Finance
Italy adopts $3.5 billion package to cut wholesale energy prices, officials say
Published by Global Banking & Finance Review®
Posted on February 18, 2026
1 min readLast updated: February 18, 2026
Quick Summary
Italy approved a €3B package to reduce wholesale energy prices by narrowing the PSV-TTF gas spread (2-4 €/MWh). The move aims to shield households and firms and bolster competitiveness.
Italy adopts $3.5 billion package to cut wholesale energy prices, officials say
ROME, Feb 18 (Reuters) - Italy approved a set of measures on Wednesday worth roughly 3 billion euros ($3.54 billion) to cut wholesale energy prices, government officials said, in a bid to protect families' purchasing power and support business competitiveness.
Power costs in Italy are significantly higher than in France and Spain, as the country is heavily dependent on energy imports and therefore vulnerable to changes in international prices and geopolitical tensions.
The government wants to narrow the difference, or "spread" between wholesale gas prices on an Amsterdam hub, and those in Italy, where more than 40% of electricity is produced with gas.
Depending on market trends, the wholesale price for natural gas traded on the Italian market, the PSV, is normally higher than the TTF, which is traded in Amsterdam, by some 2-4 euros per megawatt hour.
($1 = 0.8463 euros)
(Reporting by Giuseppe Fonte, editing by Gavin Jones)
Key Takeaways
- •Italy approved a ~€3B ($3.5B) package to reduce wholesale energy prices.
- •Measures aim to narrow the PSV-TTF gas price spread, typically 2–4 €/MWh.
- •Policy seeks to protect household purchasing power and business competitiveness.
- •Italy’s power costs exceed France and Spain due to heavy import dependence.
- •Over 40% of Italy’s electricity is generated from natural gas.
Frequently Asked Questions about Italy adopts $3.5 billion package to cut wholesale energy prices, officials say
1What is the main topic?
Italy approved a roughly €3B package to cut wholesale energy prices, targeting the gas market spread to ease costs for households and businesses.
2How will the package reduce prices?
By narrowing the price spread between Italy’s PSV gas hub and the Dutch TTF benchmark, which typically runs about 2–4 €/MWh, helping lower wholesale costs.
3Why are energy costs higher in Italy?
Italy relies heavily on energy imports and gas-fired generation, making it more exposed to international price swings than countries like France and Spain.
