The Spanish energy regulatory authority, Comisión Nacional de los Mercados y la Competencia (CNMC), has imposed a €1 million fine on Enet Energy S.A. for attempting to manipulate the national organised gas market (MIBGAS) eight times from April to May 2023. Enet Energy S.A. acknowledged its responsibility and proceeded with an early voluntary payment. Therefore, in accordance with Spanish regulations, a 40% reduction was applied to the imposed fine.
The REMIT Regulation prohibits market manipulation and seeks to protect the integrity and transparency of the EU’s wholesale energy markets.
In its decision, CNMC found that Enet Energy S.A. had breached Article 5 of REMIT for attempting to manipulate the Spanish organised gas market. The market participant inserted sell orders at low prices and significantly high volumes around 17:30, to give false or misleading signals regarding the supply and price level at which gas was being traded at that specific moment of the trading session (17:30) in MIBGAS. This is the time at which market reference indices are calculated, including the market price index for natural gas traded at the Spanish Virtual Hub (PVB) by the agency ICIS HEREN.
What are the main findings?
The investigation showed that, in eight trading sessions of the Spanish day ahead gas market between 24 April and 18 May 2023, Enet Energy S.A. placed a large volume of sell orders around 17:30. Their low prices (ranging from -2.50 €/MWh on 2 May to -16.00 €/MWh on 17 May, compared to the sell price of the immediately preceding orders) caused a drop relative to the prevailing market trend in an attempt to influence the price references at that specific time. Seconds later, the market participant introduced new sell orders at higher prices (with a price increase over their offer at around 17:30, ranging from +2.00 €/MWh on 24 April to +12.00 €/MWh on 11 May), modifying in just a few seconds the price signal previously transmitted to the market.
CNMC concluded that Enet Energy S.A., through its sell orders at low prices and significantly high volumes, attempted to manipulate the Spanish organised gas market prices at the reference time used for calculating market indices, including the PVB reference price published by ICIS HEREN.
This is the fourth decision from CNMC sanctioning the manipulation or attempt of manipulation of a reference price on the Spanish gas market (see previous decisions in 2018 here and here, and in 2024).
Access CNMC’s Decision and press release (both in Spanish).
See the latest table of REMIT breach sanction decisions adopted by national regulatory authorities.
Check the ACER REMIT Guidance (6.1st edition) for more information on trading practices that could constitute market manipulation under REMIT.
Interested in further information on enforcement decisions under REMIT? Check out ACER’s REMIT Quarterly reports.
