Italy’s electricity premium over France, Spain and Germany exceeds €65 per MWh

Italy’s energy-price gap widens

Italian consumers and businesses are paying a growing premium for energy compared with their counterparts in France, Spain and Germany. A report on Italian energy costs prepared by Confcommercio and Cer, and cited by Il Giornale, says the country’s wholesale electricity-price differential exceeded €65 per MWh against all three large European markets through September 2026.

The premium reached €69.4 per MWh over France, €67.2 over Spain and €65.3 over Germany. That represents a sharp widening from 2019, when Italy’s differential was €7.6 against Spain and €15.9 against Germany. In 2025, the gaps had already expanded to €58.6 over Spain and €32.1 over Germany. The figures matter directly for energy-intensive manufacturers, retailers, hospitality companies and other businesses whose margins depend on electricity and heating costs.

Gas determines the Italian power price

The central cause is Italy’s heavier dependence on gas-fired power generation. Gas plants supplied 43.7% of Italian electricity in 2025, compared with 18.2% in Spain, 17.6% in Germany and only 3.2% in France, according to the Confcommercio-Cer analysis. France benefits from a large nuclear fleet, while the other markets have a less gas-intensive generation mix. Renewable energy is growing in Italy and accounts for around 50%, but it has not eliminated the country’s exposure to gas prices.

This dependence links Italy’s wholesale electricity price, known as the Pun, closely to movements in the European TTF gas market. The report says TTF gas was 161.2% more expensive than a year earlier, while oil prices had increased by 62.6%. Italian energy-goods import prices rose by 109.5% in September compared with September 2025. Il Giornale also reports that the Pun was 73.3% above the cited 2025 average and 271% above its pre-Covid 2019 level, although the source’s comparison with the 2025 average is presented without further clarification.

Taxes deepen the competitiveness problem

Taxes and other regulated charges have reinforced the underlying fuel-cost disadvantage. Between 2021 and 2025, their weight increased by 33.9% in Italy, while falling by 11.7% in Spain and 22.6% in Germany. This divergence means that Italian customers face both greater sensitivity to gas-market volatility and a less favorable fiscal component in their bills.

For market-service businesses alone, including bars and restaurants, the analysis estimates more than €1 billion in additional expenditure during the second quarter. Short-term tax reductions and incentives could soften the impact, but they would not change the generation mix. Reducing the premium would require Italy to lower the role of gas in price formation by expanding alternative generation and strengthening its energy system. Until that happens, geopolitical disruptions and TTF price increases are likely to pass through to Italian electricity costs more forcefully than in neighboring markets, weakening the competitiveness of domestic producers and service companies.