It is possible to cut the electricity bill: just eliminate the subsidies and re-launch liberalisation. This was stated by Carlo Stagnaro, director of research and studies at the Bruno Leoni Institute, in the study "It is possible to cut the electricity bill".
According to Stagnaro, "the main causes of the high bill can all be traced back to public decisions: liberalization left unfinished, heavy "industrial policy" maneuvers (think of the subsidies for renewable sources), frequent confusion between the responsibilities of the government and those of the Energy Authority. Consequently, solutions must be sought through a) the reduction of public intervention in the sector (including the simplification and rationalization of tariff items); b) the protection of the autonomy of the regulator with respect to the claims of the government and Parliament (including the removal of the regulatory obstacles to the regulatory choices regarding tariffs); c) the completion of liberalization (including the switch off for domestic consumers and small businesses)”.
The document provides an estimate of the savings that can be obtained in the short and long term with a variety of interventions. Overall, writes Stagnaro, it is possible to reduce the bill by 4-6 billion euros a year through tariff interventions, to which should be added more far-reaching reforms such as overcoming the current "enhanced protection" regime for customers households and small businesses and Title V reform to accelerate investment in networks.
“If the price of electricity, for various categories of consumers, is such as to determine competitive disadvantages – concludes Stagnaro –, the reason can be found in a succession, not always organic, of regulatory interventions. Rationalizing the tariff structure and finally giving full freedom to consumers meets transparency criteria. But, inevitably, the reduction of expenditure items (and subsidies) is the only possible way to pursue a significant and medium-term reduction of the electricity bill”.
Attachments: IBL-PolicyPaper-07-Bolletta_Elettrica.pdf
