Europe Asia News

Italian Prime Minister Giorgia Meloni announced that the Council of Ministers had approved a new Energy Bills Decree designed to reduce energy costs and ease the financial burden reflected in household and business bills.

Meloni stated that the decree would introduce a price cap of 58.9 euros per megawatt-hour on natural gas used for electricity generation. She explained that a mechanism would be activated if gas prices exceeded this level, aiming to prevent the full increase in costs from being passed on to electricity prices.

Meloni said another key aspect of the decree was ensuring that consumers benefit from low-cost energy production. She stated that the Italian Regulatory Authority for Energy, Networks and Environment (ARERA) would apply stricter rules to operators that restrict production capacity to drive up prices. Meloni emphasized that the government wanted the lower costs of renewable energy sources to be reflected in household and business bills.

Meloni also announced that limits would be introduced on passing costs through to bills in order to protect consumer savings. Those financing the mechanism would not be permitted to pass on costs exceeding the amounts legally allowed. She said the measure would remain in force for 18 months before being gradually phased out.

Meloni further announced that the decree provides for reductions of more than 850 million euros in system charges on natural gas bills.

Addressing ongoing efforts to reduce fuel prices, Meloni noted that 2.5 billion euros had been allocated so far to limit price increases, with particular emphasis on reducing diesel costs. She stated that the price cap at fuel pumps remained in effect and added that the variable fuel excise duty mechanism would be reactivated if price trends made it necessary.