Why does the bill increase?
For both power and gas, changes in economic conditions are influenced by the costs of procurement of the raw material, by expenditure on system charges, and the tariffs for transport and management of the meter. These changes concern both protection services and the free market.
The Regulatory Authority for Energy, Networks and the Environment (ARERA) publishes the update of the economic conditions of the protection services, quarterly for electricity and monthly for gas.
The measures adopted by the Government and ARERA's regulatory measures have mitigated increases for power and natural gas, despite sharply rising wholesale prices, also influenced by great uncertainty for the Russian-Ukrainian conflict.
Adjustment of tariffs for the fourth quarter of 2022 for protection services
Tariffs for power supplies
According to ARERA data for power, in the fourth quarter of 2022, the typical household (domestic customers with annual power consumption of 2,700 kWh and a committed power of 3 kW) will have a +59% increase in the reference price compared to the previous quarter.
The difference in expenditure compared to the previous year is still very evident, ARERA has estimated that for the power bill the expenditure for the typical family in the year 2022 (between 1 January 2022 and 31 December 2022) is approximately €1,322, compared to approximately €632 in 2021 (the equivalent 12 months of the previous year).
Tariffs for natural gas supplies
For Natural Gas, despite the records in wholesale markets last summer, with the application of the new update method monthly of ARERA, it was possible to intercept the significant cost reductions of raw materials in recent weeks; the typical family (domestic customers with gas consumption of 1,400 cubic meters per year), for the month of October, will receive a bill with a reduction of -12.9% compared to the cost of the third quarter 2022.
The difference in expenditure compared to the previous year is still evident, the expenditure for the typical family in the year 2022 (between 1 November 2021 and 31 October 2022) is approximately 1,702 euro, 67% more than in the equivalent 12 months of the year 2021.
The Government has maintained the measures to contain the effects of the increases in power and gas prices, introduced in the previous quarter:
- elimination of general system charges, both for the power and gas sectors;
- confirmation of the reduction of VAT on gas to 5% on all expenditure components;
- strengthening of the power and gas social bonuses, for families with an ISEE level of up to € 12,000 per year.
Quarterly trends in the economic protection conditions for electricity (ARERA data)
|Q4 2022||+ 59%|
|Q3 2022||+ 0,4%|
|Q2 2022||- 10,2%|
|Q1 2022||+ 55%|
|Q4 2021||+ 29,8%|
|Q3 2021||+ 9,9%|
|Q2 2021||+ 3,8%|
|Q1 2021||+ 4,5%|
|Q4 2020||+ 15,6%|
|Q3 2020||+ 3,3%|
|Q2 2020||- 18,3%|
|Q3 2019||+ 1,9%|
Trends in economic protection conditions for natural gas (ARERA data)
|October 2022||- 12,9%|
|Q3 2022||- 10%|
|Q2 2022||- 10%|
|Q1 2022||+ 41,8%|
|Q4 2021||+ 14,4%|
|Q2 2021||+ 3,9%|
|Q1 2021||+ 5,3%|
|Q4 2020||+ 11,4%|
|Q3 2020||- 6,7%|
|Q2 2020||- 13,5%|