Regulation is nothing new to the energy industry, but in 2016, scrutiny is on the rise. The Federal Energy Regulatory Commission (FERC) is taking a heightened interest in market manipulation and questionable hedging practices, and the US Commodity Futures Trading Commission (CFTC) is taking an assertive stance toward the recent addition of some 2,000 energy companies to its own oversight mandate.
New regulatory focus areas that affect energy organizations include Title VII of the Dodd-Frank Act, cross-border rule agreements, swap execution facilities, hedging practices, anti-disruptive trade practices, and cyber risk. That scrutiny reaches the bottom line: FERC penalties totaled $1.4 billion in FY2013, CFTC sanctions totaled an estimated $3.27 billion in FY 2014, and civil penalties that year topped $400 million.
Deloitte recently published a report that examines six key regulatory trends for the energy industry in 2016. Here are some of the highlights:
For more information about these important regulatory trends, please visit Deloitte.com to download the full report.