Liquidity Corridor: What does it mean for Italy?
The Italian Government has recently launched a consultation on the new NES introducing in the gas sector a new innovative concept related to the Liquidity Corridor. The main goal of such proposal is the reduction of the PSV premium compared to the Northern hubs.
The proposal to introduce an unique operator able to offer some short-term capacity products on the route from TTF/NCG/PEG Nord to PSV from theoretical perspective is an remarkable proposal since that could be seen as a precursor or a pilot project able to overcome the actual market design based on a rigid and national capacity market, still oriented to an efficient definition of the entry-exit costs of the European system.
Although the innovation of the scheme, many points are still unmarked and not fully persuasive. The acquisition of capacity on the route, if not properly set up couldn’t guarantee a strong reduction of the PSV-TTF spread with the risk to add just a new burden on the Italian end-customers.