WIT Press


A Productivity Analysis Of The Italian Gas Retail Market

Price

Free (open access)

Paper DOI

10.2495/EEIA080051

Volume

108

Pages

10

Page Range

43 - 52

Published

2008

Size

458 kb

Author(s)

G. Capece, L. Cricelli2, F. Di Pillo & N. Levialdi

Abstract

Owing to the process of liberalization, the European energy markets have undergone a radical transformation over the last decade. In this paper we analyse the Italian natural gas market, focusing in particular on retail with the objective of assessing the performance of the natural gas retail operators whilst also taking into account the strategies adopted after the liberalization process. To that aim, company performance is analysed using the Edgeworth index which enables an assessment of levels of both profitability and productivity. Two types of comparisons are carried out based on the processed data. The first of which concerns the size of the company and second regards the degree of specialisation or diversification of the services offered. Keywords: gas market liberalization, Italian gas retail operator strategies, productivity analysis, Edgeworth index. 1 Introduction The liberalization process of the gas market in Europe began in the late 1990s with the first gas directive (Directive 98/30/EC) [1], which established common rules regarding the transmission, storage, supply and distribution of natural gas. This process ended in 2003 with the Gas Directive 2003/55/EC [2], which is the European gas legislation in force at present. The European Gas directive requires obligatory unbundling of transport and trading: i.e. all gas operators belonging to the member states must separate their gas transportation and trading functions into separate companies.

Keywords

gas market liberalization, Italian gas retail operator strategies, productivity analysis, Edgeworth index.