Energy Bills Decree converted into law: updates and changes for businesses and energy operators

The professionals of Andersen’s Energy Industry Group, coordinated by Edoardo Fea and Carlo Gioffrè, have examined the main effects arising from the recent conversion into law of the so-called “Energy Bills Decree.”

The analysis explores the most significant measures introduced by the provision, with particular focus on initiatives aimed at containing energy costs and strengthening the electricity market.

Below is an excerpt from the in-depth analysis dedicated to the new regulation, outlining the key developments and their impact on energy sector operators and consumers.

Revision of photovoltaic incentives and potential early exit options

For photovoltaic installations above 20 kW with incentives expiring from 2029 onwards, two voluntary options are introduced:

• a reduction of incentives (to 85% or 70%) in exchange for an extension of the incentive agreement;
• early exit from the incentive scheme as of 2028, within an overall cap of 10 GW.

Installations opting for early exit must undergo full refurbishment between 2028 and 2030, with a significant increase in output: at least double for ground-mounted systems and at least 30% for non-ground-mounted installations. The interventions must exclusively use European-manufactured modules registered with ENEA. Furthermore, the electricity generated by the residual capacity must be sold through long-term contracts (PPAs) or other incentive mechanisms compliant with State aid rules.

IRAP increase for energy companies

The regulatory measure increases the IRAP rate for companies operating in the energy sector by 2 percentage points for the 2026 and 2027 tax periods. The increase applies to activities identified by the ATECO codes specified in the decree.

The adjustment also affects 2026 IRAP advance payments: the 2025 tax must be recalculated by applying the new rate, solely for the purpose of determining the advance due. The additional revenues generated by the rate increase are allocated to reducing general system charges (ASOS) for non-household users, with a redistributive effect between energy operators and consuming businesses.

The provision was approved without amendments during the parliamentary process.

Strengthening of PPAs and the role of GSE and SACE

The regulatory framework governing Power Purchase Agreements (PPAs) is strengthened through a set of measures aimed at enhancing the stability and transparency of the long-term contract market. The GME platform is reinforced and reorganized, introducing dedicated sections for agreements with a duration of no less than three years and promoting forms of aggregated contracting. Within this new framework, Acquirente Unico S.p.A. assumes the role of demand aggregator, while parties involved in PPAs may request that the GSE act as a last-resort guarantor, thereby providing an additional layer of security in managing contractual risks.

At the same time, the “Energy Bills Decree” introduces changes to contracts managed by the GSE, extending their duration beyond the previous five-year limit and including, among the eligible costs, those related to the maintenance of the plants. Moreover, the contractual reference is no longer the energy produced, but rather the energy actually injected into the grid, making the mechanism more closely aligned with actual energy flows.

For installations with a capacity above 20 kW that, upon expiry of the incentive period, have benefited from support schemes and participate in the aggregation service through Acquirente Unico, an annual premium is provided. This premium corresponds to 15% of the positive difference, if any, between the annual weighted average of spot prices in the zone where the installation is located and the price recognized under the aggregation service.

The GSE, with the support of SACE S.p.A., also assumes the role of guarantor of last resort for covering risks related to the execution of PPAs. To perform this function, the GSE identifies risk mitigation and transfer instruments, while SACE intervenes for the excess portion by issuing guarantees at market conditions for up to 70% of the coverage, and only after the resources allocated to the primary guarantee have been exhausted. The commitments undertaken are allocated 80% to the State and 20% to SACE, without joint liability. For the years 2026 and 2027, SACE may undertake commitments up to a maximum of €250 million per year. The operational arrangements and procedures for issuing guarantees will be defined in a specific agreement between the GSE and SACE.

Measures on the electricity market and containment of ETS costs

Measures have been introduced to enhance competition in the electricity market and limit the impact of gas and ETS emission costs on energy prices. A reimbursement mechanism is provided for thermoelectric generators covering certain gas-related costs and, within defined limits, ETS emission costs. The reimbursements will be financed through charges applied to electricity consumption.

ARERA will be required to define the reimbursement rules, verify that the benefits are passed through into lower energy prices, and, where this does not occur, order the repayment of the amounts and impose penalties. It will also be required to update the economic conditions of the capacity market.

The implementation of these measures is subject to approval by the European Commission.