# Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

## Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

For anyone trying to work out what their electricity costs are going to be the latest bills and online tariff information show some interesting changes in the cost of electricity

Having analysed the tariffs from Servicio Elettrico Nazionale (new name for ENEL) that apply from 1 January 2017 there has been a significant reduction in the cost per KWh of around 5c per KWh.

The new rates, for residents on the dual rate tariff (which taken into account all the different components charged for incl IVA) are:

Monthly Standing Charges: €4.86

Per KWh supply: €1.99

First 150KWh per month F1 rate = 14.71105 cents/KWh, F2/3 rate = 13.8151 cents/KWh.

Above 150KWh per month F1 rate = 18.6331 cents/KWh, F2/3 rate = 17.7377 cents/KWh.

For non residents (and possibly residents with second homes) the above rates are 0.6413 cents per KWh less but the monthly standing charges are €13.14 more

For anyone not on a dual rate supply the rates are between the F1 and F2/3 rates quoted above

For anyone on the special heat pump tariff the rates are:

Monthly Standing Charges: €5.62

Per KWh supply: €1.99

F1 rate = 15.6653 cents/KWh, F2/3 rate = 14.7699 cents/KWh.

The special rate for residents with only 3KW supplies appears to have disappeared.

Not sure if there are regional variations to the above as there is one element (Accisa su KWh shown on the bill which is not in the published tariffs) The amount included for this in the above is 2.5 cents/KWh.

Having analysed the tariffs from Servicio Elettrico Nazionale (new name for ENEL) that apply from 1 January 2017 there has been a significant reduction in the cost per KWh of around 5c per KWh.

The new rates, for residents on the dual rate tariff (which taken into account all the different components charged for incl IVA) are:

Monthly Standing Charges: €4.86

Per KWh supply: €1.99

First 150KWh per month F1 rate = 14.71105 cents/KWh, F2/3 rate = 13.8151 cents/KWh.

Above 150KWh per month F1 rate = 18.6331 cents/KWh, F2/3 rate = 17.7377 cents/KWh.

For non residents (and possibly residents with second homes) the above rates are 0.6413 cents per KWh less but the monthly standing charges are €13.14 more

For anyone not on a dual rate supply the rates are between the F1 and F2/3 rates quoted above

For anyone on the special heat pump tariff the rates are:

Monthly Standing Charges: €5.62

Per KWh supply: €1.99

F1 rate = 15.6653 cents/KWh, F2/3 rate = 14.7699 cents/KWh.

The special rate for residents with only 3KW supplies appears to have disappeared.

Not sure if there are regional variations to the above as there is one element (Accisa su KWh shown on the bill which is not in the published tariffs) The amount included for this in the above is 2.5 cents/KWh.

**Panner**- Elder
- Location : Puglia

Posts : 87

Join date : 2013-05-21

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

Yes but the costs of the 'system' ie bringing the leccy to you have gone through the roof.

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

Hi Modicasa

Which "system" costs do you mean?

The calculations to arrive at the per KWh price and the fixed standing charges take account of everything charged for the ongoing supply. The only additional costs would be the one off cost of getting the supply in the first place or increasing the max KW to a higher level.

Which "system" costs do you mean?

The calculations to arrive at the per KWh price and the fixed standing charges take account of everything charged for the ongoing supply. The only additional costs would be the one off cost of getting the supply in the first place or increasing the max KW to a higher level.

**Panner**- Elder
- Location : Puglia

Posts : 87

Join date : 2013-05-21

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

On my bill for 90 euros, the cost of electricity is 30, the rest is tax, oneri di sistema, trasporto and paying for a company to be paid millions to change the logo and tweak the name into something ploddingly pedestrian.

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

Understood. All those are taken into account in arriving at the reduction of 5cents per KWh. In the UK all these variable costsequivalents are built into the single rate they quote. In Italy the rate is calculated by reference to the different components which are openly identified.

What is interesting is that the effective cost per KWh has almost halved in 2 years and is now much closer to the effective UK cost, although still a bit more. eg Br Gas standard variable elec tariff in the yorkshire region is currently 12.22p per KWh (about 14cents) and standing charge is around £8 per month. Other suppliers can be a bit higher or lower depending on area and useage profile.

What is interesting is that the effective cost per KWh has almost halved in 2 years and is now much closer to the effective UK cost, although still a bit more. eg Br Gas standard variable elec tariff in the yorkshire region is currently 12.22p per KWh (about 14cents) and standing charge is around £8 per month. Other suppliers can be a bit higher or lower depending on area and useage profile.

**Panner**- Elder
- Location : Puglia

Posts : 87

Join date : 2013-05-21

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

Whehn you do this calculation, its based on a supply of how many Kw?

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

The calculation of the price per Kwh is independent of the size of Kw supply. The Total cost is made up of 3 elements:

Monthly standing charge + Kw supply x monthly Kw standing charge + Kwh usage x cost per Kwh

As an example:

Resident homeowner with 3Kw supply in 1 month uses 100 Kwh F1 (weekday daytime) and 200Kwh F2/F3 (evening weekend & festa days). The approximate cost would be:

Standing Charges: Monthly 4.86

Supply (3 x 1.99) 5.97

Useage: 50 x 0.147115 7.36

50 x 0.186331 9.31

100 x 0.13.815 13.82

100 x 0.177377

Total usage

Total bill for electricity

For the same usage someone with a 6KWh supply would pay an extra 5.97

An additional 100Kwh used in the same proportion would cost an extra 17.80

Another calculation some people do is simply to divide the total bill by the KWh used to give an average cost per KWh including standing charges. However, this does not enable proper comparisons or produce good estimates as it is totally dependent on the individual circumstances and actual usage for the bill period used to do the calculation.

I hope that all makes sense, happy to clarify further if needed

Monthly standing charge + Kw supply x monthly Kw standing charge + Kwh usage x cost per Kwh

As an example:

Resident homeowner with 3Kw supply in 1 month uses 100 Kwh F1 (weekday daytime) and 200Kwh F2/F3 (evening weekend & festa days). The approximate cost would be:

Standing Charges: Monthly 4.86

Supply (3 x 1.99) 5.97

Useage: 50 x 0.147115 7.36

50 x 0.186331 9.31

100 x 0.13.815 13.82

100 x 0.177377

__17.38__Total usage

__47.87__Total bill for electricity

__58.70__For the same usage someone with a 6KWh supply would pay an extra 5.97

An additional 100Kwh used in the same proportion would cost an extra 17.80

Another calculation some people do is simply to divide the total bill by the KWh used to give an average cost per KWh including standing charges. However, this does not enable proper comparisons or produce good estimates as it is totally dependent on the individual circumstances and actual usage for the bill period used to do the calculation.

I hope that all makes sense, happy to clarify further if needed

**Panner**- Elder
- Location : Puglia

Posts : 87

Join date : 2013-05-21

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

But depending on how many Kw you have your standing charges and oneri are on a sliding scale. If you have 6Kw you pay much more for the privelege.

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

There are no standing charges or oneri that are dependent on the size of the KW supply apart from the charge per KW of the supply which is currently 1.99 per month (incl IVA)

The charge per KWh used includes 6 elements:

Basic charge (differs for F1 & F2/3 usage)

Dispatching Component (Componente di dispacciamento) (has a lower rate for first 150KWh per month)

Transportation expense (spesa trasporto gestione contatore) (single rate for all consumption)

System charges (spesa oneri di Sistema) (has a lower rate for first 150KWh per month)

An excise duty on KWh (Accisa su KWh) shown on the bill, but not in the online tariffs (single rate for all consumption)

IVA @ 10% on the above

The Standing charges are made up of:

Spending on energy matters (Spesa per la materia energia) (fixed amount per client per month)

Network services (Servizi di rete) (fixed amount per client per month) – for non residents this includes an additional fixed system charge (oneri)

Size of power supply (Quota Potenza) (fixed amount per KW of the supply per month)

IVA @ 10% on the above

For someone on more than a 3KW supply the extra per month that they will pay for the privilege is:

4.97 for a 6KW supply

13.93 for a 10KW supply

Before 1 January 2017 there was an additional tariff for residents on a 3KW supply and low useage. This may be what you are thinking of. That tariff appears to have disappeared, possibly because of the reductions in per KWh rates.

The charge per KWh used includes 6 elements:

Basic charge (differs for F1 & F2/3 usage)

Dispatching Component (Componente di dispacciamento) (has a lower rate for first 150KWh per month)

Transportation expense (spesa trasporto gestione contatore) (single rate for all consumption)

System charges (spesa oneri di Sistema) (has a lower rate for first 150KWh per month)

An excise duty on KWh (Accisa su KWh) shown on the bill, but not in the online tariffs (single rate for all consumption)

IVA @ 10% on the above

The Standing charges are made up of:

Spending on energy matters (Spesa per la materia energia) (fixed amount per client per month)

Network services (Servizi di rete) (fixed amount per client per month) – for non residents this includes an additional fixed system charge (oneri)

Size of power supply (Quota Potenza) (fixed amount per KW of the supply per month)

IVA @ 10% on the above

For someone on more than a 3KW supply the extra per month that they will pay for the privilege is:

4.97 for a 6KW supply

13.93 for a 10KW supply

Before 1 January 2017 there was an additional tariff for residents on a 3KW supply and low useage. This may be what you are thinking of. That tariff appears to have disappeared, possibly because of the reductions in per KWh rates.

**Panner**- Elder
- Location : Puglia

Posts : 87

Join date : 2013-05-21

## Re: Electricity costs in Italy have reduced - effective rates from 1 Jan 2017

BEh I dont know. I have clients with 10 KW and they pay 800 euro every two months where the use is about 500 euros. So I dearly hope you are right and the price is coming down. To my eyes it rises steadily - My enel bill has gone up by a third in 2 years, with no change in usage. But Im rubbish at maths.

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