The Italian government has approved a new aid package to protect firms and households from rising energy costs. Under the package, several measures will be implemented:
- Electricity-intensive companies will benefit from an extraordinary contribution in partial compensation of the higher costs incurred, in the form of a tax credit, equal to 25% of the expenses incurred for the energy component purchased. This is estimated to cost around €3.4bn in 2022.
- The suspension of unilateral changes to contracts for the supply of electricity and natural gas. Until 31 October 2022, electricity and natural gas supplier companies will not be able to unilaterally modify the general contract conditions relating to price definition, for contracts effective with domestic customers.
- The extension of the social bonus on electricity and gas bills until the end of 2022.
- The electricity general system charge (oneri generali di sistema), which accounted for 20% of Italian energy bills before the government decided to act, is extended until the end of 2022.
- The extension of the reduced excise tax on fuels used in agricultural and fishing activities during the third quarter of 2022. The measure is estimated to cost €194m in 2022.
- The extension of the cut excise taxes on gasoline and LPG diesel until the end of 2022.
- The extension of the 5% VAT rate reduction on gas consumption until the end of 2022.