Enel, Hera win new clients as Italy ends regulated power price regime (updated)

Hera SpA

06/02/2024 17:22

(Adds Hera comment, details from sources, energy authority
estimate on power price)
    By Francesca Landini and Giancarlo Navach
       MILAN, Feb 6 (Reuters) - Utility Enel  ENEI.MI  and its
smaller rival Hera  HRA.MI  have won around half of the nearly 5
million customers who will exit Italy's regulated price regime
for electricity at end-June without picking a free-market
supplier, sources said.
        Enel beat the competition in seven areas of the country,
including Italy's biggest cities Rome and Milan, the body
organising the auction for the liberalisation of the market said
on Tuesday.
    Hera was also awarded customers in seven areas of Italy,
including part of the wealthy north, the so-called Single
Purchaser said in a statement. 
    This will lead to more than 1 million new electricity
customers for Hera, it said in a statement. Enel will gain
around 1.5 customers, two sources said.
    The two companies bid well under the base price to win the
auction in the most wealthy areas of the country, data released
from the Single Purchaser showed.
    Italy's energy authority ARERA estimated that fixed
electricity costs for customers in the new semi-regulated
service could fall by around 73 euros per year.
        "The electricity prices that will be charged to
consumers who will end up in the semi-regulated service are so
competitive -- 73 euros less per year -- that the suggestion we
can give them is to stay calm, do nothing and stay where they
are for the time being," said Marco Vignola, energy expert for
the National Union of Consumers. 
    Edison  EDNn.MI  won 700,000 new customers or four areas,
EDF's Italian subsidiary said in a statement. 
    Newcomer energy supplier Illumia acquired customers in three
areas of Italy. Regional utilities Iren  IREE.MI  and A2A
 A2.MI  got two areas and the Italian subsidiary of Germany's
E.ON one.
        The suppliers will sell electricity to the new customers
under this semi-regulated framework until end-March 2027, but
clients will have the opportunity to opt out and pick a
free-market contract whenever they want.

 (Reporting by Francesca Landini and Giancarlo Navach; Editing
by Ros Russell)
 ((francesca.landini@thomsonreuters.com; +39 02 66129437;
Reuters Messaging: reutersitaly.thomsonreuters@reuters.net))