The document discusses the liberalization of the electricity market in Italy and the European Union. It provides an overview of the relevant EU directives from 1996 to 2009 that opened electricity markets. It also discusses Italy's transposition of these directives through laws like the Bersani Act in 1999. The document outlines the roles of entities like the Authority for Electricity and Gas, transmission system operator Terna, and energy market operator GME. It provides examples of electricity tariff offers and bills to help consumers understand options and costs. New technologies like home displayers are presented as ways to help consumers monitor usage.

1. Stresa, 10 February 2011

2. The European Directives
The Italian context
The GME
SOS ELECTRICITY BILL - How to read it?
- Tariffs
- Electricity Bill
- Home Displayer
- Innovative Proposals

3. THE LIBERALISATION OF THE ELECTRIC MARKET
The Community contest:
The openining of the electricity market
 The directive 96/92/CE
 The directive 2003/54/CE
 The directive 2009/72/CE relating to common regulations
for the electricity market

4. THE ITALIAN CONTEST
The transposition of the directives:
 The Bersani act 79/3/99
 The green certificates
 Incentive on renewable resources

5. THE PRINCIPLE OF THE ELECTRIC SECTOR
LIBERALIZATION INTRODUCED BY THE BERSANI ACT
• Guarantee of a plurality of producers
• Free access to the Grid
• Free choices for elegible customers (In 2003 elegible
customers should consume 100.000 kWh annually, while
since 2007 every customer is elegible to have access to the
free market)
Vertical Separation of the monopolist of the electric sector
(in the next slides Company “X”)

6. ENERGY GOVERNANCE IN ITALY
• The Bersani Act provides for the activity of distribution through
concessions released by the Minister of Productive Activity until
2030
• The Authority for Electric Energy and Gas was established by the
Law n. 481/1995  It is an Indipendent Authority For Regulation
and Control
• Introduction of the “single autorization” (Law n. 55/ 2002)
• Unified Act on the Electric Market approved in 2003
• Trasmission and dispaching activity to the GSE (ex GRTN) The
energy transmission is managed by TERNA (Act Introduced in 2004)

7. Electric energy producers
Bilateral Agreements Electrical market
Wholesalers
Exclusive buyer
Supply agreements
Eligible Customers Bounded Customers

8. THE ELECTRIC SYSTEM
• Virtual zones
• Points of offer
• Points of immission
• Dispatching user

9. WHAT IS THE GME
Gestore dei Mercati Energetici is the company
which was set up by “Gestore della Rete di
Trasmissione Nazionale S.p.A.” (now “Gestore
dei Servizi Energetici – GSE S.p.A.) with the
mission of organising and economically
managing the Electricity Market, under
principles of neutrality, transparency,
objectivity and competition between
producers, as well as of economically managing
an adequate availability of reserve capacity.

10. THE GME’S MARKETS
 THE DAY BEFORE MARKET (MGP)
It’s executed the morning before the delivery day
 THE ADJUSTMENT MARKET (MA)
Carried out right after the MGP, on the first afternoon hours
 THE DISPATCH SERVICE MARKET (MSD)
Operators present modifications of their offer, whether to increase or
reduce the amount of potency inserted on or taken from the grid.

11. QUESTIONS
 Is the Italian market fully liberalized?
 Which is The role of the Electrical Authority?
 Which is The role of communication towards consumers?

13. ELECTRICY TARIFF OFFERS (same seller different offers)
Free market
Household of 3 person with 3kW of power used and
annual consumption of 28000 kWh of which:
35% in fascia 1 30% in fascia 1
30% in fascia 2 25% in fascia 2
35% in fascia 3 45% in fascia 3
Estimated Estimated annual
Nr. Offers Seller Tipology annual Seller Tipology
Nr. Offert expenditure
expenditure
A Company “X” locked 448,043 A Company”X” locked 448,03
B B
Company “X” locked 453,49 Company”X” locked 440,52
(tariffa bioraria) (tariffa bioraria)
C Company “X” locked 521,42 C Company”X” locked 521,42
D Company “X” locked 567,82 D Company”X” locked 567,82
E E
Company “X” locked 578,57 Company”X” locked 553,14
(tariffa bioraria) (tariffa bioraria)

14. ELECTRICY TARIFF OFFERS (different sellers similar tariffs)
Free market
Household of 3 person with 3kW of power used and
annual consumption of 28000 kWh of which:
35% in fascia 1 30% in fascia 1
30% in fascia 2 25% in fascia 2
35% in fascia 3 45% in fascia 3
Estimated Estimated
Seller Tipology annual Seller Tipology annual
expenditure expenditure
Y locked 452,09 Y locked 439,12
Z locked 450,14
Z locked 450,14
W locked 480,21 W locked 476,45
K locked 501,98 K locked 499,76
T locked 539,22 T locked 535,29

15. ELECTRICY TARIFF OFFERTS
Enhanced Protection
Household of 3 person with 3kW of power used and
annual consumption of 28000 kWh of which:
35% in fascia 1 30% in fascia 1
30% in fascia 2 25% in fascia 2
35% in fascia 3 45% in fascia 3
Estimated Estimated
Nr. Offer Seller Tipology annual Seller Tipology annual
expenditure Nr. Offer
expenditure
Servizio
Adjusted by Indexed by Servizio Adjusted Indexed by
maggior 474,13 472,52
AEEG AEEG maggior tutela by AEEG AEEG
tutela
SMT (prezzi
SMT (prezzi Adjusted Indexed by
Adjusted by Indexed by biorari 473,2
biorari 474,57 by AEEG AEEG
AEEG AEEG transitori)
transitori)
SMT (prezzi SMT (prezzi
Adjusted by Indexed by Adjusted Indexed by
biorari a 474,79 biorari a 474,13
AEEG AEEG by AEEG AEEG
richiesta) richiesta)

16. GRAPHIC OF THE DIFFERENCES BETWEEN
FREE MARKET AND PROTECTION SERVICE
300
250
200
150 Free market band 1
kWh
Free market band 2
Protection service band 2
100 Protection service band 1
50
0
0 5 10 15 20 25
€

18. Some problems for the User!!!!
The Enhanced Protection Electric Bill
for households does not fully reflect
the dynamics of the electricity market:
The volatility of the energy cost
follows fossil fuels’ price trends!!
He doesn’t understand what he’s
going to pay
He wants to know how to pay less
(The quota is fixed by the Authority for
Electric Energy and Gas)

19. ELECTRIC ENERGY PRICE
Set annually by the local
distributor and approved by
the AEEG
National Taxes
R&D costs + renewable
energy incentives etc…
defined and update by
AEEG

20. ELECTRICITY BILL PROPOSALS
• The items description
• The highest consumption band
• Consumption Graphic Trends

21. HOME DISPLAY
Energy’s availability
Production Meter
light
Fascia Tariffaria 1-2-3 / Display as a percentual ratio
between available power and
PZ Max Val % currently used power
PZ Utilizzata
Consumo/ (gg/set/mese) Costi/ Period’s statitics selection key
Produzione (gg/set/mese)
Ricavi
Fascia 1 Consumption/production
Fascia 2 statistics selection key
Fascia 3
ToT
% Di Consumo o
Produzione/Energia Daily, weekly, monthly energy’s
utilizzata consumption/production statistics
(percentual)
N° Cliente data - ora

22. HOME DISPLAYER  APPLICATIONS
Fascia Tariffaria 1-2-3 /
PZ Max Val %
PZ Utilizzata
Consumo/
Produzione
(gg/set/mese) Costi/
Application for smartphones and computers,
Ricavi with the same display’s interface, always
Fascia 1 userfriendly
Fascia 2
Fascia 3
ToT
% Di Consumo o
Produzione/Energia
utilizzata
N° Cliente data - ora

23. Consumption Production

24. Company X: How to inform the user
E-MAIL USER PROFILE
When? EVERY 3 MONTHS DATABASE ELECTRIC BILL
( month, annual)
THE BILL:
It will be attached to an e- - INTERACTIVE CHARTS:
mail and there will be a There is the possibility to
LINK to access to your highlight the consumption
private profile, through range on a monthly or
which you will be able to hourly basis.
pay and to watch your
consumption Chart Measure Units:
• kWh/Monthly or Daily
• €/kWh
CHAT &
FUNCTIONAL CALL-CENTER - HOME DISPLAYER
• Short waiting time TUTORIAL
• Clear answers

25. NEW GENERATION OF TECHNOLOGY
GOOD!
You have enough power
European standard for the
available household appliances
BE CAREFUL, PLEASE!
You’re almost at the maximum
usage level
ATTENTION!
You have exceeded your
maximum power
consumption!

26. Emanuele Biestro
Vanessa Losantos
Marco Minervini
Giovanni Piazzini
Davide Ricchetti
Federica Scaffidi
Sofia Sicher
Viviana Tulin
Vittoria Veltri