The Italian government has unveiled a €9.1bn package aimed at helping Italian households and businesses cope with rising energy costs. The package includes tax credits against energy expenditures for businesses in energy-intensive industries, as well as a 5% tax cut on fuel distribution, which is expected to decrease the gasoline prices by about €30c/liter. These measures, first introduced by Italy’s previous administration and which were due to expire on 18 November 2022, will be extended until the end of 2022.
A new measure will allow businesses to split their energy bills into as many as 36 installments, and energy companies will be protected against potential default by government guarantees. Previous measures allowing GSE, the state energy services company, to sell natural gas with a maximum price cap will be extended to 31 March 2023. The Italian government also reiterated its plan to authorise new offshore drilling in gas fields over the next 10 years and to offer most of the volumes to its large energy users at a capped price.
In addition, Snam, Italy’s gas grid operator, has announced it will invest €3.7bn in the national gas network to improve transport facilities from the south to the north of the country and boost supply from Africa. Italy imported 95% of its gas needs in 2021, and in 2020, 43% of its gas imports originated from Russia. This share is expected to decline, as Snam is currently developing two LNG terminals which will host two 5 bcm/year floating storage and regasification units (FSRU).
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