MILAN (Reuters) -Italy's government will discuss a long-awaited measure to offer gas at reduced prices to energy-intensive companies by the end of this month, the country's energy minister said on
Italy to discuss gas measure for energy-intensive firms by month's end
MILAN (Reuters) -Italy's government will discuss a long-awaited measure to offer gas at reduced prices to energy-intensive companies by the end of this month, the country's energy minister said on Monday.
"We couldn't start earlier because the discussion with the European Union was still open. We didn't have the OK yet," Energy Minister Gilberto Pichetto Fratin told Radio24 in an interview.
The initiative will follow the European Commission's approval in June of Italy's "Energy Release 2.0" scheme, which supports power-intensive industries and the nation's green transition.
Under the scheme, electricity is provided at a fixed price of 65 euros per megawatt-hour in its initial phase, significantly below last year's average of 108.5 euros per megawatt-hour.
Pichetto Fratin said the new gas measure could mirror the mechanism used for electricity under the approved scheme.
However, the minister cautioned about potential challenges in securing suppliers willing to offer gas at discounted rates. "Discounted gas bidders are not so easy to find," he said.
Gas prices heavily influence electricity costs in Italy, where more than 40% of electricity is generated from gas-fired power plants.
Industries such as steel manufacturing, ceramics, and glass production are among the country's most gas-intensive sectors.
(Reporting by Cristina Carlevaro, editing by Keith Weir)
