Electricity and gas prices are on the move - let's see what changes came into effect on 1st January 2020 according to the tariff update established by Arera, the Italian Regulatory Authority for Energy, Networks and Environment.
Good news: as of 1st January 2020, electricity bills throughout Italy will be cheaper, a lower cost burden that will last for at least the next three months. To be precise, the cost of electricity bills will fall by 5.4%. As far as gas bills are concerned, from 1st January 2020 there will be an increase of 0.8%, albeit a small one but keeping all of this in mind, the total savings for the typical family will be 125 euros per year.
Announcing the data for the first quarter of 2020, Arera said: "The sharp drop in the need for general charges, the containment of regulated network tariffs and low prices of raw materials in wholesale markets lead to a reduction of 5.4% for electricity and a slight adjustment for gas, an increase of 0.8% for typical families. Calculating that from April 2019 to March 2020, it is estimated that "the total savings for a typical family for electricity and gas is about 125 euros".
In the statement issued by Arera it reads: "In the first quarter of 2020 electricity bills are decreasing sharply and are substantially more stable for those of gas. The sharp drop in the need for general charges, the containment of regulated network tariffs (transport and distribution) and the low prices of raw materials in wholesale markets lead to a reduction of 5.4% for electricity and a slight adjustment for gas, an increase of 0.8% for the average family. Looking at the measurement of the effects on households (before taxes), for electricity the expenditure for the average household in the sliding year (between 1st April 2019 and 31st March 2020) will be 544.20 euros, with a variation of -2.9% compared to the 12 equivalent months of the previous year (1st April 2018 – 31st March 2019), corresponding to a saving of about 16 euros per year. During the same period, the standard household gas bill will be about 1,040 euros, for a change of -9.5% compared with the 12-month equivalent of the previous year, corresponding to savings of about 109 euros per year. Therefore, compared to the previous year, the total savings for a typical household for electricity and gas is about 125 euros per year".
In the statement, Arera then stressed: "For families in need, the importance of the facilitation of social benefits and discounts should be highlighted and will be made automatic in bills from 2021 for all those entitled. This change was approved in the recent fiscal ruling (Decreto Fiscale) after Arera repeatedly requested such changes from the Government and Parliament. This will now ensure access to aid on energy spending, without bureaucratic burdens, for 2.6 million families".