The Regulation of Market Manipulation in the EU Energy Sector: Doctrinal Analysis of REMIT II’s Sanctioning Framework

Abstract

This study examines the evolution of the European Union’s regulatory framework addressing energy market manipulation, focusing on recent amendments introduced by Regulation (EU) 2024/1106 (REMIT II) to the original REMIT—Regulation on Market Integrity and Transparency (EU) No. 1227/2011. Employing logical interpretation and comparative legal analysis, the paper explores the rationale and challenges of developing a proportionate yet dissuasive sanctioning regime for acts of market manipulation. The study commences with a comprehensive overview of manipulative practices within energy markets and the legal thresholds they must meet to fall under REMIT. A critical evaluation of the role of the European Union Agency for the Cooperation of Energy Regulators (ACER) is conducted, with particular attention to its updated guidelines following the revision of the REMIT regulation. A particular emphasis is placed on the evidentiary standard that is required to establish manipulation, a matter of particular significance in the context of enforcement. The comparative section analyses REMIT and REMIT II, identifying significant legal innovations and the regulatory intent behind them. The study highlights the need for enhanced legislative harmonization among Member States and strengthened coordination among national regulators under ACER. It is noteworthy that Romania has proactively aligned its policies with those of REMIT II, a development that is presented as a case study and a call for more widespread implementation. This analysis contributes to the existing body of knowledge in academic discourse since this topic has not been widely covered in the literature, despite the heightened relevance of energy market regulation in the current European context.