Dear electricity and gas bills, ARERA freezes prices: the news

The extraordinary intervention of ARERA arrives to mitigate the expensive electricity and gas bills. Thus avoided the doubling of electricity prices expected from 1 October 2022 with an increase which, albeit very high, will remain of the 59%.

Among other things, the Regulatory Authority for Energy Networks and Environment will postpone the recovery of the difference between expected prices and real costs, in this way the electricity bill of a “typical” Italian family in 2022 will be approximately 1,322 euroscompared to 632 in 2021. As for the gasthen, the Authority will update the costs month by month and no longer quarterly as was the case until 1 July 2022.

In this guide we explain what theextraordinary intervention of ARERA against the expensive electricity and gas bills and what are the consequences.

ARERA AGAINST DEAR BILLS, WHAT THE INTERVENTION PROVIDES

With an extraordinary intervention, ARERA has decided to intervene with two different measures deemed necessary due to the exceptionally serious conditions of the situation relating to the expensive electricity and gas bills. Therefore, to further limit the increases in energy prices for households and businesses from 1 October 2022:

  • relative to the dear light, ARERA intervened by exceptionally postponing the necessary recovery of the difference between the prices estimated for the last quarter and the real costs that occurred, also characterized by extraordinarily high increases;

  • with regard to gas, ARERA will update prices month by month to protect users from price increases (and no longer quarterly as was the case until July 1, 2022);

  • with the aim of ensuring even greater transparency on domestic and non-domestic consumption, ARERA has introduced new information details in the bill 2.0already in force since 2016.

Let’s see what exactly the maneuver implemented by ARERA against the expensive electricity and gas bills provides.

1) MEASURE AGAINST INCREASE IN ELECTRICITY PRICES

As regards the electricity bill, ARERA has provided for:

  • the postponement of the recovery of the sums owed by users relating to the difference between the estimated and real prices. Thanks to this measure, in the fourth quarter of 2022 (from October to December) there will be an increase in the cost of electricity for the “typical” family with a change in total expenditure of + 59% (against the expected 100% increase) compared to the previous quarter. The 59% increase is due, for the part relating to expenditure for energy, above all to the increase in the PE component (energy price);

  • thanks to the resources of the Bis Aid Decree for the electricity sector in relation to general charges, equal to 1.1 billion eurosARERA also confirmed for the fourth quarter of 2022 the cancellation of the ASOS and ARIM components (General system charges) which usually insist in the bill to finance the social bonus or the production of renewables. This reset was already active from the first to the third quarter of 2022 (from January to September 2022).

2) MEASURES AGAINST INCREASE IN GAS PRICES

To keep the increases in the gas bill under control, ARERA, based on the new calculation method introduced in July, as per Resolution 374/2022 / R / gas, confirmed from 1 October 2022 the following measures:

  • the gas price will be updated at the end of each month and published in the first days of the month following the reference month, based on the average of the actual prices of the Italian wholesale market. Until 1 July 2022 the gas price was updated every 3 months;

  • the reduction of VAT until December 2022, thanks to the resources of the Bis Aid Decree equal to 1.82 billion euros;

  • the cancellation already decided in the third quarter, for all users of the gas sector, of the rates of RE / RET tariff components (i.e. those intended to finance energy saving projects and the development of renewable sources in the gas sector), as well as the rates GS / GST (whose revenues cover the financing of social bonuses for the vulnerable) e UG3 / UG3T (to cover the charges incurred by distribution companies for interruption of supply due to arrears);

  • the reduction of the UG2 componentalready decided in the third quarter of 2022. This is the variable component that covers the imbalances between the overall amounts paid by retail customers and those borne by the sales companies overall.

ARERA SOCIAL BONUSES AGAINST DEAR BILLS

To contain the expensive electricity and gas bills, the Government has implemented numerous measures in favor of users, as we explain in this in-depth analysis on the 2022 bill bonus. These measures, ARERA informs, are confirmed in the fourth quarter of 2022. It deals with:

  • the enlargement, from 1 April 2022, of the audience of subjects entitled to social bonuses, thanks to the increase in the ISEE threshold (set at 8,000 euros for the previous months) below which you are automatically entitled to bonuses of 12,000 euros (20,000 euros for large families). For more details we advise you to read our article on bonus bills;

  • the suspension of the annual adjustment of the social bonuses to be recognized in 2022. Basically, every year ARERA establishes costs that users must bear to allow disadvantaged families to take advantage of the social bonus. ARERA adjusts these costs every 12 months on the basis of how much the bonus increases and also on the basis of the trend in energy and gas costs. The adjustment for 2022 – given the strengthening of the social bonus and the hike in prices – would have been quite high. Therefore, to contain the values ​​of the bills for all users, ARERA has decided to suspend the adjustment scheduled for 2022, offsetting the expenses with the funds disbursed by Parliament with the Aid Bis decree which has become law.

Finally, it should be remembered that the Legislator has provided the possibility for private employers to recognize, in the form of fringe benefits, a bonus on payroll bills, raising the concession ceiling from 258 euros to 600 euros. For all the details on the paycheck bonus bills, we recommend that you read this article.

HOW MUCH THE ELECTRIC BILL HAS INCREASED SINCE OCTOBER

But in terms of prices, what changes in the bills? From October 2022 in the electricity bill, the average household expenditure in 2022 (January 1, 2022 – December 31, 2022) will be approximately 1,322 euros, compared to around 632 euros in 2021 (the equivalent 12 months of the previous year). From 1 October 2022, the reference price of electricity for the average customer will be 66.01 euro cents per kilowatt hour, taxes included. This amount includes:

  • expenses for energy equal to: 53.45 euro cents (81% of the total bill) for energy supply costs, up by 71% compared to the third quarter 2022. Instead, the cost for retail marketing, unchanged compared to the third quarter 2022, is equal to 1.91 euro cents (2.9% of the total bill);

  • the costs for the transport and management of the meter: 3.85 euro cents (5.8% of the total bill) for distribution, metering, transport, transmission and distribution equalization, quality services. This share remains unchanged compared to the third quarter of 2022;

  • expenses for system charges: 0 euro cents (0% of the total bill) for expenses for system charges, reset to zero as in the third quarter of 2022;

  • tax expense: 6.80 euro cents (10.3% of the total bill) for taxes that include VAT and excise duties.

THE BILL 2.0

It should be remembered that from 1 January 2016 ARERA introduced the bill 2.0, cwith a simplification of contents and terms. This is a synthetic bill, sent to all users, to facilitate the understanding of the final expense. This new type of bill introduces specifics transparency obligations for sellers. From October 2022, by virtue of the recent indications of the Authority, this instrument has been enriched with gas prices updated from month to month. Here, therefore, that the sellers in front of updating the prices with respect to what was previously invoiced, must not only give appropriate information in the bill, but also create a special section on their website to explain, in a clear and understandable way, the reason. of the recalculation and the way in which prices are determined. The same billing, moreover, it can become monthly if the vendor’s systems allow it.

This new information obligation is added to the structure of the 2.0 bill active since 2016 which, with a view to consumer protection, provides for the following:

  • the first page of the bill must indicate the average unit cost of kilowatt hour / standard cubic meter, as the ratio between total expenditure and billed consumption;

  • must be made explicit with an ad hoc item la “System charges expense”, first indicated in the network services;

  • any adjustments must be indicated in a specific box for greater clarity with particular emphasis in the event of any recalculations.

Anyone wishing to learn more about the various items of expenditure can still ask their supplier detail elements, that is, the pages with the analytical description of the components that determine the overall expenditure. Details will always be provided in the event of a response to complaints.

REFERENCES

We put at your disposal the technical data sheet (Pdf 302 Kb) published by ARERA on 29 September 2022, enriched with graphs, which explains the innovations introduced by the Authority against expensive electricity and gas for the fourth quarter of 2022. We also provide the press release in which ARERA announces the start of the measure published on the same day.

OTHER HELP AND UPDATES

To find out what aid is foreseen against expensive bills, we recommend that you read our guide on the bonuses introduced by the Government and our article on the bonus of € 600 bills in paychecks. And if you want to know the measures introduced by the Government for the environment, you can read our in-depth analysis on the national plan for containing consumption. To discover other bonuses and benefits available for families and workers, you can visit our page dedicated to aid for people. Furthermore, to find out about all the benefits for employers, professionals and VAT numbers, you can visit our page dedicated to aid to businesses.

We also recommend that you sign up for free our newsletterto receive all updates, and to ours Telegram channelto get a preview of the news.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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