Tipology : Glossary

It is a computerized market where the energy price is determined by the supply and demand between producers and consumers. It became effective on 31 March 2004 with the legislative decree n.79/1999.
The Electricity Exchange comprises the Day-Ahead Market (DAM), the Adjustment Market (AM), and the Ancillary Service Market (ASM). Among these, the DAM is the most important in terms of volume and transactions. It is an auction market and energy transactions take place in one session during the day after the auction. Participants in the auction can be producers, traders, the Acquirente Unico and Gestore della Rete Trasmissione Nazionale. The AM is an auction market aimed at modifying the outcomes resulting from the DAM. Finally, in the ASM, energy transactions are pursued through the selection, made on the basis of economic merit, of offers/bids, which will be introduced into and/or withdrawn from the market.
Since 2005, all eligible clients (everyone having the right to bargain energy supply conditions freely) have the permission to buy electrical energy directly through the commodity exchange. Among the most important supporters of this initiative are the Ministry of the Development Economics, the Regulatory Authority for Electricity and Gas, Terna, the Gestore dei Mercati Energetici S.p.A. (GME), and the Exclusive Purchaser. Currently, the idea of introducing a pay as bid mechanism (maybe from 2012) is being considered in order to give new flexibility to the existing electricity exchange.
Editor: Claudio DICEMBRINO
© 2009 ASSONEBB