Italy's Energy Decree 2022: cuts in electricity, gas and fuel prices

The Italian government has approved the "Decreto Energia 2022" and this Energy Decree in Italy will mean cuts in electricity, gas and fuel prices (not just petrol). Let's find out, in detail, all the measures that are on the cards in Italy as a part of the new energy bill to support businesses and families in the midst of the energy crisis and the conflict in Ukraine.

Fuel price reductions in Italy 

The energy decree introduces a reduction in excise duties on petrol and diesel used as motor fuel. The effect of the measure is to reduce the price of petrol and diesel by 25 cents per litre for a period of 30 days from the date of entry into force of the measure.

The energy decree also introduces the Italian petrol bonus. For 2022, the amount of the value of petrol vouchers given free of charge by private companies to employees, up to a limit of 200 euros per employee, does not contribute to the formation of income.

Tax credits

Italy's energy decree also introduces new tax credits for "companies equipped with electricity meters with an available power of 16.5 kW or more, other than companies with high electricity consumption. The credit is equal to 12% of the expenditure incurred for the purchase of the energy component actually used in the second quarter of 2022 and is recognised if the price of the same, calculated on the basis of the average referred to the first quarter of 2022, has undergone an increase in the cost per kWh greater than 30% of the corresponding average price referred to the same quarter of 2019".

The tax credit is also available "to companies other than those with a high consumption of natural gas. The credit is equal to 20% of the expenditure incurred for the purchase of gas, consumed in the second calendar quarter of 2022, for energy uses other than thermoelectric uses, if the reference price of natural gas, calculated as the average, referring to the first quarter of 2022, of the reference prices published by the Manager of Energy Markets (GME), has increased by more than 30% of the corresponding average price referring to the same quarter of 2019".

This tax credit, introduced by the Italian energy decree, is transferable to other entities, including credit institutions and other financial intermediaries, without the right of subsequent assignment, without prejudice to the possibility of two further assignments only if made in favour of banks and financial intermediaries, companies belonging to a banking group or insurance companies authorised to operate in Italy.

Transferability is also extended to the tax credit already granted to energy-intensive companies and companies with a high consumption of natural gas pursuant to Decree-Laws No 4/2022 and No 17/2022.  On the other hand, the following tax credits already recognised by Decree-Law No 17/2020 are increased:

• tax credits in favour of energy-intensive companies (from 20% to 25%);
• tax credits for companies with high natural gas consumption (from 15% to 20%).

With regard to Italy's utility bill bonus, this new energy decree establishes that, for the period from 1st April to 31st December 2022, the ISEE value for access to the social electricity and gas bonuses is 12,000 euros.

Support for businesses

Payment in instalments of energy bills 

Companies based in Italy that are end-users of electricity and natural gas may request from their suppliers to pay in instalments the amounts due for energy consumption for the months of May 2022 and June 2022.

Wage subsidies

In order to cope with situations of particular economic difficulty, employers who can no longer make use of ordinary wage subsidies are granted, within the spending limit of 150 million euros for the year 2022, an ordinary wage subsidy for a number of weeks that can be used until 31st December 2022. The provision also applies to companies in the tourism sector. 

Tax credit for the purchase of fuel for agriculture and fishing

Companies engaged in agricultural and fishing activities are granted a tax credit equal to 20% of the expenditure incurred for the purchase of fuel used in the first calendar quarter of the year 2022. 

Renegotiation of agricultural loans

In order to support the continuity of production of agricultural, fishing and aquaculture enterprises, outstanding exposures granted by banks and other entities authorised to exercise credit may be renegotiated and restructured for a repayment period of up to 25 years. Renegotiation and restructuring operations may be assisted by a free guarantee provided by the Istituto di servizi per il mercato agricolo alimentare (ISMEA).