May 21, 2025
Italian electricity bills will incorporate extra charges for licenses.
Italian electricity bills will see increased costs due to new charges on utilities for license extensions, announced Enel, Italy's largest power provider. Last year, the government extended electricity distribution licenses, originally set to expire in 2030, by up to 20 years. In exchange, utilities were required to make a one-time payment to the state and provide additional investment plans for grid improvements.
While the government hinted that some of the funds from utilities might help lower energy bills, no action has been taken on this yet. Enel informed investors ahead of its May 22 shareholders meeting that the one-time payment and extra grid investments will be included in domestic energy costs. The government has not specified when the one-time payment will be implemented.
In 2022, Italy's average electricity price reached 109 euros ($122.61) per megawatt hour, nearly double that of France, leading to demands from industrial and retail customers for reduced power bills. Government officials are negotiating with utilities to finalize their investment plans and one-off payments.
In March, the Italian energy authority ARERA stated that the payments and investment plans from utilities would increase their regulated asset base (RAB), allowing for an annual return of 6.5%. Enel leads power distribution, while regional utilities like ACEA and A2A oversee smaller network segments.
While the government hinted that some of the funds from utilities might help lower energy bills, no action has been taken on this yet. Enel informed investors ahead of its May 22 shareholders meeting that the one-time payment and extra grid investments will be included in domestic energy costs. The government has not specified when the one-time payment will be implemented.
In 2022, Italy's average electricity price reached 109 euros ($122.61) per megawatt hour, nearly double that of France, leading to demands from industrial and retail customers for reduced power bills. Government officials are negotiating with utilities to finalize their investment plans and one-off payments.
In March, the Italian energy authority ARERA stated that the payments and investment plans from utilities would increase their regulated asset base (RAB), allowing for an annual return of 6.5%. Enel leads power distribution, while regional utilities like ACEA and A2A oversee smaller network segments.