Bad news for Italian families After the three-month discount, the gas bill has started to rise again. For a typical protected core, tariffs for consumption in April 2023 increased by 22.4% compared to March. Although there was a slight decrease in the average wholesale price last month, the increase was mainly driven by the UG2 discount component, which was envisioned by the last ‘decree’ (Decree 34/2023) to benefit consumers to offset the increases last year.
Gas bills rose 22.4% in April
With regard to the component of the gas price currently charged to customers under protection, covering the costs of supply (Cmemm), this is updated by Arera as the monthly average of the price in the Italian wholesale market (PSV days ahead) and published within the first 2. business days of the month following the reference month. For April, when the average wholesale price was slightly lower than in March, the price of gas raw material alone (Cmemm) for customers with contracts under protected terms is 44.83 euros/MWh. Therefore, the overall increase in typical user consumption in April compared to the previous month is determined by a slight decrease in natural gas expenditure of -3.1% and a decrease in the tariff associated with transport and transport expenditures. The metric was -4.0% offset by a +29.5% increase in overall fees for the UG2-linked portion. This determines the final +22.4% for a typical family.
Even against the overall increase in the bill for April, in terms of final effects, gas expenditure for a typical household in the rolling year (May 2022-April 2023) is €1532.49, recorded as -3.9. % over the equivalent 12 months of the previous year (May 2021-April 2022). “The increase will likely be less perceived, because the year now comes when the heating is off and families’ gas consumption is minimal,” says Stefano Besseghini, president of Arera. “We should not forget that we chose the path of returning to normal, where the energy system was called to balance, without resorting to state finances to deal with the crisis.”
Finally, Arera recalls that there was no ‘decree’ on the note. 34 of 2023 achieved a VAT reduction of 5% for gas for the second quarter of 2023 and reset the remaining overall system charges. Given the continued decline in wholesale gas prices, the negative rates of the UG2 tariff component applied to consumption segments up to 5,000 cubic meters per year are instead confirmed to a lesser extent, equal to 35% of the applied value. First quarter of 2023.
Consumer associations: “Bad news”
The increase in the gas bill reported by Arera has raised concerns in consumer associations, as evidenced by the comment of Marco Vignola, head of the energy sector at UNC (National Consumers Union): “Bad news for Italian families. The fall in the cost of gas in the wholesale markets in Italy Due to the government’s decision to reinstate some of the system fees, the gas price rises instead of falling. 7.1% bill. A poor choice that requires an implied hidden tax equal to 309 Euros on an annual basis. Tax still in effect, such as 5% VAT a serious decision considering the bills are much higher despite the discounts more than normal times.
According to the UNC research, if +22.4% for a typical family under guardianship means 235 euros more spending on an annual basis, there would instead be savings equal to 75 per year if there were no expenses. Also, total spend over the next twelve months (hence from April 1, 2023 to March 31, 2024, assuming fixed prices, not year rounded) remains high. a total of 1924 euros a pain. Finally, 308 euros are now paid more, +31.6 percent, compared to the last regular year 2020, when the annual expenditure was equal to 975 euros.
Assoutenti’s chairman, Furio Truzzi, described the government-agreed discount cut as “totally untimely”: “The principle of consistency in bills and the complete or partial non-implementation of system fees is required. Limiting excessive volatility in raw material prices and curbing rapidly rising inflation, On the one hand, the need for a new tariff increase. recorded when the radiators are turned off, on the other hand the increase in bills has direct and severe effects on inflation, Therefore, we ask the president of Arera to accept our proposal to remove system charges in electricity and gas until the inflation emergency in Italy is over, and present it to the government as a control measure. ” .
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
