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EU Asks Italy to Cut Energy Use as Electricity Bills Set to Soar 37%

EU urges Italy to cut energy use ahead of winter 2026-2027. Vulnerable households face 37% bill hikes as supply concerns grow.

Italian residential street at dusk featuring a smart electricity meter on a building wall.

EU urges energy saving measures as winter approaches with volatile prices

The European Commission has called on all 27 member states to cut gas and electricity demand for as long as necessary to weather a price crisis linked to supply shortages. In a letter sent to energy ministers, including Italy's Gilberto Pichetto Fratin, EU Energy Commissioner Dan Jørgensen warned that reducing demand is an effective tool to contain prices when global supply is limited and markets remain volatile.

The informal energy council meeting is underway in Dublin as the winter 2026-2027 season approaches. Jørgensen reminded ministers that voluntary, well-planned demand reduction proved useful during the 2022 energy crisis and urged them to maintain their preparations.

What the Commission wants governments to do

The Commission's recommendations draw from the AccelerateEU plan published in May and include a range of measures that capitals could implement:

• Cut electricity use during peak hours, which directly reduces gas demand

• Make full use of smart meters to monitor and manage consumption

• Encourage demand-side flexibility through retail markets

• Limit temperatures in public buildings and avoid outdoor heating

• Switch off non-essential public lighting at night

The measures are not binding but are intended as guidance from Brussels. The Commission also recommends income support for vulnerable households, energy vouchers, social tariffs, temporary regulated prices, and reductions in electricity excise duties and taxes.

For energy-intensive industries, the Commission suggests aid conditional on energy efficiency improvements, use of clean energy, or consumption flexibility.

Warning on price regulation

Commissioner Jørgensen cautioned that any price regulation measures must be carefully designed and targeted. Poorly conceived interventions could backfire, he warned, maintaining unnecessary gas demand or even increasing it. They could also create negative cross-border effects or distort the EU's internal market.

The commissioner stressed that the EU's dependence on imported fossil fuels exposes it to the turbulence of global energy geopolitics. Beyond tensions in global liquefied natural gas markets, an exceptionally dry and hot summer strained electricity systems in several member states, leaving prices elevated and volatile.

What this means for Italy

Italy enters this winter in a stronger position than many of its European neighbours. Gas storage levels stand at 84.4%, the highest in the region compared to a European average of about 70%. The country was also excluded from an infringement procedure for implementing the directive on hydrogen and decarbonised gas.

However, Italian consumers will feel the pressure. The fourth quarter of 2026 brings a 37.3% increase in electricity bills for about 3 million vulnerable customers served under the Maggior Tutela protected regime. The rise is attributed to higher energy procurement costs driven by international instability and natural gas prices.

ARERA president Nicola Dell'Acqua has expressed optimism about Italy's energy prospects, noting that the Capacity Market and MACSE mechanisms are considered European best practices.

Italy's response and ongoing measures

Italy has already taken steps aligned with the Commission's recommendations. The country made second-generation smart meters mandatory by 2026, and significant investments are underway in renewable energy and energy efficiency.

New rules that entered force in June 2026 redefine technical criteria for assessing building energy performance. From August 2026, new buildings must cover 60% of consumption for hot water and heating from renewable sources, with higher requirements for public buildings.

The Conto Termico 3.0 incentive mechanism became operational in early 2026, supporting small-scale energy efficiency interventions. Italy has also transmitted its 9.347 billion euro Climate Social Plan for 2026-2032 to Brussels, which includes the Bonus Energia Plus for citizens facing energy hardship.

The logic of demand reduction

The 2022 crisis showed what demand reduction can achieve. EU gas demand fell by about 19% between August 2022 and January 2023 compared to the pre-crisis reference period. In Italy, primary energy demand dropped 4.5% in 2022, with residential consumption falling 10.3% and industrial use down 7.8%.

The trade-off was stark: Italian households spent 49.9% more on energy in 2022 despite consuming less, as wholesale gas costs soared 165% and electricity 142%. The lesson was that when supply cannot expand quickly, reducing demand is one of the few tools available to prevent even steeper price spikes.

For residents in Italy, the Commission's letter translates into a straightforward expectation: public buildings may feel cooler, city streets may be darker at night, and smart meters will become a more active part of household energy management. The measures aim to avoid emergency rationing later, but they mean adjusting habits now in exchange for lower collective risk when temperatures drop.

Author

Luca Bianchi

Economy & Tech Editor

Covers Italian industry, innovation, and the digital transformation of traditional sectors. Believes that economic journalism works best when it connects data to real people.