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Italy to approve measures this week to lower electricity prices, minister says - Finance news and analysis from Global Banking & Finance Review
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Italy to approve measures this week to lower electricity prices, minister says

Published by Global Banking & Finance Review

Posted on November 4, 2026

2 min read

· Last updated: November 4, 2026

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Italy Set to Approve New Measures to Cap Gas Prices and Lower Electricity Bills

Government Plans and Legislative Actions

Introduction and Background

ROME, Nov 4 (Reuters) - Italy plans to approve this week a decree aimed at limiting the impact of sky-high gas prices on electricity costs for households and businesses, the energy minister said, following an agreement with European Union authorities.

Key Measures in the Decree

Temporary Gas Price Cap

• Rome will introduce a temporary cap of around €60 ($67.38) per megawatt hour on gas prices for gas-fired power stations

Government Actions and Timeline

• Energy Minister Gilberto Pichetto Fratin told the Elettricita Futura business lobby he planned to draw up a summary of the scheme to be presented to the cabinet on Thursday

• The cabinet is expected to meet on Thursday at 1600 GMT, officials said.

Financial Implications and Funding

Reimbursement Scheme for Utilities

• Under the decree, Italy will reimburse utilities running gas-fired stations any difference between the price of gas at the TTF exchange and the cap

Funding the Measures

• The measure is expected to be funded by increasing system charges in power bills paid by households and companies, Pichetto Fratin said in recent weeks($1 = 0.8905 euros)

(Reporting by Giuseppe Fonte; Editing by Jan Harvey)

Key Takeaways

  • Italy’s Energy Minister Gilberto Pichetto Fratin expects cabinet approval on Thursday and will present the scheme then, pending EU notification and approval.
  • The cap around €60 per MWh, similar to the Iberian model, is designed to shield consumers and businesses from high gas-linked electricity costs, with reimbursements handled by ARERA/GSE and funded through system charges.
  • While political agreement with the EU has been reached, technical details and formal EU state‑aid clearance remain to be sorted; the measure may lower wholesale prices by about €6‑7/MWh and yield ~10% savings for variable‑price consumers.

Frequently Asked Questions

What measure is Italy expected to approve regarding electricity prices?
Italy plans to approve a decree that sets a temporary cap on gas prices for gas-fired power stations to reduce electricity costs.
How high will the gas price cap be under Italy's new decree?
The temporary cap will be around €60 ($67.38) per megawatt hour for gas used by gas-fired power stations.
How will Italy fund the measure to cap electricity prices?
The funding is expected to come from increased system charges in power bills paid by households and businesses.
When is the Italian cabinet expected to discuss the new energy decree?
The cabinet is expected to meet on Thursday at 1600 GMT to discuss and possibly approve the measure.
Will utilities be compensated if gas prices exceed the cap?
Yes, utilities running gas-fired stations will be reimbursed the difference between the exchange price and the capped price.

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