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Since 2016, the Authority for Electricity and Gas has established the adoption of a new format for billing energy costs, giving rise to the so-called 2.0 bill.

The intent was to make it easier for the user to understand the costs. In fact, many entries, often difficult to understand for non-professionals, have been merged together, highlighting at the end only 3 macro areas of expenditure:

  • Spending on the raw material
  • Spending for transport and management of the meter
  • Expenditure for system charges

This unification led the invoice to consist of a single page.

Let’s see together what are the 3 items:

EXPENDITURE FOR RAW MATERIALS:

It covers all costs in order to supply energy to the final customer including those of the raw material, its dispatching (that is, the coordinated management of the inputs and withdrawals of electricity and of the electricity flows on the transmission network for maintenance purposes balancing of the electrical system in safety conditions) and marketing. It consists of a fixed and a variable amount based on the amount of consumption and which, depending on the different offers of the various suppliers, may also vary according to time slots.

Within this area the following items have been merged:

  • PE – Cost of electricity purchase. It is updated every three months by the Authority and includes compensation for network losses.
  • PD – Expenditure for the dispatching service, ie the management of the flow of electricity in the network. Includes compensation for network losses.
  • PPE – PE equalization component. It covers the difference between the actual cost of energy and dispatching and the amount paid by customers in the protection market for the same services.
  • PCV – Sale and Sale Price. It covers costs for the commercial management of customers supported by businesses.
  • DispBT – PCV equalization component. It covers the difference between the actual marketing amounts paid and the management costs actually granted to protected companies.

WHAT IS THE EXPENDITURE FOR TRANSPORTATION AND MANAGEMENT OF THE COUNTER?

WHAT IS THE EXPENDITURE FOR TRANSPORTATION AND MANAGEMENT OF THE COUNTER?

It concerns the costs incurred for the transport of electricity on the national transmission networks, to then arrive at the local distribution, and for the measurement activity that also includes the management of the meter. Also this cost item is made up of several parts and specifically by a fixed quota , by a power quota that depends on the power committed by the user, and by a differentiated energy share by consumption brackets.
The following components are included in the item “Expenditure on transport and management of the meter”:

  • Tau1, Tau2, Tau3 – For the costs of distribution, transport and measurement of electricity.
  • UC6 – For the coverage of loans to companies that manage networks for interventions aimed at improving the quality of services.

WHAT IS THE EXPENDITURE FOR SYSTEM EXPENSES?

 

This is the portion that is paid to cover the costs related to activities of common interest related to the electricity system. In the list below you can see the detail to better understand what it is. Spending on system charges consists of a fixed and a variable portion based on consumption.
Here is the detail:

  • A2 – Corresponds to the costs of dismantling abandoned nuclear power stations, while a part is allocated to the state budget.
  • A3 – Corresponds to the costs of guaranteeing state incentives for those who produce electricity from renewable sources.
  • A4 – Corresponds to the costs to guarantee the tariff concessions that the railway sector benefits from.
  • A5 – Corresponds to costs for research activities in areas of interest for the national electricity system.
  • AE – Corresponds to the costs for the benefits given to energy-intensive manufacturing companies served on medium and high voltage.
  • AS – Corresponds to the energy bonus costs reserved for lower income households.
  • UC4 – Serves to cover the higher costs of 12 small power companies operating on the smaller islands.
  • UC7 – It is destined to cover the charges deriving from measures and interventions for the promotion of energy efficiency in end uses). For example for the replacement of light bulbs and household appliances with low consumption models, etc., or for the installation of devices for reducing water consumption, for the replacement of boilers and water heaters with high-performance models, for interventions on the housing building, etc …
  • MCT – These are the Territorial Compensation Measures. It covers the costs of funding for those territories that host nuclear power plants or plants related to the disposal of their fuel.

To these three main items will then be added taxes and VAT , equivalent to 10% for domestic customers.

NEW LIGHT BILLET SIZE

NEW LIGHT BILLET SIZE

 

Bill 2.0 contains all the cost items on a single page .
That said, every supplier company has the possibility to choose its own graphic design as long as it contains all the data established by the Authority. The formal idea behind this choice is to make it easier for the user to read the invoice. This is why all the details are no longer shown . However, it is always possible to ask your supplier for the exploded bill containing all the data that item by item has been merged into the bill 2.

VOICES IN EVIDENCE

The Authority for Electricity, Gas and the Water System has established that the following items must always be reported in the invoices regardless of the layout chosen by the supplier:

EXPENSES

The expenses that must always be found are :

  • Spending on energy
  • Spending for transport and management of the meter
  • Expenditure for system charges
  • Total taxes and VAT
  • Total bill

The following three items, on the other hand, must be indicated only if they are invoiced. In this case the information necessary to understand the reasons for their application must also be provided:

  • recalculations
  • Other games
  • Social bonus

The method of payment of the invoice, its expiry date and the presence of any installments must also be indicated.

CONSUMPTION

Also in bill 2.0 must be present consumption related to the billing period (which can be actual, estimated or invoiced) Moreover, at least once a year must be shown the detail of consumption in the last 12 months.

BILLING INFORMATION

In this category we include all the elements necessary to understand the details of the supply to which the bill refers. This category includes essential data such as:

  • The type of service (protection or free market)
  • The identification data of the holder of the supply and the address of delivery
  • The supply data (address, POD, committed power, subscribed rate)

Finally, they should always indicate any updates on prices and rates , as well as the periodic changes in the economic conditions of the protection service , as functional to a better interpretation of the bill.

… because some small companies take advantage of these mergers to charge for the costs not due and practically impossible to decipher. However, all this remains valid even in the case of inadvertent errors, so the new 2.0 bill is to be avoided like the plague!

To give you an idea, it’s as if going to the restaurant, instead of having a detail of how much you have consumed, on the bill I found only three items: food, drinks and covered. Obviously it would be easier to read but you could not understand if the individual flow rates have been correctly counted.

At this point, after reading this guide, you should have a fairly thorough knowledge both to understand the changes made by the new billing, and also to understand the costs included in the bill exploded, which as you can always ask your supplier, and is good that you do it. As an energy consultant, what I do immediately for all my clients is precisely to ask the chosen supplier for the complete invoice, in order to always have the presence of any billing errors under control.

A part of our work is precisely that of checking monthly the correctness of the billing for our customers, who in this way are always protected from any errors, and avoid having to spend more than necessary.