The electricity market, namely the place where transactions involving electricity are conducted, was set up in Italy as a result of Legislative Decree no. 79 dated March 16, 1999 ("Bersani Decree") as part of the implementation of the EU directive on the creation of an internal energy market (Directive 96/92/EC repealed by Directive 2003/54/EC).
The electricity market is divided into:
- Day-Ahead Market - MGP
- Intra-Day Market - MI
- Dispatching Services Market - MSD
In the MGP and MI - also referred to as Energy Markets - producers, wholesalers and end customers, as well as Acquirente Unico (AU) and Gestore dei Servizi Energetici (GSE) buy and sell wholesale quantities of electricity for the next day.
These markets, which are managed by Gestore dei Mercati Energetici (GME), define system marginal prices at which the energy is traded.
In the MSD, Terna procures the resources it needs to manage and control the system (solving intra-national congestions, creating energy reserves, real-time balancing).