ACM ensures electricity producers will be more alert to the publication of inside knowledge
Electricity producers must be more alert to the publication of inside information in a timely manner, so that all market participants have access to the same information. The Netherlands Authority for Consumers and Markets (ACM) concludes in a recent study that, even though electricity producers showed a higher level of compliance with publication rules in 2022 than in the previous year, inside information is still not always published in a timely and correct manner. ACM confronted the producers with these findings, and, following these discussions, decided to publish on its website additional information regarding the publication of inside information. ACM in 2023 will keep a close watch on publication of inside information. If it turns out that compliance with the rules does not structurally improve, ACM can take action, for example, by imposing sanctions.
It is important that wholesale markets on which electricity and natural gas is traded work well, and that consumers and businesses have confidence in these markets, especially in the current energy crisis. Producers are required to publish inside information in a timely manner when, for example, a power plant is shut down for maintenance or when a power plant experiences a disruption. This is important because information about the available production capacity in the Netherlands impacts the prices that are established on the wholesale markets. Timely publication of inside information is also important to prevent insider trading (intentional or otherwise). All market participants in all European countries must comply with the same rules. These rules have been laid down in the EU Regulation on Wholesale Energy Market Integrity and Transparency, also called REMIT. ACM enforces compliance with REMIT.
Electricity producers are required to publish inside information on so-called Inside Information Platforms (IPPs). An analysis of all publications posted by electricity producers in the Netherlands in 2021 and in the first six months of 2022 on the IPPs of the stock exchanges EEX and Nord Pool shows that 6.4% of these publications may not have been published in a timely manner. ACM has discussed the findings of its study with producers. ACM has seen that, following these discussions, market participants have become more alert to publishing inside information correctly and in a timely manner.
Following the discussions, ACM has published on its website additional information regarding publication of inside information. In it, ACM explains, for example, that producers must always report any interruptions of production capacity, even if such are the result of unavailable transport capacity caused by works of the system operator. Another topic in the discussions was that suppliers wish to know from what production capacity threshold the non-availability of production must be published. Determining a lower limit is difficult, because this depends on the specific market circumstances, among other factors. ACM understands that, in practice, it is not easy to assess whether an outage, for example at a power plant or a wind farm, constitutes inside information at that particular moment. That is why, in the additional information, ACM explains that, in its oversight, it will assume that at least the non-availability of production units of 100 MW or more must always be published.