The liberalisation of the internal market for electricity: what choices for Italy?

This paper traces the background to the Italian electricity market, and considers the choices available to the Italian government, the state electricity company ENEL, and regulatory bodies from the proposed reform of the electricity system as a result of the EU's directive on the liberalisation of the electricity market. The recent evolution of the industrial and regulatory structure in the Italian electrical industry is considered, and the Italian position within the EU Directive, the restructuring of a public utility, and further issues on the reform of generation and transmission are addressed. A diagram of the proposed industrial structure is presented. (UK)