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ENERGY

Electricity bills in Italy could rise by up to 25 percent from January

Households and businesses in Italy face further steep increases to their gas and electricity bills from the start of 2022 unless the government intervenes, warn experts.

Consumers in Italy could see significant electricity bill increases in 2022.
Consumers in Italy could see significant electricity bill increases in 2022. Giuseppe CACACE / AFP

Electricity bills for the average family could rise by anywhere between 17 and 25 percent from the start of next year, while gas bills are set to increase by as much as 50 percent, warned Davide Tabarelli, president of the research institute Nomisma Energia, in an interview with news agency Ansa on Wednesday.

Italian households recently saw a significant hike to their energy bills in October, when the price of electricity increased by 28.9 percent and gas by 14.4 percent.

At the time, Italy’s government stepped in and allocated three billion euros to offset some of the costs and shield end consumers from the worst of the price increases.

Without the measures, the increase passed on to individuals could have reached 45 percent, Italy’s energy regulatory authority Arera said.

READ ALSO: Electricity bills in Italy rise by almost 30 percent from Friday

But energy costs in Italy are now set to soar again unless the government commits to setting additional price caps, Tabarelli warns.

Without further state intervention, “the two or three billion to be allocated in the budget to reduce bills is a little thing,” he told Ansa.

Italy isn’t the only country to be affected by surging energy costs.

Europe as a whole is facing soaring power prices as its economy recovers from the coronavirus pandemic, while natural gas reserves on the continent are at a worryingly low level.

Italy in particular consumes a large amount of gas compared to its European neighbours: some 40 percent of its primary energy consumption is gas, compared with about 15 percent in France, according to official statistics for both countries.

Tabarelli pointed to a reduction in the amount of gas delivered to Europe from Russia as one of the key causes of the crisis.

READ ALSO: Rising energy prices: How to save money on your bills in Italy

This is partly due to aging transportation networks, and partly to Moscow’s efforts to apply pressure on European governments to give the necessary approvals to open its Nord Stream 2 pipeline, the launch for which was pushed back by Germany’s energy regulator to at least March 2022, he said.

He also highlighted a push by China and other countries to transition their main energy supply from coal to natural gas, increasing global demand on the energy source.

“Energy companies are investing more in renewables and less in fossils, but the demand for gas isn’t decreasing,” Tabarelli said.

His concerns are echoed by the non-profit Italian consumer rights organisation Consumerismo.

The organisation has calculated that if prices rise as predicted, the average family in Italy will spend 3,368 euros on energy bills in 2022 – an increase of 1,227 euros on 2021 – reports Ansa.

It recommends that the government allocates at least 10 billion euros “to counter increases and speculations on international energy markets, and avoid the maxi-sting that is about to hit consumers.”

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MONEY

The verdict: What are the best banks for foreigners in Italy?

Picking the right banking option in Italy can be hard, but The Local's readers have shared their experiences and advice to give you a head start.

The verdict: What are the best banks for foreigners in Italy?

If you’re planning on moving to Italy, opening a bank account will be one of the very first things you’ll have to do in the country.

Overseas accounts (especially those from outside the eurozone) are unlikely to cut it for everyday tasks like paying bills and taxes, receiving an Italian salary and taking out insurance as many Italian authorities require an account with an Italian IBAN number for these purposes.

Italy has a large number of banks to choose from, ranging from traditional Italian institutions to international banks to a host of online-only operators that have grown in popularity in recent years.

But Italian-only online information, confusing paperwork and a swarm of different offers can make it hard to find the right option, which is why we asked readers of The Local to share some of their best insider tips in a recent survey.

Traditional v online banking

If you’re looking to open an account in Italy, one of the very first decisions you’ll be faced with will be whether to opt for a traditional institution or a digital banking platform. 

Overall, around four in ten respondents indicated an online banking platform as the best option for foreigners in the country, with many pointing to low account fees, advantageous currency exchange rates and a far greater degree of flexibility compared to traditional institutions. 

READ ALSO: Which documents do I need to open an Italian bank account?

The majority of respondents however selected a traditional Italian bank as the best option, citing greater levels of trust in traditional institutions, the advantage of dealing with people face to face and, in some cases, the availability of specific services and information for foreign nationals. 

Traditional banks

Italy’s biggest private bank, Intesa Sanpaolo, was recommended by multiple readers as the best option for foreign nationals in the country.

Intesa San Carlo, Italy

People walk past the headquarters of Italy’s Intesa Sanpaolo in Turin’s Piazza San Carlo in January 2017. Photo by Marco BERTORELLO / AFP

Iain Gosling, a UK national living in Pisa, Tuscany, highlighted the quality of their online services, saying: “The app is easy to use and it translates into English automatically. Online banking is easy. We maintain bank accounts in the UK and send funds to ISP, no problem.”

Another British national living in Pisa focused on the advantages of dealing with Italy’s largest bank, saying that “a lot of operations are done through ISP so the transaction fee is low” and the large number of branches across Italy makes it easy to “open an account quickly in person.”

Laura, a US-Italian citizen living in Ascoli Piceno, Marche, praised Intesa Sanpaolo for their customer service, saying staff were “patient and understanding” following a bad experience with another bank.

READ ALSO: What you need to know about opening a bank account in Italy

Besides Intesa Sanpaolo, UniCredit was also mentioned on multiple occasions within the survey, though opinions on Italy’s second-largest bank were mixed.

Stewart, an Australian national living in Umbria, said they “never had any problem paying bills or making transfers” even when out of the country, and the bank has “a pretty good website, including an English-language (sort of) option”.

But other readers had rather different experiences. Laura, from Ascoli Piceno, said her experience with UniCredit was “a nightmare” as “they couldn’t open the account correctly” and trying to solve the issue was “humiliating and impossible”. 

Cindy in Orte, Lazio, mentioned that UniCredit “arbitrarily raised checking account rates for foreigners who are not residents from 20€ annual to 120€ annual”, whilst another reader reported that “it took someone I know three months to open an account”.

Finally, two readers recommended BancoPosta – a branch of Italy’s Post Office offering basic financial services – based on low fees, presence in all major Italian towns, and easy sign-up procedures.

Online banking and transfer platforms

Wise (formerly TransferWise) was by far the most highly recommended digital platform within our survey.

A British reader in Tuscany hailed it for its “speedy transfers, good exchange rates, and prompt problem resolution”, highlighting the contrast with “slow, expensive and paper intensive” traditional banks.

Revolut

A close-up detail of a card from digital bank Revolut. Photo by JUSTIN TALLIS / AFP

Jenny Lantschner, a British-Italian national in Lucca, also pointed out Wise services’ speed, saying that it’s “very easy to use on a smartphone and will send funds within minutes”.

Besides Wise, several readers recommended Italian online bank Fineco, which they praised for easy account-opening procedures, efficient online operations and low fees. 

Lithuania-based Revolut was also recommended by some readers on the basis of “low cost, convenience, and near spot-market rates for currency exchange”, though others mentioned having problems with money transfers. 

For instance, Bob, an American national in Siracusa, Sicily said that “English, American, and Italian banks all refused to fund” his account.

Finally, Steve in Lombardy advised against opening accounts with Germany-based N26 as they “have been closing accounts in Italy and not giving back the money to customers”.

Though N26 is an active digital bank in Italy, it has been operating in a limited capacity for nearly two years following on-site inspections in late 2021 that revealed shortcomings in terms of security legislation and weaknesses in anti-laundering measures. 

Readers of The Local have recently reported having their accounts shut and being locked out of their funds for no apparent reason.

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