Energy Prices and Their Impact on Italy’s Micro and Small Enterprises 

The structural disparity in electricity costs when compared to the European average is a growing concern for micro and small businesses throughout Italy, according to recent statements from Confartigianato.

Confartigianato President Marco Granelli claims that micro and small businesses that use less than 2,000 MWh of electricity pay €5.4 billion more annually than the EU average. He explains that the main cause of this discrepancy is the weight of fiscal and parafiscal charges included in energy bills, which are 68% higher for this type of business in Italy.

The structure of fees used to support renewable energy is a major contributing factor to this discrepancy. These fees, which are primarily collected through electricity bills, total about €10 billion in Italy each year. Notably, despite making up only 25% of all electricity consumption, micro and small businesses generate 40% of this revenue.

Given that micro-enterprises with fewer than nine employees make up 80% of Italy’s manufacturing sector, this imbalance is especially noteworthy. Comparing businesses in the same industry makes the difference even more obvious. A small textile company, for instance, pays about €53 per MWh for renewable energy, whereas a larger company in the same industry that uses more than one million kWh annually pays about €5.5 per MWh.

Confartigianato emphasizes that it is no longer possible to overlook this disproportionate burden. Restoring competitiveness is thought to require lowering renewable energy costs for small manufacturing firms.

Granelli welcomed the Italian government’s recent energy decree, which introduces resources outside the electricity bill, including a 2% increase in IRAP for companies in the energy sector aimed at easing costs for SMEs. However, he emphasized that this measure should become structural, not temporary.

If Italy wants to close the energy gap with the rest of Europe and strengthen the competitiveness of its businesses, the system of charges in electricity bills must be rebalanced—ensuring that micro and small enterprises are no longer asked to bear a disproportionate share of the costs.