European energy traders have criticised Germany's plan to establish its own national transparency agency for electricity and natural gas markets, saying it is undermining EU efforts to establish a single European transparency platform.
But the German economy ministry has told ICIS that its national transparency agency is "completely consistent" with European regulation on market integrity.
Germany approved a draft law last week to introduce a transparency agency for the electricity and gas wholesale markets, despite criticism that the EU regulation on energy market integrity and transparency (REMIT) aimed at the same outcome and the additional measure would create more work for utilities (see sister publication EDEM 3 May 2012).
The European Federation of Energy Traders (EFET) said in a press statement on Tuesday that it "perceives no practical or legal excuse for the German government to establish a separate German institution to specify and handle transaction-related and asset-related data. Alternative or parallel national submission obligations are not in order, nor is a separate national implementation of REMIT foreseen as necessary."
The lobby group's EFET electricity committee chairman, Peter Styles, said: "The draft law recently approved by the German government, supposedly to deliver a national 'implementation' of EU legislation, actually undermines a key objective of REMIT, to put an end to a multitude of national reporting obligations by ensuring uniform criteria and a single EU reporting standard."
Agency 'integral' to REMIT
EFET agreed with Germany's energy industry lobby group BDEW that a national transparency agency would create additional costs for affected companies.
However, the German economy ministry responded in a statement e-mailed to ICIS on Tuesday that it could not understand EFET's critique, as its planned national transparency agency was "completely consistent" with the REMIT legislation.
Germany's own transparency agency will be an integral part of REMIT, which asks for cooperation on a national level with the Agency for the Cooperation of Energy Regulators (ACER) to establish a European supervising system of the wholesale markets, the ministry said.
Separately, the European Energy Exchange said in a statement on Tuesday that it is developing its own transparency platform further "so that it can be expanded with additional information as required under REMIT and other regulatory requirements such as the one proposed by Germany". MD
Copyright 2012 Heren Energy Ltd. All Rights Reserved.
(Originally published May 8, 2012, in European Daily Electricity Markets.)