Italy to update gas emergency plan next week

The Italian government will update its gas emergency plan next week, a government source said on Thursday, adding Rome will not resort to rationing since it has reduced its dependence on Russian imports.

The updated emergency plan, however, envisages tougher measures that would be triggered in the event of a further reduction or a complete halt of gas supplies from Moscow. "The updated plan includes different scenarios, even the worst-case one, and envisages tougher measures in case of further reduction of (gas) flows," the source told Reuters.

Rome last year got 40% of the gas it imported from Russia, an important resource used to produce electricity in the country.

The source said that the government's efforts to find alternative suppliers have cut the share of imported Russian gas to around 18% in the summer.

But gas and electricity prices have risen to historic highs in Italy and in many European countries as Moscow has restricted the gas it supplies to the bloc in the wake of its invasion of Ukraine.

Carlo Bonomi, head of Italy's industrial lobby Confindustria, this week warned of the risk of widespread company failures if energy prices do not fall.

Bonomi asked for a government plan for rationing gas and new government subsidies to shield manufacturers.