Parties interested in the emerging Italian electricity trading market have until 30 November to comment on the preliminary trading rules published by the Gestore del Mercato Elettrico (GME), Thursday. The market is due to be launched early next year.
Following the period of consultation, a final version of the trading rules will have to be submitted to the Industry Ministry by the GME for approval.
GME has decided to divide the market into five sections: a day-ahead energy market, an adjustment market, a congestion management market, a reserve market and a balancing market.
Market participants are divided into sellers and buyers. The former are domestic producers, foreign producers having title to part of the available interconnection capability or being able to transfer electricity to the Italian border, the grid operator GRTN, and Acquirente Unico, a company that sells and buys energy for small consumers.
The buyers are Acquirente Unico eligible customers, GRTN, domestic producers, and foreign buyers with the same characteristics outlined for the sellers.
Bids and offers must consist of pairs of values, consisting of quantity and unit price, with participants allowed to submit multiple bids and offers. Supply offers may be partially accepted. Demand bids are accepted in full or rejected.
Supply offers will be ranked in non-decreasing price sequence, from lowest to highest, while demand bids will be ranked from non-price-dependent bids to the lowest-priced bids. Additional criteria will kick in to rank bids or offers made at the same price.
GME said it might promote the development of financial derivatives on electricity prices, in order to provide market participants with adequate price-risk hedging instruments.