Italy cancels $5.2b tariff to cover gas shortage costs

Italy’s energy authority has decided to cancel plans for a tariff to fund gas stockpile maintenance after facing criticism from energy companies and objections from the European Union (EU), Reuter reported on Wednesday.

The proposed tariff, valued at 4.8 billion euros ($5.24 billion), would have been passed on to consumers by energy firms.

This move follows a similar tariff introduced by Germany in 2022, which is now under review by the EU’s energy regulator ACER for potential breaches of competition rules.

L’Autorità di Regolazione per Energia Reti e Ambiente (ARERA) stated that it will not proceed with the proposal due to concerns about jeopardising energy solidarity and hindering efforts to diversify supply sources.

The initial announcement of the “neutrality charge” in December aimed to impose a fee on gas passing through domestic and international grids, but it will not be implemented as planned in April.