The new rules ban the use of insider information and market manipulation practices in a wholesale market estimated to be worth around €500 billion per year.
The EU Regulation on Energy Market Integrity and Transparency (REMIT) covers all wholesale energy trading in the EU, including contracts and derivatives for the supply and transportation of natural gas and electricity.
"We want pricing for consumers to be transparent, and unfortunately there are too many deals in the wings paid for at the end by consumers with too high energy prices," said German liberal lawmaker Jorgo Chatzimarkakis, who drafted the European Parliament's position on the draft law.
The legislation establishes a team of about 15 market monitors, based at the Agency for the Cooperation of Energy Regulators (ACER) in Slovenia, who will have extensive powers to collect market data and flag market abuse.
In investigating potential abuses, ACER will have to consult with national regulators but will hold the final say over decisions.
"Wholesale trading will now be monitored independently across the EU, to enable member states to prevent and punish anti-competitive behaviour," the Parliament said in a statement.
The requirements to report information on trades to ACER are due to take effect in about six months' time, the statement said.
ACER will also have access to data on the trade of carbon pollution permits in the EU's emissions trading scheme.
Offenders caught manipulating markets will be inflicted penalties at the national level "to reflect the damage done to consumers," the Parliament said. The European Commission will come up with a proposal on penalties during the course of 2012.
