The government could approve a new one next week law decree to curb the rise in electricity and gas bills. And, given the proportions that the increase in energy is assuming due to the war between Russia and Ukraine, the incoming measures should be far more incisive than those already implemented. The subject is on the table of the EU Council at the Versailles summit which opens today, Thursday 11 March.
Versailles and more: Europe's OK is needed for bills
However, the extent of the intervention will depend on how the next international summits go. First the Council of Heads of State and Government of the European Union, which will take place between today and tomorrow at Versailles. then theEurogroup andEcofin scheduled for next Monday and Tuesday in Brussels.
What is the "Temporary framework"
The European green light is needed for a technical reason. The changes to the rules on electricity and gas bills - which will be discussed preliminary to the Council of Ministers today - will only be possible with a tweak to the "Interim framework”, the document authorizing the EU states to support the economy in derogation from state aid rules.
New decree: possible ceiling on electricity and gas bills
Once this procedural obstacle has been overcome, the government will be able to adopt far more energetic measures than those to which we are accustomed: above all, the imposition of a ceiling on the price of electricity and gas, which is prohibited today. At that point, it will really be possible to speak of an intervention to control the cost of electricity and gas bills.
Electricity and gas bills: how much system charges weigh
So far, in fact, the most important measure has been the zeroing of system charges (expected until June), which however account for less than a quarter of the electricity bill and just 4-5% of the gas bill.
Energy saving measures
The incoming decree could then contain some measures to save energy, such as lowering the energy levels by one or two degrees maximum temperatures allowed for heating, or the modification of the rules on thestart-up time of the systems in different areas of Italy. We also talk about simplify the rules on the installation and use of systems for the self-production of energy from renewable sources.
Business aid
Another part of the measure will concern aid to companies in difficulty with supplies. Possible introduction of export duties and permits of particularly important raw materials such as nickel, copper, scrap iron or fertilizers.
Towards another increase in the deficit
On the public finance front, it is probable that the new decree against the increase in electricity and gas bills will require the government to increase the deficit forecast for 2022, with a new budget variance to be approved in Parliament. The resources still available, in fact, would not be enough to pay the share of the cost of energy that the government intends to save the Italians.
Draghi's words on electricity and gas bills
On Wednesday, during a question time in the Chamber, the Prime Minister Mario Draghi had made the point on the measures launched so far against the increase in electricity and gas bills: "We have provided for the zeroing of system charges for domestic electricity users and for businesses and the lowering of VAT to 5% for gas users . We have increased energy subsidies for the most disadvantaged households and have introduced a tax credit for energy-intensive industrial consumers equal to 20% of the increase in the cost of electricity supply in the first quarter of 2022”.
