Regulator Approves Franco-Italian Power Market Coupling

France and Italy will become the latest countries in Europe to link up their day-ahead electricity markets in February, French regulator CRE said on Tuesday, in a move aimed at better pricing electricity across Europe and reducing supply risks.

 

It is estiamted that the Franco-Italian coupling will cut the two countries' overall supply costs by 30 million euros ($34 million) a year, CRE said in a statement.

 

The power coupling mechanism at the border of the two countries will take effect on Feb. 24, a spokeswoman said, which means transmission capacity is allocated by calculating power flows and prices at the same time, replacing the current auction system.

 

The connection is likely to benefit consumers by enabling power to flow from cheaper to more expensive areas most of the time.

 

The Franco-Italian link follows a similar connection across the Franco-Spanish border last May, while northwestern European power markets including Germany, Austria, Britain, Belgium and the Netherlands, were already integrated in February last year.

 

France is now coupled with all its European Union neighbours, the CRE said.