Ordinance n. 278/2020 established new guidelines to the 2020 “A-1 Existing Energy Auction” which, complemented by previous years’ guidelines, seeks to promote more realistic price indicators and market recomposition

Ordinance n. 278/2020 stated that the LEE A-1/2020 auction, to be realized in December, will be subject to the Energy Commercialization in Regulated Environment Contract (CCEAR) under a modality by quantity, to any type of source. It also determined a two-year supply term and that costs arising from hydrological risks are to be fully assumed by the sellers. The same framework of the 2019 A-1 Existing Energy Auction, including deindexation applied since 2017, will be maintained.