DAY-AHEAD MARKET - (DAM)

The Day-Ahead Market (DAM) hosts most of the electricity sale and purchase transactions.
 - In the DAM, hourly energy blocks are traded for the next day.
 - Participants submit offers/bids where they specify the quantity and the minimum/maximum price at which they are willing to sell/purchase.
 - The DAM sitting opens at 9 a.m. of the ninth day before the day of delivery and closes at 9 a.m. of the day before the day of delivery. The results of the DAM are made known by 11:30 a.m. of the day before the day of delivery.
 - Offers/bids are accepted under the economic merit order criterion and taking into account transmission capacity limits between zones. Therefore, the DAM is an auction market and not a continuous trading market.
 - All the supply offers and the demand bids, pertaining both to pumping units and consuming units belonging to neighbouring countries’ virtual zones, that are accepted in the DAM are valued at the marginal clearing price of the zone they belong to. This price is determined, for each hour, by the intersection of the demand and supply curves and it is differentiated from zone to zone when transmission capacity limits are saturated.
 - The accepted demand bids pertaining to consuming units belonging to Italian geographical zones are valued at the “Prezzo Unico Nazionale” (PUN – national single price); this price is equal to the average of the prices of geographical zones, weighted for the quantities purchased in these zones.
 - Gestore dei Mercati Energetici S.p.A. (GME) acts as a central counterparty.
© 2009 ASSONEBB