The Day Ahead Market (MGP) hosts the majority of electricity trading transactions.
On the MGP hourly blocks of energy for the following day are exchanged.
Participants take part by making available offers in which they specify the quantity and the maximum/minimum price at which they are willing to purchase/sell.
Offers are accepted after the closing of the market session, on the basis of economic merit and in compliance with the transit limits between zones. The MGP is therefore an auction market and not a continuous trading market.
All sale and purchase offers referring both to pumping units and consuming units belonging to foreign virtual zones that are accepted in the MGP are valued at the marginal clearing price of the zone to which they belong. This price is determined, for each hour, by the intersection of the demand and supply curves and differs from zone to zone when saturated transit limits appear.
The accepted purchase offers referring to the consuming units belonging to the Italian geographical areas are valued at the “Prezzo Unico Nazionale” (PUN – national single price), equal to the average of the Zonal Prices weighted for total purchases in these areas.
GME acts as central counterparty.