Italy's energy regulator, ARERA (Autorità di Regolazione per Energia Reti e Ambiente), has recently launched the Gradual Protection Service (Servizio a Tutele Graduali, STG) aimed at supporting vulnerable electricity customers transitioning from the protected market to the free market. This new initiative is particularly significant as it offers not only stability but also substantial savings on electricity bills for those considered vulnerable, thereby addressing the needs of millions of Italians.
The rollout of the Gradual Protection Service is part of the systematic move to phase out the protected price regime for electricity and allow vulnerable consumers to switch without facing abrupt price hikes. Consumers eligible for this service include individuals over 75 years old, those with very low income (as defined by the ISEE index), recipients of social bonuses, and individuals reliant on medical devices powered by electricity. With about 11.8 million customers potentially qualifying, ARERA emphasizes the importance of this service as it seeks to provide safeguards to those who might otherwise struggle to adapt to fluctuated market prices.
According to ARERA, the deadline to opt-in for the Gradual Protection Service is June 30, 2025. Vulnerable clients, whether they are currently part of the protected system or have already transitioned to the free market, have until this date to make the switch. This deadline also includes those who may acquire vulnerable status prior to this date. Failing to register could result in losing their eligibility, forcing them to shop for providers under potentially unfavorable conditions.
To facilitate this process, ARERA has introduced a dedicated webpage featuring the new search engine tool. This innovative online resource allows users to input their municipality and find their designated electricity provider easily. According to Marco Vignola, vice president of the National Consumers Union (Unione Nazionale Consumatori), this measure is applauded as it significantly reduces potential hurdles for consumers eager to benefit from the new service.
Notably, Assoutenti, one of the consumer advocacy groups, commends the projected annual savings, estimating approximately €1.3 billion could be saved across electric bills due to the Gradual Protection Service. They calculate this translates to roughly €113 savings per customer. This information starkly highlights the financial incentive for eligible customers to actively engage with the new service.
Despite these positives, some organizations express concerns surrounding the overall impact of these changes. Consumer associations have voiced their apprehensions about potential risks associated with the direct transition from the protected market to the free market, arguing the need for additional protections against inflated costs. Codacons has labeled the new service as insufficient, indicating it might not fully safeguard vulnerable consumers.
To assist with the transition, ARERA insists on its electricity providers to be proactive. They are required to update their websites with comprehensive information about the Gradual Protection Service, including accessible contact points—telephone, digital platforms, and physical locations. They must also publish documentation requirements for accessing the service, including self-certification forms to affirm vulnerability.
Further, ARERA mandates the inclusion of the consumer support number—800 166 654—on all provider websites to aid clients needing assistance. This move signals ARERA's commitment to ensuring users are well-informed and supported throughout the transition process.
The emphasis on establishing clear communication channels is echoed by multiple advocacy groups, which encourage the government to sponsor public awareness campaigns to inform citizens about their rights and available options under the new service. Marco Vignola from the National Consumers Union highlights the urgency: "The government must contribute to spreading the message about the protection available for vulnerable consumers. Transparency is key, and every effort must be made to inform those who need this service most."
While the Gradual Protection Service is hailed as a progressive step toward reforming Italy's electricity market, it brings forth discussions about the long-term ramifications of the free market on vulnerable populations. Consumer advocates are cautiously optimistic, urging proactive measures from both ARERA and the government to bolster awareness and safeguard against market pitfalls.
The initiative is set against the backdrop of significant market shifts anticipated for the summer of 2024. Analysts point to this timeline as not only pivotal for the energy industry but also as a moment of reckoning for consumer policies aimed at protecting Italy's most vulnerable households. The upcoming changes beg the question: will the system be adequately prepared to handle this transition whilst ensuring those who need it most aren't left behind?