Energy Market

As regards the Italian Electricity Exchange, on one hand, 2011 saw a consolidation of growth in the supply of electricity, and on the other, given the persistent phase of economic stagnation, registered another decrease in energy requirements which also caused liquidity to fall to 57.9%. In fact, despite low electricity demand, the increasing costs of electricity production and, in particular, those tied to the prices of fuels on international markets (Dated Brent over 40%), determined a rise in the price of energy on the Italian electricity exchange (PUN) which, after essentially remaining stable in the previous two years, rose to 72.2 €/MWh (up 12.6%) in 2011. Lastly, 2011 saw growth in the electricity forward market, where contracts traded (more than 8,000) quintupled over 2010 (up 403.8%).

Liquidity on the DAM

As regards the Italian electricity exchange, the average purchase price for electricity (PUN) stood at 72.23 €/MWh, an increase of 8.11 €/MWh over 2010 (up 12.6%)

National standard price

The increases recorded in fuels only had a partial effect on the prices of the main European electricity exchanges, which showed a mild recovery compared to the low levels registered in the previous two years. In central-northern Europe and in Spain, prices touched 49/56 €/MWh (up 8/15%), showed slight increases in France (up 2.9%), and highs were recorded on the Iberian price list (up 34.9%).

In line with the variations prevalent in the rest of Europe, in Italy the price rose to 72.23 €/MWh (up 12.6%), marking growth partially lessened by the considerable level of over-capacity still affecting Italy. This recovery was concentrated in the latter part of the year, in line with the acceleration in prices of national gas, the reference fuel in the Italy-generated mix. Indeed, the different structure of the plants and different trend in the cost of reference fuels aids the new, minor widening in the differential between the Italian price and Transalpine prices, which returned to a little over 20 €/MWh in 2011. As regards 2012, data on forward exchange prices at European level showed slight or moderate growth in prices, signalling a markedly winter trend in French and German profiles.

Price on the European Power Exchanges