EU – April 2026 Introduction Fairness,Transparency and Adequacy New Articles 1-ter, 1-quater, 1-quinquiesand 1-sexiesintroduce overarching principles of fairness, transparency andadequacy applicable to operators in the energy, natural gasand telecommunications sectors. On 8 April 2026, the Italian Parliament converted into law(the Law) the Law Decree of 20 February 2026, No. 21 (theDecree), concerning “urgent measures to reduce electricityand gas costs, enhance industrial competitiveness, supportdecarbonisation, address virtual congestion in the nationalelectricity grid and integrate data centres into the electricitysystem”. Furthermore, these provisions are complemented by specificrules aimed at enhancing consumer protection, and ensuretransparency in supplier switching process. The Law introduced several amendments and additions to theoriginal text of the Decree, as previously analysedhere. TheLaw has already entered into force upon publication in theOfficial Gazette. Alternative Sources Support (ASOS) Reductionand Nondomestic Support Measures The Law introduces targeted amendments to Article 2 of theDecree, specifically with respect to the early exit regime. This client alert provides a high-level overview of the mostrelevant changes arising from the parliamentary conversionprocess. In particular, the threshold for qualifying as “integralrefurbishment” has been lowered. Pursuant to the Law, thecomprehensive refurbishment of the photovoltaic (PV) plantsmust ensure a minimum increase in production of 30% (asopposed to the previous threshold of 40% set out in theDecree), applicable to both ground-mounted and non-ground-mounted modules. Electricity and Gas Costs Extraordinary Support for Household ElectricityCosts Against the background described in the previous alert,additional safeguards were introduced in relation to thevoluntary support mechanism. In particular, the Law clarifiesthat the granting of any supplementary contribution byelectricity suppliers may not be made conditional upon thepurchase of additional services or products, nor may it entailany adverse changes to the contractual terms. Renewable Energy The Law introduces further clarifications and amendments tothe guarantee mechanism, promoting long-term renewableelectricity contracts, as set out in Article 4 of the Decree: •SACE S.p.A. may issue guarantees in favour of GSE S.p.A.at market conditions, with a maximum coverage of 70% ofthe underlying exposure. Of the guaranteed amount, 20%is borne directly by SACE S.p.A., while the remaining 80%is covered by the Italian state. In addition, Parliament introduced the new Article 1,Paragraph 8-bis1, establishing a prohibition on unsolicitedsales calls and text messages aimed at offering or concludingelectricity and gas supply contracts. Any contracts enteredthrough such unlawful practices are deemed null andvoid. End users may report infringements to the ItalianCommunications Regulatory Authority (AGCOM). •The maximum overall commitment remains capped at €250million, financed through the fund established under LawDecree No. 23/2020. •The operational procedures for the issuance of guaranteesand insurance coverage are to be defined by specificagreement between GSE S.p.A. and SACE S.p.A. The prohibition will become effective 60 days after the entryinto force of the Law. Discounted Rates for District Heating Supply Grid Connections The Law introduces further provisions aimed at extendingexisting support mechanisms and strengtheningconsumer protection. In particular, the new Article 1-bisintroduces compensation measures for district heating(teleriscaldamento)costs. Also, Article 7 of the Decree is significantly amended andexpanded in the course of the parliamentary conversionprocess. In particular: •The Italian Parliament amended the definition of“intervention” (intervento), excluding from the scopeof Legislative Decree No. 190/2024 certain activitiesrelated to the development and expansion of the nationaltransmission network, as well as independently operateddistribution networks. The provision extends to district heating at the discountedrate regulated by Law Decree No. 185/2008, as subsequentlyconverted into law with amendments, which previouslyapplied only for energy and gas supplies. •The Law now directly sets forth specific procedural rulesapplicable to the simplified authorisation procedure (PAS)2.This includes (i) a mandatory 90-day deadline from receiptof the appropriate assessment (valutazione di incidenza),or building permit for submission of the PAS application,(ii) a mandatory 90-day deadline from the granting of thepublic concession (if any) for submitting the appropriateassessment application or obtaining the building permit,(iii) automatic expiry of the public concession (if any) inthe event of failure to submit the required appropriateassessment or building permit within the relevant deadlinesand (iv) extension of the prohibition on undertaking worksincompatible