What will the government do to extinguish the expensive bills
In the period October-December, electricity bills could increase by 40%: what will the government do? Here are the hypotheses and the precedents
Government at work to extinguish the expensive bills. Here are all the details.
THE WORDS OF THE MINISTER CINGOLANI
Ecological Transition Minister Roberto Cingolani said that in the next quarter (October-December) electricity bills could increase by 40 percent due to high natural gas prices and CO2 emission quotas .
WHAT SPAIN HAS DONE
The rise in bills will not only affect Italy but also other European countries such as Spain , whose government has announced the imposition of a maximum limit on gas prices (in order to lower energy costs for users) and the reduction of the electricity tax.
THE PREVIOUS INTERVENTION OF THE GOVERNMENT
It is therefore expected that the Italian government will also announce similar measures. Mario Draghi's executive has actually already intervened to contain the increase in bill prices in July, allocating 1.2 billion euros to reduce system charges. It did so because otherwise the electricity tariff would have increased by 20 percent: the causes are the same as seen before.
FORECASTS ON EXPENDITURE FOR FAMILIES
For the typical family, spending on energy in the third quarter of 2021 increased by around € 50 per year. Without the intervention of the government, which limited the increase in bills to around 10 percent, it would have been much higher, around 280 euros.
According to the estimates reported by Repubblica , the 40 percent increase in the price of electricity in the October-December quarter could mean higher spending on households up to 500 euros per year: 100 euros for electricity and 400 for gas (considering the consumption for heating).
WHAT THE GOVERNMENT WILL DO
Il Sole 24 Ore writes that the Draghi government is considering proceeding again to reduce system charges on the bill. But this time, given the double increase compared to the current quarter (40 percent against 20), it would be necessary to allocate much more money, "at least 2 billion".
Repubblica adds that, just as it did in July, once again the government could draw on the revenues from auctions for CO2 emission permits and use this money "to cover part of the incentives that Italians pay in their bills for green energy (13 billions per year) ".
The main option being studied by the Ministry of Economy, then, would be that of "a sterilization of VAT in relation to the tariff increase", reports Il Sole 24 Ore : that is, eliminating VAT on the difference in the cost of energy between the last price and that of 1 October, when the increase will be triggered.
Repubblica adds a possible "shift of part of the 'improper' charges in bills (incentives, but not only) on general taxation".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/aumento-bollette-governo/ on Wed, 15 Sep 2021 08:49:51 +0000.