Because the electricity and gas bills will catch fire

14 September 20213 years ago babelfish

According to the Minister of Ecological Transition, Roberto Cingolani, electricity bills will increase by 40 percent in the next quarter. Here are words, causes and scenarios

The bill case explodes in Italy. And not only in Italy .

According to the Minister of Ecological Transition, Roberto Cingolani, in the next quarter (October-December) electricity bills will increase by 40 percent.

WHAT CINGOLANI SAID

Speaking at a CGIL conference in Genoa, the minister said that "last quarter the electricity bill increased by 20%, next quarter it will increase by 40%".

“No one is questioning that the ecological transition should be made as soon as possible, without delay and with enormous sacrifices,” added the head of the Ecological Transition department. “I really believe in the ecological transition, but it cannot be done at the expense of vulnerable groups. These things must be said, we have a duty to face them ".

THE EXPLANATION OF CINGOLANI

According to the minister, the increase in electricity tariffs "happens because the price of gas at the international level increases, it happens because the price of CO2 produced also increases".

THE PRICE OF GAS

The cost of gas has actually increased in recent months: it has to do with the recovery of energy demand from companies after the end of the lockdowns, especially in China, and the cold wave in the last part of the winter that brought levels down of stocks . The price of gas is very high on the European market and could increase further during the autumn and winter, given the greater demand for energy for heating in these seasons.

THE PRICE OF CO2

Cingolani also speaks of the “price of CO2”, carbon dioxide: It refers to the emission certificates that are traded within the European ETS market.

in short, the European Union has created a market that guarantees companies a certain number of “pollution” quotas per year, which they must not exceed; this number decreases over time, and less polluting companies can sell their unused quotas to those that would otherwise exceed the maximum threshold.

The system – which Brussels, with Fit for 55 , intends to relaunch to achieve its climate objectives – aims to encourage the transition to clean energy through the progressive increase in the price of carbon. The price actually reached very high levels, with negative repercussions on the cost of electricity and gas bills for users.

THE JULY-SEPTEMBER INCREASE

As recalled by Cingolani, there was a significant increase in the cost of electricity and gas bills in the July-September quarter, respectively by +9.9 and +15.3 percent. The causes of this increase are those already seen: the “price of gas on international markets” and the “rights for CO2 emissions”, as explained by the president of Arera (the Regulatory Authority for Energy, Networks and the Environment) Stefano Besseghini.

The increase could have translated into an expense greater than 280 euros per family; the impact on consumers was, however, buffered by the intervention of the government , which allocated 1.2 billion euros of the Labor and Business Decree to reduce system costs.

WHAT WILL HAPPEN NOW

Repubblica writes that the increase in the price of electricity of about 40 per cent in the period October-December could mean – in the absence of government intervention – a higher expenditure for families of up to 500 euros per year: 100 euros per year. 'electricity and 400 for gas (considered the higher consumption for heating).

TABARELLI'S COMMENT ON THE WORDS OF CINGOLANI

Interviewed by Repubblica , Davide Tabarelli – professor at the University of Bologna and president of the research company Nomisma Energia – said that “from the market prices we would have expected an important leap, even up to 25-30%. But not as announced by Minister Cingolani ”.

To understand why, according to Tabarelli, it is necessary to consider “the method by which the costs of bills are formed every three months. They are also calibrated by the Authority on the basis of the forecasts of the following quarter: the new increases in gas prices on international markets due to the increase in demand in Asia and unpredictable circumstances such as the calm on the North Sea in recent weeks, which has almost zero wind power generation in Northern Europe starting from Great Britain, they influenced the final account ”.

According to Tabarelli, “the emergency will end in the middle of next year. The situation in Europe is momentary, dictated by the demand for gas from Asia and by fears of a cold winter that forces everyone to fill their deposits. To which must be added some technical problems of the fields in Russia, the first supplier to the EU. Then, however, we should talk about the role of Europe. These are phases that should be better managed ”.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/roberto-cingolani-bollette-luce-gas-aumento/ on Tue, 14 Sep 2021 07:14:35 +0000.