1. Market boosts energy transition
X Commissione Camera dei Deputati, July
Michele Governatori, President European Energy Retailers

2. Energy transition: main drivers
More distributed generation, local energy trade communities (“citizens energy communities”)
Energy retailers will increasingly offer services
(Electricity becomes more important than fuels and it is generated increasingly without variable costs)
Energy networks (including metering) will be key in providing a good energy service

3. Energy transition: main drivers
1 - More distributed generation, local energy trade communities (citizens energy communities)
Distribution network operators should provide timely info on network capacity in order to empower community energy trade

4. Energy transition: main drivers
2 - Energy retailers will increasingly offer services
(Electricity becomes more important than fuels and it is generated increasingly without variable costs)
Customers’ detailed consumption data must be available to retailers in order to develop services
On equal footing with respect to integrated retail/distribution companies

5. Energy transition: main drivers
3 - Energy networks (including metering) will be key in providing a good energy service
The distribution/metering infrastructure is the empowerment tool for all energy retailers. Network companies should not directly offer services (including efficiency, audits) to energy customers
(Unbundling needs to be re-thought in the new energy era)

6. Customers at the driving seat
All technological changes are triggered by customers’ wills/needs
Customers should be encouraged to chose
Regulated tariffs should be phased out (or at least made contestable)
(see Stefano Besseghini’s – president Italian Energy Authority - speech at the Camera dei Deputati on last July 4th)

7. Wholesale markets efficiency
Power generation will be more fixed costs-driven in the near future. An issue for short term markets?
Long term energy sourcing agreements should be market based (wholesale/retail PPAs)
Generation capacity remuneration mechanism (capacity markets) should not interfere with short term markets

8. Sustainability needs fair economic signals
Decarbonization and renewables can be achieved within the markets provided price signals are consistent
Carbon markets need to be efficient
An EU border carbon tax would be a better tool than subsidies to heavy emitters to cope with carbon leakage
Subsidies to fossils need to be phased out
See the freshly published subsidies report by MATTM sent to the Italian Parliament (over 19 billion Euros / year environmentally harmful subsidies in Italy)

9.
Michele Governatori, President European Energy Retailers
Rome, July