From next July 1st, to purchase an electricity supply you will have to turn to the free energy market. The old greater protection service, where the management of tariff prices to protect the consumer is the responsibility of Arera, the Energy, Networks and Environment Regulatory Authority, is definitively closing to make way for a “free” tariff regime.
It means that electricity tariffs, as happened in January for gas tariffs, will always be different because they derive from a competitive mechanism that is defined between a multitude of operators on the market, through continuous negotiation between seller and consumer.
Prices in the free electricity market
The starting point for the price of a free market tariff is always the wholesale price of electricity (PUN, acronym for Single National Price), to which is added the supplier’s mark-up in €/kWh.
The Pun indicates the price on the Italian Electricity Exchange, given by the average of the electricity sales prices charged between producers and suppliers who purchase on the wholesale market.
To the price of electricity, the supplier generally adds a fixed or commercial fee for the service offered, including it in the final price of the offer.
This is how a variable or indexed price works, generally practiced by most operators. To find the most competitive one, just take a look at the main lighting offers selected daily by Segugio.it among the proposals of its partners.
The alternative to the variable price is the fixed or blocked price: in this case the operator decides to take on the risk of a possible increase in prices on the market for a period established by the contract and offers a constant price tariff, which does not vary for the entire duration of the offer.
At present, there are few fixed price offers, precisely due to the price volatility which has led to the sharp increases in tariffs in the last two years. The few on the market have a maximum duration of 12 months, a limit period beyond which the risk of a high increase in energy prices would prove uneconomical for the seller.
How to know if you are still in the protected market
It might seem like a paradox, but there are still many users who don’t know they are in the greater protection regime. To find out, just read the first page of the bill: if you are still in the old regime, it will show the words “Greater Protection Service” at the top left.
What happens to those who are still in the guardianship regime
For those who have not yet made the spontaneous switch to a free market tariff by the end of July 1, 2024, there is no need to fear any interruption of supply or penalties, because the law provides for the Gradual Protection Service, with an assignment system of the supplier according to the territorial auction method.
The Gradual Protection Service will not concern the categories of vulnerable subjects, consumers who due to age, economic difficulties or disabilities will be able to remain in the greater protection service.
At any time, anyone still in the old regime will be able to choose to switch to a free market tariff.
How to choose the electricity tariff in the free market
There is only one way to be sure you find the best offer for your needs, based on your daily habits, estimated consumption and the system you have: compare the offers. By using the Segugio.it comparator you will be able to access the best rates among those found in the list of suppliers, change operator and start saving.
In the free market, tariffs not only offer energy, but also essential services to manage supply and help cut bill costs, with always interesting discounts and promotions.
