The government of Prime Minister Giorgia Meloni has adopted a comprehensive legislative package aimed at significantly reducing electricity and gas bills. The program, worth over 5 billion euros, includes additional subsidies for the poorest households and support mechanisms for industry. A key element of the reform is the decoupling of renewable energy prices from gas prices and increased taxation of the largest energy companies, which is to finance the planned relief and modernization of the sector.

Support for the Poorest

Nearly 2.7 million families with low incomes will receive an additional 115 euros in support, increasing the total energy bonus to 315 euros annually.

Higher Sector Taxes

To finance the relief, the IRAP tax rate for energy companies will increase by 2 percentage points in the years 2026-2027.

Energy Pricing Reform

The government introduces a mechanism to decouple electricity prices from gas and plans to exclude ETS costs from the pricing of renewable energy.

Billions for Disaster Relief

Over one billion euros will go towards reconstruction after Cyclone Harry, and steps have been taken to secure Niscemi from landslide effects.

The government in Rome has approved the long-awaited energy decree, introducing profound changes to the cost structure of electricity and gas. Giorgia Meloni announced that the total value of benefits for consumers is to exceed 5 billion euros. Financing for these measures is based, among other things, on raising the IRAP tax for energy sector firms by 2 percentage points in the years 2026-2027. The new regulations also introduce the revolutionary disaccoppiamento mechanism, effectively separating the price of electricity generated from renewable sources from the costs of purchasing natural gas. Since the energy crisis triggered by Russia's invasion of Ukraine in 2022, European Union countries have been seeking lasting mechanisms to stabilize energy prices, moving away from the EU pricing model based on the most expensive unit. For approximately 2.7 million of the most vulnerable families, an additional annual bonus of 115 euros is planned, which, together with existing subsidies, provides total support of 315 euros. Businesses can count on a reduction in oneri di sistema, or system charges, which is estimated to reduce bills by about 10%. Simultaneously, the government is taking the bold step of excluding the costs of ETS allowances from the pricing mechanism for hydroelectric and solar installations. This action, as the Prime Minister admitted, will require official approval from the European Commission. 315 euro — will be the total bonus for the poorest families A separate chapter of government activity is aid for regions affected by natural disasters. The Council of Ministers allocated over 1.1 billion euros for the removal of the effects of Cyclone Harry in Sicily, Sardinia, and Calabria, and 150 million euros for securing areas after the landslide in the town of Niscemi. Fabio Ciciliano, head of Civil Protection, was appointed as the extraordinary commissioner for the landslide. However, the new regulations have caused concern among investors, symbolized by signals from the Edison group indicating a possible revision of investment plans due to regulatory instability and fiscal pressure. „This is a bold and structural decision by the government, which will have a decisive impact on lowering bill costs for Poles and companies.” — Giorgia Meloni Key Changes in Energy Charges: Total bonus for the poor: 200 euros → 315 euros; IRAP tax for the energy sector: base rate → increase by 2 p.p.; Bills for artisans: full rate → decrease by approx. 10% Budget Allocation: Energy relief: 5, Cyclone damage removal: 1.1, Aid for Niscemi: 0.15

Mentioned People

  • Giorgia Meloni — Prime Minister of Italy, author of the energy reform aimed at lowering living costs.
  • Gilberto Pichetto Fratin — Italian Minister of the Environment and Energy Security, co-responsible for preparing the decree.
  • Nello Musumeci — Minister for Civil Protection, responsible for coordinating aid after Cyclone Harry.