Bills: how to choose your supplier when switching from the protected to the free market

Let's take the case of a person who lives alone in the city of Milan and is looking for a fixed-price offer for his 50 square metre home. She uses gas for cooking food, producing domestic hot water and heating (as she lives in a house without central heating). His meter class is G6, he uses gas all year round, but does not know his annual consumption. Among the large companies, the first offers returned by the Arera portal are around the following prices: €1,364.99, €1,420.03 and €1,493.95 per year. Even among the smaller suppliers, prices range between EUR 1,329.63 and EUR 1,431.16 per year. Various elements make the difference in the offers, which, let us remember, are valid for a certain period of time, such as the included intervention of a specialised technician for the ordinary maintenance of the boiler, the presence or absence of discounts linked to the payment method chosen (e.g. direct debit), and the activation of the offer online. If the person in question decides not to change, he or she would enter Arera's Greatest Protection Service with an economic proposal of €1,165.79 per year.

Single - variable price

If the same customer were to look for a variable price offer, with the same parameters as those described above, the costs would decrease both with the proposals of the smaller and local companies, which would be between 1,131.05 and 1,209.65 euro per year, and with the proposals of the big players, which would be between 1,166.54 and 1,248.72 euro per year. If the customer in question were to decide not to make any choice, the offer of Arera's Maximum Protection Service would be the same even at a variable price, i.e. €1,165.79 per year.

Family - fixed price 

Let us now turn to a family of four living in Milan, in a 95 square metre house with independent heating, who is looking for a fixed-price offer for a gas supply including cooking, domestic hot water production and heating. His meter class is G6, he uses gas all year round, but does not know his annual consumption. The large suppliers, in this case, propose solutions starting at EUR 2,370.21/ EUR 2,428.37 per year. The smaller ones stay at about the same level, i.e. EUR 2,309.22/ EUR 2,501.10 per year. Also in this case, as for singles, the offer of Arera's Servizio di Maggior Tutela - the one proposed to those who make no choice about gas suppliers - is the same at a fixed or variable price, i.e. 2,025.37 euro per year.

Family - variable price

If the same household, with the same characteristics, preferred to opt for a variable price offer, it would find itself with cheaper solutions, as in the case of the single. Prices range from EUR 1,967.81/2,044.34 per year of a small/medium supplier to EUR 1,974.28/2,095.79 per year of a big player.

ROME

Single - fixed price

Moving down the peninsula, let us take the example of a guy who lives alone in Rome and is looking for a fixed-price offer for his 50 square metre home. He uses gas for cooking, hot water and heating (as he lives in a house without central heating). His meter class is G6, he uses gas all year round, but does not know his annual consumption. Among the large companies, the first offers returned by the Arera portal are around the following prices: €1,458.14 per year, €1,511.53 and €1,542.29. Even among the smaller suppliers, prices do not differ much and range between EUR 1,496.89 and EUR 1,525.39. If the person in question were to decide not to switch, he would enter the Arera Greater Protection Service with an economic proposal of €1,264.42 per year.

Single - variable price

If the same customer were to look for a variable price offer, with the same parameters described above, the prices would decrease with both the proposals of the smaller and local companies, which are between €1,231.28 and €1,260.32 per year, and with the proposals of the big players, which oscillate between €1,270.59 and €1,307.19 per year. If the customer in question were to decide not to make any choice, the offer of Arera's Maximum Protection Service would be the same even at a variable price, i.e. EUR 1,264.42 per year.

Family - fixed price

Let us now examine the situation of a family of four living in Rome, in a 95 square metre house with independent heating, who is looking for a fixed-price offer for the supply of gas that includes cooking food, domestic hot water production and heating. His meter class is G6, he uses gas all year round, but does not know his annual consumption. The large suppliers, in this case, propose solutions starting from 2,531.28 euro/ 2,610.15 euro per year. The smaller ones stay at about the same level, from EUR 2,581.83 to EUR 2,658.18 per year. Also in this case, as in the case of singles, the offer of Arera's Greatest Protection Service - the one proposed to those who do not make any choice regarding gas suppliers - is the same at a fixed or variable price, i.e. 2,196.11 euro per year.

Family - variable price

If the same household, with the same characteristics, preferred to opt for a variable price offer, it would find itself with slightly cheaper solutions, as in the case of the single and the simulations carried out in the Lombardy capital. Prices range from EUR 2,141.39/ EUR 2,187.70 per year of a medium-small supplier to EUR 2,151.24/ EUR 2,187.84 per year of a big player.

PALERMO

Single - fixed price

Coming to Southern Italy, let us analyse the case of a girl who lives alone in the city of Palermo and is looking for a fixed price offer for her 50 square metre home. She uses gas for cooking food, the production of domestic hot water and heating (as she lives in a house without central heating). His meter class is G6, he uses gas all year round, but does not know his annual consumption. Among the large companies, the first offers returned by the Arera portal are around the following prices: €1,447.79, €1,501.19 and €1,531.95 per year. Even among the smaller suppliers, prices are more or less the same, ranging from EUR 1,487.25 to EUR 1,515.04 per year. If the person in question decided not to switch, he would enter the Arera's Greatest Protection Service with an economic proposal of 1,250.23 euro per year.

Single - variable price

If the same customer were to look for a variable price offer, with the same parameters described above, the prices would decrease both with the proposals of the smaller companies, which stand at 1,216.38/1,243.05 euro per year, and with the proposals of the big players, which oscillate between 1,255.69 and 1,292.29 euro per year. If the customer in question decides not to make any choice, the offer of Arera's Maximum Protection Service would be the same even at a variable price, i.e. €1,250.23 per year.

Family - fixed price

Finally, we conclude with a family of four living in Palermo, in a 95 square metre house with independent heating, who is looking for a fixed price offer for gas supply that includes cooking food, domestic hot water production and heating. His meter class is G6, he uses gas all year round, but does not know his annual consumption. The large suppliers, in this case, propose solutions starting at EUR 2,500.82/2,587.92 per year. The smaller ones have slightly higher prices, from EUR 2,551.37/2,642.75 per year. Also in this case, as for the single, the offer of Arera's Greatest Protection Service - the one proposed to those who do not make any choice regarding gas suppliers - is the same at a fixed or variable price, i.e. 2,158.44 euro per year.

Family - variable price

If the same household, with the same characteristics, preferred to opt for a variable price offer, it would find itself with cheaper solutions, as in the case of the single girl. Prices range from EUR 2,102.46/ EUR 2,199.97 per year of a small/medium provider to EUR 2,112.30/ EUR 2,228.38 per year of a big player.

MILAN

Single - renewable option with fixed or variable price.

Let's take the case of a single user, resident in Milan and interested in evaluating a band-fixed price offer that includes the use of renewable energy. He is not aware of his annual consumption, uses fluorescent lighting and takes advantage of the supply available to him by distributing it throughout the year between household appliances (from the washing machine to the dishwasher, via the fridge and freezer), air conditioning, television and personal computer. As far as power is concerned, however, he aims at a threshold of 3 kW. Looking at the large suppliers, the costs are between 988 and 1144 euro per year, with an increase in expenses compared to the 'Maggior tutela' - which has a value of around 789.14 euro per year - of between 200 and over 350 euro. Moving, on the other hand, to small and medium-sized suppliers, the situation does not change so radically: we pass, in fact, from 987 euro to more than 1221 euro per year, with increases with respect to the greater protection that oscillate between 198 and more than 430 euro (it is necessary to remember that, as made official by the auctions of 6 February, there will be more than 4.5 million non-vulnerable customers who, not having made a choice, will have to leave the market of greater protection and pass from 1 July to the gradual protections, through assignment to one of the operators that have been awarded the packages of users according to the different capitals. The economic conditions of the service (lasting three years), which are the same throughout Italy, will only be announced in June and will be updated annually by virtue of the number of customers supplied in the various areas. At the moment, savings of up to EUR 83 per year per user, approximately EUR 7 per month, are assumed).

The situation changes, however, if the variable price alternative is taken into consideration, with all the other parameters selected above remaining unchanged. As far as the offers of the big players are concerned, they settle between 930 and more than 1030 euro per year (with increases of between 140 and 24o euro compared to the Maggior tutela); those of the medium-small players, on the other hand, range from 890 to more than 1030 per year (from + 100 to + 240 compared to the Maggior tutela).

Single - non-renewable option with fixed or variable price .

Let's assume, on the other hand, that the same profile wants to go for a band-fixed price offer with a non-renewable energy supply. Again, except for the type of energy, the parameters entered on the portal remain the same. As far as large suppliers are concerned, the repertoire of offers to be examined narrows: large companies, in fact, mostly present tariffs linked to green energy supplies. The only non-green alternative can be found in the perimeter of the Placet offers with a fixed formula (which the seller is obliged to propose in addition to the commercial ones), which are between 1360 and 1624 euros per year (+580 to +835 compared to the Maggior tutela, which in this case is worth 789.14 euros per year). The reason is clear: unlike the small suppliers, whose aim is to replenish the parterre of their customers as much as possible, the large ones tend more to go along with the market and follow the sustainable direction. The discourse applicable to small and medium-sized players is different: here the perimeter of options to be evaluated is decidedly broader and the costs range from 960 to more than 1,200 euros per year (+177 to +418 compared to the Maggior tutela). If the customer, on the contrary, were to choose the variable price formula, he would find in the package of the large companies a few more commercial offers, with costs ranging from more than 940 to more than 1000 euros per year (from +158 to +212 compared to the greater protection) and a very rich range of alternatives in the ranks of the medium-small companies, with amounts varying from 880 euros to almost 1010 (with increases, compared to the Stg, ranging from 93 to 220 euros).

Family - renewable option with fixed or variable price

Let us try to change the scenario and consider, as a hypothetical customer, a household of four. Still living in Milan and looking for a convenient, banded, green and fixed price offer. Fluorescent lighting, 3 kW power, using electricity throughout the year and spreading it between household appliances, air conditioning, television and PC. Again, those involved are not aware of their total consumption. While the large players put on the market offers that range from 1028 to 1200 euros per year (with differences, compared to the Greatest Protection - which is 822, 48 euros per year - varying from + 200 to + 380 euros), the medium-small ones defend themselves with options that range from 1030 to more than 1690 euros per year (therefore, from +208 to +870 compared to the Greatest Protection). Switching, on the other hand, to the variable price (and keeping all the other parameters identical), it can be seen that the proposals are definitely more convenient: large companies move in a range that goes from 983 to more than 1070 euros per year (from +160 to +254 euros compared to the greater protection), medium-small ones instead in a range that goes from 927 to more than 1130 euros per year (from +105 to + 315 compared to the greater protection).

Family - non-renewable fixed or variable price option

Let us also imagine here that the same household decides, instead, to turn to an unsustainable alternative. The parameters remain identical, only the type of supply varies. As seen in the case of the single, in the case of the fixed price also here the large players do not propose market offers but fixed Placet options, ranging from 1426 to 1618 euros (from +604 to +795 euros compared to the Maggior tutela). More varied, on the other hand, is the proposal of the medium-small ones, with a range of tariffs that starts from over 1,000 euros and arrives, more or less, at 1212 euros per year (with increases, compared to the Maggior tutela, from +185 to +313 euros). Selecting, on the other hand, the variable alternative, only two of the big players put commercial offers on the table (with costs from over 980 to 1044 euros per year, which increase by +162 and +222 euros, respectively, compared to the 'Maggior tutela'). The small and medium-sized players, on the other hand, once again have a broad menu to suit all needs: they start at EUR 920 and go up to more than EUR 1,000 per year (+EUR 98 to +180 compared to the Maggior tutela).

ROME

Single - renewable option with fixed or variable price.

Having closed the chapter on Northern Italy, let us move to the centre of the boot. In particular, to the capital. Let's take as a case study that of a single girl, resident in Rome, intending to activate a renewable electricity offer at a fixed price per band. She has no idea how much she consumes per year, uses fluorescent lighting, wants 3 kW of power and manages the supply, throughout the year, dividing it between everyday appliances such as the washing machine and devices useful for work or private life such as the computer. Despite the geographical distance, tariffs only change by a few cents (rarely by a few euros) compared to Milan. Like the Milanese capital, the large players try to attract new customers with proposals ranging from 988 to over 1144 euro (with increases, compared to the greater protection - which is always 789.14 euro per year - ranging from +200 to +350 euro). The same goes for the medium-small ones, which propose tariffs ranging from over EUR 980 to around EUR 1221 per year (from +198 to +430 compared to the Greatest Protection).

Ditto for the variable option, which is still more advantageous than the fixed option in Rome. Large companies present customers with offers ranging from 9300 to more than 1000 euro per year (+140 to +240 euro compared to Maggior tutela), medium-small companies respond with alternative options ranging from 890 to more than 1030 per year (+100 to +240 compared to Maggior tutela).

Single - non-renewable option with fixed or variable price.

It would change little, from North to Central Italy, even if the same profile sought a non-green fixed-price offer. As seen before, the big players limit themselves, even here, to fixed Placet offers in addition to the commercial ones (which only include the sustainable option). The prices are between 1360 and 1624 euros per year (with differences, compared to the Maggior tutela, ranging from +580 to +835 euros); the medium-small companies, on the other hand, try to hold their own with a certainly larger repertoire, whose tariffs range from more than 960 to more than 1200 euros per year (+177 to +418 compared to the Maggior tutela). The variable-price alternative ensures more choice: among the large players, there are only two proposals with prices ranging from 947 to over 1000 euros per year (from +158 to +212 compared to the Maggior tutela); on the other hand, the medium-small players focus on amounts ranging from 880 to over 1000 euros (from +93 to +214 compared to the Maggior tutela).

Family - renewable option with fixed or variable price

Let us return again to the family of four and shift the parameters used for the single girl to this type of user. Always remaining in Rome. So, making a brief summary: the objective of the search is to track down an advantageous offer concerning a banded renewable electricity supply, at a fixed price. Zero information on annual consumption, few references to start from: 3 kW power, fluorescent lighting, year-round use and divided between household appliances and analogue/digital devices (hence, TV and PC). Here too, the differences compared to Milan are non-existent overall. Among the offers of the large players, they range from 1028 to more than 1200 euros (thus, compared to the Maggior tutela - equal to 822, 48 euros per year - there are increases from +205 to +383), those of the small ones instead range from 1030 to more than 1690 per year (from +208 to +870 compared to the Maggior tutela).

Looking at the variable option, large companies move within a range of between EUR 983 and over EUR 1070 (+160 to +254 compared to the 'Maggior tutela'), medium-small companies make a counterproposal that goes from EUR 927 to over EUR 1130 per year (+105 to +315 compared to the 'Maggior tutela').

Family - non-renewable fixed or variable price option

If, on the contrary, sustainability were not the first item on our family's list, the offers to be evaluated would obviously change. The research would use the same parameters, except for the type of supply to be considered. Compared to Milan, there is some difference here, but it remains in the order of one or two euros maximum. For the fixed price option, the large companies always present the usual fixed Placet (from 1426 to 1618 euros, therefore from +604 to +795 euros compared to Maggior tutela); the medium-small companies, on the other hand, amounts that change from over 1000 to 1212 per year (with increases from +184 to +390 compared to Maggior tutela).

For variable-price tariffs, on the other hand, only two of the big players put forward commercial proposals (with tariffs ranging from EUR 984 to EUR 1044 per year, from +162 to +222 compared to the Maggior tutela); the small ones move from EUR 920 to EUR 1003 per year (from +98 to +180 compared to the Maggior tutela).

PALERMO

Single - renewable option with fixed or variable price.

Last stop: Southern Italy. Let us imagine, even in this last example, that a single person, resident in Palermo, is searching on the Arera portal for a renewable electricity offer by band, at a fixed price. The parameters are the same as in the previous cases: therefore, no reconnaissance of annual consumption, power chosen at 3 kW, fluorescent lighting, supply used over all 12 months and distributed among various appliances, air conditioning, computer and television. Prices are mostly similar to those in Milan and Rome, unlike for gas. Thus, the large companies guarantee proposals ranging from 980 to over 1144 euro (therefore, compared to the 'Maggior tutela' - which also has a value of 789, 14 euro per year - with increases ranging from 200 to over 350 euro). The medium-small companies, in parallel, respond with tariffs ranging from over 980 to 1221 euro (+198 to +430 compared to the Maggior tutela).

Turning to the variable price alternative, the large players have tariffs starting from 930 to over 1000 per year (with increases, compared to the higher protection tariff, varying from +154 to +240), the medium-small ones from 890 to over 1030 per year (from +100 to +240 compared to the higher protection tariff).

Single - non-renewable option with fixed or variable price.

Little would change, compared to the other examples examined, even if the individual in Palermo opted for a non-green offer with a fixed or variable price (net of the other parameters, which remain unchanged). As far as the fixed price option is concerned, once again if one turns to the large companies, one can only and exclusively consider the fixed Placet and not the commercial offers (which only contemplate the use of energy from renewable sources), with variable costs from 1369 to 1624 euro per year (from +580 to +835 compared to the Maggior tutela). The small ones, on the other hand, widen the scope of action (and choice) more, with offers ranging from over 960 euro (+177 compared to the Stg) to over 1200 (+418 compared to the Maggior tutela).

Diverting to the variable option, even in Sicily the tariffs prove to be more affordable than the fixed ones. We are talking, for the large players, of market offers (there are still a few) that go from over 940 to over 1030 euro per year (from +158 to +245 compared to the Maggior tutela). For the small ones, on the other hand, of costs that move in a range between 880 euro and over 1000 euro (from +93 to +214 euro compared to the Maggior tutela).

Family - renewable option with fixed or variable price

In this last hypothesis, let us consider the case of a family, resident in Palermo, consisting of four members and intending to take up a renewable electricity offer in bands, at a fixed price. Zero idea of annual consumption, 3 kW power, fluorescent lighting, supply to be used throughout the year and distributed among household appliances, PCs and TVs. The same leit motif returns: price differences compared to Milan and Rome are almost non-existent. The large players take the field with offers that go from over 1020 euro to 1160 euro per year (with increases, compared to the Maggior tutela equivalent of 822, 48 euro, varying from +205 to +338 euro), the small ones respond with rates from over 1030 to over 1690 euro per year (from +208 to +870 compared to the Maggior tutela).

Concerning the variable option: the large players offer tariffs ranging from more than 980 to 1077 euro per year (+160 to +254 euro compared to the Maggior tutela). The small and medium-sized suppliers offer customers options ranging from 920 to over 1050 euros per year (+105 to +228 euros compared to the Maggior tutela).

Family - non-renewable fixed or variable price option

Let us close the review with the last example. The family remains the same, the parameters used as well, only the type of supply changes, from renewable to non-renewable. By opting for a fixed-price offer, the small players meet their customers' needs with proposals ranging from more than 1,000 to over 1,200 euros per year (from +184 to +390 compared to the Greatest Protection), while the large players continue to restrict the package to fixed Placet (from 1426 to 1618 euros per year, with increases from +604 to +795 compared to the Greatest Protection). Finally, by choosing a variable price offer, if the family prefers the large companies, it will have to make do with a limited choice: only one offers a tariff of over 980 euros per year (+162 euros compared to the Greatest Protection). The small ones, on the other hand, have tariffs ranging from 920 to over 1,000 euro per year (i.e. increases compared to the 'Maggior tutela' from +98 to +180 euro).