Italy‘s new government could drive through an overhaul of the country’s energy sector, according to analysts at Citi Investment Research.

In an investment note published today, Citi states that a government under former European competition commissioner Mario Monti could drive through much-needed energy market reforms.

Electricity and gas prices in Italy are some 20-30 per cent higher than in other countries because of a lack of real competition and difficult access to the market for newcomers,” said Citi. “We believe that some mechanism to accelerate the opening of the market will be implemented.”

It suggested that “the privatisation process with regards to the placement of stakes in state-owned companies” such as Eni and Enel – which are both 30 per cent state owned – could be speeded up.