A Cross-country Comparison
Edited by Jean-Michael Glachant and Dominique Finon
Chapter 13: Institutional and Organizational Reform in the Italian Electricity Supply Industry: Reconciling Competition with the Single Tariff
13. Institutional and organizational reform in the Italian electricity supply industry: reconciling competition with the single tariﬀ Arturo Lorenzoni INTRODUCTION The aim of this contribution is to describe in brief the recent history of the electricity industry in Italy, looking at its regulation and the trends towards liberalization and privatization of the incumbent utility that has operated since the industry was nationalized in 1962. In 1995 regulation of the industry passed from a political to an independent authority, and the question of how the sector should now be structured, in the light of the implementation of EU Directive 96/92/EC, was the subject of intense debate. Two leading schools of thought were opposed; one supported full deregulation of the market, with a radical change of the integrated monopolist structure, while the other wanted to introduce the minimal changes required for implementing the directive. The decision taken in March 2001 to open virtually all the non-domestic market from 2004 onwards, and the new structural organization of the electricity industry seems to indicate that full deregulation has been aﬃrmed. Nevertheless, it is not yet clear whether the new system will be able to fulﬁl the dominant role of ENEL and leave room for real competition. THE REGULATION OF THE INDUSTRY A Historical Overview The birth of the Italian electricity industry really occurred in 1883, when the Edison Company of Milan constructed a system for illuminating the La Scala Theatre and a number of nearby buildings. Private ﬁrms developed ﬁrst, but in...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.