Italy and EU discuss gas price cap to lower energy bills

The Italian government and the European Commission are evaluating a preliminary agreement to implement a gas price cap for electricity generation. The proposed limit is set between 60 and 65 euros per megawatt-hour (MWh), which is significantly lower than current market futures.

Under this system, gas-fired power plants would offer energy based on the capped price and receive a settlement for the difference between the cap and the actual fuel cost. Simulations suggest this could reduce the national single price of electricity (PUN) by approximately 13% to 15%, providing net savings for consumers.

This measure is expected to be included in a new energy decree. However, experts note that the cap applies to wholesale market prices and will not affect customers who have already secured fixed-price contracts for 2027. While the measure aims to protect households and businesses from volatility, it may result in lower selling prices for renewable and hydroelectric producers.