Towards the EU-Italy agreement on ETS neutralization on electricity prices

The agreement being defined in Brussels between the European Commission and the Italian government on the bill decree provides for the neutralization of the reversal of the higher cost of gas on the final price of electricity. ANSA learned this from sources at the Ministry of the Environment and Energy Security.

In the bill decree, the Italian government provides that the European tax on emissions (ETS) for producers of electricity with gas will be moved to consumers' bills. In this way the wholesale price of electricity (which in Italy depends above all on that of gas) would be reduced, and this reduction would be greater than the increase in the tariff on the bill, with an actual saving for consumers.

This move must be approved by the EU, because the ETS is its responsibility. According to Mase sources, the agreement reached with the Commission provides that the higher cost of gas due to ETS taxation will not lead to an increase in the wholesale price of electricity.

“We are close to a solution compatible with EU rules, which would allow the proposed measure to be implemented, which would effectively reduce the impact of the costs of electricity production from gas on the overall price of electricity. Following intense and constructive discussions between the Commission and the Italian authorities, an agreement in principle is emerging on the key elements necessary to implement this measure in line with EU rules. All this, of course, is subject to the final technical discussions.”

A spokesperson for the Commission explains this by confirming Giorgia Meloni's words this morning.

The Prime Minister had said: "The issue that today weighs most heavily on our economy" and on the competitiveness of businesses is the cost of energy" and "no one can respond effectively alone" which is why "a coordinated and rapid response" is needed. The rules "cannot aggravate the crisis".