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Electricity market

The electricity sector has been characterized for years by monopoly with vertically integrated operators and administered prices. The radical change of the electricity market dates back to the second half of the 90s, with the issuance of the Directive 96/92/EC of the European Parliament and Council of 19 December 1996, which defines the liberalization process of electricity markets in Member States and their progressive integration into a single European market (Internal Electricity Market).

The liberalization of the Italian electricity market therefore started with the implementation of this Directive through Legislative Decree No. 79 March 16, 1999, opening to competition the production, trading and sale of electricity, progressively making consumers free to choose their own suppliers and imposing the unbundling of activities in natural monopolies, such as transmission and distribution. Another milestone in the liberalization of the market was the opening of the Italian Power Exchange (IPEX) April 1, 2004.

RSE have consolidated experience in both the study of regulator aspects and the development of electricity market simulators in the short, medium and long term. Simulation is the tool that allows assessments on the evolution of the market and the electrical system, which are useful for production companies to plan new investments in generation capacity, for the regulatory authority to assess the impact of the introduction of new rules, for network operators to verify the adequacy of the system to meet the demand in respect of the expected security and reliability standards, as well as for the political authorities to have the more elements which are more reliable based on which development of the entire electricity system can be defined.

Based on the experience and expertise gained, RSE conduct studies is specifically related to the national electricity market, and to the wider European market, affected by progressive integration supported by the harmonization of rules and the development of interconnections. RSE also analyze the regulatory issues that arise in the context of the interconnection between Italy and foreign countries, particularly in the context of the Florence Forum.