Italy is preparing a sweeping overhaul of its electricity market that would strip carbon costs from power bills, a move that has sent shock waves through energy markets and driven a sharp selloff in forward prices.
Italy’s cabinet approved the so-called Energy Decree worth more than €3 billion ($3.5 billion) on Wednesday evening, Energy Minister Gilberto Pichetto Fratin said in a statement. Prime Minister Giorgia Meloni called the measures “very significant” and said they kept a promise made to voters when her government took power.