As of July 1, 2024, the protected light market has ended, as part of the reform included in the PNRR. As early as January 10, 2024, the end of the protected gas market had been confirmed. In this guide, we’ll explore what this change involves, how the transition to the free market works, and what needs to be done
.
Table of Contents:
End of the protected light market
As of July 1, 2024, the protected light market has ended.
This means that the free market is now the only mode of supply for most consumers. If a customer has not subscribed to a free market offer, the supply is automatically transferred to the Gradual Protection Service (STG), with contractual and economic conditions defined
by ARERA.
Vulnerable customers
Vulnerable domestic customers will continue to be served in the protected market even after July 1, 2024. Those who meet the vulnerability criteria but have not been identified as such must report it to their seller by filling
out a specific form.
Changes in the vulnerability condition
If the vulnerability conditions change, it is necessary for the owner of the supply to contact their seller. Even vulnerable customers can choose a free market offer at any time, following the procedures provided by the seller
.
What is the protected electricity and gas market
The protected energy market is a way in which ARERA establishes prices and contractual conditions. It is designed to ensure favorable rates and conditions for the most vulnerable consumers. However, with the liberalization of the energy market, the protected market has been gradually eliminated
.
Expiry of the protected market for gas and electricity
The protected market for gas ended on 10 January 2024 for non-vulnerable domestic customers, while for electricity it ended on 1 July 2024. For electric energy microenterprises, the increased protection service had already ended in April 2023
.
What changes with the end of the protected market
Without the protected market, it is not possible to refer to the prices determined by ARERA. The rates are now set by the free market with no obligation to update quarterly or monthly. This mandatory switch to the free market was completed respectively on 10 January 2024 for gas and on 1 July 2024 for electricity.
The transition to the free market
ARERA has planned a gradual process to accompany customers in the transition to the free market, ensuring continuity of supply and information obligations on the part of sellers.
Protections for vulnerable customers
Around 4.5 million vulnerable families will continue to benefit from regulated tariffs even after the end of the protected market. These customers include those in economically disadvantaged conditions, people with disabilities, residents in emergency housing facilities, and people over 75 years of age
.
Who are the vulnerable customers
Vulnerable customers in the gas sector include those with an ISEE not exceeding 9,530 euros (20,000 euros for large families), people with disabilities, residents in emergency housing facilities and people over 75 years old. For electricity, vulnerable customers also include those who need medical-therapeutic equipment
powered by electricity.
How to keep your rate protected
Customers must report their vulnerability to the seller. From 10 January 2024 for gas and from 1 July 2024 for electricity, sellers will continue to provide the service with economic conditions defined by
ARERA.
Protected or free market: what’s better
With the end of the protected market, it is important to carefully evaluate your options, control your annual costs and consumption and decide whether to remain in the protected market (if vulnerable) or switch to the free market. According to research by the National Consumer Union, none of the offers of the free market are cheaper than the service of greater protection.
How to request assistance on electricity and gas rates
ARERA offers several tools to help consumers switch to the free market, including the consumer desk, the offers portal and the consumer portal. These tools provide detailed information on available offers and energy consumption
.
The end of the protected market represents a significant change for electricity and gas consumers in Italy. It is essential to inform yourself and carefully evaluate the offers of the free market to find the solution that best suits your needs
.
