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Discount on the bill for businesses: how much you save

To help businesses grappling with the crisis caused by the Coronavirus, the government has provided a discount on the electricity bill for small and medium-sized businesses - Here's who can use it and how much you save

Discount on the bill for businesses: how much you save

Discount on the bill for companies for the months of May, June and July. The Government established it in relaunch decree, in Article 30 to be precise. Small and medium-sized businesses will therefore be able to count on a reduction in the amount of electricity bills while they are grappling with the deep economic crisis induced by the coronavirus.

The measure was immediately implemented by Arera, the Regulatory Authority for energy, networks and the environment, which on 26 May passed a resolution that makes discount effective immediately. 

DISCOUNT ON THE BILL: WHAT THE RELAUNCH DL PROVIDES FOR

THEArticle 30 of the relaunch decree establishes that:

"For the months of May, June and July 2020, the Regulatory Authority for Energy, Networks and the Environment orders, with its own provisions, the reduction of the expenditure incurred by low voltage electricity users other than domestic uses, with reference to the items of the bill identified as "transport and management of the meter" and "general system charges", within the maximum limit of the resources referred to in paragraph 3, which constitute the expenditure ceiling". 

Article 30 of the Relaunch Decree, paragraph 1.

Translated into simple terms, for the months of May, June and July, small and medium-sized businesses will be entitled to a discount on their electricity bill. The reduction will be covered with a government allocation of 600 million euros and will concern all non-domestic users "connected at low voltage". Action will be taken on the "fixed components of transport, distribution and metering tariffs and general charges", explains Arera in a note.

DISCOUNT ON THE BILL: WHO IS ENTITLED AND HOW IT WORKS

As mentioned, non-domestic low-voltage customers will be entitled to the discount, i.e. shops, restaurants, bars, laboratories, but also professional craftsmen and services that use more than 3Kw of power in their activities. The Area explains that:

"for the quarter May-June-July, the portion relating to power is zeroed and only a fixed portion of a reduced amount is applied (conventionally set to that corresponding to the committed power of 3 kW), without in any way reducing the actual service in terms of available power”.

Source: Arera

Even if they use higher potency, the beneficiaries will pay as if they had a committed power of 3 kW. In doing so, the amount of the bill will suffer a significant reduction. 

DISCOUNT ON THE BILL: HOW MUCH YOU SAVE 

According to Arera's calculations, the discount provided for by the relaunch decree will lead to small and medium-sized enterprises un total savings of 3,7 million euro.

Taking a practical example, who has a contract with power equal to 15 kW, he will spend about 70 euros less per month, for three months. The reduction will be felt above all for commercial establishments still closed, which on balance will be able to count on a 70% discount on the electricity bill. For those who reopened after May 4th or after May 18th, the savings will be between 20 and 30% of the total cost of the bill. 

"If, on the date of entry into force of the Authority's measure, invoices relating to the current month of May had already been issued, the due adjustments must be made within the second subsequent invoicing", specifies the Arera again.

"Rapidity is an integral part of effectiveness, if it is a question of making measures available to companies to support the recovery of activity" - argues the president of ARERA, Stefano Besseghini – “Electricity is not, however, the only cost item with an impact on industrial activities. The regulation makes it possible to guarantee a similar and efficient allocation of resources also for any regulatory measures that the Government decides to dedicate to the water and waste sectors”.

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