Italy Introduces Measures to Reduce Electricity Bills Amid Energy Industry Opposition

Italy has approved a new package of measures aimed at reducing the impact of rising gas prices on electricity bills for households and businesses. Prime Minister Giorgia Meloni announced the decision, saying the government was taking concrete steps to address the country’s growing energy costs ahead of next year’s general elections. The move comes amid increasing public protests over the rising cost of living.

Under the new scheme, the government will compensate gas-fired power plants for the difference between market gas prices at the Dutch TTF exchange and a fixed cap of €58.9 per megawatt-hour. Energy Minister Gilberto Pichetto Fratin said the measures could reduce electricity costs by an average of approximately €15 per megawatt-hour. The package will run for 18 months from January and will gradually be phased out. However, energy producers have criticised the plan because they will have to bear part of its financial burden, limiting their ability to transfer costs to consumers.

The measures have also drawn criticism from climate policy experts, who argue that they offer only limited relief to households while keeping Italy dependent on fossil fuels. Natural gas currently accounts for nearly half of the country’s electricity generation, making Italy particularly vulnerable to fluctuations in global energy prices. The government has also proposed stricter rules against energy companies that deliberately withhold electricity generation capacity to push up prices, alongside measures to ensure that cheaper renewable energy benefits consumers.

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