Resisting the increase in the bill, the challenge of the municipalities. Expenses at least doubled

Although a sigh of relief has been sighed in recent days due to the temporary drop in gas prices in October, the impact of

resulting from hyperinflation resulting from the Russian-Ukrainian conflict continues to worry.

In addition to families and businesses,

, the small and large centers of our peninsula.

There are many questions to answer: How much does the rise in energy bills affect the budgets of local administrations?

How much does the price increase affect citizens?

How are mayors and local administrators dealing with the problem?

To take stock is

, Northern League mayor of Novara in the second term but, above all,

and president

(Foundation for Finance and Local Economy).

"The energy costs of the municipalities are estimated to have more than doubled"

“There are still no precise data on how much expensive energy is impacting local administrations - he is quick to point out -.

The situation changes continuously, it will only be possible to know precisely at the end of the year, with the closing of the financial statements.

However, we have

.

In principle, before the crisis, the sector spent between € 1.6 billion and € 1.7 billion per year.

We have calculated at least a doubling of these expenses, perhaps a little more taking into account the trend of the last few months ”.

“These are indicative calculations - Canelli explains - because each municipality has different supply contracts for energy users.

To confirm the increases, we must wait for the closing of the budgets and draw from the database of the PA (Public Administration) where the expenses of all the municipalities are loaded ". 

Government support interventions

"The price increases are still there and are being felt", continues President Ifel.

“The Government has so far contributed with 3 interventions for a total of 860 million euros, but it is not enough.

If we calculate that there has been a doubling of expenditure compared to previous years,

”.

“Not everyone is needed - continues Canelli - because some municipalities have had less price increases and perhaps had a previous administration surplus with which to cover the higher energy costs.

Others, however, often the smallest, were already in a situation of imbalance and, due to price increases, suffer much more.

It is easier for them to risk failure.

Let me give you an example: a small municipality that has revenues of 100 and previously managed a sports hall with a swimming pool today spends twice as much to maintain it ”.

"

for those at risk of default, but it is also useful for those municipalities that have leftover resources: instead of paying the extra energy costs they can cover, they will use the aid to make other public improvements".

Indirect increases in expensive energy

The weight of energy costs that weighs on the municipal coffers is not only the direct one of the increasing users, but also the indirect one linked to the subsidiaries and the activities that the individual municipalities offer to their citizens.

"This hyperinflation, determined by the rise in energy costs, has indirect impacts on a thousand other expenditure items of the municipalities - remarks the Anci delegate for local taxation - For example on transport companies, service companies (eg disabled transport), the home care for the elderly.

These rumors have increases that weigh on us mayors;

increases that attack the coffers of local administrations.

Then there is the higher cost of materials, a crucial item in this moment in which we administrators have to find new resources compared to those budgeted in order to carry out the planning for the implementation of the NRP.

If we make the announcements and no one participates it is serious ”.

Municipality of Novara

Canelli Alessandro

The impact on the weaker sections of the population

The most worrying relapse, however, continues Canelli, is that which is felt on the weakest sections of the social fabric.

“The energy price increases have particularly affected the weaker sections of the population - he explains - therefore the municipalities have to manage the situation of many families who complain of not making it.

The fragile users to which we must respond grows, there are poorer people who ask for help.

This situation has an economic impact on the management for the social expenditure of the municipalities.

Here too it is not the same for all territories of course ".

Fortunately, the higher expenses incurred by municipalities to cope with the increases in energy costs should not affect too much the local taxes to be paid. 

“Local taxes - underlines the spokesman for the municipal coffers - are already at the maximum rates in many municipalities, so I do not think there is a margin to compensate for the increases due to energy costs.

Some administrations that still have room to increase them could do so, obviously to the detriment of citizens ”.

Many centers, we ask, are already adopting emergency measures aimed at saving energy: from reducing heating to lighting.

Isn't there a risk of affecting the safety of citizens with some choices? 

“Thanks to the mild climate of this season, various municipalities have decided to turn on the heaters later;

then among the most common initiatives is that of turning off the lights that illuminate the monuments first, and reducing public lighting, perhaps leaving only half of the street lamps on ”.

(Handle)

Colosseum with lights off

“Unfortunately - underlines the mayor of Novara - the switching off of the lighting has an impact on the safety of citizens.

Both for road hazards and for perceived safety.

If there are people who work night shifts, security levels drop.

So I consider it risky to opt for the radical reduction of lighting to make ends meet the municipalities.

But - Canelli concludes - we must not even get too down, we must find other solutions, make choices that can impact as little as possible on citizenship, continue to improve energy efficiency with the hope that the situation can improve in the coming months and that this macro-economic framework will hyperinflation may burn out ".