Electricity, the failure of the free market. 26% more expensive bills for families

In theory, competition should benefit consumers. But the opposite seems to be the case in the Italian electricity market, at least when it comes to families. In 2019, reports the Regulatory Authority for Energy, Networks and Environment (Arera), “in the free market, national customers paid on average 26% more in the free market, for the supply of electrical energy. “Although discounting the possible differences in terms of contractual conditions and service offered, this price differential certainly represents a element of attention “, explained the president of the authority Stefano Besseghini, yesterday presenting the 2019 Annual Report to Parliament and the Government. “For domestic customers, the average free market price is still higher than under the protected regime,” Besseghini added. According to the president “In the transitions that affect the energy sector, the free market seems to be one of the most difficult. The way of market liberalization, which started in 2007Although it is constantly advancing, it has not yet met its final destination. “

The full liberalization of the electricity market should materialize in 2022, after another postponement decided last December. Since 2007 it is possible choose independently your provider in the market based on the convenience of rates. Or alternatively you can choose to stay low tariff regime established by the Authority (protected market). As the data shows, something is wrong, since the cost benefits do not come from the free market. There may be some poster politics by supplier companies that, tacitly or not, agree don’t push too hard on bearish bids so as not to hurt each other. The problem is that from 2022 the protected regime should disappear for everyone, while since January 2021 will cease for small businesses.

It must be said that with respect to big industries, which nevertheless have greater bargaining power than families and small businesses, the system is completely in place And it has worked better, at least until recently. In 2017 and 2018 it was in fact reduced the energy cost gap compared to the European average, which however rose again in 2019. The myth that our industries pay more for energy than all others must be dispelled. As stated in the report: “Italian prices are still confirmed lower, as usual, than those of German industrial consumers except for the first class of consumers, but even the english at least for the last three classes of consumption, while Spain it maintains lower prices in all classes of consumers ”.

Still on the subject of electricity yesterday Terna, which manages the grid, said that in August the demand for electricity in Italy was 26.1 billion kWh, 1.4% less compared to the same month in 2019. Another sign of a slowdown in production since the value was obtained with the same number of business days (21) and a mean temperature substantially in line with August of last year. Demand in the first eight months of 2020 decreased by 7.7% compared to the corresponding period of 2019. Le renewable they completely covered 40% of electricity demand, compared to 36% in the corresponding period of 2019.