The Council of Ministers has approved the ‘Utility Bills Decree II,’ introducing a price cap on natural gas used for thermoelectric generation. The measure sets a temporary limit of 58.9 euros per megawatt-hour (MWh), following a model similar to Spain’s system. The goal is to reduce electricity costs for households and businesses by reimbursing part of the gas expenses incurred for power generation.
The decree, drafted in collaboration with the European Commission, aims to mitigate the impact of high gas prices on electricity costs. Starting in January, the measures are expected to lower electricity prices by an average of 15 euros per MWh. Minister for the Environment and Energy Security, Gilberto Pichetto Fratin, described the approval as a ‘first concrete step’ to support the national economy, consumers, and the manufacturing sector.
The measure was developed through extensive dialogue with the European Commission, with technical and institutional support from ARERA and GME. The minister emphasized the challenges faced by households and businesses amid ongoing geopolitical tensions affecting energy costs.