Electricity, Arera: “Wholesale prices drop -19.5% for the protected bill”

Gas ARERA approves further emergency measures

(Finance) – With the drop in the wholesale prices of energy products and the implementation by Arera of the Government interventions contained in the Budget law, for the first quarter of 2023 the reference price of electricity for the typical household under protection (with average electricity consumption of 2,700 kWh per year and a power input of 3 kW) is reduced by 19.5%. This is what theRegulatory Authority for Energy, Networks and the Environment in the’update of the conditions for greater electricity protection for the first quarter of 2023.

With the level of European gas storages standing at the end of the year above 80% of available capacity and forward prices indicating less tense conditions for the balance of gas supply and demand in the first quarter of 2023 than expected at the beginning of October 2022 and at the prices formed in December, forward electricity prices have also moved downwards. Already in the fourth quarter of 2022, based on the preliminary data, – highlights the Arera – the single national price of electricity (PUN) fell by around 48% compared to the very high levels of the third quarter of 2022 (246 €/MWh against 472 €/MWh on a quarterly average). The change in the final price paid by electricity customers was also affected by the ordinary end-of-year updates of network tariffs which, especially due to the ongoing inflation trend, undergo a slight adjustment, but whose impact overall remains very limited (+0.3 % on the typical user).

Based on the provisions of the “Budget Law”the Arera also for the first quarter of 2023 intervened on the components of the general system charges, resetting them for the electricity sector to all domestic and non-domestic customers with available power up to 16.5 kW, and for gas to all users. In this context, the Arera points out that the taxation of so-called “nuclear charges” starting from 2023 it assumes a definitive character: the same will be supported directly by the State Budget and will no longer be present in the bill. It was also confirmed theapplication of the negative component UG2 to the advantage of gas consumption up to 5,000 sm3/year. Interventions that accompany the confirmation of the 5% VAT reduction on gas.

Again as envisaged by the “Budget law”, the Authority also confirmed for the first quarter of 2023 the strengthening of electricity and gas social bonuses which, for the sixth consecutive quarter, will allow families admitted to this protection instrument to support their energy expenditure and significantly offset the increases recorded compared to the spending levels of mid-2021. Furthermore, as expected, it will be the range of beneficiaries admitted to social bonuses has been expanded, with the ISEE level necessary to use it which, for 2023, will rise to 15 thousand euros (from the previous 12 thousand, with a threshold still at 20 thousand euros for large families). Bonus that will have a different intensity between the different ISEE brackets that Arera will define in January. The bonuses are paid directly on the bill to all eligible families, provided they have an ISEE valid during 2023 and within the indicated threshold. In this regard, the Authority recalls that, as known, the ISEE has a validity coinciding with the calendar year and it is therefore important to resubmit the Single Substitute Declaration (DSU) at the beginning of the year in order to obtain the certification valid for 2023.

Based on the new calculation method introduced last July by Arera (resolution 374/2022/R/gas) the gas price for customers still protected it is updated at the end of each month and published on the second working day of the month following the reference one, based on the average of effective prices on the Italian wholesale market. The value of the gas price that will be paid by customers for December consumption will be published on the Authority’s website on 3 January 2023.

“As on other occasions, the percentage change in the cost of electricity, albeit marked, should not lead to hasty conclusions. The situation on the wholesale markets has certainly been affected by particular environmental conditions but also by an evolution and a strengthening of the ability to reaction of the system to the persistence of the tragic war events that still characterize the international scenario – states the president of Arera, Stefano Besseghini –. However, the markets are still characterized by marked volatility, seasonality will affect gas price variations and absolute values ​​are still extraordinarily high. Government interventions in support of consumers keep their value unchanged and in particular I remind citizens, consumer associations and CAFs, how important it is to request ISEE certification for 2023 to allow for the more prompt identification of the withdrawal point of the electricity or the gas redelivery point and the consequent provision of the envisaged benefits”.

The effects on the electricity bill – The strong growth in wholesale prices in the last year and their continued high levels is reflected in the expenditure on the electricity bill. In terms of final effects, the expenditure for the typical family in the rolling year (between 1 April 2022 and 31 March 2023) will be around 1,374 euros, +67% compared to the equivalent 12 months of the previous year (1 April 2021- March 31, 2022).

The components of the bill – In detail of the individual components in the bill, for electricity, the -19.5% change in the final price of the typical household (which is thus 53.11 euro cents per kWh, inclusive of taxes) is substantially linked the decrease in the PE energy item, -23.4%, adjustments to the dispatching item (PD) +0.4% and the equalization item (PPE) +3.2%. Slight change also due to the annual update of regulated network tariffs (Transportation, distribution and metering), +0.3%. The general system costs for the typical family remained unchanged, still at zero.

The new web space “Arera for the consumer” – The Authority, based on the “Electrical directive” of June 2019 (directive 2019/944/EC) which also addresses the issues of the centrality of information to the consumer, has published the new section “Arera for the consumer”, a single information space where all the tools made available by the Authority for the management of utilities are collected. Free and impartial services to learn more about your electricity and gas consumption habits, compare offers on the free market to find the one that best suits your needs and learn more about consumer rights.

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