On July 1, 2024, the electricity market in Italy became free. Those who have not chosen a supplier and are not classified as “vulnerable” customers have now switched to the “gradual protection service”, with effects on their electricity bill. The new supplier and relative price were assigned through auctions, but much depends on where you live: Italy has in fact been divided into 26 zones, in which operators will guarantee the service at set rates for three years. But will those who have chosen a supplier on the free market pay more or less?
The new rates of the Gradual Protection Service: zones and prices, who saves more on their bills
The “Gradual protection service” is the tool prepared by the Regulatory Authority for Energy, Networks and the Environment (Arera) to “accompany” users in the transition from the protected to the free electricity market. The gradual protections include all domestic customers who have not chosen a new supplier on the free market, approximately 4 million customers. In the “transformation” of your supply there will be no inconveniences: no interruption in the supply of electricity, the bank Rid will remain the same and there will be no additional costs.
Those who fall under the new gradual protection service have an operator assigned based on their area of residence. For three years, from July 2024 to July 2027, non-vulnerable domestic customers will be able to obtain supplies from the winner of the relevant lot at the price set in the auction, which remains blocked for one year. Enel, Hera, Edison, Illumia, A2A, Iren, Eon are the winners of the auctions that divide the 26 assigned areas. Based on the available data, those who fall under the gradual protection service have an average annual saving of 131 euros in electricity bills compared to the conditions of the greater protection service. As can be seen from the table below prepared by Today.it, the savings on the bill are different depending on the reference area.
In some areas, such as Avellino, Benevento, Grosseto, Livorno, Pisa, Pistoia, Prato, Siena, savings have reached up to 200 euros per year. The most penalized areas are in the South and on the islands: in Cagliari, Naples municipality, Oristano, South Sardinia, Agrigento, Caltanissetta and Trapani, costs increase between 6 and 30 euros per year. On average, adding the new Arera parameters, the Gradual Protection Service results in a saving of 113 euros compared to the protected market. The contractual conditions of the Gradual Protection Service correspond to those of the “free price with equal protection conditions” offers, called “Placet”. These include:
- Billing times: bimonthly;
- Guarantees required from the customer: none in the case of payment by direct debit, postal order or credit card; in all other cases, a security deposit of €11.50 for each kW of contractually committed power will be charged in the first bill;
- Payment methods: direct debit, postal order, credit card or postal order.
As for the 3.8 million “vulnerable” consumers, they will remain in the protected market beyond July 2024 at price conditions that will be set in new dedicated auctions. Arera defines a vulnerable customer as someone who:
- Is in economically disadvantaged conditions (for example bonus recipients);
- Have serious health conditions that require the use of electrically powered equipment (or live with people in these conditions);
- He is subject to disability pursuant to article 3 of law 104/92;
- Has a user in an emergency housing facility after natural disasters;
- It has a user account on a smaller, non-interconnected island;
- He is over 75 years old.
In any case, anyone at any time can switch to the free market. But at what prices?
How do free market prices compare to protected ones?
Approximately 22.7 million users are in the free electricity market. According to data provided by Arera, in March 2024 the average of offers on the free market presented a tariff equal to 0.33 euros per kWh for fixed price contracts and 0.32 euros/kWh for variable price ones, against 0. 22 euros/kWh of the protected market.
What is the right price for bills: how to save on the free market
Translated, the average electricity bill for a free market family with consumption of 2,700 kWh per year is 891 euros per year in the case of a fixed price and 864 euros for the variable price, compared to an average of 594 euros per year on the protected market. At the moment, the rates on the free market are on average 47.7% more expensive than those in force on the majority protection, with a higher cost that for fixed price contracts is on average almost +300 euros per year (+297 euros, to be precise).
To understand if you are already in the free market, the bill contains an indication that allows you to check whether the supply is served under protection, that is, under the conditions established by Arera or, on the contrary, according to tariffs chosen in the free market.
