by Diana Shendrikova - From Russia with energy is a weekly column of ISPI Energy Watch, aimed at bringing about the latest issues of Russia’s Energy Policy and at acquainting readers of the latest development in Russia’s economy and politics in response to the low oil prices and global geopolitical issues by analyzing the latest research on the topic and debate in the national media.
by Antonio Sileo - Gas customers should be able to choose their supplier freely. Nonetheless, a phased approach for the completion of the internal market for gas should be preferred, once a specific deadline has been set. This would allow the industry to adjust its supply and demand patterns, and would ensure that adequate measures and systems are in place to protect the interests of customers and the actual right to choose their suppliers.
by Simona Benedettini - Last Thursday, by acknowledging the duty imposed by the Third Legislative Package on National Regulatory Authorities to monitor “the level and effectiveness of market opening and competition at wholesale and retail levels”, the Italian Regulator released a report on the results of the monitoring activity concerning both the power and gas retail markets for the years 2012 and 2013.
by ISPI Energy Watch - Since the Second Energy Legislative Package which established specific deadlines for the liberalization of electricity and gas retail markets - July 2004 for industrial customers and July 2007 for private households – the Italian gas and power retail markets have still to accomplish important steps to acknowledge their full liberalization.
by Nicolò Rossetto - The year just behind us has been a tough one for the Italian electricity sector. As the data recently released by Terna and the Gestore dei Servizi Energetici shows, output and prices decreased vis-à-vis 2013 and they are now significantly lower than the heights reached before the economic crisis. Indeed, what seemed to be only a temporary halt in the always increasing trend of consumption is now something more like a structural change. Utilities and public authorities should be aware of that and be ready for a significant transformation of business models as well as for a fundamental downsizing of the industry.
by Matteo Verda - Natural gas consumption in Italy dropped 12% in 2014. In one year, 7.9 Bcm of demand went missing, while reduction during the past four years amounted to more than 20 Bcm. Power sector accounted for the largest share of this reduction, due to the overall decrease of electricity demand and to the competition of subsidised renewable sources.
by Simona Benedettini - On December 16th, the first-ever capacity market auction in Europe has been held in UK. Great Britain is the first Member State implementing a capacity market to ensure supply security in the long-term, for its electricity sector. The design of the British capacity remuneration mechanism, and the results of the opening auction, provides useful insights to the debate currently interesting Europe about resource adequacy. In the following, once illustrated the theoretical and empirical background concerning the adoption of capacity remuneration mechanisms, a discussion of the features and results of the British auctions is developed. The analysis highlights important aspects to be kept in mind by those countries in the process of adopting a capacity market, including the contradictions between European and national energy policies that may arise even in the case of a well-designed mechanism such the UK ones.