European parliament on Oct 25, 2011. The chief objective behind the regulations is to maintain the integrity and bring about the transparency in the wholesale energy market. REMIT energy brings greater transparency in wholesale energy markets, which in turn reduces the risk of market manipulation and the distortions in prices. Moreover, it ensures that the consumers pay fair price for their gas and electricity. All in all the regulations create a level playing field for all market participants.

REMIT Requirements

In recent decade, the surge in the wholesale energy markets has been witnessed in Pan-European. The energy market across the Europe is intensely interlinked; any kind of market abuse in one member state will affect other member states as well. So far, only a few member states have been able to monitor wholesale energy markets within their boundaries. Moreover, due to the lack of binding regulations on energy market players, no one has a clear prohibition on market abuses. Most of the transactions and fundamental data were not accessible to regulators. This is why European Union came up with an idea of framing certain guidelines to enhance the accountability and bring more transparency in the gas and electricity wholesale market with an EU-wide monitoring scheme.

The framework of REMIT covers contracts for the supply of energy including electricity and natural gas within the union as well as contracts relating to the transportation of electricity or natural gas into the union. 

Benefits of REMIT Compliance Solutions

Many service providers are offering an array of REMIT energy solutions, but organizations must have to keep in mind that the software is easy to implement and that you don’t have to build separate solutions for each problem. In addition, the software solution should be flexible enough to cater to new requirements. Some of the benefits of an advanced REMIT software solution include:

• Keep abreast of latest regulatory changes and respond quickly 
• Reduce overhead cost and workload
• Proactive management of any suspicious trends
• Improved market abuse monitoring 
• Boost risk management and compliance oversight

REMIT regulations framed by EU, apply to the wholesale energy market in the European Union to bring about integrity and transparency in their market practice. This ensures a level playing field for consumers across the region.