Six Italian Energy Distributors Halted Operations on High Prices
- Government has intervened to cushion impact on consumers
- As many as 500,000 clients affected by contract defaults
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At least six Italian energy distributors have stopped fulfilling contracts with their clients on account of high electricity prices since November, according to people familiar with the matter.
The companies buy power on the market and resell it to households and businesses at a guaranteed price, but the recent surge in energy prices has made them unable to fulfill their contracts, the person said, asking not to be named discussing the issue. In accordance with Italian law, the unfulfilled contracts are transferred to other, usually larger operators.