What is the PSV index for gas and what is it for

Find out what the Virtual Gas Trading Point is and how it affects the prices on the bill

The acronym PSV stands for Virtual Exchange Point, the place where the exchange or sale of natural gas takes place, the meeting point between gas supply and demand in Italy. In this hub is determined the final wholesale price of the raw material and it is managed by Snam Rete Gas, the company that deals with the transport of gas pipelines in Italy. Once this parameter has been established, the suppliers set the price of natural gas to be applied to end users.

Like energy, the gas market is also regulated by exchanges that take place on the stock market, in fact in 2010 it was launched the national gas exchange managed by GME (Gestore dei Mercati Energetici) according to the decree law of 31 January 2007, no. 7. On this platform, gas is sold and purchased by operators who establish contracts that may be short-term or multi-year.

Trend of the PSV index

As with all quoted values ​​on the stock exchange, natural gas can also undergo positive or negative fluctuations due to various factors such as:

  • increase in the volumes of gas available on the market;
  • reduced demand due to greater use of alternative sources;
  • geopolitical crises and tensions;
  • weather conditions;
  • fluctuations in the prices of fuels such as coal and oil.

Natural gas prices are expressed in €/Smc, this choice makes it possible to compare the offers of the Italian hub with other foreign indices. Gas prices are indexed on the basis of the average value of other markets dedicated to the purchase or sale of the raw material in Europe.

Among the reference markets we undoubtedly find the Title Transfer Facility (TTF), the platform based in the Netherlands where the main natural gas exchanges in Europe take place. IIn fact, while the PSV establishes the price of the Italian market, the TTF establishes the reference price of gas in Europe.

PSV trend in the last 6 months

The table below shows the average values ​​of the PSV over the last 6 months:

Month Average Monthly Cost (€/Smc)
April 2024
March 2024 0,307
February 2024 0,297
January 2024 0,333
December 2023 0,388
November 2023 0,455

The Virtual Exchange Point for ARERA in 2022

Due to the current geopolitical conditions in which we find ourselves, ARERA has also decided to adopt a new measure regarding the gas tariff relating to the protected market which, until now, has always been indexed on the basis of the value of the Dutch platform TTF.

According to the press release issued on 29 July 2022, starting from 01 October 2022 the reference index of the cost of natural gas will be changed, in fact, to better protect consumers, reference will be made to the national PSV value and no longer to the European TTF value. The main goal is to restore a fair balance between supply and demand, without affecting consumers, the final price, in fact, will be updated monthly and no longer every three months as before.

ARERA will publish on its website the value of the gas component at the beginning of each month following the reference month, transparency and communication are essential to face this difficult period.


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