In accordance with Articles 25 and 25-a of the Energy Law* ("Official Gazette of the RM" no. 96/18 and "Official Gazette of the RSM" no. 96/19 and 236/22), the Energy and Water Services Regulatory Commission of the Republic of North Macedonia, (hereinafter: Energy Regulatory Commission), is empowered to oversee the functioning of the energy markets for the following purposes:

• Ensure and enhance the efficiency, competitiveness, integrity, and transparency of the energy markets,
• Identify irregularities, competition distortions, and unfair practices in the market, as well as any activities on the energy markets that contravene laws, regulations, and obligations set forth in energy activity licenses,
• Detect and prevent trading of energy products on the wholesale market based on inside information and manipulation of wholesale energy markets, including attempts to manipulate the wholesale energy markets.

Market monitoring, as a fundamental function of the Energy Regulatory Commission, serves not only to establish efficient, competitive, and transparent energy markets in our country but also to ensure a reliable energy supply from regulated energy companies. It plays a crucial role in identifying energy license holders who fail to comply with legal regulations and obligations stated in their licenses.

Efficient, competitive, and transparent energy markets benefit not just market participants but also consumers, as they provide a wider range of services with improved quality and lower prices. Additionally, energy market monitoring serves as a tool to comprehend the impact of existing laws and regulations from various sectors on the functioning of energy markets, enabling timely information for the need for adoption or amendment of existing relevant laws and regulations.

To fulfill its responsibilities, the Energy Regulatory Commission, on 27 April 2023, adopted a new Rulebook on the monitoring and supervision of energy markets functioning[MM1]  ("Official Gazette of RSM" No. 98/23), pursuant to Article 24 paragraph (1) point 1) line 4, and Article 25 paragraph (3) of the Energy Law* (hereinafter: Rulebook). This Rulebook outlines the methodology and procedures for monitoring and supervising energy markets in the Republic of North Macedonia. It includes provisions on registering wholesale energy market participants, defining individuals prohibited from insider trading, exceptions, publication of inside information, types of reports, content, form, method, and submission deadlines for reports and data from transmission and distribution system operators, as well as all other energy license holders, including wholesale energy market participants.

Therefore, it is mandatory for all energy license holders to provide timely and accurate information and data to the Energy Regulatory Commission using prescribed standard forms and complying with the deadlines specified in the Rulebook.

Most of the required data and information are collected through the Market Monitoring web platform, which serves as the primary entry point for the mm-central information system for data collection, processing, and analysis. The development and enhancement of these software tools commenced in 2016, a process led by the Department for Monitoring, Investigations and Misdemeanor in collaboration with the IT Department of the Energy Regulatory Commission and the Faculty of Electrical Engineering and Information Technologies (FEEIT) in Skopje.

In addition to the data gathered via the web platform, the Energy Regulatory Commission, for the purpose of conducting an efficient market monitoring, has the right  to request additional data and information from license holders as stipulated in their energy activity licenses. Once the necessary reports, data, and information from energy license holders have been collected, the Energy Regulatory Commission proceeds with data processing and analysis, followed by preparation and publication of reports. The key findings resulting from the monitoring of energy market functioning are included in the Energy Regulatory Commission Annual Reports.

The publication of extensive information and data about energy markets promotes understanding and trust among energy market participants and consumers. These publications aim to familiarize the public with the functioning of energy markets, thereby fostering competitiveness, meeting consumer needs, and enhancing consumer protection.

REMIT Regulation

The implementation of the REMIT Regulation, which aims to reinforce the integrity and transparency of wholesale electricity and natural gas markets, commences with the new Rulebook on the monitoring and supervision of energy markets functioning.

Energy license holders that have additional obligations arising from the REMIT Regulation in our country are the market participants in the wholesale energy market i.e., any person who enters into transactions including placing of orders to trade, in one or more wholesale energy markets, particularly:

• Transmission and distribution system operators for electricity and natural gas,
• Electricity market operator when entering into transactions with electricity produced from renewable sources by preferential producers using preferential tariff,
• Electricity and natural gas traders and suppliers,
• Electricity producers that sell their produced electricity in the wholesale market,
• Final customers with consumption capacity of electricity or natural gas at full use of their production capacities, equal or more than 600 GWh per calendar year,
• Persons professionally arranging transactions with wholesale energy products.

Energy license holders that have additional obligations arising from the REMIT Regulation, as well as other interested parties, benefit from a wide range of resources specifically designed to assist them in meeting their additional obligations under the REMIT Regulation. These valuable resources include relevant REMIT Templates, the Guidance on Disclosure of Inside Information , the Procedural Act , and the Guidance of the Energy Community Regulatory Board on the REMIT Regulation . Moreover, we offer access to the National Register of Participants in the Wholesale Electricity and Natural Gas Market , as well as a collection of Frequently Asked Questions accompanied by corresponding answers.

If you have any inquiries concerning the obligations and implementation of the REMIT regulation, please feel free to reach out via email to the following address: remit@erc.org.mk.

The Department for Monitoring, Investigations and Misdemeanor oversees and carries out the activities in this particular domain.