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Fuel crisis: Italy braces for delays as truck deliveries suspended from Monday

Italy’s road haulage companies said they will suspend services across the country from Monday, March 14th, due to the recent “explosion” in fuel costs.

Fuel crisis: Italy braces for delays as truck deliveries suspended from Monday
Trucks on a motorway near Rome during a previous nationwide strike against high fuel prices in 2007. Haulage companies are suspending work and organising protests this week over the recent surge in fuel costs. Photo by FILIPPO MONTEFORTE / AFP

Italian haulage industry union Trasportiunito said that the planned action was not a strike, but an “inevitable” suspension of services due to “force majeure” – namely the soaring cost of fuel, according to Italian media reports.

In a letter sent to the government this week, the union said it was coordinating action taken by hauliers who “are no longer able to guarantee contractual obligations” due to fuel prices, reported Italy’s Ansa news agency.

Petrol and gas prices have skyrocketed across Europe since Russia’s invasion of Ukraine, including in Italy.

READ ALSO: Italy announces plan to end reliance on Russian gas by 2025

It is not known how long the suspension might last, but industry associations warned of price rises if the government did not intervene to slash the cost of fuel.

Consumer watchdog Codacons told Ansa the hauliers’ actions would lead to a “surge” in retail prices that would cause further difficulties for households already struggling with the soaring cost of energy.

“The road transport block will have direct effects on the community, suspending the supply of goods to the commercial sector and leading to a surge in retail prices in shops and supermarkets,” said Codacons president Carlo Rienzi.

He said this was “an inevitable consequence, considering that 85 percent of goods sold in Italy are transported by road”.

Rienzi said it was “not clear what the government was waiting for”, calling for it to “immediately cancel VAT on petrol and diesel and reduce excise duties”.

Luigi Barone, of the Italian Federation of Organisations for Consortia and Industrialisation (FICEI), told Euronews on Friday that haulage was among the “numerous energy-intensive companies” that “have slowed down their production due to the disproportionate increase in energy costs.”

“It is clear that the higher costs, unfortunately, will filter to the consumer who will find it a double drain: the doubling of bills will increase the cost of numerous foodstuffs on the shelves,” he said.

Truck drivers are also planning to hold demonstrations around the country on Saturday, March 19th.

Though the demonstrations and stoppages are expected to cause price rises, Italy’s supermarket bosses insisted that there is no immediate threat to supply chains after rumours of a transport blockade of ports in Sardinia reportedly prompted panic-buying on the island this week. 

Unions meanwhile stressed that reports of a planned blockade in Sardinia were untrue, saying such a measure would be illegal.

“Blocking basic necessities is a crime, it is not possible to deprive the population of primary goods,” the general secretary of trade union Filt-Cgil, Arnaldo Boeddu, told newspaper Il Messaggero.

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ENERGY

Why your Italian electricity provider could change in 2024

A planned change in Italy’s electricity suppliers system means that many customers may be automatically assigned to a new provider in 2024. But what exactly is changing and who will it affect?

Why your Italian electricity provider could change in 2024

A long-planned reform of Italy’s utility suppliers system means that many customers around the country may have their current electricity provider automatically changed as of July 1st of this year.

But, as new details over the reform have emerged in recent days, it’s now easier to understand what the upcoming change will be all about and what it will mean for customers. 

What’s changing?

At the moment, electricity customers in Italy have two options.

You can sign up for an energy supply contract with tariffs set by the Italian national energy regulator Arera under what’s called mercato tutelato, or ‘protected market’.

Or you can sign up for a contract with a private supplier in the mercato libero (or ‘free’ market), with providers setting their own rates and being at liberty to offer a variety of discounts and promotions.

But, following the introduction of laws aimed at increasing market liberalisation in Italy, the ‘protected’ market option is now being phased out, with electricity contracts at state-controlled rates set to expire on July 1st 2024 (the original deadline fell on April 1st but was later postponed by three months). 

READ ALSO: Why you may need to switch your Italian energy supplier by 2024

This means that customers on protected contracts (approximately 4.5 million households according to the latest estimates) will have until the start of July to switch to a new provider (and contract) within the free market. 

What happens if I don’t make the switch?

Customers who don’t make the switch to a ‘free market’ provider by July 1st will be automatically assigned to a new supplier and placed under a ‘gradual protection contract’ (or servizio a tutele graduali)

This is a special three-year contract designed by national energy regulator Arera to smooth customers’ transition from the protected market to the free market. 

Under the contract, private suppliers will offer rates in line with or, at times, lower than previous ‘protected’ tariffs, with customers enjoying a fixed rate (i.e., not varying based on market price fluctuations) for the first 12 months. 

READ ALSO: At what time of day is electricity cheapest in Italy?

The switch to the ‘gradual protection’ contract will be free of charge and totally automatic, with previous direct debit arrangements set to be transferred to the new contract. 

The switch will apply to all households on protected electricity contracts, except customers identified as ‘vulnerable’ by Arera, who will continue to enjoy protected market tariffs beyond July 2024. These include people over 75, people with disabilities and severely ill patients. 

How are my bills going to change?

Automatically assigned private suppliers will apply rates generally in line with previous state-controlled tariffs. 

In some cases, the switch to the ‘gradual protection contract’ may even lead to non-negligible savings on your yearly electricity bill.

For instance, customers in Avellino, Benevento, Grosseto, Livorno, Pisa, Pistoia, Prato and Siena may see annual savings of up to 200 euros, according to a report from Italian news website Today. 

For any further information on ‘gradual protection’ contracts, see national energy regulator Arera’s website.

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