Increases in the prices of electricity and gas are an extremely current topic, that causes great debate.

The government has announced increases of about +29.8% for electricity and +14.4% for gas for the fourth quarter of the year.

The Government has already intervened with extraordinary measures, which would otherwise have meant that the increases would have been about 45% for electricity and over 30% for gas, and there is no guarantee that new measures will be necessary in the future.  

Given the situation, however, how can a private consumer manage to save?

Easy, thanks to smart systems that reduce consumption.

Increase in electricity and gas costs: why they happen

The increase in electricity and gas bills is closely linked to wholesale energy market trends.

In fact, there are several factors that are causing the increase in prices and consequently, an increase in gas and electricity bills for end consumers.

Let's take a look at these factors.

The increase in prices of raw materials and CO2 emissions

Firstly, we should consider the increase in CO2 emission prices (ETS – Emission Trading Scheme), that have reached 50 Euro per ton of CO2 produced.

Indeed, for anyone who didn’t know, companies have to be emissions shares to compensate for the amount of CO2 released into the atmosphere.

In recent months, due to the decarbonisation policies adopted by the European Union, CO2 emission prices are constantly rising.

With the consequence that this factor will account for about 20% of the increases in electricity bills.

The increase in the demand for natural gas around the world

Also, the demand for natural gas is rising sharply and raw material prices are therefore increasing.

This increase is unfortunately affecting both electricity and gas bill increases.

In addition, the demand for electricity (and therefore for the natural gas used to produce it) has increased throughout Europe.

Also, we must not forget that the Italian demand for energy for heating purposes is always connected to gas, as this raw material costs less than other fossil fuels, but of which there is not enough to cover the country’s entire energy demand.

Therefore, as methane is a source of clean energy, there is still the problem of importation costs, that have increased considerably, due to problems with stocks in the North Sea, but also due to the fact that Asia, the first continent to start up again economically after the pandemic, has exponentially increased its demand.

Due to political tensions linked to the expansion of the North Stream gas pipeline, exports from Russia to the European Union have fallen, with the result that a few weeks after everyone switched on their heating, European stocks dropped by about 20%.

Things are no better regarding the other main energy source, heating diesel.

Prices here have increased by 17% since last January and, generally, there is a lot of speculation, with prices that range from 40 cents to way over one Euro.

The climate factor

Climate also plays a factor in the increase in gas prices.

Last spring, the demand for gas was higher than average due to colder than normal temperatures, which extended the period during which heating systems were used.

Instead, there was a peak in electrical energy consumption during the summer, due to higher than average temperatures and the excessive use of air-conditioning units.

The Impact of the increase in energy costs on various types of heating for consumers

ARERA (Italy’s Energy Networks and Environment Regulating Authority) has explained the details of electricity and gas bill increases - in part reduced by some government interventions -  in its analysis.

As we have already mentioned, the main reason for the increase in electricity prices is due to the increase in the price of the raw material, with a +41.5% impact on the cost for the average family, counterbalanced by the heavy reduction/cancelling out of general system duties (11.7%) thus totalling a final +29.8% compared to 2020 for the average family that does not receive any bills subsidies.

The estimated increase for electricity is 145 Euro per year, with a final yearly cost of about 631 Euro per family.

Natural gas, on the other hand, also sees price trends determined by an increase in raw materials, with a +30.3% increase on the final price for the average family.

This must be added to a slight increase in grid tariffs (transmission, distribution and measurement) of +1.8%.

Therefore increases that have been partly reduced/cancelled out by general system duties (-3.7%) and a reduction in VAT (from 22% to 5%) have brought about an increase of +14.4% in the price of methane gas for the average user who does not received any bill subsidies, with an increase in cost of about 155 Euro per year.

These figures are the result of the calculations made by taking into an average family, with average electricity (2,700 kWh per year with 3 kW of power used) and gas (1400 cubic metres per year) consumption.

How a smart heating system helps to save

Therefore, to save, a user could choose to adopt a smart heating system, to reduce energy consumption, and to increase efficiency.

In fact, smart heating systems such as IRSAP NOW allow you to do this!

In particular, IRSAP NOW is the innovative heating management system that transforms a traditional heating system into a smart, wireless and multizone system that can be personalised for any type of home.

It is a a smart heat management system designed to improve comfort, reduce the impact on the environment, but above all to save by optimising consumptions.

It is compatible with all radiator brands and the main valve brands.

You are guaranteed to save on heating bills with IRSAP NOW!

Advanced IRSAP algorithms, the result of over 50 years of experience in the heating sector, can learn from customer habits, and help them save energy and keep system usage under control.

Gas and electricity bills are less expensive and the environment is protected at the same time thanks to the reduction in emissions.

How the IRSAP NOW system helps you save money on your gas and electricity bills

The IRSAP NOW system offers various ways to increase your saving.

• Do you need to leave the house unexpectedly?

Home/Away Mode allows you to change your system settings manually or automatically, depending on where you are.

• Will you be away for long periods for holidays or for work?

Holiday Mode sets the entire system at antifreeze temperature and notifies you if the boiler shuts off: less consumption and no surprises when you return home.

• Do you want to save money while helping the environment at the same time?
  With Eco Mode, the system will continue to follow your habits, but will turn off your heating system slightly earlier than the time you have set, reducing consumption and emissions, without you losing out in terms of comfort.

Use “Smart” devices to reduce your consumption

IRSAP NOW offers some products that allow you to save on your heating consumption immediately

The smart thermostat allows you to accurately set and measure the temperature of the room where it is installed, also remotely by using the IRSAP NOW app. Also, thanks to its advanced functions, you can control humidity and air quality in the room too.

Moreover, thanks to the touch controls on the thermostat, you can control the temperature in the other rooms connected to the system with a simple touch.

The Smart Thermostat really is smart: the advanced algorithms can learn from your habits and help you save energy.

It is compatible with all boiler and heat pump brands, and using the video tutorials on the app, you can install your wireless thermostat yourself.

On the other hand, with smart thermostatic valves, you can control the temperature whenever and wherever your want via your smartphone without any building work being necessary.

IRSAP NOW smart thermostatic valves are compatible with all radiator brands and the main valve brands.

Thanks to a simple installation guide, you can configure your system yourself, personalising the heat in each room, depending on your weekly, daily and hourly needs and habits.

Gas and electricity bill savings are guaranteed.

IRSAP NOW smart thermostatic valves have been designed for everyone's safety, including children's. They can detect an open window in a room, thus avoiding pointless consumption by automatically adapting the radiator temperature.