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Rising electricity bills and increasingly delinquent local authorities: first assessments of the free market

The free energy market causes discussion due to the tariffs applied. Energy consultants are looking for professional spaces in public bodies

Rising electricity bills and increasingly delinquent local authorities: first assessments of the free market

“Italians and bills. Overcoming scams and scams, helping citizens in search of normality." It is scheduled for Wednesday 3 April in the Chamber of Deputies press conference of Assium, the Association of Italian Utility Managers, on the topic of electricity bills. The meeting is organized three months after the liberalization of the electricity market. From many circumstances it has been understood that the free market is not experienced with serenity by Italians. There are complaints about tariff increases and repercussions on family budgets. On Wednesday in the Chamber, experts, politicians and journalists will try to analyze in substance the effects of a reform that took years to be approved. The government had the courage to implement it, but it's not all sunshine and roses.

Promotional campaigns

Energy companies do not lower their guard regarding their customer portfolio with campaigns and discounts. Promotions remain the best way to increase competition and compete for the number of families served. The discounts last 12 months and then? Federconsumatori complains that high-value bills have arrived throughout Italy and asks the government to change certain distortions. From 1 July for those who have not chosen a free market company there will be the paradox that vulnerable customers will pay more. The auctions for the assignment of customers to companies in the territories are highly contested.

The Public Administration is in arrears

Meanwhile, the alarm about the 10 billion of energy debts of local authorities. Unpaid invoices tripled due to arrears and credit recovery costs. Attention to the phenomenon was always drawn by Assium together with Consumerismo based on data from Arera. The Energy Regulatory Authority has estimated the growing deficit due to several factors within the PA.

Energy managers, however, play their own game. Their comment on the debt is very clear: “We believe that it is essential to invest in the training of public administration personnel. The introduction of specialized figures, such as utility managers within local authorities could provide specific skills to manage the issue of utilities more efficiently”. The index is aimed at municipalities, regions, local health authorities, universities. In each of these situations, qualified people should be hired to manage energy activities. It would be an effective solution, but most public bodies do not see these aspects as priorities.

“Street lights off, streets and squares in the dark, cold schools, hospitals without air conditioning, senior centers without heating, are not episodes from developing countries but happen daily in Italy” wrote Assium. Obviously he reiterated the lack of skills in local authorities. The appeal is exaggerated, bordering on provocation. As long as the companies don't cut the power (very difficult to do in the public) the streets are not in darkness and the schools in the cold.

Perhaps, after the comparison with developing countries, we can believe that we are in the initial stages of one bill to make room for energy managers in the PA. And maybe, even before paying the bills.

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