The Electricity and Gas (Market Integrity and Transparency) (Criminal Sanctions) Regulations 2015

UK Statutory Instrument 2015 No. 979 — creates 4 criminal offences.

4offences created

0recorded in force

0revoked

Made: 23 March 2015
In force from: Not determined
Extent: Not stated
Subject: Energy, communications, water and utilities
Made under: European Communities Act 1972

Explanatory note

(This note is not part of the Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

These Regulations extend to the United Kingdom and create criminal offences for two sets of prohibitions in Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ No L 326, 08.12.2011, p1) (“REMIT”) – those for insider dealing (Article 3) and for market manipulation (Article 5). REMIT imposes obligations and prohibitions in relation to trading in wholesale energy products within the European Union. “Wholesale energy products” are contracts and derivatives relating to electricity and gas, as defined in Article 2(4) of REMIT. The Regulations prescribe an Authority, in regulation 2, that is primarily responsible for the investigation and prosecution of offences under these Regulations in particular geographical areas. The Authority is Ofgem for Great Britain and the UK offshore marine area, and the Northern Ireland Authority for Utility Regulation for Northern Ireland. The offences created refer to specific provisions in REMIT, and exemptions in REMIT to any relevant prohibitions apply. The offences created do not criminalise activity that is not prohibited by REMIT. Regulation 3 creates offences for insider dealing, based on the underlying prohibitions in Article 3 of REMIT. The offences in regulation 3 are limited to persons who possess inside information in relation to wholesale energy products as defined in REMIT, know (or ought to have known) that the information is inside information and are within the categories of persons to whom the REMIT prohibition applies. The offences in paragraph (2) of regulation 3 can only be committed if there is sufficient territorial link to the UK. Conditions for establishing such a link are set out in paragraph (9) of regulation 3. The offences do not apply to activity required by orders made under the Energy Act 1976 (c. 76) or the Civil Contingencies Act 2004 (c. 36). Regulation 3 provides for specific defences in paragraphs (4) to (8). Regulation 4 creates offences for market manipulation, as prohibited by Article 5, when read with the definition of market manipulation in Article 2(2)(a) and (b), of REMIT. The offences in paragraphs (1) to (3) of regulation 4 can only be committed if there is sufficient territorial link to the UK. Conditions for establishing such a link are set out in paragraph (7) of regulation 4. Regulation 4 provides for specific defences in paragraphs (4) to (6). Regulations 5 and 6 amend the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations 2013 (S.I. 2013/1389) and the Electricity and Gas (Market Integrity and Transparency) (Enforcement etc.) Regulations (Northern Ireland) 2013 (S.I. (NI) 2013/208), so as to provide that powers available to the regulatory Authorities (defined in regulation 2) under those instruments are available for the investigation of offences under these Regulations. Regulations 7 and 8 make provision for the application of the offences in these Regulations to partnerships and bodies corporate. Regulation 9 requires each Authority to consult and then publish guidance on enforcement. Regulation 9(3) allows for the consultation requirement to be dispensed with where earlier consultation covers enforcement guidance. Regulation 10 states who can prosecute offences under these Regulations. Provision for Scotland is omitted, as this would by the Lord Advocate in all cases. Regulation 11 makes provisions for the penalties available to the court for offences under these Regulations. Regulation 12 provides for the review of these Regulations. A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Department of Energy and Climate Change at 3 Whitehall Place, London, SW1A 2AW and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.

Offences created by this instrument

A person to whom this regulation applies commits an offence if— a the person intentionally or recklessly uses the… regulation 3(2) · Status not determined · Requires proof of a state of mind
It is an offence for a person to enter into a transaction or issue an order to trade in relevant wholesale energy… regulation 4(1) · Status not determined · Requires proof of a state of mind
It is an offence for a person to enter into a transaction or issue an order to trade in relevant wholesale energy… regulation 4(2) · Status not determined · Requires proof of a state of mind
It is an offence for a person to disseminate information through the media (including the internet or by any other… regulation 4(3) · Status not determined · Requires proof of a state of mind

What Parliament said about it

Contributions, debates and written statements mentioning this instrument by name. Parliamentary material is reused under the Open Parliament Licence v3.0.

Electricity and Gas (Market Integrity and Transparency) (Criminal Sanctions) Regulations 2015 Lords · Grand Committee · 3 March 2015 · Baroness Verma
That the Grand Committee do consider the Electricity and Gas (Market Integrity and Transparency) (Criminal Sanctions) Regulations 2015. Relevant documents: 21st Report from the Joint Committee on Statutory Instruments, 25th Report from the Secondary Legislation Scrutiny Committee
Electricity and Gas (Market Integrity and Transparency) (Criminal Sanctions) Regulations 2015 Lords · Grand Committee · 3 March 2015
Electricity and Gas (Market Integrity and Transparency) (Criminal Sanctions) Regulations 2015 Lords · Lords Chamber · 9 March 2015
Business without Debate Commons · Commons Chamber · 18 March 2015 · Madam Deputy Speaker
With the leave of the House, we shall take motions 14 to 17 together. Motion made, and Question put forthwith (Standing Order No. 118(6)), Electricity That the draft Electricity and Gas (Market Integrity and Transparency) (Criminal Sanctions) Regulations 2015, which were laid before this House on 22 January, be approved. That the draft Renewables Obligation Closure (Amendment) Order 2015, which was laid before this House on 27 January, be approved. That the draft Emissions Performance Standard Regulations 2015, which were laid before this House on 2 February, be approved. That the draft…

How Parliament handled it

Parliament's Statutory Instruments service records procedure from May 2017 onwards, and this instrument predates it. That is a limit of the source, not a statement that nothing happened.

Check the source

This instrument on legislation.gov.uk The authoritative text, including amendments made since
Other instruments from 2015