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Electricity bills: what prices should those who don’t switch to the free market expect?

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Electricity bills: what prices should those who don’t switch to the free market expect?

Now that the names of the electricity companies that will manage the Gradual Protection Service (Stg) have already started to circulate, “only” the most important information is missing: How much will consumers who do not choose the free market pay? In fact, in July the protection of electricity will end and those who have not made any choice will end up in this regime.

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What are graduated protections?

A middle ground between protection and free market: the contractual conditions are established by the Arera energy authority, while the price will be indexed, unique at a national level and it is impossible to say today. Because it depends on the final outcome of the tenders, in which various operators are competing for customers who will not have switched to free in July, divided by geographical lots. Auctions that will end on February 6th.

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Is gradual protection or the free market more convenient?

A certain answer will only be known close to July, when it will be known how many customers will be left and the rate will be able to be calculated precisely. In the meantime, however, we can make some considerations. The Stg will be – as mentioned – a variable price, (exactly like the protection that is about to retire for the non-vulnerable) indexed to the Pun, i.e. the wholesale market price. This price is downward and significantly lower than any fixed price offered by free market operators. What does it mean? That under today’s conditions, gradual protection will certainly be more convenient than fixed offers on the free market. And there is a good chance that they are also compared to the indexed ones, always on the free market. Because the price of the Stg will be an average of the tariffs proposed by all the operators who won the auction, and will also include the discounts that they have introduced on the fixed component (the so-called “monthly fee” of the bill). But there is another aspect to consider. On the free market, operators can offer discounts or promotions that could tip the scales in their favor. A visit to the Arera offers portal is recommended in any case.

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What are the contractual conditions?

The same ones I like it, which can be consulted in full at this link. To summarize some of them: invoicing will be bimonthly; you can pay by direct debit, postal order or credit card but also with a simple payment slip. In the latter case, a security deposit of 11 euros will be required for each kilowatt of committed power (most families have three, which means a 33 euro deposit).

Will the operator change?

It’s not for sure. Let’s take an example: if a consumer is already a customer of Enel or Hera, there is some greater possibility that he will remain under the same roof. In fact, the two companies have secured 7 lots each for a total of 1.4 million customers each. But Iren also did well with 4 lots corresponding to around 400 thousand customers. But a different operator could also happen: only in February will there be certainties.

How long does the Stg last and what happens next?

The graduated protections will last three years. After these 36 months there will be no extensions and customers will have to move to the free market.

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