On 13 November 2012, following allegations of market manipulation in wholesale gas markets, I promised to update the House on implementation the EU Regulation on wholesale electricity and gas market integrity and transparency (REMIT). REMIT prohibits insider dealing and market abuse in wholesale energy markets across Europe and establishes a monitoring regime for wholesale energy trading. It also requires Member States to put in place an enforcement and penalty regime for breaches of the Regulation.
I have today laid The Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013 which will enter into force on 29 June. They give Ofgem powers to take action against market manipulation in wholesale electricity and gas market, including the power to impose unlimited fines in the case of breaches of the Regulations. Similar regulations will be laid for Northern Ireland. The UK will be one of the first Member States to implement REMIT.
Ofgem and the FCA are continuing their analysis of the allegations into manipulation of the gas markets raised in November 2012.