The Italian government wants to reduce the spread between the PSV and the TTF

The Italian government intends to issue a decree aimed at reducing the gap between the price of gas in Italy and the price of gas in the rest of Europe. The PSV index (Italy) is structurally higher than the TTF index (Netherlands), with an average difference of EUR 1.85/MWh over the last six months. The decree provides for the creation of a negative toll for gas entering Italy and/or the payment of market makers to offer TTF-indexed prices in Italy. The industry is concerned about what it sees as a mechanism that would distort the operation of the European gas market, and doubts that the project will be validated by the European Commission. They also point out that it is the cost of transit for gas imported into Italy from France and Germany that explains most of the price difference between the PSV index and the TTF.