The Council of Ministers approved a decree law to contain the effects of price increases in the electricity and gas sector in the fourth quarter of 2021. The new measures are aimed at the benefit of the more than 3 million people who benefit from the “energy bonus”: nuclei who have an ISEE lower than € 8,265 per year, large families (ISSEE € 20,000 per year with at least 4 children) income earners or citizenship pension, users in serious health conditions. For these, the effects of the future increase in the bill tend to be eliminated.
For about 6 million very small and small businesses with low voltage users for 26 million households up to 16.5 kW, the rates relating to general system charges will be zeroed.
As for gas, for about 2.5 million people who benefit from the “gas social bonus”, the effects of the expected increase in the bill tend to be eliminated. For all other users, the VAT currently set at 10 and 22% depending on consumption, is increased to 5%.
How the electricity bill is composed
The electricity or gas bill is made up of various items. The average customer pays not only for what he consumes but for other services ranging from energy transport, to meter management, to system charges which represent the most ‘varied’ item where the most diverse components enter (on all incentives renewables and the costs of decommissioning nuclear power plants). In the third quarter of 2021, explains Arera, the composition of the price in the bill consists of: energy (59.2%), transport and management of the meter (17.5%), taxes (12.6%) , system charges (10.7%).
EXPENDITURE FOR ENERGY It includes the amounts invoiced for the various activities carried out by the seller to supply electricity to the final customer. The total price applied in the bill is given by the sum of the prices for the following components: Energy price: corresponds to the expected cost for the purchase of electricity which is then resold to end customers. It also includes network losses, ie the cost of energy that does not reach the delivery point in a useful way. Dispatching: covers the cost of the service which guarantees, at any time of the day, the balance between the overall energy fed into the electricity grids and the overall energy withdrawn by end customers. Equalization: component that serves to ensure that the overall amounts paid each quarter by customers served under the protection regime with the Energy Price (PE) and Dispatching (PD) components are equivalent to the purchase and dispatching costs actually incurred to provide them with power. Marketing: corresponds to the fixed costs incurred to carry out the commercial management activities of the customers. Dispatching component: serves to offset the difference between the overall amounts paid through the marketing component and the commercial management costs recognized to sales companies under the protection regime (other than those of free market sales companies).
EXPENSES FOR TRANSPORTATION AND METER MANAGEMENT Includes the amounts invoiced for the various activities that allow sellers to deliver electricity to end customers.
SYSTEM CHARGES Includes the amounts invoiced to cover costs relating to activities of general interest for the electricity system, which are paid by all final customers of the electricity service. The total price includes, from 1 January 2018, the components: Asos (general charges relating to the support of energy from renewable sources and CIP 6/92 cogeneration) and Arim (remaining general charges such as nuclear safety and territorial compensation measures o electricity bonus, promotion of energy efficiency). TAXES Includes items relating to consumption tax (excise duty) and value added tax (VAT). The excise duty is applied to the quantity of energy consumed; domestic customers with power up to 3 kW enjoy reduced rates for supply in the residence of their registry office. VAT is applied to the total amount of the bill. Currently, for domestic users it is equal to 10%, for non-domestic users it is equal to 22%; some productive activities enjoy the reduced rate of 10%.
TELEVISION SUBSCRIPTION FEE This item is present only in bills in which a portion of the television subscription fee due for the current year is charged.