Business · Energy & Commodities · 2 hrs ago
EU and Italy near agreement on plan to reduce gas costs in electricity prices
The EU and Italy are close to an agreement on an Italian plan to reduce the effect of gas costs on electricity prices.
The European Commission says the proposed measure could proceed if it meets EU rules, but final technical discussions are still needed.
Gas-fired power generation costs affect the overall price of electricity, which matters to households and businesses.
The plan aims to ease that price pressure, but officials have not yet set out the savings, start date or details of how lower costs would reach bills.
Italy has also sought flexibility under EU budget rules to support energy measures, including help for vulnerable households and energy-intensive businesses.
That flexibility is not EU funding, and eligible spending must meet conditions; a separate approval by the EU Council is still required.
The final agreement and technical details are still pending.
The European Commission and Italy are close to a preliminary agreement on a measure to reduce the effect of gas-fired electricity generation costs on electricity prices.
The Commission says the measure could be compatible with EU rules, but final technical discussions are still pending.
The agreement would not by itself approve every form of energy support or determine the savings for households and businesses.
Italy has cited about €14 billion in multi-year fiscal room for addressing high energy costs, subject to EU conditions.
- Who
- The European Commission and the Italian government.
- What
- They are close to a preliminary agreement on a measure to reduce the impact of gas generation costs on electricity prices. Final technical discussions remain.
- When
- 14 October 2026. The Commission said discussions had continued over recent months.
- Where
- Brussels and Italy.
- Why
- To reduce the weight of gas-fired generation costs in the overall price of electricity.
This story does not have two clearly opposing sides.
The Commission viewed Italy’s request to activate the national escape clause positively, while noting that the EU Council would need to give final approval.
The Commission said a preliminary agreement with Italy on the electricity-price measure was taking shape, subject to final technical discussions.
- Fiscal room cited by Italy
- About €14 billion over multiple years
- Energy spending limit
- 0.3% of GDP per year
- Cumulative energy limit
- 0.6% over 2026–2028
- Overall escape-clause limit
- 1.5% of GDP
3 sources
What people are saying
We are close to a solution compatible with EU rules, which would allow the proposed measure to be implemented and would in effect reduce the impact of the costs of producing electricity from gas on the overall price of electricity.
No one can respond effectively alone