Domestic Users

Water, electricity, and gas: utility disconnections suspended and social bonus added to bills

Acknowledging a lockdown that, although mitigated, will continue for several more weeks, the Regulatory Authority for Energy, Networks and the Environment has granted another extension for social incentives for water, electricity, and gas. This includes a freeze on utility disconnections for non-payment and an annual discount on bills, which varies based on income and climate zone.

The Italian energy regulator (ARERA) has extended —until May 17—the measures with which, at the end of March, it had already blocked procedures for suspending water, electricity, and gas supplies (for non-payment) for residential customers. While in its previous intervention, the Authority had granted a bonus to consumers with payment deadlines between March 1st and April 30th, the current measure will extend the bonus to those with payment deadlines of May 31st; the deadline for submitting the discount application is July 31st, 2020. In a second phase, after the Authority's formal acceptance of the application, the discount will be applied directly to the bill "continuously and retroactively starting from the original expiration date. The renewal has the usual total duration of 12 months ," ARERA explains. Starting next year, however, the energy social bonuses will be automatic : those eligible will no longer have to request them annually but will see them applied to their bill without having to take any action.

Blocking of detachment procedures for non-payment

The package, in addition to the extension resolutions, confirms the suspension of default proceedings for domestic electricity and gas customers with annual consumption of less than 200,000 cubic meters (m3). The same applies to water. Therefore, starting May 18th, water, electricity, and gas suppliers will have to restart the default notice procedures, adhering to the required notice period. Therefore, it is important to remember that the first default notice or reminder must include an offer allowing the end customer to pay in installments without paying interest. For non-domestic water users, the utility (after review by the Government Agency) may offer the end customer the option of paying in installments for bills due on May 31st and for those issued during the current month.

Social bonus for electricity and gas

In a press release, ARERA explained its decision as follows: " Consumers whose bonus expires between March 1 and May 31, 2020 (the previous deadline was April 30), are given the option to renew their application for the bonus beyond the original deadline , extending the deadline until July 31, 2020. Once the application is accepted, following standard checks, the 'discount' will be guaranteed continuously and retroactively starting from the original expiration date. The renewal has the usual total duration of 12 months ." The Court then clarified that it is possible to request a refund for the amount unduly paid to one's electricity supplier. However, it should be noted that the refund expires after 10 years, so for now, it will be possible to request a refund for the amount overpaid between May 2010 and December 2011.