Regulation of power sales in Italy

Regulation of electricity utilities – sales of power

What authorisations are required for the sale of power to customers and which authorities grant such approvals?

The sale of electricity is not subject to any licence or permit regime. Starting from 2017, enrollment in the register of operators held by the Ministry for Economic Development is mandatory.

Is there any tariff or other regulation regarding power sales?

For domestic low voltage users and small enterprises, there was a tariff protection regime where the prices and sale conditions are established by ARERA. In all other cases, electricity prices and sale conditions are freely negotiated between the parties.

Who determines the rates for sales of wholesale power and what standard does that entity apply?

Wholesale prices and conditions are freely negotiated between the parties.

To what extent are electricity utilities that sell power subject to public service obligations?

In Italy, consumers that do not choose a supplier remain with a default supplier, the local distribution service operator, which provides electricity according to a ‘standard offer’. In this case, the local distribution service operator buys electricity from Acquirente Unico SpA (a company created by Gestore dei Servizi Energetici SpA - GSE) with the task of guaranteeing the availability of electricity to cover the demand of captive customers at wholesale market price. Today the majority (80 per cent) of households and small enterprises are still served on the base of this ‘standard offer’. Consumers other than households and small enterprises are obliged to find a supplier, but if they cannot find a suitable offer, electricity is supplied as a last resort by a supplier selected through an open auction.