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It is considering a new fuel poverty monitor for Italy as energy prices soar

It is considering a new fuel poverty monitor for Italy as energy prices soar

Italy is looking to monitor fuel poverty as part of its wider efforts to reform the energy industry and temper price increases for consumers, according to a government decree.

Within 90 days of the decree's adoption, an international observatory for fuel poverty would be established at the Energy Transition ministry. The plan, which was presented to parliament for a non-binding opinion, would require establishing if he or she failed to provide reassurances.

The decree, which still needs a final approval from the government, aims to transpose into national law EU legislation aimed at placing the consumer at the center of energy markets.

The rise in retail power prices has sparked tensions between European Union countries over the energy transition, with some saying new green policies may increase consumer bills.

In September, Rome put aside more than 3 billion euros ($3.5 billion) to combat a sharp rise in retail energy bills caused by rising gas prices.

It is currently working on a number of longer-term measures to reduce so-called system costs in bills, possibly by placing them in the general tax system. read more

Costs for the system, such as nuclear decommissioning costs and renewable energy incentives, account for approximately 20% of Italy's consumer bills.

According to the decree, when the liberalisation of Italy's energy markets is complete in 2023, suppliers will have to sell to customers who are considered vulnerable power at a price that accounts for wholesale market prices, among other things.

ARERA, the energy regulator, said that until the end of 2025, monthly reference prices on wholesale prices will be published to inform end users.

ARERA currently sets power prices for consumers who are still on the non-liberalised retail market - about a third of the total.

The measures are in place as pressure on European governments to reduce energy bills to assist families and small businesses as they recover from the epidemic as economies emerge.

Last week Brussels said it will explore measures to mitigate price increases, including the idea of a joint gas purchasing among countries.

($1 = 0.8624 euros)

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