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[BUSINESS] · Italy, EU · 23 sources

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Italy and EU reach preliminary agreement on energy bill decree

The Italian government and the European Commission have reached a preliminary political agreement regarding the 'Dl Bollette' decree, aimed at reducing energy costs for households and businesses. The measure seeks to mitigate the impact of rising gas prices on electricity wholesale costs by implementing a compensation mechanism for gas-fired power generation, similar to the 'Iberian exception' used by Spain and Portugal in 2022.

The agreement follows intense technical negotiations and complies with the Middle East State Aid Framework (Metsaf). Under the proposed mechanism, a gas price cap—with a reference point of approximately 59 to 60 euros per megawatt-hour—would trigger interventions to lower electricity bills. Minister of Environment and Energy Security Gilberto Pichetto Fratin stated that the measure is expected to reduce bills for families and businesses by approximately 10%.

The intervention will be temporary and designed to minimize distortions in the EU electricity market. It will specifically compensate for gas price increases but will not cover costs related to the EU Emissions Trading System (ETS). Following this political agreement, Italy must formally notify the Commission of the updated text for priority evaluation and implementation, which is targeted for January.

Entities

ARERA · European Commission · Gilberto Pichetto · Gilberto Pichetto Fratin · Giorgia Meloni · Italian Government · Italy · Palazzo Chigi

Claims

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Sources

Dl Bollette, intesa Governo-Ue [www.gazzettadinapoli.it]