Italy To Allocate $3.5Bln To Curb Rise In Cost Of Utilities - Minister

ROME (UrduPoint News / Sputnik - 16th September, 2021) The Italian government will allocate 3 billion Euros ($3.5 billion) to curb the surge in the cost of public utilities, Ecological Transition Minister Roberto Cingolani said Thursday.

Utility bills for Italians are predicted to increase by another 40% starting October, after rising 20% over the summer period, according to the minister.

"This is a market issue. It is clear to everyone that gas (price) is constantly growing, and since it is a resource for electricity generation, we will see its strong impact on the bills. About 80% of the (utilities cost) increase is due to gas," Cingolani said in an interview with Radio Anch'io.

The rising cost of natural gas in Europe and other regions of the world will have a direct influence on bills for consumers, and the situation requires government intervention, the minister noted.

The allocation of 3 billion euros to curb this growth is an "urgent measure" similar to that which the government took three months ago, when "there was also growth, but on a smaller scale," Cingolani said.

Later on Thursday, Italian media reported that Cingolani had discussed the issue of growing utilities bills with Italian Prime Minister Mario Draghi and Finance Minister Daniele Franco. The government is expected to issue a decree concerning the allocated funds in the second half of the day.

The Coldiretti agricultural producers' association calculated that the annual bills of an average Italian family could increase by 500 euros to 1,820 euros due to the recent hike in electricity and gas prices.