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Home»World»Europe»Spain
Spain

Energy, the era of regulated market closes: gradual protection service in force from today

August 18, 2024No Comments3 Mins Read
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As of July 1st, the era of protected markets comes to an end in Italy after 17 years. Non-vulnerable Italian energy consumers will now be subject to a gradual protection service instead. This service aims to assist consumers who have not yet transitioned to the free market, allowing them time to choose the best offer for their needs. Over a three-year period, a designated operator will provide a fixed tariff set by Arera while still allowing consumers the option to switch to the free market at any time. If a consumer does not sign a contract within the 36-month timeframe, they will be automatically switched to a commercial tariff from their current provider without interruption of service.

The Gradual Protection Service is provided by selected vendors through competitive procedures. The contractual conditions of this service are similar to PLACET offers, including bimonthly billing, payment guarantees, and payment methods. For vulnerable consumers, however, the law ensures access to the market while also providing support for those who may have difficulty finding the most advantageous offer due to age or socio-economic circumstances. Customers who believe they meet vulnerability criteria must submit a notification to their provider using the form provided by Arera.

Consumer confusion and uncertainty are prevalent, especially as aggressive telemarketing tactics from energy providers increase. Federico Bevilacqua, President of the Association of Utility Managers Assium, has released a video outlining the steps for consumers who have not yet transitioned to the free market. Minister of Environment and Energy Security, Gilberto Pichetto, describes this transition as groundbreaking, emphasizing the need for clarity and transparency in guiding citizens through changes in the energy sector. The goal is to lower prices through competition and provide tailored offers that meet the diverse needs of families.

The transition to the free market has already occurred for gas consumers, ending the supply in higher protection at the beginning of 2024. Similar to electricity, only vulnerable customers can choose this option, while others must switch to the free market. To assist in this process, Arera has implemented a gradual approach to allow gas consumers time to select the most suitable offer and ensure continuity of service. If a customer does not agree to new supply conditions or a different contract by the specified date, the provider will continue service at similar economic and contractual terms until the customer opts for a different offer in the free market.

In conclusion, the end of protected markets in Italy marks a significant shift in the relationship between citizens and energy. While some consumers may face challenges during this transition, the government and regulatory bodies are committed to providing support and guidance throughout the process. The ultimate goal is to create a competitive market that offers a variety of options tailored to individual needs, ensuring fair pricing and quality of service for all energy consumers.

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