From today the market with greater protection for the gas bill ends for non-vulnerable families who will have to choose (many have already done so in the past months) a tariff on the free market, deciding whether to remain with the same seller (but with a different and free offer ) or contact other sellers. In recent weeks, non-vulnerable customers who were in the protected market received a letter from their supplier offering new tariffs. They will be able to select one of these. Alternatively, they can look for a new gas operator on the market on their own (for example, by consulting the tariffs published on Arera’s portalofferte.it). But how to do it? Is it better to choose the fixed rate or the variable rate which is exposed to the price trend of the raw material on the financial markets? We searched among the proposals published on the Arera portal and here are the differences between fixed and variable.
Protected electricity market, what is the mini extension: this is when it is best to change operator
What you need to know
First of all, it is important to know that of all the items that make up the bill, competition in the free market is based on only two components: the costs for energy, the raw material, also called the energy quota (expressed for electricity in euros per kilowatt hour, kwh, for gas it is in euros per standard cubic meter, smc); and the fixed marketing fee. However, all the other components do not change, such as the costs for transport and management of the meter or the various taxes (system charges, excise duties, regional surcharges, VAT depending on whether it is electricity or gas). Be careful because energy companies on the phone or at info points often only give the amount they are responsible for, energy quota and fixed quota, but it is a mistake to compare those amounts with the invoice you are paying, which instead includes everything. Some then, incorrectly, create confusion by indicating only the energy quota, representing the discount compared to the protected amount, “forgetting” to also explain the fixed marketing quota, which, if the user’s consumption is low, being fixed and paid independently of as much as it consumes, it eats up all the savings on the energy quota. In short, you need to do the calculations well by adding both items.
The cost of gas bills: farewell to the protected market: extra spending of 242 euros per year with the fixed one and a saving of around 50 euros with the variable one Sandra Riccio 10 January 2024
Where to look for key data
Understanding which costs really save us is not easy. Despite the many requests from consumer associations to simplify the bill, being able to put together the key information is a puzzle. Many items that are central to decisions are not on the invoice and must be requested via the call center.
This is the case of the fixed marketing fee which varies depending on the operator and can even reach 40 euros per two months for non-residents, compared to 5 euros for residents of some large operators. In some cases, you have to pay to get this information. The call centers of some operators are in fact paid: with the National Electricity Service you spend more than 4 euros via mobile phone to clarify how much you pay on your bill. The alternative is to download the detailed bill (or have it sent to you by post together with the invoice). The bills that arrive at our homes are in fact synthetic and from these we cannot obtain either the data on the price of the raw material or the data relating to the fixed marketing quota.
Fixed Offer
Doing a search on Arera’s portalofferte.it, the best fixed tariff for a non-vulnerable family residing in Milan and a consumption of 1,400 smc per year, on 10 January 2024, is that of Enel Energia with a cost of 1,815 euros per year (for cooking food, hot water and heating). Following are the proposals of two lesser-known companies: Gas Sale (1,816 euros) and Gritti Energia (1,837 euros). In any case, all 193 offers that resulted from the search on the Arera portal are less convenient than those for vulnerable families, i.e. the tariffs still protected (vulnerable customers will not switch to free and will remain protected in May with the prices set periodically by the Authority). In this case the expense stops at 1,597 euros per year, equal to a saving of 218 euros.
What is surprising is finding tariffs of 9 thousand euros per year which are those at the bottom of the search carried out for the cheapest price.
Variable Offer
Searching among the results on variable tariffs for non-vulnerable families, it emerges, again for Milan and with the same consumption, that the most convenient cost is that proposed by the Gala company with 1,554 euros per year, followed by Argos (1,560 euros per year ) and by Edison Energia (1,580 euros). In the case of the variable, the proposals are many more and reach almost 500 compared to around 200 for the fixed. In this case, there is a saving on the free person: the Arera comparator gives the protected person’s offer an expense of 1,597 euros per year, which means that the cost of the protected person is higher than the free person, contrary to what happened for the fixed price. Even with the variable tariff, monstrous expenses emerge of 8,500 euros per year.
What is the Placet supply and is it worth it?
As Arera explains, «The Placet supply (Free Price With Equal Protection Conditions) is a supply with the same seller, with some conditions which however are defined by the Authority, with the exception of a fixed annual component defined by the seller. The price is freely decided by the seller and renewed every 12 months. The price structure is established by the Authority and mandatory while the contractual conditions (for example guarantees, installment payments) are established by the Authority and mandatory.
Is there a risk of running out of gas?
It should be underlined that under no circumstances will there be an interruption in the energy supply.
What will happen to gas prices now that they are liberalized?
There are many gas operators operating on the market. The hope is that this step will lead to more competition and therefore lower rates. Consumer associations are sceptical: «We are convinced that the end of the protected market will prove to be a massacre for consumers’ pockets – states Carlo Rienzi, president of Codacons -. This is due both to the strong volatility of energy prices, with international markets continuing to be subject to speculation and anomalies, and to the failure to provide comprehensive controls throughout Italy on free market operators and on incorrect and aggressive practices damage to users”.
Meanwhile, the first signs of a transition full of pitfalls are already emerging. Analyzing the data, it turns out that in the south you will pay more than in the north, that non-vulnerable offers that are more convenient than rates for vulnerable people are very rare and that on free you will spend around 250 euros more per year already now for landline. The National Consumers Union has found that out of a total of almost 500 offers on the Arera Portal relating to the two largest cities in Italy, Rome and Milan, only three from the free market are more convenient than both Placet and Vulnerability. Codacons, on the other hand, has calculated how much the transition to the free market will cost families if a fixed or variable price contract is chosen. The result is an extra expense of 242 euros per year per family with the fixed one and a saving of around 50 euros with the variable one (1,905.43 euros per year per family, 14.56% heavier than the average bill estimated by Arera for 2024 for users who will remain in the protected market). With the variable price contract, i.e. indexed to market trends, the average gas bill, considering only the best offer in the various cities, stands at 1,620.55 euros per year (-2.57% compared to the protected price of 2024, equal to 42.97 euros less per year. Assoutenti carried out a survey in 20 Italian cities on the new costs of supplies. For landline, in Rome there is the highest expense for those who today choose a free market operator (2,045 euros per year). In second place among the main cities is Catanzaro (2,032 euros), followed by Palermo (2,024 euros). On the opposite front, the city with the best fixed price offer is Milan with 1,816 euros per year (best offer on the Arera portal) with a saving of 229 euros compared to Rome. Trieste, Bolzano and Trento follow with around 1,837 euros per year. Even for variable price contracts, Rome holds the record for the most expensive “estimated” bill, with an average of 1,754 euros per year per family. Followed by Catanzaro (1,739 euros) and Palermo (1,723 euros). The city with the most convenient variable price contract is Trento, with an average bill estimated at 1,553 euros per year, followed by Trieste, Bolzano and Milan with around 1,554 euros. Regional taxes but also different coefficients and transport costs have an impact. «In general, citizens who live in southern Italy appear to be the most penalized by the stop to the protected gas market, as the operators’ offers present more disadvantageous economic conditions» states the honorary president of Assoutenti, Furio Truzzi».
What will happen to vulnerable people living in condominiums?
Due to a flaw in the legislation governing the end of the protected market, starting from next January 10th vulnerable gas users residing in condominiums with central heating systems will have to move to the free market, despite having the requirements established by law to remain in the greater protection regime. The complaint comes from Assoutenti, who raised the issue during a hearing at the Chamber’s Productive Activities Commission.
Who are the vulnerable?
You are considered vulnerable customers if you are the holder of the supply contract and are in one of the following conditions: 75 years of age, recipient of a social gas bonus (by ISEE level), person with a disability pursuant to art. 3 of Law 104/92. The user is in an emergency housing facility following calamitous events.
If you are in a vulnerable situation and have not yet communicated to Arera, you can ask your seller to enter the Vulnerability Protection Service. To find out if you are vulnerable you can consult the Arera website or call the toll-free number 800.166.654.