This paper investigates the determinants of the Italian electricity price (PUN) in order to determine the major challenges this market is currently facing. The results suggest that the policy maker should be aware that the importance of market expectations is increasing (captured in the model by...

In the past two decades privatisation and liberalisation of network industries providing services of general economic interest (SGEI), have been particularly significant in the European Union. Wide variations around a common policy trend can, however, be observed across countries and sectors. We...