End of the protected market for electricity and gas: what to know

2024 marks an important turning point for electricity and gas bills: the 2024 Budget Law did not in fact reconfirm or extend the protected market, definitively putting an end to this service and leading consumers to having to enter the free market.

While for the gas this term has already come into force a Januaryfor thepower you will have to wait until the month of July. To avoid unpleasant surprises, it is therefore essential to compare and choose the most convenient electricity and gas offers, in order to guarantee a sustainable monthly cost for these two important utilities.

What is the protected market for electricity and gas

When it comes to protected market (or Greater Protection Service), means the supply regime that regulates the economic and contractual conditions of electricity and gas offers at a national level, which are established byARERA (Regulatory Authority for Energy, Networks and the Environment).

This service is for guarantee to consumers stable and transparent tariffs, which are reviewed periodically based on the cost of raw materials and market conditions. Furthermore, it was also created for avoid anti-competitive practices which can put those who pay the bills in difficulty.

What happens with the end of the protected market for electricity and gas

The end of the protected market means that consumers are required to enter the free market, made up of different suppliers with different offers and contracts for electricity and gas. In this type of regime, the rates are set by the marketwithout obligation to update and it is the consumers who have to choose in total autonomy which offer is most in line with your habits and needs.

If this does not happen, the electricity supply automatically switches to Gradual Protection Service (STG) with assignment via auction. This is done to encourage a gradual transitionwhich guarantees continuity of supply, but which has a maximum duration of 3 years. After that, each consumer will be required to sign an offer with one of the energy providers present on the free market.

For the gas instead, the service continues to be provided, but with the conditions of PLACET offers (Free Price With Equal Protection Conditions) with the same supplier, but in a different tariff regime.

New free electricity and gas market: protections for the vulnerable

The vulnerable people and familieseven with the end of the protected market, continue to benefit from more advantageous conditionsas established by the Government in the National Recovery and Resilience Plan (PNRR) and required by European regulations.

We are talking about individuals economically disadvantaged or living in emergency housing facilities following calamitous events, subjects with disabilityelderly people with more than 75 years oldpeople in serious health conditions or those who have a user on a smaller, non-interconnected island.

These categories of people can therefore count, as far as gas is concerned, on the supply with the vulnerability protection serviceat the economic conditions envisaged for the gas protection service, while for electricity they will be able to enjoy the Greater Protection Service.