Regulation (EU) 2024/1106 of the European Parliament and of the Council of 11 April 2024 amending Regulations (EU) No 1227/2011 and (EU) 2019/942 as regards improving the Union’s protection against market manipulation on the wholesale energy market (Text with EEA relevance)
Regulation (EU) 2024/1106 of the European Parliament and of the Councilof 11 April 2024amending Regulations (EU) No 1227/2011 and (EU) 2019/942 as regards improving the Union’s protection against market manipulation on the wholesale energy market(Text with EEA relevance)THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty on the Functioning of the European Union, and in particular Article 194(2) thereof,Having regard to the proposal from the European Commission,After transmission of the draft legislative act to the national parliaments,Having regard to the opinion of the European Economic and Social CommitteeOJ C 293, 18.8.2023, p. 138.,After consulting the Committee of the Regions,Acting in accordance with the ordinary legislative procedurePosition of the European Parliament of 29 February 2024 (not yet published in the Official Journal) and decision of the Council of 18 March 2024.,Whereas:(1)Open and fair competition in the internal markets for electricity and for gas and ensuring a level playing field for market participants requires integrity and transparency of wholesale energy markets. Regulation (EU) No 1227/2011 of the European Parliament and of the CouncilRegulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency (OJ L 326, 8.12.2011, p. 1). establishes a comprehensive framework to achieve that objective. To enhance the public’s trust in functioning wholesale energy markets and to protect the Union effectively against market abuse, Regulation (EU) No 1227/2011 should be amended to ensure further transparency and increase monitoring capacities, thereby contributing to the stabilisation of energy prices and consumer protection, as well as to ensure more effective investigation and enforcement of cases of potential cross-border market abuse addressing the shortcomings identified in the current framework.(2)Financial instruments, including energy derivatives, traded on wholesale energy markets are of increasing importance. Due to the increasingly close interrelation between financial markets and wholesale energy markets, Regulation (EU) No 1227/2011 should be better aligned with the financial market legislation of the Union, such as Regulation (EU) No 596/2014 of the European Parliament and of the CouncilRegulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 12.6.2014, p. 1)., including with respect to the definitions of market manipulation and inside information. The definition of market manipulation in Regulation (EU) No 1227/2011 should therefore be amended to align it with Article 12 of Regulation (EU) No 596/2014. To that end, the definition of market manipulation under Regulation (EU) No 1227/2011 should be amended to capture the entering into any transaction, or issuing, modifying or withdrawing any order to trade, but also any other behaviour relating to wholesale energy products which gives, or is likely to give, false or misleading signals as to the supply of, demand for, or price of wholesale energy products; secures, or is likely to secure, by a person, or persons acting in collaboration, the price of one or more wholesale energy products at an artificial level; or employs a fictitious device or any other form of deception or contrivance which gives, or is likely to give, false or misleading signals regarding the supply of, demand for, or price of wholesale energy products. In that regard, with a view to the alignment with Regulation (EU) No 596/2014, the notion of any other behaviour relating to wholesale energy products should include, but should not be limited to, actions such as quote stuffing, painting the tape or momentum ignition.(3)The definition of inside information should also be amended to align it with Regulation (EU) No 596/2014. In particular, where inside information concerns a process which occurs in stages, each stage of the process as well as the overall process could constitute inside information. An intermediate step in a protracted process could in itself constitute a set of particular circumstances or a particular event which exists or where there is a realistic prospect that they will come into existence or occur, on the basis of an overall assessment of the factors existing at the relevant time. However, that should not be interpreted as meaning that the magnitude of the effect of that set of circumstances or that event on the prices of the wholesale energy products concerned is to be taken into consideration. An intermediate step in a protracted process should be considered to be inside information if it, by itself, meets the criteria laid down in this Regulation for inside information.(4)This Regulation is without prejudice to Regulations (EU) No 648/2012 of the European Parliament and of the CouncilRegulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1)., (EU) No 596/2014 and (EU) No 600/2014 of the European Parliament and of the CouncilRegulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84). and to Directive 2014/65/EU of the European Parliament and of the CouncilDirective 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349)., as well as to the application of Union competition law to the practices covered by this Regulation.(5)The sharing of information between national regulatory authorities and the competent financial authorities of the Member States is a central aspect of the cooperation with regard to, and detection of, potential breaches of this Regulation concerning both the wholesale energy markets and the financial markets. In light of the exchange of information between competent authorities pursuant to Regulation (EU) No 596/2014 at national level, national regulatory authorities should share relevant information that they receive with the competent financial authorities of the Member States and the national competition authorities.(6)Where information shared with the European Agency for the Cooperation of Energy Regulators (the "Agency") is not, or is no longer, sensitive from a commercial or security point of view, the Agency should be able to make that information available to market participants and to the wider public in an accessible manner with a view to contributing to enhanced knowledge about the wholesale energy markets. This should include the possibility for the Agency to publish aggregated information on organised marketplaces (OMPs), inside information platforms (IIPs) and registered reporting mechanisms (RRMs) in accordance with applicable data protection law with the aim of improving transparency of wholesale energy markets and provided that it does not distort competition on those energy markets.(7)Where information shared with the Agency is not, or is no longer, sensitive from a commercial point of view, the Agency should be able to make its commercially non-sensitive trade database available for scientific purposes, subject to confidentiality requirements, with a view to contributing to enhanced knowledge about the wholesale energy markets. This is intended to help to build confidence in, and to foster the development of knowledge about, the functioning of wholesale energy markets. The Agency should establish and make publicly available rules on how it intends to make the information available for scientific and transparency purposes in a fair and transparent manner.(8)In order to further enhance market transparency in the Union wholesale energy markets and to contribute to a common Union energy data strategy, the Agency should develop and maintain a digital reference centre containing information on Union wholesale energy market data (the "Reference Centre"). The Agency should make public, in a user-friendly manner, parts of the information which it collects pursuant to this Regulation, including information regarding the trading of over-the-counter wholesale energy contracts, power purchase agreements and contracts for difference. Any data made public by means of the Reference Centre should be subject to this Regulation and to the applicable data protection law.(9)OMPs which carry out activities relating to the trading of wholesale energy products that are financial instruments as defined in Article 4(1), point (15) of Directive 2014/65/EU should be duly authorised pursuant to the requirements of that Directive.(10)The use of trading technology has evolved significantly in the past decade and is increasingly used on the wholesale energy markets. Many market participants use algorithmic trading and high-frequency algorithmic techniques with minimal or no human intervention. The risks arising from those practices should be addressed in Regulation (EU) No 1227/2011.(11)Compliance with the reporting obligations under Regulation (EU) No 1227/2011 and the quality of the data that the Agency receives is of the utmost importance in order to ensure the effective monitoring and detection of potential breaches with a view to achieving the objective of that Regulation. Inconsistencies in the quality, formatting, reliability and cost of trading data have a negative effect on transparency, consumer protection and market efficiency. It is essential that the information received by the Agency is accurate and complete for the purpose of enabling it to carry out its tasks and functions effectively.(12)In order to improve the Agency’s wholesale energy market monitoring and make data collection more complete, the current reporting regime needs improvement. The data collected should be expanded to overcome gaps in the data collection and should include coupled markets, new balancing markets, contracts for balancing markets, allocated transmission capacities and products that have potential delivery in the Union. OMPs should be required to make available to the Agency data relating to the order book or, upon request, provide the Agency with access, without delay, to the order book. Order book providers should also be designated as persons professionally arranging transactions subject to the obligation to monitor and report suspected breaches of this Regulation.(13)The reporting obligations on market participants should be minimised by collecting the required information or parts thereof, where possible from existing sources. Market participants are unable easily to record or report OMP data. OMP data should therefore be made available to the Agency by the relevant OMPs or by third parties acting on their behalf.(14)Any processing of personal data carried out within the framework of this Regulation, such as the exchange or transmission of personal data between relevant national authorities and reporting by national regulatory authorities, should be carried out in accordance with Regulation (EU) 2016/679 of the European Parliament and of the CouncilRegulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1)., and any exchange or transmission of information by the Agency should be carried out in accordance with Regulation (EU) 2018/1725 of the European Parliament and of the CouncilRegulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39)..(15)IIPs should play an important role for the effective disclosure of inside information. It should be mandatory to disclose inside information on dedicated IIPs to make the information easily accessible and to enhance transparency. Market participants may, only in addition, continue to use other channels, including market participants’ websites, to disclose inside information. To ensure trust in the IIPs, they should be authorised pursuant to this Regulation. IIPs, including those registered by the Agency pursuant to Article 11 of Commission Implementing Regulation (EU) No 1348/2014Commission Implementing Regulation (EU) No 1348/2014 of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of Regulation (EU) No 1227/2011 of the European Parliament and of the Council on wholesale energy market integrity and transparency (OJ L 363, 18.12.2014, p. 121)., should comply with the requirements for authorisation and with data protection law. The Agency should have the power to withdraw such authorisation in certain cases, while respecting the procedural safeguards referred to in Article 14(6), (7) and (8) of Regulation (EU) 2019/942 of the European Parliament and of the CouncilRegulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (OJ L 158, 14.6.2019, p. 22).. The withdrawal of an authorisation should not prevent an entity from applying for a new authorisation as IIP with the Agency. IIPs registered by the Agency pursuant to Implementing Regulation (EU) No 1348/2014 and included in the Agency’s list of IIPs should be allowed to continue operating until the Agency has taken a decision on authorisation pursuant to this Regulation. IIPs should have mechanisms in place allowing inside information reports to be quickly and effectively checked. In the development of such mechanisms, IIPs may involve market participants.(16)To streamline and make the reporting of data to the Agency more effective, the information should be provided through RRMs and the operation of RRMs should be authorised by the Agency pursuant to this Regulation. RRMs, including those registered by the Agency pursuant to Article 11 of Implementing Regulation (EU) No 1348/2014, should comply with the requirements for authorisation and with data protection law. The Agency should maintain a register of RRMs that it has authorised. The Agency should have the power to withdraw such authorisation in certain cases, while respecting the procedural safeguards referred to in Article 14(6), (7) and (8) of Regulation (EU) 2019/942. The withdrawal of an authorisation should not prevent an entity from applying for a new authorisation as RRM with the Agency. RRMs registered by the Agency pursuant to Implementing Regulation (EU) No 1348/2014 and included in the Agency’s list of RRMs should be allowed to continue operating until the Agency has taken a decision on authorisation pursuant to this Regulation. RRMs should have mechanisms in place allowing transaction reports to be effectively checked. In the development of such mechanisms, RRMs may involve market participants.(17)In order to facilitate monitoring to detect potential trading on the basis of inside information, the collection of inside information needs to be aligned with the current processes for trade data reporting.(18)Persons professionally arranging or executing transactions should have the obligation to report suspicious transactions in breach of Regulation (EU) No 1227/2011 with regard to insider trading and market manipulation and, in order to enhance the possibility of enforcement of such breaches, should also have the obligation to report suspicious orders and potential breaches of the obligation to publish inside information. Direct electronic access providers and order book providers are considered to be persons professionally arranging transactions.(19)Commission Regulation (EU) 2015/1222Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (OJ L 197, 25.7.2015, p. 24). provides for the possibility for third-country participation in the Union single day-ahead and intraday coupling in the electricity sector. Since market-coupling operators use a specific algorithm to match bids and offers in an optimal manner, this may result in orders to trade being placed in a third country participating in the Union single day-ahead and intraday coupling but resulting in a contract for the supply of electricity with delivery in the Union. The placing of such orders to trade in third countries participating in the Union single day-ahead and intraday coupling that may result in delivery in the Union should be covered by the definition of wholesale energy products pursuant to this Regulation.(20)In order to obtain an accurate, objective and reliable assessment of the price for liquefied natural gas (LNG) deliveries to the Union, the Agency should collect all the LNG market data that are necessary to establish a daily LNG price assessment and an LNG benchmark. The LNG price assessment and the LNG benchmark should be established on the basis of all transactions pertaining to LNG deliveries to the Union. The Agency should be empowered to collect the relevant market data from all participants active in LNG deliveries to the Union, which should report the LNG market data to the Agency as close to real time as technologically possible, either after the conclusion of a transaction or after the posting of a bid or offer to enter into a transaction. The Agency’s LNG price assessment should comprise the most complete dataset including transaction prices, bids and offer prices for LNG deliveries to the Union. The daily publication of that objective LNG price assessment, and of the spread established in comparison to other reference prices on the market in the form of an LNG benchmark, paves the way for its voluntary uptake by market participants as the reference price in their contracts and transactions. Once established, the LNG price assessment and the LNG benchmark could also become a reference rate for derivative contracts used for hedging the price of LNG or the difference in price between the LNG price and other gas prices.(21)The delegation of tasks and responsibilities can be an effective instrument to reduce duplication of tasks, foster cooperation and aims to reduce the burden imposed on market participants. Therefore, a clear legal basis should be provided for such delegation. National regulatory authorities should be able to delegate tasks and responsibilities to another national regulatory authority or to the Agency, with the delegates’ prior consent. The national regulatory authorities should be able to introduce specific conditions and to limit the scope of the delegation to what is necessary for the effective supervision of cross-border market participants or groups. Delegations should be governed by the principle of allocating competence to the authority which is best placed to take action on the subject matter.(22)The rules on the performance of the duties of national regulatory authorities and of the Agency should ensure that conflicts of interest are avoided as far as possible.(23)A uniform and stronger framework to prevent market manipulation and other breaches of Regulation (EU) No 1227/2011 in the Member States is necessary. In order to ensure the consistent application of administrative fines across the Member States for breaches of Regulation (EU) No 1227/2011, that Regulation should be amended to provide for a list of administrative fines and other administrative measures which should be available to the national regulatory authorities as well as for a list of criteria to determine the level of those administrative fines. In particular, the amount of administrative fines which can be imposed in a specific case should be able to reach the maximum level provided for in this Regulation. However, this Regulation does not limit Member States’ ability to provide for lower administrative fines on a case-by-case basis. Penalties for breaches of Regulation (EU) No 1227/2011 should be proportionate, effective and dissuasive and should reflect the type of the breaches, taking into account the ne bis in idem principle. The adoption and publication of administrative fines should respect fundamental rights as laid down in the Charter of Fundamental Rights of the European Union (the "Charter"). Administrative fines and other administrative measures are complementary parts of an effective enforcement regime. A harmonised supervision of the wholesale energy markets requires a consistent approach among national regulatory authorities. In order to fulfil their tasks, it is necessary that the national regulatory authorities be provided with the appropriate resources.(24)Where a market participant that is not resident or established in the Union is active within the Union, it should designate a representative in the Union. The representative should be explicitly designated by a written mandate of the market participant to be authorised to act on its behalf. It should be possible for the national regulatory authorities or the Agency to address the representative with regard to the obligations laid down in this Regulation.(25)To date, the supervision and enforcement of activities under Regulation (EU) No 1227/2011 have been the responsibility of the Member States. Market abuse behaviour is increasingly cross-border in nature, often affecting several Member States. Enforcement action against cross-border cases of market abuse can present jurisdictional challenges relating to the identification of the national regulatory authority that would be best placed to conduct the investigation in question.(26)Cases of market abuse involving multiple cross-border elements and market participants established in third countries are also particularly challenging from an enforcement perspective. The current supervisory framework is not appropriate for the desired level of market integration. The absence of a mechanism to ensure the best possible supervisory decisions for cross-border cases, where joint action by national regulatory authorities and the Agency currently requires complicated arrangements and where there is a patchwork of supervisory regimes must be addressed. There is a need to set up an efficient and effective supervisory and investigatory regime for those cases of market abuse which cannot, due to their Union wide features, be addressed by Member State action alone.(27)The investigation of breaches of Regulation (EU) No 1227/2011 with a cross-border dimension should be carried out through a uniform process at Union level. Moreover, such investigations can be better conducted at Union level, as their impact expands beyond the territory of a single Member State. The complexity of cross-border cases and the need to ensure sufficient resources for such cases requires the involvement of the Agency, in particular in a more integrated wholesale energy market. Since the entry into force of Regulation (EU) No 1227/2011, the Agency has gained significant experience in monitoring and collecting relevant data on the wholesale energy markets in the Union to ensure their integrity and transparency. Building on that experience, the Agency should be empowered to carry out investigations to combat breaches of Regulation (EU) No 1227/2011, including by appointing an independent investigating officer within the Agency. The Agency should carry out such investigations in cooperation with the national regulatory authorities and other relevant authorities with the purpose of supporting and complementing their enforcement activities and taking into account the ne bis in idem principle. Moreover, in the context of an investigation conducted by the Agency, where necessary, relevant national regulatory authorities should cooperate amongst each other in assisting the Agency. In exercising its powers, the Agency should be able to give priority, if needed, to the cases with the most significant cross-border impact.(28)To fulfil the new obligations assigned to it, in particular those relating to enhanced investigatory powers in cross-border cases, the Agency should have adequate resources, including the necessary personnel.(29)A main criterion for determining whether a case has a cross-border dimension relates to the delivery of wholesale energy products in a certain number of Member States. However, for technical reasons, there are cases where it is not possible to identify the geographic location of delivery of wholesale energy products. For instance, when delivery of wholesale energy products takes place or is assumed to take place in a bidding zone which encompasses the territory, or part of the territory, of at least two Member States in the intra-day and day-ahead wholesale electricity markets, it is not possible to identify the precise place of that delivery within that zone. The same applies to delivery of wholesale energy products that takes place or is assumed to take place in gas balancing zones which encompass the territory, or part of the territory, of at least two Member States. To ensure that the Agency acts in genuine cross-border cases as opposed to cases that have only a national dimension, the delivery of wholesale energy products within a bidding or balancing zone that encompasses the territory of at least two Member States should be considered to be delivery in a single Member State. However, the national regulatory authorities concerned should maintain their right also to request the Agency’s involvement in cases with a cross-border dimension pursuant to this Regulation, as well as their right to object pursuant to this Regulation.(30)The Agency should be empowered to carry out any necessary investigations by conducting on-site inspections, by taking statements, as well as by issuing requests for information by simple request or by decision, to the persons subject to investigation, where the suspected breaches of Regulation (EU) No 1227/2011 have a clear cross-border dimension. In order to safeguard the effectiveness of on-site inspections, the officials of, and persons authorised or appointed by, the Agency to conduct the on-site inspection should be empowered to enter business premises where business records could be kept and private premises of directors, managers or other members of staff of businesses concerned by an investigation. However, any investigations of private premises during on-site inspections should be subject to a reasoned decision by the Agency and the prior authorisation of a national judicial authority.(31)In undertaking the on-site inspections and in issuing requests for information to the persons subject to investigation, the Agency should closely and actively cooperate with the relevant national regulatory authorities, which should provide the Agency with the necessary assistance, including where a person refuses to submit to the on-site inspection or to provide the requested information. Moreover, in the course of an on-site inspection, the officials of, and persons authorised or appointed by, the Agency to conduct the on-site inspection should be empowered to affix seals on business premises for the period of time necessary for the on-site inspection. Except in duly substantiated cases, seals should not be affixed for more than 72 hours. Moreover, the officials conducting the on-site inspections should be empowered to request any information relevant to the subject matter and purpose of the on-site inspection.(32)The Agency should be empowered to impose periodic penalty payments to ensure compliance with its decisions regarding on-site inspections and requests for information adopted in the context of a cross-border investigation. However, the Agency should not be empowered to impose fines. Any periodic penalty payments imposed by the Agency should be proportionate, effective and dissuasive and ensure efficient cross-border investigations. It is important that the procedural safeguards and fundamental rights of the persons subject to the Agency’s investigations are fully respected. Any action of the Agency should be proportionate and ensure due process and the person’s rights of defence. The confidentiality of the information submitted by the persons subject to the investigation should be safeguarded and exchanged in accordance with applicable Union data protection rules.(33)At the end of each investigation the Agency should draw up an investigation report including its findings and all evidence on which such findings have been based. The investigation report should be submitted to the national regulatory authorities of the Member States concerned, which should, in turn, without prejudice to their exclusive competence for determining whether a breach has taken place, take any necessary enforcement measures, including, as appropriate, the imposition of fines, in accordance with this Regulation and national law. The national regulatory authorities should do their utmost to ensure an appropriate follow up of the Agency’s investigation reports.(34)The Agency should regularly inform the European Parliament and the Council of its activities regarding cross-border investigations. For that purpose, the Agency should submit summaries of its investigation reports to the European Parliament and to the Council on a regular basis. Such summaries should be submitted in an aggregated and anonymised form and should be treated as confidential, inter alia in view of the need to protect the purpose of the cross-border investigations in question in accordance with Regulation (EC) No 1049/2001 of the European Parliament and of the CouncilRegulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43)..(35)Any decisions adopted by the Agency under this Regulation should be subject to review by the Court of Justice of the European Union, including decisions whereby the Agency has imposed a periodic penalty payment. This Regulation is without prejudice to the competence of national courts or tribunals to review decisions adopted by the competent national authorities pursuant to this Regulation, such as authorisations by national judicial authorities in the context of on-site inspections carried out by the Agency or claims of irregularities under national rules on the enforcement of periodic penalty payments.(36)This Regulation respects the fundamental rights and observes the principles recognised in particular by the Charter, in particular the right to the protection of personal data, the freedom to conduct a business, the right to an effective remedy and to a fair trial, and the right not to be tried or punished twice for the same offence, and has to be interpreted and applied in accordance with those rights and principles.(37)In order to lay down the necessary details to ensure the effectiveness of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending this Regulation by aligning the relevant definitions in the cases provided for in this Regulation for the purpose of ensuring coherence with other relevant Union law in the fields of financial services and energy and by updating those definitions for the sole purpose of taking into account future developments on wholesale energy markets, and in respect of supplementing this Regulation by specifying the means by which IIPs and RRMs are to comply with their respective obligations, the details concerning the process of withdrawing an authorisation and the process of the orderly substitution, as well as the relevant procedural safeguards and by establishing, taking into account national specificities, minimum thresholds for the identification of events which, if they were made public, would be likely to significantly affect the prices of the wholesale energy products. When establishing such thresholds, the Commission should consider ensuring coherence with other relevant Union law in the fields of financial services and energy. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-MakingOJ L 123, 12.5.2016, p. 1.. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.(38)In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the CouncilRegulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13)..(39)Since the objective of this Regulation, namely to improve the Union’s protection against market manipulation on the wholesale energy market, cannot be sufficiently achieved by the Member States, but can rather be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,HAVE ADOPTED THIS REGULATION: