Introduction

Background

Since the implementation of law No. 2006-1537 of 7 December 2006, the objective of CREhas been to monitor the French wholesale electricity and natural gas markets. The banking and financial regulation law No. 2010-1249 of 22 October 2010 extended CRE’s remit to the monitoring of transactions on the CO2 market by players within the electricity and gas sector, in order to ensure the consistency of these transactions with respect to the economical and technical constraints of the sector.

Scope

The electricity and gas markets

The operations covered by monitoring are those transactions performed within the French market which involve the participation of a producer, a broker or an energy supplier, whatever the nationality of the parties involved.

CRE monitoring aims to cover:

  • the transactions performed by a producer, a broker or a supplier
  • the offers by these players on the wholesale market
  • the technical and financial constraints on these players which influences their offers and transactions

CRE monitoring covers all transactions performed on the French market, irrespective of their trading method:

  • two-way trades, with or without a broker
  • transactions within organised markets

Monitoring covers transactions for physical delivery and transactions for financial settlement, from the moment that one of the transaction parts (purchase or sale) is executed by means of physical supply on the French market, or by a financial payment linked to the French wholesale price. Cross-border transactions, where only one part of the transaction is carried out within the French market, are covered by CRE monitoring.

The CO2 market

On the CO2 market, CRE monitors the following transactions for players on the French electricity and gas markets:

  • les transactions de quotas d'émissions européens
  • les transactions d’unités d’émissions de Kyoto

This role, which was conferred upon CRE by the  Banking and financial regulation law No. 2010-1249 of 22  October 2010 , is carried out in conjunction with the Autorité des Marchés Financiers (AMF), whose competencies have been extended to the CO2 spot market.
Unlike the electricity and natural gas markets, the CO2 spot market has no borders other than those of the European Union: the operations in question are those performed by players who are active on the French electricity or natural gas markets. CRE analyses the consistency of these transactions in relation to their economic, technical and regulatory constraints.

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