Business · Energy & Commodities · 20 mins ago
Italy approves gas price cap plan to lower electricity costs
Italy’s cabinet has approved a plan to limit gas costs for power plants that use gas to make electricity.
The plan sets a cap of about 59 euros per megawatt-hour for that gas and is expected to begin on January 1, 2027.
Because Italian wholesale electricity prices are closely linked to gas prices, lowering the fuel cost could also reduce electricity prices for households and businesses.
Power producers would be reimbursed for the difference between the cap and the market price, with the cost covered through a charge on bills.
The government expects an average reduction of about 15 euros per megawatt-hour, while opposition figures say households may save only about 1.4 euros a month.
Meloni says the benefits will take time to appear and expects the largest savings for businesses that use more electricity and generate some of their own power.
The decree also cuts system charges by more than 850 million euros, and the government says the measures are intended to ease energy costs.
Italy’s Council of Ministers approved a decree that caps the price of gas used to generate electricity at about €59 per megawatt-hour.
The cap is due to take effect in January 2027 and last 18 months.
The government says the measures will reduce electricity prices by an average of about €15 per megawatt-hour.
The decree aims to lower wholesale electricity prices and, in turn, reduce costs for consumers and businesses.
Opposition leader Angelo Bonelli said the estimated benefit for households would be only €1.40 a month.
- Who
- Italy’s Council of Ministers approved the decree. It was announced by Energy Minister Gilberto Pichetto Fratin.
- What
- The decree caps the price of gas used by power plants and aims to reduce electricity costs.
- When
- Approved on November 9, 2026. The system is due to start in January 2027 and last 18 months.
- Where
- Italy.
- Why
- To lower wholesale electricity prices and reduce energy costs for households and businesses.
Government
Opposition
Expected impact
Government
The government says the measures will cut electricity prices by an average of about €15 per megawatt-hour and benefit consumers and businesses.
Opposition
Angelo Bonelli said the benefit for families would be only €1.40 a month and called the measure inadequate.
Approach to energy costs
Government
Giorgia Meloni said the government’s duty was to defend citizens’ interests and pass lower renewable-energy costs on to users.
Opposition
Bonelli said the decree relied on temporary measures and failed to address Italy’s structural dependence on gas.
Italy’s Council of Ministers approved the new decree on electricity bills.
The gas price cap is due to take effect.
The planned period of the cap ends.
- Gas price cap
- About €59 per megawatt-hour
- Expected wholesale price reduction
- About €15 per megawatt-hour
- Planned start
- January 2027
- Duration
- 18 months
- Estimated household benefit cited by opposition
- €1.40 per month
9 sources
Pichetto: "Dal Decreto Bollette una riduzione del 4-5% del prezzo finale dell'energia"
Meloni Backs Gas Price Cap to Curb Bills Ahead of Italy Election
Ok del Cdm al nuovo decreto Bollette, ma l’impatto è minimo. Le opposizioni: “Appena 1,4 euro in meno al mese”. Meloni: “Gli effetti richiederanno tempo”
Dl Bollette approvato, da gennaio taglio di 15 euro a megawattora. Meloni: «Difendiamo i cittadini, scontentiamo i produttori»
What people are saying
Starting in January, overall, the decree’s measures will allow an average reduction of about 15 euros per megawatt-hour.
We know that correcting this mechanism may displease those who have gained very high returns from it. But our task is to defend the interests of citizens.
The Meloni government loudly announces a reduction of 15 euros per megawatt-hour, but for families the benefit amounts to just 1.4 euros a month.