1 February 2015
To read the German article in full, click here.
A PA energy expert has had a byline article published in e|m|w looking at how energy companies are dealing with regulatory requirements.
He states the next challenges which lie ahead of utilities in 2015 are the implementation of Regulation on Energy Market Integrity and Transparency (REMIT), the launch of European Market Infrastructure Regulation (EMIR) clearing and further definition of financial derivatives under Markets in Financial Instruments Directive (MiFID) II utilities.
The article explains that since the implementation of EMIR in 2014, utilities involved in energy trading have been taking inconsistent steps to respond to the regulation. According to a PA survey, the energy trading market still lacks the information, advice and guidance it needs to comply with EMIR effectively.
The energy sector has faced frequent regulatory interventions over the last few years, but one of today’s key concerns stems from compliance requirements on energy trading activities originating from the financial world. Utilities are confronted with pressure on operations, as well as risk for their business models.
The article discusses the operational requirements of REMIT and the strategic challenges of EMIR and MiFID. It concludes energy companies need a compelling cost-benefit analysis for complying to the next stage of regulation and strong business foundations for their energy trading at the same time.