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The liberalization of Italy's retail electricity market: a policy proposal


Italian electricity consumers have been free to choose their supplier since 2007, but about 66 percent are still supplied under the so-called maggior tutela, a regulated regime. Italy’s Annual Competition Law states that regulated prices will be phased out by July 1st, 2019. This paper performs an analysis of the country’s retail electricity market following the structure-conduct-performance paradigm. Two main issues emerge that need to be addressed: market concentration and consumer inertia. The paper proposes several policy tools, aimed at both the supply and the demand side, aimed at promoting supply diversification, market entry and an increased customer engagement. Paragraph 6 includes a proposal to face energy poverty in Italy within the new scenario of the electricity market.