Italy to End Most Energy Cost Relief Measures This Month
Italy does not plan to extend most of the measures it has adopted to soften the impact of energy costs on households and firms beyond June, as two government sources reveal that recent falls in energy prices have made the economy ministry confident that no new aid package is necessary. The country’s right-wing administration had earmarked approximately 26 billion euros for measures mostly designed to cut electricity and gas bills for the first half of the year.
Italy’s regulated household gas prices fell 0.2% in May compared to April, and the Dutch June gas price also shows a significant decline since early 2023 and the August 2022 peak causing Russian gas pipeline supplies to dwindle. The government may renew a bonus to cut energy bills for low-income households, using part of the funding initially set aside and not fully spent.
Other already financed measures, such as a flat-fee bonus to subsidize heating costs for families, are planned to take effect later in the year. The finance ministry is currently focusing on helping borrowers hit by higher interest rates set by the European Central Bank to curb inflation.
While a levy on banks’ profits has been put on hold for now, Rome expects to collect more than the 2.6 billion euros from a windfall tax on energy companies introduced in this year’s budget.