Electricity bill: main items of expenditure
Below is a brief description of the items that make up the electricity bill
EXPENDITURE ON ENERGY MATTER
It represents the main cost item of the bill and includes amounts invoiced for the various activities carried out by the seller to supply electricity to his customer. It includes the items relating to the purchase of energy, dispatching and retail marketing, plus any invoiced amounts relating to the components of the equalization mechanisms for supply costs.
- energy price , corresponds to the cost of purchasing electricity, including losses on the transmission and distribution networks. Customers who changed supplier to the free market after 1 July 2007 pay the cost of energy based on the commercial solution chosen. For those who have not changed supplier and use the enhanced protection service, the Authority sets and updates the “energy price” (PE) every three months, with a methodology that takes into account the amount spent by the Single Buyer (the ‘body in charge of purchases for customers in greater protection) to obtain supplies on the wholesale market, up to the time of the quarterly update, and estimates on what it expects to spend in the following months;
- marketing and sale price, refers to the expenses that sales companies incur to supply their customers. For customers served in greater protection, this item is set by the Authority on the basis of the costs incurred on average by a free market operator;
- price of dispatching, it refers to activities for keeping the electricity system in constant equilibrium. Dispatching ensures that every quantity of electricity taken from the grid to satisfy consumption corresponds to an equal quantity injected by the production plants. Customers in the free market and under greater protection pay for this service in proportion to consumption, according to a value updated every three months by the Authority.
EXPENDITURE FOR TRANSPORTATION AND METER MANAGEMENT
It includes the costs for the various activities that allow sellers, both on the free market and in greater protection, to deliver the electricity they consume to their end customers. It therefore corresponds to the amounts relating to transmission / transport, distribution and metering services, or reading the meter and making consumption data available. It also includes the costs relating to the incentive components and the recovery of the quality of the service and the equalization mechanisms of the aforementioned services. In detail, the fees relating to these amounts are divided into fixed portion, power portion and energy portion, the latter differentiated by consumption brackets.The level of expenditure for activities concerning the transport and management of the meter is defined by the Authority, on the basis of precise indicators, with uniform criteria throughout the national territory, taking into account inflation, investments made and the objectives of efficiency recovery. The difference between the cost of energy and the cost of managing the meter is substantial. In fact, it is on the first that the competition is at stake and therefore the possibility of saving according to the commercial offers of the various suppliers on the free market. On the second, however, there is no competition because the transport and distribution of energy take place through infrastructures that cannot be replicated and that are used by all suppliers to serve all consumers.
EXPENDITURE FOR SYSTEM EXPENSES
It refers to the amounts invoiced regarding the coverage of costs relating to activities of general interest for the electricity system, which are paid by all final customers of the electricity service. These are components A, UC, MCT, the general system charges required by law (Arim) and the ASOS component, aimed at covering the costs for encouraging the production of electricity from CIP6 / 92 cogeneration. The amounts paid for these activities are divided into Fixed fee (€ / month) and Variable fee (€ / kWh)
RECALCULATIONS OR ADJUSTMENTS
This item is present only in bills in which amounts already paid in previous bills are recalculated, due to a change in consumption communicated by the Distributor, or a change in the prices applied.
It is present only in the bills of domestic customers who have been granted the social bonus or part of it.
This item is present only in bills in which a portion of the television subscription fee due for the current year is charged. This amount is currently paid only in electricity bills relating to RESIDENT DOMESTIC users; in other bills, this item is not present.
TOTAL TAXES AND VAT
Includes items relating to excise duty and value added tax (VAT). Excise duty applies to the amount of energy consumed regardless of the contract or vendor chosen. Domestic customers for the supply in the house of registered residence (first home) and with power up to 3 kW enjoy reduced rates. VAT is applied to the total cost of the bill. Currently the VAT for domestic customers is equal to 10%; for customers with “different uses” it is 22%, subject to concessions.
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