Italy’s energy regulator the Authority for Electricity and Gas has called for the country’s dominant generators to sell capacity to virtual operators.

In a recent consultation document, the regulators suggested that forcing Enel and Endesa to divest capacity to virtual operators would be preferable to losing some of their generation assets. Virtual operators, it is hoped, would increase the level of competition in the Italian power market. Similar measures have been proposed in France and Spain although while any change in the current regulatory framework could be launched next year it would require a two-year transition period.

Currently Enel and Edison collectively command around 56% of the power market in Italy