Transparency in the European Wholesale Energy Markets: Filling the Regulatory Gaps

Abstract

Wholesale transparency promotes competition and market well-functioning, and positively reflects on the performance of the entire energy sector. Transparency can be improved through the disclosure of ex-ante and ex-post information, as well as through record keeping. The governance of transparency in the European wholesale energy markets can be analysed from three different points of view: levels of governance (national/supranational), policy domains (sector-specific, financial, carbon), nature of enforcer (private/public). While several pro-transparency initiatives were undertaken by market actors, the public governance of transparency is still a work in progress. The current regulation exhibits significant regulatory gaps which the EU is willing to fill through a new tailor-made market transparency framework. The main challenge in this respect is represented by the need for coordination. Overlaps and inconsistencies with the existing national and supranational rules shall be avoided and the three different policy domains involved in energy trading shall develop more integrated implementation paths.