Article Italy: Measures to Contain Electricity and Natural Gas Costs and Stimulate Renewable Energies Instituted

On March 2, 2022, Decree-Law No. 17 (D.L. No. 17) of March 1, 2022, on Urgent Measures for the Containment of Electricity and Natural Gas Costs, for the Development of Renewable Energies and for the Relaunch of Industrial Policies entered into effect in Italy. (Decreto-Legge 1 marzo 2022, n. 17, Misure Urgenti per il per il Contenimento dei Costi dell’Energia Elettrica e del Gas Naturale, per lo Sviluppo delle Energie Rinnovabili e per il Rilancio delle Politiche Industriali.)

Measures to Contain the Effects of Price Increases in the Electricity and Natural Gas Sectors

The new law aims to reduce the effects of price increases in the electricity sector, particularly by cancelling payments for the second quarter of 2022 for both domestic and nondomestic low voltage users. (D.L. No. 17, art. 1(1).) The new legislation also reduces the value-added tax and other general charges applicable to the gas sector for the use of methane gas for combustion in civil and industrial projects. (Art. 2(1).)

To strengthen electricity consumption, the new legislation establishes a social gas bonus for the second quarter of 2022 to benefit domestic customers who are economically disadvantaged or in serious health conditions. (Art. 3(1).)

Additionally, the legislation sets forth an extraordinary contribution in the form of a tax credit for energy-intensive companies and companies with a high consumption of natural gas. (Arts. 4(1) & 5(1).)

Other Measures to Stimulate the Generation and Use of Renewable Energies

To promote the use of renewable energies, the new law also contains measures to:

  • Increase operational sustainability in the road-freight transport sector for companies that are registered or headquartered in Italy that carry out logistical and freight transport in the country. (Art. 6(3).)
  • Increase resources in the Single Fund established to support the Italian sports movement in light of the economic crisis caused by the price increases in the electricity sector. (Art. 7(1).)
  • Simplify the installation of renewable energy systems. (Art. 9(1).)
  • Regulate photovoltaic development in the agricultural area. (D.L. No. 1 of January 24, 2012, converted into law by Law No. 27 of March 24, 2012, art. 65(1-octies), added by D.L. No. 17, art. 11(1)(b).)
  • Simplify the authorization procedures for offshore plants to facilitate compliance with environmental regulations. (D.L. No. 17, art. 13(2)(a).)
  • Ensure fair prices for the long-term supply of natural gas by concessionaires operating nationally. (Art. 16(1).)
  • Promote the use of sustainable biofuels, starting in 2023. (Legislative Decree No. 199 of November 8, 2021, para. 3(d-bis), added by D.L. No. 17, art. 17(1)(a).)
  • Regulate contributions by the Italian military sector to the sustainable growth of the country, the de-carbonization of the energy system, and the pursuit of national energy resilience. (D.L. No. 17, art. 20(1).)
  • Increase the security of natural gas supplies. (Art. 21(1)(a).)
  • Establish economic mechanisms to make available additional natural gas from interconnection points with gas pipelines not interconnected to the European pipeline network. (Art. 21(1)(d).)
  • Foster conversion of and research and development in the automotive sector. (Art. 22(1).)

Miscellaneous Provisions

The new legislation also includes measures to foster research and development in microprocessor and other innovative technologies and investment in new industrial applications, including through the conversion of existing industrial sites and the establishment of new factories in the national territory. (Art. 23(1).)

The new law increases funds to finance the planning and implementation of projects related to the promotion of the candidacy of “Roma Capitale (Rome the Capital) to host World Expo 2030. (Law No. 234 of December 30, 2021, art. 1, para. 447, added by D.L. No. 17, art. 37(1)(a)–(b).)

Finally, funding is reallocated from support for the Afghan armed and security forces to “the funding of aid and assistance interventions, including humanitarian ones, in areas of crisis.” (Art. 38(1).)

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Italy: Measures to Contain Electricity and Natural Gas Costs and Stimulate Renewable Energies Instituted. 2022. Web Page. https://www.loc.gov/item/global-legal-monitor/2022-04-10/italy-measures-to-contain-electricity-and-natural-gas-costs-and-stimulate-renewable-energies-instituted/.

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(2022) Italy: Measures to Contain Electricity and Natural Gas Costs and Stimulate Renewable Energies Instituted. [Web Page] Retrieved from the Library of Congress, https://www.loc.gov/item/global-legal-monitor/2022-04-10/italy-measures-to-contain-electricity-and-natural-gas-costs-and-stimulate-renewable-energies-instituted/.

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Italy: Measures to Contain Electricity and Natural Gas Costs and Stimulate Renewable Energies Instituted. 2022. Web Page. Retrieved from the Library of Congress, <www.loc.gov/item/global-legal-monitor/2022-04-10/italy-measures-to-contain-electricity-and-natural-gas-costs-and-stimulate-renewable-energies-instituted/>.