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ENERGY

Italy’s energy giant reports huge profit as more price hikes expected

ENI reported a 311-percent increase in net profits on Friday, reviving debate on the need for a windfall tax on energy companies.

Published: 28 October 2022 15:31 CEST
Italy's energy giant reports huge profit as more price hikes expected
Italy's energy giant ENI reported a 311-percent increase in net profits on . Photo by Marco BERTORELLO / AFP

Italy’s main energy provider ENI raked in 10.8 billion euros in adjusted net profits over the first three quarters of 2022, up by a whopping 311 percent compared to the same time last year.

Like the entire European oil and gas sector, ENI has benefited from a surge in prices linked to the resumption of global economic activity after the coronavirus pandemic, as well the effects of Russia’s invasion of Ukraine.

READ ALSO: EXPLAINED: How much are energy prices rising in Italy this autumn?

ENI’s quarterly report, which exceeded even the most generous of industry estimates, was released as Italian households and businesses face further increases in their energy bills.

Italian power regulator Arera said last month that electricity prices would rise by 59 percent in the final quarter of the year.

This means that the average Italian household will spend 1,322 euros on electricity bills alone in 2022 – the same figure stood at 632 euros last year.

Gas stove

Italian power regulator Arera hasn’t yet released official gas prices for the coming months, but the latest projections indicate an increase of up to 74 percent. Photo by Ida Marie ODGAARD / Ritzau SCANPIX / AFP

As for gas, the regulator has not yet released official prices for the coming months, but the latest projections indicate an increase of up to 74 percent against this year’s third quarter, with gas prices expected to reach 184 euros per megawatt hour. 

The record profits of energy providers set against soaring bills have revived debate over the need to impose windfall taxes.

READ ALSO: The five biggest challenges facing the new Italian government 

Italy’s former government, led by Mario Draghi, had already introduced a 25-percent  windfall tax (tax on extra profits) for energy companies earlier this year.

But out of the 10.5 billion euros that the country expected to pull in through the tax, the state coffers have only received just over a billion, with thousands of companies refusing to pay and some challenging the constitutionality of the surcharge.

Giorgia Meloni, new Italian PM

Italy’s new government, led by Giorgia Meloni, says it plans to ‘improve’ the existing windfall tax on energy companies. Photo by Angelo CARCONI / AFP

Italy’s new government, which said financial support for families and businesses is one of its most urgent priorities, has pledged to make changes to the existing windfall tax.

READ ALSO: Five key points from Meloni’s first speech as new Italian PM

Adolfo Urso, head of the newly renamed Ministry for ‘Enterprise and Made in Italy’, said on Friday that, while Italy is pushing for a Europe-wide energy price cap, the new government will “improve the [windfall] tax” and use income from it to “curb soaring bills”. However no further details have yet been released about the plan.

The new government said it was also considering other measures to mitigate the effects of the energy crisis, though there are concerns these may need to be funded via a potential increase in the country’s public debt – which already stands at a mammoth 3.7 trillion euros.

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MONEY

What’s considered a good salary in Rome?

The cost of living in the capital is slightly higher than in many other parts of Italy. But how much is considered a 'good' income in the Eternal City?

Published: 20 August 2024 15:42 CEST
Updated: 24 August 2024 07:57 CEST
What’s considered a good salary in Rome?

Rome is one of the most popular Italian cities for foreigners to move to.

The capital is home to some 511,332 foreign nationals (around 12.1 percent of Rome’s total population), including ​​a sizeable group of native English speakers.

But Rome is better known for its cultural treasures and government institutions than for its thriving economy. 

If you’re thinking of moving to the city, one of the first things you’ll likely consider is local wages, and how much money you’ll really need to be able to live there.

Average salaries

Though it is Italy’s capital, Rome is not the city with the highest average salaries: that honour goes to Milan, often referred to by the media as ‘Italy’s wage capital’. 

In Milan, the average gross yearly income is around €37,200 per year, while the average figure across Italy stands at around €23,650, according to data from Italy’s finance ministry.

READ ALSO: How much money do Americans need to become resident in Italy in 2024?

By comparison, in Rome the average gross personal income is €33,472 per year, which corresponds to a net monthly income of around €2,092, according to a recent report published by financial site partita.iva.

But average salaries are not equal across Rome. According to data from Italy’s Economy Ministry analysed by Sky News, residents of the city centre declare an average income of €55,000-€66,000 per year, whereas for people in the Ostia Antica suburb, for example, the figure is €14,771.

Cost of living

While wages in Rome are slightly higher than in the rest of the country on average, you’ll also need to consider the higher cost of living in the capital. 

According to online investment platform Moneyfarm, Rome is Italy’s second-most expensive city to live in after Milan.

Rent is generally the biggest expense for Rome residents, as prices have grown steadily in recent years. 

READ ALSO: Five of the most affordable areas to rent in Rome

In 2023, Rome’s average rental rate rose by €576 a year to €10,776, and came in 5th place overall in the country. 

The current monthly average price for a one-bedroom apartment in the centre of Rome is €1,098. Though this pales in comparison to Milan, where you can expect to pay from €1,400 for a central one-bedroom flat, it is important to remember Milan’s average salary is higher than Rome’s.

Though you are likely to earn slightly more than the national average, you are also likely to spend a little bit less or the same price for recreational activities than in Milan. 

A ticket for the cinema is 10 euros in both cities, whereas there is a three euro difference between the two cities in renting a tennis court for an hour.

The monthly fee for public transportation is only four euros higher in Milan, which is curious when you compare the quality of public transportation between the two cities, with Milan’s system far surpassing Rome’s.

So what’s a ‘good’ income in Rome?

With the cost of living showing few signs of slowing down and Rome’s average salaries not among the country’s highest, life in the capital can be financially tricky.

According to recent data published by investment advisor site Moneyfarm, the average single person in Rome needs a monthly take-home salary of €1,500 to cover rent or mortgage, utility bills, food, and some recreational activities.

A family needs €3,000 net per month to cover the same expenses, the data showed. However, they did not specifically outline how many members are in the family.

It goes without saying that Rome will be even more expensive for larger families, and that costs will depend on where exactly in the city you live, among other factors.

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