In Brief (TL;DR)
We analyze the differences between the free and regulated markets to help you choose the best offer and avoid unjustified price hikes.
We analyze the contractual and price differences to guide you through the switch to the free market, avoiding unjustified price hikes.
Discover how to navigate the switch to the free market, avoiding price hikes and choosing the tariff best suited to your consumption.
The devil is in the details. 👇 Keep reading to discover the critical steps and practical tips to avoid mistakes.
Imagine you’ve driven the same reliable car for years, a standard model, solid but basic. Suddenly, you’re told it’s time for a change: you can choose a sports car, a high-tech hybrid, or a model tailored to your travels. This is exactly what’s happening in Italian homes with the definitive switch from the Regulated Market to the Free Market for energy. It’s not just a change of contract, but a true cultural leap that transforms us from passive users into conscious consumers.
2025 is the year of awareness. After the end of the Regulated Market for gas in January 2024 and for electricity in July 2024, millions of families found themselves at a crossroads. The confusion is understandable: between call center calls, indices like the PUN and PSV, and offers that seem too good to miss, getting your bearings has become a daily challenge. However, understanding the rules of the game is the only way to turn this transition into a real savings opportunity.
The Great Transition: Where We Are Today
For decades, the State acted as a “paternal figure,” setting energy prices quarterly through ARERA. This system guaranteed stability and protected consumers from the most violent market fluctuations. Today, this shield remains in place only for so-called vulnerable customers, a category that includes those over 75, those in economically disadvantaged situations, or those who require life-saving medical equipment.
For everyone else, the “shell” has broken. We have entered a European context where competition should theoretically lower prices. The reality, however, is more complex. The free market offers endless possibilities, but it requires active attention. It’s no longer enough to just receive the bill and pay; you have to analyze it.
Who Are Vulnerable Customers? This category includes individuals over 75, recipients of social bonuses, individuals with disabilities (under Law 104/92), those living in emergency housing facilities or non-interconnected smaller islands, and those who use electromedical equipment.
The Limbo of the Gradual Protection Service (STG)
Many Italians, out of inertia or fear, did not choose a free market provider by the July 2024 deadline. What happened to them? They weren’t left in the dark. They were automatically moved to the Gradual Protection Service (STG). Contrary to initial fears, this “waiting room” has, for now, turned out to be one of the most affordable options available.
The auction mechanism, through which providers were awarded STG customers, has led to very competitive prices, often lower than standard free market rates. However, it’s crucial to remember that this is a temporary solution. The STG will last until March 2027. After that date, anyone who hasn’t chosen an offer will be absorbed by the local provider under market conditions, likely losing their current economic advantage.
Tradition vs. Innovation: Two Philosophies Compared
Choosing between an indexed-price offer (similar to the old regulated system) and a fixed-price one (typical of the free market) often reflects our approach to risk. Mediterranean culture tends to value tradition and security, but technological innovation is changing the game.
In the free market, energy becomes an integrated service. You’re not just buying kWh; you’re accessing an ecosystem. Many providers offer apps for real-time monitoring, discounts if you bundle your supply with fiber optics, or incentives for installing a heat pump. This is where the modern consumer can make a difference, leveraging technology to optimize consumption, not just to pay less for the raw material.
Fixed or Variable Price: The Gamble
The core of the choice in the free market lies in the pricing formula. Understanding the difference is essential to avoid surprises when winter arrives.
- Variable (Indexed) Price: The cost of your energy follows the stock market trend (PUN for electricity, PSV for gas) plus a small surcharge (spread). If the market goes down, you save immediately. If there’s a geopolitical crisis, your bill goes up. It’s the ideal choice for those who want to take advantage of calm market periods.
- Fixed Price: You lock in the cost of the raw material for 12 or 24 months. You pay a sort of “insurance” against price hikes. Even if the market goes crazy, your rate doesn’t change. It’s perfect for those who want to plan their family budget without anxiety, perhaps integrating it with a smart home that manages loads automatically.
How to Evaluate the Best Offer
There is no single perfect offer, only the one that’s perfect for your consumption profile. The first step is to retrieve your Comparability Sheet from your bill or use ARERA’s Offer Portal. Ignore promises of “50% discounts” on the energy component if the fixed marketing costs are sky-high.
A common mistake is to look only at the price per kWh and forget the monthly fixed fee (PCV). If you’re a single person who consumes little, a high fixed fee (e.g., €12 per month) will negate any savings on the raw material cost. Conversely, a large family with high consumption, perhaps with energy-intensive appliances, will benefit from a low price per kWh, even with slightly higher fixed costs. To better understand your real consumption, you might consider a DIY energy audit.
Expert Tip If you are a vulnerable customer still in the regulated service, you have until June 30, 2025, to request access to the Gradual Protection Service (STG), which currently offers very advantageous rates.
Beyond Price: Sustainability
The free market has introduced a factor that was marginal in the old regulated regime: the origin of the energy. Today, you can choose to buy only 100% certified green energy. For many Italians, this is an added value that justifies a slightly higher expense. It’s a way to vote with your wallet, pushing the system toward renewables.
Furthermore, Renewable Energy Communities (CERs) are becoming more widespread. These allow energy produced locally (e.g., from photovoltaics) to be shared with the neighborhood. It’s the ultimate evolution of the “market” concept: no longer just customers, but producers and consumers together. If you’re interested in this collaborative approach, learn more about how renewable energy communities work.
Conclusions
The end of the Regulated Market should not be seen as a threat, but as a call to action. Staying put means leaving things to chance or to others’ decisions. The key to navigating this vast sea is information. Analyze your consumption, decide how much risk you want to take (fixed vs. variable), and don’t be afraid to switch providers if you find better terms.
Remember that switching is always free and involves no service interruptions. We are in an era where brand loyalty rarely pays off; loyalty to your wallet and your sustainability principles, however, always does. Take control of your bill today: the savings begin the moment you stop taking energy for granted.
Frequently Asked Questions
There is no interruption of service. If you are a non-vulnerable domestic customer and did not make a choice, you were automatically switched to the Gradual Protection Service (STG). This transitional regime, managed by providers selected through auctions (like Enel, Hera, or Edison depending on the area), lasts for about three years (until March 2027) and offers economic conditions that have so far proven to be very competitive compared to the free market average.
The choice depends on your risk appetite. A fixed price locks in the cost of the energy commodity for 12 or 24 months, protecting you from sudden geopolitical or seasonal price hikes: it’s ideal for those seeking stability in their family budget. An indexed (or variable) price, on the other hand, follows the wholesale market trend (PUN for electricity, PSV for gas); historically, it allows for savings when prices fall but exposes you to the risk of immediate bill increases if the market soars.
Only customers who meet at least one of these requirements can remain in (or return to) the Regulated Market (now the Vulnerability Protection Service): being over 75 years old, being in an economically disadvantaged situation (recipients of social bonuses), being a person with a disability under Art. 3 of Law 104/92, using life-saving medical equipment powered by electricity, or having a utility service in a non-interconnected smaller island or in an emergency housing structure.
Switching providers is always free and does not involve technical work on the meter or service interruptions. However, when comparing offers, you must pay attention not only to the cost per kWh or Smc but also to the fixed Marketing and Sales fee (PCV or QVD), which varies between providers and impacts the bill regardless of consumption. System charges and taxes, on the other hand, are set by the State and remain the same for all providers.
The safest and most impartial tool is the Offer Portal managed by ARERA (the public regulatory Authority). Unlike private commercial comparison sites, which often only show their affiliated partners, the Offer Portal analyzes all available tariffs on the market. By uploading your bill data or entering your consumption portal code, you can get a personalized annual spending estimate and verify the real savings compared to your current offer.
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