Good news for consumers: energy bills will be cheaper in the next three months. The estimates come from ARERA, the Italian Regulatory Authority for Energy, Networks, and the Environment. According to the Authority's data, in the first quarter of 2020, electricity bills will decrease by 5,4%, while gas bills will increase slightly, by 0,8%. This will save each typical family approximately €125 more per year. The changes are due, Arera explains, to the "sharp decline in the need for general charges," the "containment of regulated network tariffs (transport and distribution)," and the "low prices of raw materials on wholesale markets." For electricity, the final reduction is the result of the decline in energy costs (-2,6% of the typical family's expenditure) and the sharp decrease in the general system charges component (-2,8%), Arera specifies. For gas, however, "the trend is essentially driven by a slight increase in spending on the commodity (+1,3% of the average household's spending), primarily linked to expected wholesale market prices in the coming winter quarter. This was offset by a decline in regulated transport and distribution tariffs (-0,4%), made possible by the revision of the period's tariff rules, and a slight decline in general charges (-0,1%)." The decline in energy bills is "excellent news" for consumer associations, particularly for the National Consumers Union, which believes Arera's data demonstrates "the proper functioning of the protected market and how it was more appropriate than ever to postpone its end from July 1, 2020, to January 1, 2022." The Milleproroghe decree approved, among other points, the postponement of the forced exit from the protected market for families and small businesses until 2022. Codacons also considers the reduction in electricity rates to be a "good thing," "but the 0,8% increase in gas prices will have an impact on households' pockets, considering that the increase occurs during the peak consumption period." For the association's president, Carlo Rienzi, the issue of "excessive energy taxation" also remains "unresolved." Rienzi points out that starting in 2020, "Italians will pay 42,66% in taxes and charges on every gas bill (34,4% for electricity)." This taxation, he believes, is "unparalleled in Europe, demonstrating that not enough has been done to ease the tax burden on energy, which is a primary and indispensable commodity." Despite "the slight decrease, a reform of system charges is urgently needed," Federconsumatori also commented.
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