Gas: what changes in the bill from 1 October

Gas: what changes in the bill from 1 October

While the energy crisis in Europe worsens and the price of gas rises again in view of the announced closure for maintenance of the Nord Stream gas pipeline from 31 August to 2 September, on 1 October the way in which the price of gas is calculated will change. gas in the bill. The Authority for Energy, Networks and the Environment (Arera) will introduce measures to protect consumers and guarantee the continuity of supplies. This is a decision taken considering the large price increases in recent months: on 26 August last year it reached 343 euros per megawatt hour in the title transfer facility (Ttf) in Amsterdam, the main European market for trading raw materials. Let’s see what this actually means and how the price of gas is established.

Arera’s idea was to help those who are still under contract of greater protection and have not switched to the free market, which has existed since 2007 and which provides that companies that sell gas and electricity can offer different types of offers with variable rates. The tariffs of the protected market, which will still exist until next January for gas, unless further postponed, are established by the authority and currently concern approximately 7.3 million households. Their rates have so far been updated every three months, following the trend of the Ttf, a virtual platform and also an index of the Amsterdam stock exchange, where gas and related “futures” are sold and purchased, ie contracts to exchange a certain amount of raw material at a future date and at a predetermined price.

It is clear that, like all exchanges, the prices of the Amsterdam trading center can be affected by the economic and political influences of the day. And now, in view of autumn and winter, the fear of all European governments is that Russia could cut gas supplies for a very long period of time, with dire consequences for the bills. Not to be forgotten, then, is the fact that the TTF affects not only the contracts in the protected market, but also those of the free market, because many supply contracts provide for updates to the index or prices of the greater protection. The index also directly influences the cost of the raw material itself, although not everything passes through the Ttf: the reference item is that which concerns gas as a raw material, therefore net of transport and management costs and the so-called costs of system.

Gas: what changes in the bill from 1 October

Precisely these last expenses are the first that will be absent in the next quarter, due to the government aid decree that has canceled them. Not only that, because Italy also has its own index, the “PSV”, which stands for “virtual trading point”. And this is what the Arera will do in October to establish the prices of the protected market, which will be updated once a month instead of quarterly. A change that, according to the intentions of the institution, will help to deal with the situation thanks to the most frequent updates.

According to Arera, this new system that goes from month to month should allow companies to be able to better deal with any market shocks and significant changes in prices, because they will not have to do it at a loss and will be more protected from the risk of not being able to supply gas. to its customers. Consumers will also be able to better manage certain advantages: if the European price cap were to become a reality, the repercussions will be immediate.

The energy authority explained that “the measures adopted, while not being able to structurally act on the exceptional levels of market prices, aim to make supplies to consumers safer”. And he added: “Naturally, these interventions must be accompanied by national and international initiatives to restore the balance between supply and demand, such as the reduction of the former on a voluntary basis and the identification of mechanisms for the management of interventions in the event of an emergency” .

“Energy bills will double, so the cost is unsustainable even for the middle class”

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