The government’s move to alleviate rising bill prices

The Council of Ministers has approved the decree that gives new support to sectors in crisis due to Covid and to businesses to alleviate the rise in bills. With the provision, the government intervenes again with a further 1.7 billion, for a total of 5.5 billion in the period January / March 2022.

This intervention is more aimed at supporting the business world. The executive had already intervened in the first quarter of 2022 by allocating 3.8 billion in order to mitigate the rise in the cost of energy, especially for families. Italy has so far allocated 10.2 billion euros to mitigate the increases in gas and electricity (1.2 billion in July, 3.5 in October and 3.8 in the budget law, 1.7 billion today) .

Zeroing of system charges

The provision provides that the Regulatory Authority for Energy, Networks and the Environment – Arera, in order to further reduce the effects of price increases in the electricity sector, will cancel, for the first quarter of 2022 with effect from 1 January 2022, rates relating to general system charges applied to users with available power equal to or greater than 16.5 Kw, also connected in medium and high / very high voltage or for public lighting or charging electric vehicles in places accessible to the public.

Tax contribution for energy eaters

The standard is aimed at guaranteeing energy-intensive companies a partial compensation of the extra costs due to the exceptional increase in energy costs. Those that have undergone an increase in the cost per kWh of more than 30% in the same period of the year 2019, deriving from the particular contingency due to the increase in the costs of the energy in question, an extraordinary contribution is recognized, in the form of a tax credit. , in partial compensation of the higher costs incurred. The benefit is quantified at 15% of the expenses incurred for the energy component purchased and actually used in the first quarter of 2022.

Renewable extra-profits

The rule binds operators who are producing energy without bearing the effects of the exceptional increase in the price of energy to pay a difference calculated taking into account fair prices before the crisis. Given the emergency logic to which it is inspired, the intervention has a limited duration. Starting from February 1, 2022 and until December 31, 2022, on the electricity produced by photovoltaic systems with a power exceeding 20 kW which benefit from fixed tariffs deriving from the Energy Account mechanism, not dependent on market prices, as well as on the electricity produced by plants powered by hydroelectric, geothermal and wind sources that do not access tariff incentives for difference, a two-way compensation mechanism is applied on the price of energy entrusted to GSE, the Energy Services Manager.

The other sectors

The decree also intervenes in support of sectors that have been closed as a result of the pandemic or have been severely damaged by it, including theme parks, restaurants, catering, bar-cafes and tourist accommodation. The government does not provide a full quantification of aid. The draft also includes an allocation of 50 million in 2022 and 100 in 2023 for compensation for any damage related to vaccines against Covid. Another 50 million go to support pig farms, which are in difficulty due to the spread of swine fever.

By Editor

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