0 - Highlights

The Italian energy sector has been undergoing considerable restructuring in recent years. EU Directives on electricity (96/92/EC) and on natural gas (98/30/EC) have established common rules for the creation of internal markets and required privatization of Italy's dominant energy monopolies. In November 2002, European ministers set deadlines for complete energy liberalization across the EU.

The Italian government has been working to liberalize its energy sector since the beginning of the 1990s.
In 1995, the government created an independent body, the Regulatory Authority for Electricity and Gas whose mission is to promote competition and protect consumers.

The government issued the Bersani Decree on April 1, 1999 to accelerate the process of liberalizing Italy's electricity sector in accordance with the criteria laid down by EU Directive 96/92/EC.
The Decree stipulated that, beginning on January 1, 2003, no single entity is authorized to produce or import, directly or indirectly, more than 50% of the total electricity produced or imported in Italy. This Decree has required Enel, the state-owned electricity company, to divest 15,000 MW of its generation capacity by the 2003 deadline.
Starting from 1st July 2007 the electricity market has been fully liberalised and now also residential customers can choose their supplier.

The Gas Directive (Directive 98/30/CE of 22nd June 1998) was implemented in Italy by the “Letta Decree” (Legislative Decree no. 164 of 23rd May 2000) and, starting from 1st January 2003 the gas market was fully liberalised.
Since 1 January 2003 all final customers have the right to choose their supplier. Legislative Decree 164 of 23 May 2000 introduced the obligatory unbundling of distribution, transportation and storage from other activities, with the regulation of this essential infrastructure being carried out by the Authority.

Eni, the partially state-held oil and gas conglomerate, has been partially privatized. The Italian government sold off shares of Eni between 1995 and 1998, and now holds 30,3% of the company.

Liberalization of the Italian energy markets has resulted in increased competition over customers between the traditionally state-owned companies and other key players.