Eni responds to the blog

Enrico Mattei

Eni has replied to the post “Manager Wanted”.

"Dear signor Grillo,

I’m writing to you to clarify the information that was contained in your blog of 11 July 2006 relating to Eni.
Italy does not have new infrastructure like the regasifiers that can broaden the horizon of suppliers and consequently lower the price of gas. Italy produces slightly more than 10% of the gas that it consumes, and is obliged to depend almost exclusively on imports from abroad. I would like to remind you that just two countries together, Russia and Algeria, supply Italy with almost 70% of the gas that it needs.

The label of monopolist can certainly not be applied to the ones buying this gas. On the other hand, all the main companies operating in the Italian market could buy gas. It’s necessary to understand what advantages would then be seen by the final consumer. In addition to that, the Decreto Legislativo 23 May 2000 n. 164 – better known as the Letta Decree, established among other things, that until the end of 31 December 2010, there are limits to the dimensions of the operators. In other words, this establishes norms for the liberalisation of the domestic market for natural gas with a marked impact on the way that Eni operates. With the levels imposed on our company, this has created in Italy a position of dominant player certainly weaker than the former monopolies of other European countries.

Lastly, the price of gas for the consumers is not fixed by the company, but by the Autorità per l’Energia Elettrica ed il Gas {Gas and Electricity Authority} with the intention to protect the final user as much as possible. As well as being tightly connected to the price of petrol, the price of gas Is subject to a large tax burden. Without taxes, the price of gas in Italy, related to January this year, would have been 373 euro per 1,000 cubic metres, compared to a European average of 433 euro (459 for Germany, 418 for Spain e 399 for France). With taxes however, the prices are 651 euro for 1,000 cubic metres in Italy, 600 euro in Germany, 485 in Spain and 471 in France (543 euro being the European average).
According to a recent Eurostat survey, the price of gas between January 2005 and January 2006, increased by 15.2% for industry and by 7.6% for families and that can be compared to the average increase for the European Union of 33% for industry and by 16% for families.

In absolute terms, the price of gas per gigajoule in Italy for industry is the tenth highest: 7.65 euro compared to 11.58 in Germany, 8.27 in France, 7.24 in Spain, where there are many regasifiers (European Union average 8.20 euro); for the families the price is 16.50 euro (fourth highest) compared to 15.98 euro in Germany, 12.72 in France and 13.63 in Spain. It is to be noted that for the families, the price is higher than the average because Italy has a higher incidence of taxes on the price of gas.

I am sure that you will want to report these concepts to your readers. Greetings.
Gianni Di Giovanni,
Head of external communications Eni.

Posted by Beppe Grillo at 10:32 AM in | Comments (1)
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caro inglesino ti sei dimenticato di menzionare quale e' la busta paga media di un tedesco ,di un inglese , di un francese....ecc.ecc...cos' ne riparliamo in base al potere d'acquisto e magari anche in base al livello di produttivita' dei dipendenti eni e dei loro manager!

Posted by: lorenzo | July 19, 2006 05:34 PM

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