The gas price jumped to 244 euros per megawatt hour yesterday on the European reference wholesale market Ttf in Amsterdam, with a maximum of 261 and a seemingly unstoppable growth trend. Stefano Besseghini heads the Arera, the regulator of energy, networks and the environment.
Which autumn awaits us?
Meanwhile, the price of gas is stable at high levels and this is being transmitted through the system, affecting industrial supply chains, supply and citizens’ bills. Since the price hikes began, the government has provided around 30 billion in tools to support the general consumer and with targeted interventions by energy-intensive industries and vulnerable families. At these price levels, however, energy costs will also become prohibitive for other sectors of the economy and for medium-sized families, unless the EU intervenes.
As?
Strongly push for the reduction of consumption in order to reduce the centrality of gas, explicitly propose a gas price cap or any other mechanism that allows better control over TTF prices. In addition, it could temporarily suspend the ETS market, the securities linked to the emission of CO2, which will affect the electricity market in particular. Any intervention, whether European or national, must take one crucial aspect into account.
The?
The extremely complex energy system. Consumer protection and market retention are two variables that must always be combined in a delicate balance which, as recent events in Germany show, means that the former inevitably suffers the difficulties of the latter.
Are there operators in crisis?
Certainly. And there is an alarm. Now also for the blocking of unilateral contract changes introduced with the DL help. The most critical period will come in autumn-winter, when there is the greatest demand.
With the socialization of fees, the arrears on the bills of the payers are paid off. Is there a “hit”?
far from immediately. In the meantime, only the network charges and the regulated components are socialized; now they are borne by the state and no longer the raw material. Then we set a filter of a few years that the operator has asked to recover unclaimed credit.
Do you fear an increase in arrears?
Controlled so far, but likely to increase. Currently, the arrears are limited thanks to state aid, which will be extended to people with an ISEE of up to 12,000 euros and to vulnerable families. The social bonus now reaches over three million families, compared to 700,000 before it became automatic in 2021. But there is a regulation that will secure the future: transfer of the system taxes, at least the parts with a social purpose, to general and progressive taxation. The bill exposes you to potential paradoxes as energy use is not a good indicator of income capacity. Low consumption can characterize the one-room apartment of the single pensioner as well as the young, high-income single who lives little at home.
What income do you expect from the special profit taxes?
Arera participates in the mechanism that applies to renewable generators. We do the analysis. The first revenues are expected in mid-September and could be between 1 and 1.5 billion. Resources that cover general system costs.
What else can be done?
Not much, under the current rules. We have revised the calculation of the raw material costs in the gas bills. From October, it will be linked to the Italian PSV market and no longer to the European TTF, and the periodicity will change from quarterly to monthly. This will allow us to update tariffs based on a more recent price and not the price set months ago, also to respond to signs of operators’ difficulties in concluding contracts for next winter. If the price drops in October due to the European upper limit or for other reasons, the benefits can be transferred to the bill promptly.
It seems to understand that the price will hardly go down. What else do we have to do?
From now on, it makes sense to consume less, spend less individually, but also reduce the general demand, which would cause the price to drop.
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