Stop to gradual protections for energy from 31 March 2027, government considers extension
Quick Look
- The Ministry of the Environment and Energy Security is evaluating the extension until 31 December 2027 of the current conditions of the Gradual Protection Service, expiring on 31 March 2027, for micro-enterprises, SMEs and domestic customers, in light of the international instability of energy prices.
- Among the hypotheses, the continuity of the application of the current commercial conditions or the supplier's best offer from 1 April to 31 December 2027 in the absence of choice on the free market, to encourage informed choice and greater active participation of consumers.
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Why It Matters
The Gradual Protection Service is an electricity and gas supply regime intended for domestic customers and small businesses who have not chosen an offer on the free market, with tariff conditions established by the regulatory authority. Its current expiration is set at March 31, 2027.
The Ministry of the Environment and Energy Security is evaluating the introduction of measures "aimed at extending until 31 December 2027 the conditions currently provided for by the Gradual Protection Service, whose expiry is set at 31 March 2027, for the benefit of micro-enterprises, SMEs and domestic customers". Mase himself made this known, explaining that the evaluation takes place "in light of the current international context, characterized by persistent instability in energy prices".
Among the hypotheses under study, explains the ministry, is the possibility that, from 1 April to 31 December 2027, in the absence of a choice of an offer on the free market, the supplier of the Gradual Protection Service will continue to apply the current commercial supply conditions to non-vulnerable domestic customers or, if more advantageous, the conditions of the best offer made by the same supplier to the same customers.
The objective is "to guarantee non-vulnerable domestic customers a wider time margin to evaluate the offers available on the free market and consciously choose their supplier, while at the same time encouraging greater information and more active participation of consumers in the energy market".
Open Questions
- What will be the exact economic conditions of the extension being considered?
- How will the supplier's 'best offer' be defined?
- What will the impacts be on energy suppliers and competition in the free market?
