Italy cuts electricity and gas prices by 10% in the second quarter of 2022
1 Apr 2022
The Italian energy regulator ARERA has announced a 10% decrease in electricity and gas prices for households (-10.2% for electricity and 10% for gas) in the second quarter of 2022. This will be the first drop in 18 months for electricity prices and in 21 months for gas prices, thanks to lower commodity prices and to earlier measures to curb the surge in energy bills, especially gas. Indeed, the ARERA has modified a tariff component allowing compensation of gas marketing costs, which will benefit to all customers with a consumption of up to 5,000 m3/year. The general system charges will remain suspended in the second quarter of 2022, while the reduced VAT rate on gas (5%) will be maintained, benefitting to almost 30 million households and over 6 million businesses. In addition, the social bonus will be strengthened (ceiling to access the social bonus raised to benefit to a greater number of households). Despite the announced decline in the second quarter of 2022, the average electricity bill for a typical household will be 83% higher in the 1 July 2021-30 June 2022 year, compared with the same period of 2020-2021, at €948; the average residential gas bill will be 71% higher, at €1,652.