The government gives the green light to the new Bill Decree: the mechanism agreed with Brussels aims to contain the cost of electricity. There is a price cap on gas used for energy production. Electricity companies will receive a partial reimbursement of the increased costs. Criticism from oppositions and consumer associations: "Minimal savings"
At the third attempt, the Council of Ministers managed to approve the new text of the Bill Decree, with the mechanism for lowering electricity tariffs laboriously agreed with the European Union. "Starting from January, the measures of the decree will allow an average reduction of around 15 euros per megawatt hour", declared the Minister of Energy Security, Gilberto Pichetto Fratin, at the end of the meeting. Prime Minister Giorgia Meloni explained that the decree law intervenes on the "mechanism that increases the price of electricity due to the cost of gas", with "three precise choices": "a cap on gas used to produce electricity" at 58.9 euros per megawatt hour; "bring the benefits of energy produced at lower costs to the bills", preventing producers from withholding production capacity to raise prices; "protect savings intended for consumers", preventing electricity companies from passing on higher costs to customers' bills. "We asked that the lower costs of renewables really translate into a benefit for families and businesses - said the Prime Minister -. We know that correcting this mechanism can displease those who have obtained very high incomes from it. But our task is to defend the interests of citizens". And he added that "we expect important benefits" from the Decree, but "its effects will take time".
Negotiations with electricity companies
After two referrals to the Council of Ministers and days of negotiations and technical insights, at the top levels of the government it was decided to proceed with the launch of the decree law. The electricity companies had strongly opposed the announced measure, which includes a contribution for them too. But, this is the sense of the reasoning that filters through, the electricians must realize that other subjects are making a "heavier" contribution, and that they have been treated "with kid gloves" compared to, for example, the banks.
How the gas price cap works
From January, the law decree introduces a price cap of 58.9 euros per megawatt hour on the price of gas for electricity production (the price today is 82.2 euros), for a maximum of 18 months. This reduction also reduces the wholesale price of electricity, the so-called Pun, which in Italy is closely linked to that of gas (today it is 313 euros per megawatt hour, a year ago it was 107). The reduction of the PUN also reduces the final tariff on the bills of businesses and families.
Companies that produce electricity, which will have to buy gas at market prices, but then have to sell electricity at a reduced price, will only see part of the difference between the price cap and the market price of gas returned, through an additional charge on consumers' bills. In the end they will save money anyway, because the reimbursement to producers will be less than the drop in the electricity tariff. Furthermore, only users with variable tariffs will have to pay the charge, while for those with fixed tariffs nothing will change.
How much families and businesses will save
Confcommercio, which applauds the measure, claims that it will be able to reduce businesses' electricity bills by up to 10%. But climate think tank Ecco is less optimistic, calculating that the savings for an average user will ultimately be just 1.4 euros a month, 17 euros a year.
Political and consumer reactions
For the president of Noi Moderati, Maurizio Lupi, the decree "is another concrete support against high energy prices", but now "it is essential to speed up the process for the nuclear-renewable mix and work on a national energy plan that focuses on autonomy".
But Angelo Bonelli of Avs claims that "for families the benefit translates into just 1.4 euros per month" and adds: "Once again we are intervening with temporary measures, without addressing the structural problem of high energy costs: dependence on gas".
The National Consumers Union, through its president Marco Vignola, speaks of "an insufficient and late intervention", which "takes place 9 months after electricity and gas prices began to take off, and the positive effects, still of uncertain quantification, will not be seen immediately".
