Competition in retail electricity markets: why and how to promote it? | Carlo Stagnaro (IBL)

Nicolò Rossetto (FSR) and Dr Carlo Stagnaro (Istituto Bruno Leoni, IBL) reflect on the potential benefits of competition in retail electricity markets and briefly discuss the situation in Italy, where a standard regulated offer, called “Maggior Tutela” in Italian, is available to households and small companies. According to Dr Stagnaro, the offer’s design nurtures consumers’ inertia and market concentration, limiting the ability and willingness of energy suppliers to develop innovative solutions and products. A proposal to accelerate the transition to a genuinely competitive and dynamic retail market is presented at the end. Interested in learning more about the Italian situation and the policy proposal? Read the recently published FSR working paper on the topic: http://fsr.eui.eu/publications/managing-the-liberalization-of-italys-retail-electricity-market-a-policy-proposal/