Energy, tariffs and the Authority's own goal

 It is quick to invoke the return of foreign investments in Italy. But without reliability in the behavior of the institutions and without transparency and stability of the rules there is no invocation that holds. Prime Minister Renzi is absolutely right when he says that the cross that afflicts Italy abroad is precisely our reputation. For reasons that we know well, the markets and other states see us as an unreliable country that says one thing and does another. And it must be recognized that unfortunately there is some truth in the merciless image that we have built upon ourselves over time and that Italian self-harm never stops fueling.

The latest example is from two days ago: with the cryptic announcement and the confused and partial reverse made by the Energy Authority
on cutting tariffs for natural gas storage. That move virtually burned more than 4 billion euros on the Stock Exchange in a few hours, which the modest recoveries of yesterday and today by Snam, Terna, Enel and the major utilities expected by the regulatory review since the beginning of 2016 have only partially compensated and on which perhaps even Consob should have struck a blow.

But what is striking is that a vulnerability has remained on the field that goes beyond economic values. Let's be clear: that, in times of spending, there is a downward revision of tariffs that somehow benefits businesses and households is not only a thing but it is also desirable. It is so desirable that the market values ​​of the stocks of network and utility companies already incorporated this perspective.

But the crucial point is another and it is the signal that, knowingly or not, the Authority gave, which is also considered one of the best regulatory bodies in the country, suggesting that it did not want to proceed only with the reduction of the tariff remuneration of the activities regulated networks and utilities but that there was a desire to change the rules of the game with the adoption of new controversial parameters (such as flat inflation of 1,5% as the basis for the cost of capital invested and recognized in bills) and that the was done in a way that is as confused as it is not transparent.

This is what sent Snam and Terna down on the Stock Exchange on Monday and this is what is alarming investors. Confirming that there is nothing more fearful for the markets than the instability and lack of transparency of the rules of the game. If we don't decide to become reliable again, it's useless to cry if foreign investments don't return. It is natural that this is the case.