Italy and the European Commission are nearing an agreement that would permit Italy to set a maximum price on natural gas. The deal aims to protect consumers from rising energy bills ahead of upcoming elections, offering Premier Giorgia Meloni a policy tool to ease voter concerns.
The proposed mechanism would cap the price of natural gas used for electricity generation. This would prevent excessive price hikes from being passed on to consumers' power bills. The plan is still under negotiation and subject to change, according to sources familiar with the discussions who spoke anonymously.
Under the draft proposal, Italy would compensate gas-fired power producers when gas prices exceed a predetermined limit. This compensation would help offset the financial impact on energy companies while keeping consumer costs stable. However, the final details of the agreement have yet to be confirmed.