Italy Approves New Measures to Cut Energy Costs

The Italian government has formalized measures to curb the impact of gas prices on electricity bills for households and businesses. The initiative takes effect in January and aims to ease the cost of living in the country. Energy Minister Gilberto Pichetto Fratin confirmed that the action will reduce the average price by approximately 15 euros per megawatt-hour.

The strategy involves reimbursing a portion of the natural gas costs used in thermoelectric power production. The model was negotiated in advance with the European Commission. The measure is expected to be funded through an increase in system charges levied on consumers and contributions from energy producers.

The local energy sector has expressed resistance to these changes. The association Elettricità Futura labeled the decision as energy populism. Furthermore, the government plans to raise the corporate IRAP tax by three percentage points for companies in the sector. The forecast is to collect 734 million euros in 2027 and 2.5 billion euros over the following three years.

Italy's dependence on natural gas is the highest among European Union countries, accounting for nearly half of national electricity generation. The Dutch benchmark contract fell to 82 euros per megawatt-hour after reaching peaks above 104 euros last month. Environmental critics point out that this policy keeps the country tied to fossil fuels.