Delimitation of Energy and Financial Regulation on the EU Wholesale Energy Market

Abstract

Wholesale energy markets in the European Union (EU) are regulated both by financial and energy legal frameworks. The introduction of the energy regulatory framework supplemented the existing regulation for the financial markets in the EU. However, subsequent changes in the financial legal regime opened some questions regarding the interplay between financial and energy regulation in the EU wholesale energy markets. The aim of this paper is to explain the growing complexity of the existing regulatory framework on the wholesale energy market in the EU. This complexity is raising concerns about possible overlaps of different legal regimes and division of competence between financial and energy regulatory authorities both at the EU and Member States levels. Nevertheless, closer cooperation and information exchange between different regulators can reduce some uncertainties and make the market functioning even more effective.