What is this REMIT?

REMIT is an EU regulation that, in simple terms, deals with integrity and transparency in wholesale electricity markets. It looks to similar rules as those known from and applicable in financial markets. Laws based on the regulation will take effect at the turn of the year and this requires considerable preparation, which the staff of ON Power are now working on.

In the latest episode of the podcast ON Power , the lawyers Valgerður B. Eggertsdóttir, head of stakeholder relations at ON, and Íris Lind Sæmundsdóttir, lawyer at Reykjavík Energy, discuss REMIT, what the regulation entails, what its purpose is, and what impact the regulation has on ON.

Among what they say, Vala and Íris point out that the regulation includes three core elements that are intended to support and ensure integrity and transparency in the electricity market:

Disclosure requirements - these concern, on the one hand, insider information that may have an impact on price formation in the market and, on the other hand, regular reporting on financial information and the state of the system.
Prohibition of insider trading – it is forbidden to use insider information to buy electricity while the market does not know the information.
Prohibition of market manipulation – it is forbidden to engage in any kind of conduct that gives misleading signals to the market about the supply and demand for electricity.

At ON Power, work is now being done to ensure that the requirements and obligations arising from this legislation will be met, that there will be a “wall” between the sales and production departments, and that staff will be equipped to work in accordance with what the regulation says.

More about that in the conversation between Íris and Vala in the podcast episode ON Power.

REMIT is an EU regulation that, in simple terms, deals with integrity and transparency in wholesale electricity markets. It looks to similar rules as those known from and applicable in financial markets. Laws based on the regulation will take effect at the turn of the year and this requires considerable preparation, which the staff of ON Power are now working on.

Among what they say, Vala and Íris point out that the regulation includes three core elements that are intended to support and ensure integrity and transparency in the electricity market:

Disclosure requirements - these concern, on the one hand, insider information that may have an impact on price formation in the market and, on the other hand, regular reporting on financial information and the state of the system.
Prohibition of insider trading – it is forbidden to use insider information to buy electricity while the market does not know the information.
Prohibition of market manipulation – it is forbidden to engage in any kind of conduct that gives misleading signals to the market about the supply and demand for electricity.

More about that in the conversation between Íris and Vala in the podcast episode ON Power.