The differences between the free energy market and the regulated service: what changes for businesses after liberalization.
Since July 1, 2024, the regulated electricity market has ended for households (for businesses it had already ceased in 2021). Understanding the differences between the two regimes is essential for making informed contract decisions.
The regulated service
In the regulated market, economic conditions were set quarterly by ARERA based on wholesale market trends. The price was the same for all customers with the same profile and was non-negotiable. This system provided protection but did not allow optimization.
The free market
In the free market, each supplier proposes its own commercial terms. Customers can choose between fixed, variable, or indexed price offers. Regulated components (transport, charges, taxes) remain identical: only the raw material price changes.
What works best for businesses
For companies, the free market offers significant opportunities:
- Direct price negotiation based on volumes
- Choice of indexing formula (PUN, fixed price, hybrid)
- Multi-year contracts to stabilize costs
- Additional services (energy management, reporting, optimization)
The key is to compare offers in a structured way, considering not just the spot price but the total supply cost on an annual basis, including potential hidden costs such as penalties, imbalance fees, and fixed contributions.
Informational content by IPGS Energy. Information is reviewed as of the stated update date and does not replace a contractual, tax or regulatory assessment specific to an individual business.