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Italian Energy Summit 2022: Francesco Starace’s analysis

FFrancesco Starace: public guarantees and a forward-looking vision to fight the energy crisis

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Setting a cap, even if only temporary, on the volatility of the TTF gas price index: this is  one of the hopes of Francesco Starace. Speaking on September 28 at the Italian Energy Summit, Enel’s CEO stressed that this is “a fundamental tool for getting the price of gas back to normal. Today the price of gas is completely disconnected from its actual value.

Therefore, Enel’s CEO hopes that “this measure, which was first supported by the Italian government, will be established in Europe”: as Francesco Starace explained in detail during the event organized by “24 Ore Eventi” in collaboration with “Il Sole 24 Ore” (Italy’s leading financial newspaper), it is necessary to remedy “a situation that has caused energy companies to block huge amounts of liquidity in order to honor the commitments taken on at the gas trading exchange to cover the risk generated by volatility.

“We need to set a cap, even if only temporary, on the volatility of the TTF gas price index: a fundamental tool for getting the price of gas back to normal. Today the price of gas is completely disconnected from its actual value”

Francesco Starace, Enel CEO

Further help could come from the Italian government, for example by putting the tool of public guarantees in place to support the banking system in providing liquidity to energy companies, which today are struggling with liquidity problems. In some countries, governments have taken action. “All governments should do it, including Italy’s, in order to put everyone on an equal footing.” There are currently no significant impacts on investments, but this does not mean that it cannot happen in the next few years “if the current problems were to persist”: as Francesco Starace pointed out during his speech, it is therefore important to act quickly and with a forward-looking vision.

 

Enel editorial staff