Italy to Discuss Measure on Gas Price for Energy-Intensive Companies by End of Month: Pichetto Fratin

Italy's government plans to discuss a measure to offer gas at a reduced price to energy-intensive companies by the end of the month. The move follows the EU's approval of Italy's "Energy Release 2.0" plan to support industries with high energy consumption and transition to green energy. The plan will provide electricity at a fixed price of 65 euros per megawatt-hour, significantly lower than last year's average of 108.5 euros. A similar mechanism could be used for gas pricing. However, finding suppliers willing to offer gas at a discounted price may be challenging.

Italy's government has announced plans to discuss a measure aimed at offering gas at reduced prices to energy-intensive companies by the end of this month. This initiative follows the European Commission's approval of Italy's "Energy Release 2.0" scheme, which supports industries with high energy consumption and facilitates the nation's transition to green energy.

The "Energy Release 2.0" scheme, approved in June, provides electricity at a fixed price of 65 euros per megawatt-hour, significantly lower than last year's average of 108.5 euros per megawatt-hour. Energy Minister Gilberto Pichetto Fratin indicated that the new gas measure could mirror the mechanism used for electricity under the approved scheme. However, securing suppliers willing to offer gas at discounted rates may pose a challenge [1].

Italy's most gas-intensive sectors, such as steel manufacturing, ceramics, and glass production, are expected to benefit from this measure. Gas prices heavily influence electricity costs in Italy, where more than 40% of electricity is generated from gas-fired power plants. The government's aim is to provide relief to these energy-intensive industries, which are critical for the country's economic growth and industrial competitiveness.

Despite the potential benefits, the implementation of the gas pricing measure faces hurdles. Energy Minister Pichetto Fratin acknowledged that finding suppliers willing to offer gas at discounted rates could be difficult. The minister cautioned about the challenges in securing such suppliers, stating, "Discounted gas bidders are not so easy to find" [1].

The new measure is part of Italy's broader strategy to support its energy-intensive industries and promote the transition to renewable energy sources. By providing reduced gas prices, the government aims to make it more affordable for these industries to operate, thereby fostering innovation and investment in green technologies.

In conclusion, Italy's plan to discuss a gas pricing measure for energy-intensive companies by the end of this month is a significant step in supporting the nation's industrial sector and promoting its green transition. While challenges remain in securing discounted gas supplies, the initiative is designed to provide much-needed relief to energy-intensive industries and facilitate the country's energy transition.

References:
[1] https://www.marketscreener.com/quote/index/S-P-GSCI-NATURAL-GAS-INDE-46869167/news/Italy-to-discuss-gas-measure-for-energy-intensive-firms-by-month-s-end-50446540/
[2] https://www.marketscreener.com/quote/stock/ASTRAZENECA-PLC-4000930/news/AstraZeneca-bladder-cancer-treatment-secures-EU-approval-50437115/
[3] https://www.transportenvironment.org/articles/fossil-fuel-subsidies-for-company-cars-cost-eu-taxpayers-eur42-billion-every-year-new-study