Utility bills bill: approval delayed yet again. Little scope for further amendments

Following last week’s postponement, the Bollette decree has been postponed yet again, having been due to be tabled before the Council of Ministers on Thursday 5 November. Barring any unforeseen circumstances, the new draft is expected to be tabled at the next meeting at Palazzo Chigi, scheduled for next Monday, though this remains to be seen.

Because further consideration of the measure – which introduces a cap on the price of gas used for thermoelectric generation, modelled on Spain’s Tope scheme – must also serve to overcome the remaining obstacles and ensure, as Prime Minister Giorgia Meloni urged yesterday during the meeting at Palazzo Chigi, further dialogue with Brussels – which has the final say on the measure – to ensure full alignment.

The Minister for the Environment and Energy Security, who yesterday delivered a detailed report on the draft decree, is determined to present the text outlined yesterday at the next Council of Ministers meeting. The measure provides, subject to the cap, a reimbursement for the cost of gas used for thermoelectric generation, equal to the difference between the price of natural gas on the TTF (which yesterday stood at around 90 euros per megawatt-hour) and the threshold value of 58.9 euros per MWh negotiated with the European Commission. Part of the cost is borne by customers on variable-rate contracts. The remainder is borne by the producers, who will receive partial compensation. According to the wording finalised by the ministry’s technical experts—who worked to find a difficult-to-achieve balance—this reimbursement will be granted to both thermoelectric producers and self-consumers of electricity who use natural gas and gas derivatives. The task of determining the actual amount is delegated to ARERA according to pre-established criteria, in line with EU legislation, not least to prevent cross-border flow reversals. However, the decree specifies that this reimbursement may not exceed 15 euros per MWh. This arrangement is not considered satisfactory by the producers.

Yesterday, the Prime Minister called for ARERA to be consulted before the decree was enacted and for steps to be taken to ensure that there were no deviations from the path set out by Brussels. In giving its approval to the new solution proposed by Italia, the Commission reiterated that the cost of the scheme must be borne solely by the consumers who benefit from it – that is, those exposed to the spot price of electricity – thereby excluding, therefore, users who had contracted for electricity at a fixed price before the measure came into force.

A very narrow path which, if circumvented – as was highlighted yesterday during the meeting at Palazzo Chigi – risks bringing the Decree-Law to a halt once again. Yesterday, the State General Accounting Office also raised doubts regarding another provision in the decree: the one providing for the sale of gas stored by GSE and Snam during the crisis following the Russian invasion of Ukraine in 2022, with a view to capping costs for companies most exposed to high energy prices. Snam sold that gas and paid the proceeds to the CSEA (Fund for Energy and Environmental Services) by 30 September. The new Article 9 of the Decree-Law stipulates that ARERA must use these funds to reduce tariffs in 2027: however, as it stands, according to Treasury experts, the provision would result in revenue for the State in 2026 and an uncovered expenditure in 2027, creating a misalignment in public finances that could impact the government’s plans to exit the excessive deficit procedure by 2027. According to the National Audit Office, the provision must ensure that the resources paid to the CSEA are utilised within the same financial year in which they are received. This is a clear requirement that the experts will now have to incorporate into the measure to eliminate any risk.