Italy on Friday approved a long -awaited decree giving households the chance to choose their electricity supplier, using a special rule to meet a European Union deadline for market liberalisation.
Under the European Union's energy market reform, households should have the power to pick from July 1, but in Rome the relevant laws have been stalled in parliament for nearly a year, raising concerns that Italy may miss the deadline. "The government has taken a part of the reform and approved the (special) decree which allows every citizen to choose an electricity supplier," Cabinet Undersecretary Enrico Letta said after a cabinet meeting.
Special government decrees, often used in Italy as a last resort to push through legislation, come into effect immediately but need to be approved by parliament within 60 days.
The decree aims to protect consumers - about 30 million households in Italy or about a quarter of the country's total power market - from unjustified price increases during the final stage of the market liberalisation.
Under the decree, electricity sales distribution of companies which serve at least 100,000 clients should be split off. Integrated companies should spin off sales divisions within 180 days after the decree comes into force. Italy's energy market regulator AEEG will be in charge of setting conditions and reference prices for supplies of power and gas.
AEEG Chairman Alessandro Ortis said in a statement he was "very satisfied" with the decree, adding it was a necessary step towards the full opening of the market and real competition.
Ortis has said earlier this month the decree was also necessary to guarantee supplies for those who have not made up their minds about switching suppliers. AEEG, which has prepared a series of measures to protect consumers' rights in the changeover, on Thursday approved a "transitional tariff" for households.
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