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WFW obtains ARERA sanction annulment for Gelsia30 June 2021

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Watson Farley & Williams (“WFW”) represented Gelsia Srl (“Gelsia”), wholly-owned subsidiary of electricity and natural gas supplier AEB SpA, before the Regional Administrative Court of Milan (“TAR”) on its request for the annulment of a sanction from the Italian Regulatory Authority for Energy, Networks and Environment (“ARERA”) regarding electricity imbalances.

With sentence no. 1528/2021, the TAR upheld Gelsia’s appeal and, in line with recent rulings by the Council of State (Italy), censured ARERA for falling to conduct a preliminary investigation. In fact, ARERA even failed to consider the impact of the indirect effects imbalances might have on the dispatching market, an assessment that should be an integral part of the procedural verification process.

The WFW Italy Regulatory team advising Gelsia comprised Partner Francesco Piron and Counsel Giannalberto Mazzei.

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