Wholesale Price formation: Italy and Austria

ARERA and E-Control are evaluating the possibility of merging the Italian and Austrian gas market areas to a single trading region. The basic idea behind market merging is that two markets can gain wholesale market volumes and better efficiency by combining their demand and supply volumes into a single wholesale market. This structural reform is suggested by ACER in the amended Gas Target Model (AGTM) to improve efficiency and the functioning of gas markets as it improves its liquidity. Source: Frontier Economics

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