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GME’s profile

www.mercatoelettrico.org
Gestore dei Mercati Energetici S.p.A.” is the company which was set up by “Gestore della Rete di Trasmissione Nazionale S.p.A.” (now “Gestore dei Servizi Energetici – GSE S.p.A.) with the mission of organising and economically managing the Electricity Market, under principles of neutrality, transparency, objectivity and competition between producers, as well as of economically managing an adequate availability of reserve capacity.

The take-off of the Electricity Market on March 31, 2004 marked the advent of the first regulated electricity market in Italy, as in other international experiences.

The creation of an electricity market responds to two specific requirements:
  • encouraging competition in the potentially competitive activities of electricity generation and sale, through the creation of a “marketplace”;
  • favouring maximum efficiency in the management of electricity dispatching, through the creation of a market for the purchase of resources for the dispatching service.

The Electricity Market, commonly called Italian Power Exchange (IPEX), enables producers, consumers and wholesale customers to enter into hourly electricity purchase and sale contracts. Market Participants connect to an electronic platform through the Internet and enter into on-line contracts under secure-access procedures based on digital certificates.

The Electricity Market consists of:
  1. the Spot Electricity Market (MPE), including:

a.  the Day-Ahead Market (MGP), where producers, wholesalers and eligible final customers may sell/purchase electricity for the next day; GME is central counterparty in the transactions concluded in the MGP;

b.   the Intra-Day Market (MI), where producers, wholesalers and final customers may modify the injection/withdrawal schedules that they have defined in the MGP; GME is central counterparty in the transactions concluded in the MI;
and
c.   the Ancillary Services Market (MSD), where Terna S.p.A. procures the dispatching services needed to manage, operate, monitor and control the power system. The MSD consists of the scheduling stage (ex-ante MSD) and of the Balancing Market (MB). Terna is central counterparty in the transactions concluded in the MSD.
 
  • the Forward Electricity Market with delivery taking/making obligation (MTE), where Participants may sell/purchase future electricity supplies. GME is central counterparty in the transactions concluded in the MTE.


  • the Platform for physical delivery of financial contracts concluded on IDEX (CDE), where financial electricity derivatives contracts concluded on IDEX are executed. IDEX is the segment of the financial derivatives market of Borsa Italiana S.p.A. where financial electricity derivatives are traded. The contracts executed on the CDE are those for which the Participant has requested to exercise the option of physical delivery in the Electricity Market. GME is central counterparty of the delivered contracts.

As part of the organisation and economic management of the Electricity Market, GME is also vested with the organisation of trading venues for Green Certificates (giving evidence of electricity generation from renewables), of Energy Efficiency Certificates (the so-called "White Certificates", giving evidence of the implementation of energy-saving policies) and of Emissions Allowances or Units.

Moreover, as per Annex A to AEEG’s Decision 111/06 (as subsequently amended and supplemented), GME also manages the Forward Electricity Account Trading Platform (PCE) for registration of forward electricity purchase/sale contracts that have been concluded off the market.

On 15 August 2009, Law no. 99 of 23 July 2009, concerning provisions on development and internationalisation of companies, as well as on energy matters, came into force. Article 30 of the Law vests GME with exclusive responsibility to economically manage the natural gas market under principles of neutrality, transparency, objectivity and competition.
 
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