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The role of Acquirente Unico in the Italian
electricity market

Rome, 4 April 2013
Historical background
EU directive
Directive 96/92/EC
common rules of the
internal market in
electricity

Italian legislation
• Lgs.Decree 79/99 established Acquirente Unico
SpA, with the mission of ensuring an adequate
availability of electricity generating capacity and
electricity supply to the captive market
• Law n. 125/2007 established "enhanced protection”

Directive 2003/54/EC
opening up of the
electricity market, on
the demand side

market, including households and SMEs which have
not chosen a supplier yet. AU in charge of:
• procuring electricity to cover the demand of the
“enhanced protection" market and supplying it to
retailers serving this market.

3rd Energy Package,
2009
Boosting
internal
energy market

• Periodical

monitoring

surveys

on

competitive

conditions of retail market; independent out-ofcourt resolution scheme for energy complaints
Regulatory framework
Italian electricity market model
Producers & Imports

IPEX, IDEX, MTE

Enhanced Protection Market

Safeguard Market

Open Market

Wholesalers

AU

Enhanced Protection
Suppliers

Safeguard suppliers

Enhanced Protection
Customers

Safeguard Customers

Retailers

Customers

2
The compliance of the Italian model with the EU principles
Supply of electricity to the enhanced protection market
TWh
Percentage change

Self-production

In the period 2007-2012 the overall
share of “enhanced protection” has
Free market

been substantially reduced, going
from

124.3

TWh

to

78.1

TWh

(approximately 24%) in terms of
energy
Enhanced
protection
market

demand

on

the

national

network.

3
Energy procurement
Market evolution: switching trend for households and Small
Medium Enterprises (millions of customers)
HOUSEHOLDS

2007

2008

2009

2010

2011

SMEs

2012

4
Energy procurement
Electricity covered by type of contract
Demand in 2012: 78,1 TWh
Physical bilaterals
(indexed price)
9%

Purchases in the MGP 
57%
Physical bilaterals
(fixed price)
34%

Purchases in the MGP 
(uncovered 
requirements)
54%

Purchases in the MGP 
(covered 
requirements)
3%

Physical bilaterals (fixed price)

Physical bilaterals (indexed price)

Purchases in the MGP (uncovered requirements)

Purchases in the MGP (covered requirements)

5
Energy procurement
Reference price
 AU transfers electricity to distributors (or their entitled companies depending on the
number of customers served) at a price monthly based on its energy purchasing
costs, added with its own operating costs (cd. Prezzo di Cessione or Supply Price);
 The final price of electricity applied by distributors to end users is set quarterly by
AEEG on the basis of the Supply Price added with regulated components.

• Supply Price

50%

• Marketing Costs (customers management)

4%

• Transmission, Distribution and Metering Tariffs

14,5%

• System general costs (incentives to FER, system research, etc.)*

18%

• Tax and VAT

13,5%

 Thus “enhanced protection” consumers directly benefit from wholesale market
competition like large consumers.
6
Increasing roles to support liberalization
Energy consumers’ help desk (Sportello per il Consumatore)
Since 2009, the Energy consumers’ help desk, run by AU on the behalf of the Energy
Authority, carries on a number of activities devoted to provide electricity and gas
consumers with information on their rights, on how to switch supplier and how to submit a
complaint..
CALL CENTER
 It

supplies

COMPLAINTS’ OFFICE
 Thanks to this office (more

informative

services

about

markets’

liberalization

than

energetic

 The Call Center has managed
since 2009 up to 1,700,000

complaints

received) consumers may rely

and

consumers’ rights.

80,000

Energy
consumers’
help desk

on

a

straightforward

and

timely way to solve their
disputes

with
gas

electricity

inbound call with high-level

and/or

retailers

service quality

distribution operators.

7

and
Increasing roles to support liberalization – empowerment of
customers
The Integrated Information System

Distributors

IIS

Retailers

Switching process
Consumption
volumes
New connections
Compensatory
system
Database MGMT

 Thus, the IIS will facilitate the
exchange of data flows among
distributors and sellers, also reducing
barriers to entry for new suppliers.
Retailers

Distributors

Data flow

 Italian legislation, in 2010, assigned to
Acquirente
Unico
the
design,
development and operation of an
Integrated Information System (IIS).

 Furthermore, it will make the switching
process (and its perception by
consumers) faster, more certain and
more secure. An efficient process
builds consumers’ confidence in the
benefits of competition.
8
New tasks
Alternative dispute resolution system
 In implementing the Third Energy Package, the Italian Energy Regulator assigned the
organization and development of the ADR system to AU.
 In case suppliers do not provide satisfactory solutions consumers should have the
possibility, before going to court, to get the problem with their supplier settled by
an independent out-of-court mechanism.
 The objective is to enable the consumer to resolve a dispute and obtain
compensation for the harm suffered as a consequence of a commercial transaction
or practice. The ADR system, run by AU, has been operational from 1 April 2013,
with a 12-month test period, in order to guarantee an operational improvement.
OCSIT
 Recently Italian legislation established the Italian Central Stockholding Entity (OCSIT),
whose activities and functions have been attributed to Acquirente Unico. The main
purpose of the entity shall be to hold oil stocks within Italian territory. Furthermore it
will organise emergency and commercial stock and transport services.
Thank you for your attention!

www.acquirenteunico.it

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Di gaetano presentation

  • 1. The role of Acquirente Unico in the Italian electricity market Rome, 4 April 2013
  • 2. Historical background EU directive Directive 96/92/EC common rules of the internal market in electricity Italian legislation • Lgs.Decree 79/99 established Acquirente Unico SpA, with the mission of ensuring an adequate availability of electricity generating capacity and electricity supply to the captive market • Law n. 125/2007 established "enhanced protection” Directive 2003/54/EC opening up of the electricity market, on the demand side market, including households and SMEs which have not chosen a supplier yet. AU in charge of: • procuring electricity to cover the demand of the “enhanced protection" market and supplying it to retailers serving this market. 3rd Energy Package, 2009 Boosting internal energy market • Periodical monitoring surveys on competitive conditions of retail market; independent out-ofcourt resolution scheme for energy complaints
  • 3. Regulatory framework Italian electricity market model Producers & Imports IPEX, IDEX, MTE Enhanced Protection Market Safeguard Market Open Market Wholesalers AU Enhanced Protection Suppliers Safeguard suppliers Enhanced Protection Customers Safeguard Customers Retailers Customers 2
  • 4. The compliance of the Italian model with the EU principles Supply of electricity to the enhanced protection market TWh Percentage change Self-production In the period 2007-2012 the overall share of “enhanced protection” has Free market been substantially reduced, going from 124.3 TWh to 78.1 TWh (approximately 24%) in terms of energy Enhanced protection market demand on the national network. 3
  • 5. Energy procurement Market evolution: switching trend for households and Small Medium Enterprises (millions of customers) HOUSEHOLDS 2007 2008 2009 2010 2011 SMEs 2012 4
  • 6. Energy procurement Electricity covered by type of contract Demand in 2012: 78,1 TWh Physical bilaterals (indexed price) 9% Purchases in the MGP  57% Physical bilaterals (fixed price) 34% Purchases in the MGP  (uncovered  requirements) 54% Purchases in the MGP  (covered  requirements) 3% Physical bilaterals (fixed price) Physical bilaterals (indexed price) Purchases in the MGP (uncovered requirements) Purchases in the MGP (covered requirements) 5
  • 7. Energy procurement Reference price  AU transfers electricity to distributors (or their entitled companies depending on the number of customers served) at a price monthly based on its energy purchasing costs, added with its own operating costs (cd. Prezzo di Cessione or Supply Price);  The final price of electricity applied by distributors to end users is set quarterly by AEEG on the basis of the Supply Price added with regulated components. • Supply Price 50% • Marketing Costs (customers management) 4% • Transmission, Distribution and Metering Tariffs 14,5% • System general costs (incentives to FER, system research, etc.)* 18% • Tax and VAT 13,5%  Thus “enhanced protection” consumers directly benefit from wholesale market competition like large consumers. 6
  • 8. Increasing roles to support liberalization Energy consumers’ help desk (Sportello per il Consumatore) Since 2009, the Energy consumers’ help desk, run by AU on the behalf of the Energy Authority, carries on a number of activities devoted to provide electricity and gas consumers with information on their rights, on how to switch supplier and how to submit a complaint.. CALL CENTER  It supplies COMPLAINTS’ OFFICE  Thanks to this office (more informative services about markets’ liberalization than energetic  The Call Center has managed since 2009 up to 1,700,000 complaints received) consumers may rely and consumers’ rights. 80,000 Energy consumers’ help desk on a straightforward and timely way to solve their disputes with gas electricity inbound call with high-level and/or retailers service quality distribution operators. 7 and
  • 9. Increasing roles to support liberalization – empowerment of customers The Integrated Information System Distributors IIS Retailers Switching process Consumption volumes New connections Compensatory system Database MGMT  Thus, the IIS will facilitate the exchange of data flows among distributors and sellers, also reducing barriers to entry for new suppliers. Retailers Distributors Data flow  Italian legislation, in 2010, assigned to Acquirente Unico the design, development and operation of an Integrated Information System (IIS).  Furthermore, it will make the switching process (and its perception by consumers) faster, more certain and more secure. An efficient process builds consumers’ confidence in the benefits of competition. 8
  • 10. New tasks Alternative dispute resolution system  In implementing the Third Energy Package, the Italian Energy Regulator assigned the organization and development of the ADR system to AU.  In case suppliers do not provide satisfactory solutions consumers should have the possibility, before going to court, to get the problem with their supplier settled by an independent out-of-court mechanism.  The objective is to enable the consumer to resolve a dispute and obtain compensation for the harm suffered as a consequence of a commercial transaction or practice. The ADR system, run by AU, has been operational from 1 April 2013, with a 12-month test period, in order to guarantee an operational improvement. OCSIT  Recently Italian legislation established the Italian Central Stockholding Entity (OCSIT), whose activities and functions have been attributed to Acquirente Unico. The main purpose of the entity shall be to hold oil stocks within Italian territory. Furthermore it will organise emergency and commercial stock and transport services.
  • 11. Thank you for your attention! www.acquirenteunico.it