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Electricity and gas: the end of the protected market is approaching (unless extended). What to know and what to do for the transition to the free market

Barring possible extensions, the end for the protected gas market is set for 31 December 2023, for electricity April 2024. 9,5 million families will be affected by the change. What happens and how does the transition to the free market take place? Who are the protected vulnerable customers? Here are all the available options

Electricity and gas: the end of the protected market is approaching (unless extended). What to know and what to do for the transition to the free market

The deadline is approaching protected bill market for private customers. Law 124/2017 and subsequent amendments and additions establishes, in fact, the end of protection services and the gradual transition to the free market, which will thus become the main mode of supply. T's serviceutela Gas will definitively end 31 December 2023 while in the case of light, this transition will take place from April 2024. As regards micro electricity businesses, the enhanced protection service ended in April 2023 while for small businesses it had already ended in 2021.

The transition will have a significant impact on the energy consumption habits of Italians, as they will have to choose between different supply options and tariffs offered by energy suppliers. Affected by the change are approx 9,5 million families.

Possible postponement of deadlines expected. The transition to the free market is not under discussion but there are still some uncertainties about the timing with the government considering an extension (of six months) in order to evaluate the transition mechanism outside the protected market for domestic customers, especially for vulnerable ones, considering the instability of energy prices in this historical period.

Ma what needs to be done and what will the transition from the protected market to the free one entail? First of all it is important to point out one thing: the passage from the protected market to the free one will not lead to any interruption of supply to the consumer. Furthermore, the transition is free and can be done at any time.

The differences between the free market and the protected market

Let's start from the practical differences between the free market and the protected market. In the protected market, the price is unique for all companies and is established by the State (Arera), maintaining a fixed rate without options for extra services.

In free market, however, there are no limits on price and companies compete with each other to offer the best rates, with the Antitrust supervising the competition. This market does not guarantee a fixed cost, but offers bonuses and savings incentives. In both cases, management costs remain fixed.

The options for the transition to the free market

Users can choose a contract from the free market electricity and gas at any time. Customers must formalize the transition to the new market by January 10, 2024, otherwise they risk the end of their service with the supply at auction.

Those who don't make the switch won't have a disruption in supplies, but they will have the opportunity to join the Gradual Protection Service (Stg) for a maximum of four years. Customers considered vulnerable will temporarily remain in the current enhanced protection service, awaiting a specific provision from the Energy Authority.

There are therefore four options available to the customer:

  • Switch to the free market with the same operator: you can choose to keep your operator with a new offer planned for the free market
  • Change supplier: you have the possibility to change the energy supplier, opting for a contract with another provider
  • Don't make a choice: from January XNUMXst the user will be automatically assigned a Placet Offer dedicated to the end of the Protection.
  • Join the new vulnerability protection service: if you are considered a vulnerable Customer, you will be able to access the new Vulnerability Protection Service starting from 1 January 2024 (valid only for domestic Customers).

Who are the vulnerable customers

Starting from 1 January 2024, as regards the supply of gas, the "Vulnerability Protection Service" for those who satisfy at least one of the requirements established by the legislative decree of 9 August 2022, n. 115, converted with law 21 September 2022, n. 142 (Aid bis decree). For the supply of luca the service will be active from 1 April 2024 (Greater Protection Service). This service has contractual and economic conditions defined by the Regulatory Authority for Energy, Networks and the Environment (ARERA).

I requirements to access the Vulnerability Protection Service for gas they are:

  • are in economically disadvantaged conditions (for example bonus recipients)
  • are subjects with disabilities pursuant to article 3 of law 104/92
  • have a user in an emergency housing facility following calamitous events
  • are over 75 years of age

How long it's about light, They are considerate vulnerable customers domestic customers who, alternatively:

  • are in economically disadvantaged conditions (for example bonus recipients)
  • are in serious health conditions that require the use of medical therapeutic equipment powered by electricity (or where there are people in such conditions)
  • are subjects with disabilities pursuant to article 3 of law 104/92
  • have a user in an emergency housing facility following calamitous events
  • they have a user on a smaller, non-interconnected island
  • are over 75 years of age

The customer served with greater protection, which meets the vulnerability criteria ma has not been identified as such, must inform your supplier. On the Arera website you can find a form forSelf-certification.

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