The president of Arera, Stefano Besseghini, stated that the transition on July 1st from the regulated service to the gradual protection service would result in a total savings of around 130 euros per year for each point of consumption for electricity users. This cost reduction is made possible by the validity of the auction system, which ensures equal treatment among energy market operators with truly competitive outcomes. Besseghini pointed out that the renewed auction model has proven to be an effective tool in ensuring fairness and competitiveness for the benefit of customers, thanks to the participation of multiple operators in all territorial areas.
During a hearing on the results of the auctions for the gradual protection service of electricity, convened by the Production Activities Committee of the Chamber, Besseghini highlighted that 18 operators were admitted to participate in the auctions. Following an order from the Lombardy Administrative Court, the operator Octopus Energy was also readmitted with reservations. Admission to the competitive procedures was subject to specific requirements related to economic and financial solidity, as well as management and operational criteria aimed at selecting operators capable of fulfilling the obligations of public service related to the continuity of supply to end users.
In terms of participation, the auctions were deemed significant, with offers ranging from a minimum of 9 to a maximum of 16 for each area. Enel Energia was awarded 7 areas, Heracom 7 areas, Illumia 3 areas, E.on 1 area, A2A Energia 2 areas, Edison Energia 4 areas, and Iren Mercato Sev, which is a temporary grouping of companies, was awarded 2 areas. Besseghini emphasized the benefits for customers, stating that those currently in the regulated service pay an annual fee of 58 euros per point of consumption. With the transition to the gradual protection service on July 1st, customers could save around 130 euros per year per point of consumption, which amounts to a significant reduction in the bill, exceeding 20% for a typical family’s annual electricity expenditure of around 600 euros.
The president of Arera commended the effectiveness of the auction model in promoting competition and ensuring fair treatment of market players, ultimately leading to cost savings for electricity consumers. The participation of multiple operators in the auctions helped to achieve competitive outcomes and secure favorable prices for customers across different territorial areas. The admission criteria for operators were stringent, focusing on economic stability, financial strength, and operational capabilities to meet the requirements of public service obligations related to the uninterrupted supply of electricity to end users. The successful outcomes of the auctions demonstrate the benefits of a competitive market structure in driving efficiency and customer savings in the energy sector.
Overall, the transition to the gradual protection service for electricity users is expected to yield significant cost savings, with an estimated annual saving of 130 euros per point of consumption. The competitiveness of the auction system, coupled with the participation of a diverse range of operators, has led to fair and transparent outcomes that benefit customers through lower prices and increased efficiency in the energy market. The results of the auctions indicate a successful implementation of the auction model, which has proven to be a valuable tool in promoting competition, ensuring fairness, and driving savings for electricity consumers. With the continued efficiency and effectiveness of the auction system, customers can look forward to sustained cost reductions and improved service quality in the electricity sector.
