17 February 2006

ENI and the Government are hot, citizens are cold

Yesterday there were two news items regarding energy. One good, one bad. The good one was about the Antitrust body that is starting to work in Italy and is doing something for the people. The bad news is that ENI has received a fine of 290 million Euro from the Antitrust body for abuse of its position.

The abuse was the blocking of the strengthening of the gas pipeline with Tunisia, with the resulting loss of flow of 9,8000,000,000 cubic metres in the years 2007 and 2008.

According to the Antitrust, this decision to block the flow was designed to prevent an excess supply.

Everyone knows that an increase in the supply means a reduction in prices for the consumer, just as everyone knows that Italy is using its strategic reserves of gas because of the reduction in supply from Russia and that families are being invited to reduce their use of heating or to turn off their heaters.

ENI’s decision has caused economic damage to the Italians and is putting the country at risk with an energy crisis looming.

ENI is responsible to the Government and the Government is responsible for this situation.

Thus it is still the Government that is responsible for the prices of gas for heating being among the highest in Europe.

Both ENI and the Government should be at the service of the people, but this seems to be the lowest of their priorities.

The monopolies are damaging the economy of our country and this is yet another episode that confirms this idea.

Posted by Antonio Di Pietro in Economy