Italy's Energy Bill Decree 2027: What Changes for Businesses and How Much They Really Save
Italy's decree of 9 November 2026 lowers the cost of electricity in 2027. What it provides, what it is worth for a small business and why LED saves more.
On 9 November 2026 the Italian Council of Ministers approved a decree-law to reduce the cost of electricity and gas in 2027. For a small craft business using 40 MWh a year, the government estimates a saving of about €280 on the electricity bill. It helps, but anyone still running conventional lighting can save far more by cutting consumption.
- The decree amends decree-law 21/2026 and changes the reimbursements to gas-fired power plants.
- According to the Minister for the Environment, the average reduction from January will be about €15 per megawatt-hour.
- On 10 November 2026 the text had not yet been published in the Official Gazette; Parliament must convert it into law within 60 days.
- The regulator ARERA will define how it works in practice.
- An LED retrofit cuts lighting consumption by 60–70%, every year.
What the decree provides
The measure aims to lower the wholesale price of electricity, which in Italy depends heavily on the cost of gas. It does so by reimbursing part of the cost of natural gas used for thermal power generation. From 1 January 2027 further components of the gas transport tariff become reimbursable; an additional reimbursement is also provided, limited to a maximum of eighteen months.
| Example given by the government | Annual consumption | Estimated saving in 2027 |
|---|---|---|
| Small craft business | 40 MWh | about €280 |
| Energy-intensive business with self-generation | 40,000 MWh | about €520,000 |
These are official estimates for businesses with different characteristics, not guaranteed amounts. The real effect will depend on ARERA's decisions and on your supply contract.
Why LED saves more
The decree lowers the price of each kilowatt-hour. LED lowers the number of kilowatt-hours. The two add up, but the second weighs far more when lighting stays on for many hours.
Worked example: a hall with 40 metal halide floodlights of 400W (approx. 440W with ballast), 4,000 hours a year, replaced by 40 LED high bays of 150W.
| Item | Value |
|---|---|
| Energy saving | (440 − 150) W × 40 × 4,000 h ÷ 1,000 = 46,400 kWh a year |
| Saving at €0.22/kWh (example tariff) | €10,208 a year |
| Effect of the decree on 40 MWh, according to the government | about €280 a year |
The tariff is an example: use the price in your contract. Run your own numbers in LED Payback Period Calculator.
Efficient luminaires for the retrofit
Frequently asked questions
Is the decree already in force?
It enters into force on publication in the Official Gazette, which had not yet happened on 10 November 2026. Parliament must then convert it into law within 60 days.
Do I have to apply for the reduction?
The mechanism acts on the wholesale price and on regulated components; ARERA will define the details. Check the communications from your supplier.
How much does a small business save?
For a typical craft business using 40 MWh a year, the government estimates about €280 on 2027 electricity consumption.
Is switching to LED still worthwhile?
Yes. A retrofit cuts lighting consumption by 60–70% and in a hall usually pays back in one to three years.
Last checked: 13 November 2026, Nick Cuppens, Clightstore. Sources: Italian Ministry of the Environment and Energy Security and IPSOA.
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