How Electricity Works in Italy and How to Save Money

If you’re a foreigner living in Italy—or planning to move there—it’s essential to understand how electricity services work to avoid surprises and make smarter, more economical choices. Therefore, below we explain everything you need to know about the electricity market in Italy for residential consumers: how to choose a company, the types of tariffs, how to switch providers, and which supplier we think is best.

How does the electricity market work in Italy?

First of all, the electricity market in Italy is liberalized, which means you can freely choose among several suppliers. The infrastructure (like wires and poles) is managed by local operators (such as e-Distribuzione or Areti), but the energy that reaches your home can be contracted with any company registered in the national system.

The contract is signed directly with the company of your choice and, importantly, you can change provider at any time at no cost, as long as there are no loyalty clauses in your previous contract. In addition, switching does not interrupt your electricity supply and is usually completed within a few days.

Types of electricity tariffs in Italy

Not only can you choose your energy company, but there are also several tariff options designed for different usage profiles. Below are the main types you’ll find on the market:

Tarifa Monoraria (Single-Rate Tariff)

The kWh price is the same throughout the day—ideal, in principle, for those who use energy steadily without concentrating consumption at specific times.

Tarifa Bioraria (Two-Rate Tariff)

Higher price during the day (F1) and lower at night and on weekends (F2 and F3). Therefore, it’s recommended for anyone who can shift most usage outside business hours.

Tarifa Trioraria (Three-Rate Tariff)

Splits the day into three bands: F1 (peak), F2 (shoulder/transition) and F3 (nighttime and weekends). In general, this can deliver even greater savings for those who use more electricity at night and on weekends.

Fixed-price tariffs

The kWh price is locked for 12 or 24 months, regardless of market swings; as a result, it’s a good choice for those seeking predictable bills.

Variable tariffs (market-indexed)

The energy price follows the spot market (Borsa Elettrica Italiana). While it can be attractive when prices fall, it also involves greater price fluctuation risk.

Green tariffs (100% renewable energy)

Tariffs that guarantee supply exclusively from sustainable sources such as solar and wind.

They usually come with a small premium; however, they’re popular among those who care about the environment.

How to switch your electricity provider in Italy

Switching electricity suppliers in Italy is fast, free and fully online. The process is regulated by ARERA (the Energy Regulator) and is based on the consumer’s freedom to choose.

Step-by-step to change provider:

  1. Choose the new company
    Compare tariffs and benefits on sites such as:
  2. Have your current bill details handy
    You will need:
    • POD code (your supply point identifier)
    • Account holder’s name and tax code (Codice Fiscale)
    • Full address
    • IBAN for direct debit (optional but recommended)
  3. Request the switch online
    On the new company’s website, fill out the form and e-sign the new contract. The new provider will take care of the whole process.
  4. Wait for activation (usually 5–10 business days)
    You won’t be without electricity at any point during the switch. Supply continues as normal.

Digital electricity meters with remote reading

In Italy, almost 100% of homes are already equipped with digital meters (contatori elettronici). These devices have replaced analog meters and brought several advantages:

What are electronic meters?

They are digital meters installed by local distributors (such as e-Distribuzione) that allow you to:

  • Have your consumption read automatically and remotely
    The reading is done via the power grid or radio, without the need for a technician to visit.
  • Measure usage in real time and by time band (F1, F2, F3)
    This enables more accurate two-rate and dynamic tariffs.
  • Transmit your consumption data securely to your supplier, which uses this information to issue your bill.
  • The meter does not belong to your energy supplier; instead, it belongs to the distribution company for your area.
  • Even if you change provider (e.g., from Enel to Octopus), the meter and the line stay the same—only the company that bills you and the contracted tariff change.

Advantages of the electronic meter

  • First, you don’t need to submit manual readings, and no staff member has to come by to read the meter.
  • Second, there’s no risk of estimated or incorrect bills (except in case of network failure).
  • Finally, switching providers is even simpler: the meter is universal and doesn’t need to be replaced, even when you change company.

National vs. regional electricity suppliers in Italy: what’s the difference?

You can choose between national suppliers, which operate across the country with fully digital management, and regional ones as well.

National suppliers

Regional suppliers

They typically have municipal or regional origins and a strong local presence:

Regional SupplierMain region
EnercomLombardy
A2A EnergiaMilan and Brescia
Iren MercatoPiedmont and Emilia-Romagna
Dolomiti EnergiaTrentino-Alto Adige
Hera CommEmilia-Romagna

You can sign with any supplier regardless of your location—even regional companies outside your area, if you prefer.

Company comparison: Octopus vs Enel vs Edison

FeatureOctopus EnergiaEnel EnergiaEdison Energia
Company typeNew, 100% digital, international (UK)Traditional, Italy’s largest supplierTraditional, focus on energy and green solutions
Nationwide coverageYes, 100% onlineYes, with in-person and online serviceYes, with online focus and a regional physical network
100% renewable energyYes, by defaultYes, but depends on the chosen tariffYes, but usually requires a specific plan
Customer supportDigital, fast, excellent reputation (4.8+ on Trustpilot)Mixed: in-person and online, though with many complaintsMixed: average reputation and less-praised support
Contract transparencyVery high: simple tariffs with no tricksComplex promotional tariffs with later increasesSome promotional plans with loyalty clauses
App & customer areaYes, modern and well-ratedYes, full featuresYes, though not always intuitive
New-customer offersYes, €30 bonus with a referral linkPromotional tariffs, no direct cash bonusOccasional cashback or rewards
Loyalty requiredNo, free cancellation anytimeMay include lock-in on specific offersYes, on some promotional tariffs
Focus on innovation & ecologyHigh: green energy, paperless, digital managementMedium: depends on the planHigh: green solutions and efficiency plans

What is the best electricity company in Italy?

Because we’ve tried a few electricity providers in Italy, in our opinion Octopus Energia is the best option. Not only does it offer some of the most competitive rates, but it also provides fast, efficient support and a simple, user-friendly website with all the tools needed to monitor usage and download invoices for payment.

Although it started in the United Kingdom, it entered the Italian market with an innovative approach: 100% renewable energy, efficient digital service and fair prices. Today, it is one of the best-rated companies in Italy and across Europe.

Advantages of Octopus Energia:

  • Clear, simple tariffs—among the lowest offered by major companies.
  • Customer service rated 4.9 out of 5 on Trustpilot.
  • Fully online management with zero bureaucracy.
  • 100% green energy (solar, wind and hydro).
  • Possibility to earn bonuses by referring friends.
  • No contractual “gotchas” with hidden increases after a few months, which often appear in promotional plans with buried fees or abusive clauses.

💸 €30 bonus for new customers

If you’d like to switch to Octopus Energia, you can get a €30 bonus on your first bill by using the referral link below:

👉 https://octopusenergy.it/octo-friends/quiet-emu-261

This offer is valid for new contracts or for customers switching from other companies to Octopus. Sign-up takes only a few minutes. Moreover, after you switch to Octopus, you also receive a personal link to share with friends; for each person who signs up through it, you both receive €30.

Also check out these useful posts about Italy:

Italian Regional Cuisine: What to Eat in Every Province

Driving in Italy: Essential Tips for Car Rental, Tolls, Parking, and ZTL Zones

The 50 Most Famous Italian Wines

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