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[BUSINESS] · Italy, EU · 18 sources

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Europe faces rising energy costs and climate policy delays

European citizens and businesses are facing significant economic pressure due to rising energy costs and climate change. An OECD report indicates that while extreme heat days increased by 126% between 2021 and 2025, global climate action slowed to a 1% growth rate in 2025, compared to a 10% average seen previously.

In Italy, energy price volatility is impacting vulnerable customers and small businesses. Federconsumatori reports a 9.1% increase in gas costs for vulnerable clients in October 2026, while Confartigianato notes that small Italian enterprises pay 22.1% more for electricity than the European average.

An EIB survey of 23,000 people across the EU reveals that 60% of Europeans have seen their purchasing power reduced by energy costs. In Italy, this figure is higher at 70%. To cope, many are reducing spending on food and health or modifying transportation habits.

Regarding market transitions, ARERA has announced that the Gradual Protection Service (STG) for non-vulnerable customers will expire on March 31, 2027. From April 1, 2027, the service will only exist as a last-resort measure for customers without a vendor. The transition to the free market is expected to occur without supply interruptions.

Entities

ARERA · Confartigianato · European Investment Bank · European Union · Federconsumatori · Gestore dei Mercati Energetici · Italy · OECD · Portugal

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