Because electricity and gas bills are increasing

Minister Cingolani confirms: a sting for families is on the way. Electricity and gas bills are increasing, and this explains the reason.

We had anticipated it: starting next month – from 1 October 2021 – a sting on electricity and gas bills is coming. A price increase between 30% and 40% was confirmed in these hours by the Minister of Energy Transition, Roberto Cingolani, who also answered the question as to why this change in prices.

The increase in prices for electricity and gas bills will not spare any family: Cingolani does not hide and believes that it is a responsibility to warn consumers and businesses of the reason behind the new sting for bills.

This year there had already been a considerable increase in prices: last quarter there was an increase of 20% for the electricity bill. Even worse, however, will go in the last quarter of the year, when the cost of the electricity bill will be 40% higher, while for gas – according to forecasts – the increase will be “only” 30%.

Because electricity and gas bills are increasing

The Minister’s words offer us several interesting ideas. This answers why the tariffs for electricity and gas are on the rise, shedding light on what is about to happen. At least when we are faced with a bill of a much higher amount than that of the previous month, we will not have to ask ourselves why.

In detail, Cingolani spoke about it in Genoa during a conference of the CGIL, referring to two different causes :

  • on the one hand, the increase in the price of gas at an international level;
  • on the other hand, because the price of the CO2 produced increases.

There are two different reasons: one financial and the other geopolitical.

Increase in bills for the rush to raw materials

In recent times, thanks to the economic recovery after the lockdown, a real rush to commodities is underway. There are sectors where the demand for raw materials is far greater than the supply, and for this reason, a rise in the prices of the latter has been triggered that shows no signs of stopping.

Among these raw materials, there is gas, particularly in demand in Asia, where China is buying up LNG, that liquid natural gas that can be transported by sea. This great demand has led to an increase in gas prices, with Europe particularly penalized, especially in those countries where gas is widely used to produce energy.

In Italy, for example, gas is equivalent to 35% of the fuel used in power plants. Consequently, to bear the increases with considerable increases in what is described in the bill as ” expenditure on energy “, including all those components relating to the activities that the selling company carries out for the purchase and supply of energy electric, is the final customer.

Increased bills for new EU policies

Another reason is that which depends on EU policies on pollution. For some time, the European Union has implemented increasingly restrictive policies in terms of emissions, introducing increasingly innovative tools. One of these is the so-called permit to pollute, which varies according to the amount of CO2 emitted.

Therefore, the more the policies become restrictive, the more permits that energy producers are forced to buy. And these download the cost in the bill, and it is the final consumer who pays for it.

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