Why the Italian electricity is the most expensive in Europe?

The system charges penalize the final retail price of electricity, which in Italy is higher than 25 percent compared to other major European countries. The major charges applied in the bill to promote clean energy impact for almost half (10% of 25%) on the total price.

The differences between the various States are reflected in the first instance on the prices of the wholesale electricity market which also show a significant difference between Italy and the rest of Europe. The price in our country is equal to about 66 € / MWh, a slight decrease, while in other countries (France, Germany, Spain, Austria, the United Kingdom) is between 45 and 50 € / MWh.

A portion of the gap is definitely on the rise structural difference of the different incentives to renewable energy, which led to a substantial increase in the price of Italian. Not all consumers know fact which costs are applicable in the bill: in addition to the price of electricity, there are fees and charges of the system that, among the various cost items include the A3 component, to the financing of renewable energy. Just this incentive, inordinately high, weighs in the pockets of Italians for about 3 Milardi euro per year and raises bills Italian than the European average.

The figure for reflection and focuses on the regulation of the incentives for the production of energy from renewable sources, which has failed to be suited to the structure and logic of the market. Even in absolute terms, the contributions have been many and too many and led to an alteration of investments not covered by the controller and the system.

In addition to these factors and still poor competition of a market newly liberalized on Italy also weighs the type of productive source of energy.

The selling prices mark important differences in the various areas of the Italian peninsula. North and South reflect a rise in prices (+6.1% yoy), while remaining stable, the center shows a sharp decline in the islands (-35.3% -16.7% in Sardinia and Sicily). Where the price increases in relative value, however, remains content in absolute terms, almost 20 € per MWh of difference between the continental South and Sicily.

The price variance is derived from the central location of the less efficient and more obsolete in Southern Italy which has an impact on the Power Exchange. Despite the decline in consumption detected for the first time in the year in the months of September and October, the substantial drop in the quantities traded has not led to an improvement in the product mix that should be renewed in favor of high-yield plants.

For these reasons, the low efficiency of power exchange shows a decrease of trading amounted to 12% (with 15.9 million MWh) increases by 20% while the Over The Counter (with 10.2 million MWh) driven by a looking for more affordable contracts that exceed a market logic that has become obsolete compared to the new aspects of production.

Consumer tariffs

In Italy in the last quarter of 2010, a family that consumes an average of 2,700 kWh / year pay 430 €, slightly higher cost in the Spanish market, where the bill with a cost of 460 € € per year.

In France, thanks to the production of electrical energy in large part from nuclear sources, the bill does not exceed 350 € per year. The savings is confirmed also in Germany where, by changing its tariff of electricity, it drops from 581 € up to 350 € per year, saving over 200 €. In Britain, for a consumption of 2700 kWh, the average cost is about 510 € but by switching the cheapest rates can save you more than 150 € per year.

We must also remember that the electricity market was liberalized across Europe thanks to the EC Directive 54 of 2003, which imposes a total openness. Some countries such as Britain, Germany and Spain have converted the available EU faster and for more than 7-10 years, the free market encourages competition between the prices. Other nations instead, Italy and France in the first place, have implemented the provision only at a later time allowing vendors selling direct on the customer only in the last 3-5 years.



Translated via software



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