Abstract

In this article we examine some crucial aspects of the Government Decree on the liberalization of the Gas industry in Italy. In particular, we criticize the decision not to vertically separate the transmission activity, run by SNAM, from the other segments where competition will be introduced. Moreover we discuss the problems in developing actual competition due to the existence of a wide portfolio of take-or-pay contracts, and the distortions that might arise following the introduction of antitrust ceilings to market shares. Finally, we point out how the division of roles among the Energy Authority, the Antitrust Authority and the Ministry for Industry might generate some ambiguities and confusion.