Market Italy

Despite the unfavourable economic climate, Market Italy posted a positive performance last year. Although consumption across the country dropped by 7 %, the business unit bucked the negative trend and delivered good results that exceeded expectations. Business with end customers and optimisation of the portfolio helped to offset the market fluctuations and low spot prices.

Wholesale energy business declined year on year due to lower demand in the wake of reduced energy consumption, coupled with a higher supply of energy provided by new power stations. Total revenue was also down due to the fall in energy prices and consumption.

Regulatory and market challenges

Besides the implications of the economic crisis, the main factor affecting the outlook for 2010 is the new legal framework and, in particular, the new decree governing a review of the energy exchange. Other challenges facing Market Italy in 2010 are consolidation of the reseller market, further development of the end customer market, alignment of the retail market, the functionality of the new sales platforms and development of services for them.

It is difficult to predict the extent to which the new legislative decree will affect the energy exchange, settlement services and green certificates. Decisions by the new energy and gas authority on quality standards such as bid transparency and billing have prompted a review of internal processes. By offering services throughout the electricity value chain and with its balanced portfolio strategy, Alpiq Energia Italia is well positioned to address these changes.