The Regulation on Wholesale Energy Market Integrity and Transparency as retained in the UK by the European Union (Withdrawal) Act 2018, Electricity and Gas (Powers to Make Subordinate Legislation) (Amendment) (EU Exit) Regulations 2018 (SI 2018/1286), Electricity and Gas (Market Integrity and Transparency) (Amendment) (EU Exit) Regulations 2019 (SI 2019/534) and Electricity and Gas etc. (Amendment) (EU Exit) Regulations 2020 (SI 2020/1016) (REMIT) prohibits market participants (i.e., any person who enters into transactions, including the placing of orders to trade, in one or more wholesale energy markets) from using inside information to:

• acquire or dispose (or try to acquire or dispose) of wholesale energy products to which the information relates;
• disclose such information outside the normal course of his or her employment or duties; or
• recommend or induce the acquisition or disposal of wholesale energy products on the basis of the inside information.¹

Wholesale energy products means the following contracts and derivatives, irrespective of where and how they are traded:

• contracts for the supply of electricity or natural gas where delivery is in the UK;
• derivatives relating to electricity or natural gas produced, traded, or delivered in the UK;
• contracts relating to the transportation of electricity or natural gas in the UK; and
• derivatives relating to the transportation of electricity or natural gas in the UK.²

The Office of Gas and Electricity Markets (OFGEM) is responsible for enforcing REMIT in the UK, and it can publicly censure or place unlimited financial penalties on those who contravene REMIT.  It can also demand payment for profits or losses suffered for non-compliance with REMIT.

For more information on REMIT and its application, please contact us here.

¹ Regulation 1227/2011, of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (REMIT), as retained in the UK by the European Union (Withdrawal) Act 2018, Electricity and Gas (Powers to Make Subordinate Legislation) (Amendment) (EU Exit) Regulations 2018 (SI 2018/1286), Electricity and Gas (Market Integrity and Transparency) (Amendment) (EU Exit) Regulations 2019 (SI 2019/534) and Electricity and Gas etc. (Amendment) (EU Exit) Regulations 2020 (SI 2020/1016), art. 3(1).