(Finance) – The gas bill for the typical family is increasing (average gas consumption of 1,400 cubic meters per year) in protection for consumption in October 2023 which rises by 12% compared to September. For the month of October, which recorded an average wholesale price higher than that of September, the price of the gas raw material alone (CMEM,m), for customers with contracts under protected conditions, is equal to €43.73/MWh. This is what the‘ARERA in the bill update for protected gas consumers valid for the month of October 2023.
The component of the gas price to cover supply costs (CMEM,m), applied to customers still under protection, is updated by ARERA as a monthly average of the price on the Italian wholesale market (the PSV day ahead) and published within first 2 working days of the month following the reference month. The overall increase of 12% for the typical family for the month of October – explains ARERA – is determined by the increase in spending on natural gas materials, +7.9%and by the increase in expenditure for transport and management of the meter, +4.1%, the latter linked to the typical increase in storage charges during the winter season to ensure full functionality of the storage facilities in the period of greatest use. However, general charges remain unchanged.
In terms of final effects, the gas expenditure for the typical family in the rolling year (November 2022 – October 2023) is Approximately 1,457 eurosbefore taxes, and was down 14.4% compared to the equivalent 12 months of the previous year (November 2021 – October 2022).
The elimination of general charges and the VAT reduction to 5% have been confirmed for October and for the whole of 2023, as well as for heat and district heating management.
Consumer associations are very critical of the increases. “A disaster announced! A mere speculation, without ifs or buts! The markets take advantage of every pretext to earn as much as they can. The stocks are full, the month of October was hot, the Israel-Hamas war has never created nor could have created problems with supplies. In short, today’s increase is unmotivated and specious. At least extra profits should be taxed at 100 percent” he states Marco Vignola, head of the energy sector of the National Consumers Union. According to the study by the National Consumers Union, for a typical family in protection, +12% means spending 159 euros more on an annual basis, 158.90 to be precise. The total expenditure in the next twelve months (not, therefore, according to the rolling year, but from 1 October 2023 to 30 September 2024, in the hypothesis of constant prices) thus goes from 1327 to 1486 euros, which added to the 764 of the light , determine a total cost of 2250 euros. Furthermore, if the price of gas rises by 12% compared to that of September, compared to pre-crisis times, i.e. in comparison with October 2020, the increase is astronomical: +58.2%. Compared to the overall expenditure in 2020, equal to 975 euros, you will now pay 511 euros more, +52.4 percent.
“The increase in gas bills weighs on businesses and families forced to deal with out-of-control costs” states the Coldiretti. “Energy spending has a double negative effect because – underlines Coldiretti – it reduces the purchasing power of citizens and families, but it also increases the costs of businesses which are particularly relevant for the agri-food sector with the arrival of winter. The cost of Energy is in fact reflected throughout the entire supply chain and concerns both agricultural activities but also transformation and distribution. Agricultural and food production in Italy absorb over 11% of total industrial energy consumption for approximately 13.3 million tonnes of oil equivalents (Mtoe) per year, according to Coldiretti’s analysis based on Enea data”.
According to Codacons, the 12% increase in tariffs decided today by Arera will lead to a greater annual expense for gas equal to +159 euros per family, bringing the bill to 1,486 euros per year per household in the hypothesis of constant prices. “As predicted in recent days by Codacons, the war that broke out in Israel had direct effects on the pockets of Italians through an increase in the gas bill – explains the president of Codacons Carlo Rienzi –. An increase that does not bode well in view of the winter period, when 80% of households’ gas consumption is concentrated. Precisely for this reason, and considering the excessive volatility of energy prices, we loudly ask the Government to extend the protected market at least through 2024″.
Precisely to counteract the increases and help Italians save in the coming months on the expenditure item relating to gas, Codacons today launches a campaign to self-reduce consumption adopting some simple measures: reduce the temperature of the radiators in the house by limiting it to 20 degrees in the living area and 16-18 degrees in the sleeping area. For every degree less in temperature you save around 8% on your gas bill; preferring the shower to the bathtub, not turning on the water too early and turning it off when soaping up, reducing the total duration of the shower saves up to 15% on gas consumption; do not cover radiators with furniture or fabrics, insert a reflective panel or a sheet of tinfoil between the radiator and the wall, screen doors and windows and use thermostatic valves to achieve bill savings of up to 20%; in the kitchen, prefer foods that require quick cooking, use lids on pans or pots, take advantage of passive cooking, optimize the use of the oven to cook multiple dishes at the same time, choose hobs suited to the size of the pots.