Topic: Electricity bills worth 500,000 euros: a hotel chain closes down in Italy. (Read 380 times)

Now we all are the brink of nervous break down.
This inflation beast is  not going to sleep anytime sooner.

First of all, not all forms of renewable energy maybe suitable for all geographies. For example, solar panels maybe suitable for regions such as Southern Italy. However, I really doubt whether they will be very useful in countries such as Iceland and Norway. Wind turbines may work in Netherlands and England. But I doubt whether they will have the same effect in coastal Germany. A combination of renewable and non-renewable energy would be the best way to move forward. Issues arise when the socialist dictators in EU decide to suddenly phase out non-renewables.

I don't think it was a gamble. Russia was unlikely to stop at Ukraine and go further through Europe to start annexing countries in the EU and close neighbours.

Renewables were considered more efficient than trans atlantic cabling but it might be faster to lay those cables too than it will be to wait for renewables to power a lot of the grid. That would probably annoy the US quite a bit too as they'll not get cheap gas from Canada (as they already do).

I've been reading through quite a bit of what's gone wrong (put harshly) with this and 1 paying people too little for producing their own electricity and 2 taxing them on that production looks like it is dissincentivised in a lot of areas (like Spain's solar tax).

To be honest such big companies could invest a this money, consider 500,000 euros once and start investing in green energy. The installed capacity is biggest for " Solar energy" in Italy, thus to be honest people could take a step further and extend it by making it better. Italy would definately have better options since they are already generating loads of green energy 40% + but amount of private institutions involved in it might be nominal thus it's defiantly important to have better ideas. Once you close they won't be able to open again that easily, it takes a lot of work, loads of time and also loads of money as well in the start.

First of all if you take that paragraph as the only one, my context is lost. In this very specific case; Hotels.

The explanation is there, it is long but at least in the PDF they explain it and very well, you have to read it, for this particular case "Hotels" and it is the subject of my idea, which by the way is nothing against your idea of ​​publication, it is the context of the news that is attached to or takes advantage of a real moment, that it overwhelms many sectors, there are many examples, yes!, but this sector "hotels" is a wasteful.

It is the point, on the contrary, they are the ones that should be demonstrating strength of support in the face of a long-announced crisis that is simply having a high point to perhaps finally draw the attention of the sector, when you have been told for more than 20 years.

Finally:The objective news is, "The hotel sector suffers the consequences of its little attention to the calls that have been made to them for years and as expected in this electricity crisis they are the first to fall from the tourism sector".

EU played a huge gamble by turning against Russia. Now they have no other option but to buy gas from USA in a considerable higher price. If EU shift towards renewable energy then what will happens to their manufacturing sectors? German automobile industry survive because of cheap Russians gas. Now living standard of EU will considerably lower. Fully shifting into renewable energy sectors can not replace the necessity of cheap Russians gas in many sectors.

Quantitative easing is one way to rob your population by depreciating the currency.But European sanctions will kill the European economy before the Russian one, so quantitative easing will only slightly postpone some problems until a later date.

I am not saying that government has to increase the tax on top of 300% hike in the electricity bills, I am suggesting the government has to bear the price hike by paying the price to electricity from their pocket and don't let the people to bear them at all, to compensate what they paid now, in the future they can make up by gradually increasing the taxes on various sectors without affecting the business and every individual living in their nation.

If they are truly a rich country then why they are struggling with this issue? But, you don't really need to be rich in order to afford the materials to be able to use natural energies. They can always consider this for now till the electric cost becomes cheap again for some time.

The only problem here that is see is if these kinds of energy can sustain a big business such as hotels as we know that they aren't really sustainable. Maybe it's also good for them to take a break for a while and maybe this can be a sign for them to venture other businesses which aren't totally relying on electricity. I think there are types of businesses who are like that.

Yes, of course, now it turns out that socialism, which is one of the most important causes of the problem, is going to get us out of it.

So with the price of energy having increased by at least 300%, and in some places in Europe it is more, you want the government to raise taxes on top of that?  Great plan, eh?


This you say is interesting and I think this is what is going to happen. The policy of raising rates and tightening has been given a reality check and they are going to have to slow down, if not go back to printing and easing because otherwise the 2008 recession is going to be child's play compared to this.

Confusing.

Even if the electricity bills are up by 300%, they don't need to increase the price of their services by that much. Because electricity costs are only a part of the overall cost. So if they increase the price by 50% or so, they should be able to survive. But even this 50% increase may be too hard for many of the customers, at a time when there is economic slowdown. And also, we need to see whether these levels will remain as such for the medium term. Gas/electricity prices are abnormally high. Increased production should bring down the prices within the next few months. Till then, it is the duty of the government to support small businesses.

Normally government will take the burden at situation like this instead of completely forcing the consumers but later they compensate the loss from electricity with increasing the taxes gradually that can be applied here as well instead of completely forcing the consumers to pay for it. If the government is going to point out other nations political issue is the reason then the respective government is actually failed to fulfill the people requirements.

300% is already too much and an injustice for their consumers. The inflation crisis is getting worse but increasing the electricity bills too high will surely affect small and huge businesses and may be the reason for them to shut down their business especially if they won't be able to sustain it.
The energy cost increase is also a burden to ordinary people especially the minimum and middle wagers. The government must find alternatives and back up to fix this problem because if it will continue, this will hit their economy badly. They should check it the long time effect and find a long term solution for this.

Most business in Europe profited because their countries bought cheap resources from Russia and other countries. Now this opportunity has ended and some companies will go bankrupt. I think the quantitative easing program will start working in many countries soon.

There is conspiracy against the citizens in my country if not why country that supply energy to another Countries suffers in light energy. The business elites will the Political elites came to an agreement that there would be no constant light  in the country so that those who sell fuel can sell it in a high price and also those who import generators can sell to the citizens. Therefore, with this now the energy generating companies also join the team (cartel) or group to give 1,2,3,4 hours light. In my locality, the village which is one of the crude oil producing communities including the city has not gotten 24 hours light. That is we have not slept with  or see a light for 24 hours. The worst part of the matter is that, generators which we use to do our daily businesses have increased price (inflation), what of fuel price, now the average person not do business in the country again. Government is to create conducive environment for his citizens but irony is our own.

The amount looks insane and yeah price hike of 300% can't bearable unless the company wants to spend their money from their pockets to sustain in the business until the return of normality but as wise decision they decided to close and don't want to spend any money but imagine what will happen if every business takes out this stance? The government has to take some chances now to keep the business on the run or else they will be facing serious economy loss in near future.

Yes, Electricity is one of the main costs for the hotel industry. All utility bills add up over time, and owners often find themselves unable to afford it. Therefore, they have to sell their hotel at a low price or leave it as it is.

This is the reason why hotels of this type are disappearing from Italy, but not only here. Due to the crisis, many hotels are closed and empty.

Solving this problem seems almost impossible because all the factors that affect costs cannot be controlled by one party. Relying on renewable energy sources might help the hotel industry to some degree, but it will require serious investment.

And I got to attribute your sentence to not reading and shitposting. If you would read the OP, instead of typing fast for a quick buck you would see that it says they were not authorized to install solar panels.


This is what is going to happen, if production costs become unsustainable and cannot be passed on to the end consumer, there will only be two solutions: shut down, or move production to where it is cheaper.


Well, it's partly because of what you say, but the war is what made it worse. I'm for treating the planet in a more sustainable way, but it's pathetic how the EU where 5% of the world's population lives sets itself up as the savior of the climate.


This is the point. Nobody in going to pay 20EUR for a cup of coffee. Unless it's in the poshest place on the island of Capri. And not even that.


Renewable energy in Italy


I think so. What happens is that it does not seem that a peaceful solution is going to be reached, and even less so in the short term.


The problem with energy is that you can't store it. We get energy from the sun when it is sunny but not when it is cloudy or at night, and energy from the wind when it is windy, but not when it is not windy. That's why you need a mix with other sources that are in constant supply.


There is only one scenario. Being the average price of coffee in Italy 1EUR until recently if they have to put it at €20, they have no choice but to close.

Italians are furious as the cost of an espresso soars toward record highs

Although €20 is probably too much of an exaggeration. It would have to go from €1 to at least €3 or 4, but with a 400% increase they are going to run out of customers.


I agree that the USA gains more than Europe, but this last sentence is incorrect. In the USA they also have high inflation and other problems which are reasons, together with the immigration crisis, that the polls for Biden for the mid-term elections are catastrophic.


Explain. When your energy costs go up 300% and you can't put solar panels on, how are you going to become more efficient. By changing the windows? You don't solve the problem and also changing them has a cost.

Explain well the solution you have to combat the 300% increase in energy prices.

The news I posted about the hotel is one but search and you will see a lot of companies in Europe stopping production or planning to shut down because of energy costs.

-/Although the future reality and its consequences cannot be ignored, we must not echo the bad omen, we must always see the cause and the effect objectively, and based on this, expose our best thinking on the solution, especially in times when it is easy predict darkness./-

This hotel is perhaps not the best example to take as a flag in a situation that has been in Europe for years, more in some countries less in others, but in the case of hotel chains, the "adjustment" of rates allows them to survive more than others areas or companies such as manufacturing where it is complex to implement variables to the final product... as a trite phrase says in times of crisis, "companies have to reinvent themselves," a phrase that is obviously successful in certain sectors and does not apply in the complex conglomerate economic and business of a country.

That hotel is part of the tourism branch, it was one of the areas most affected by those almost two and a half years of the pandemic...

Be careful, understand the point, the situation is "f.k.d up", but for a hotel to come out as the flag of the real, evil situation that exists in the electrical issue in Europe, it is somewhat ironic when they are one of the sectors that spend the most electricity, not now , not even a few years ago.

Ecological concept; it is something that has existed in hotels for many years, in fact they were ambassadors of the "green" or "ecological" concept at the beginning of the new century that one could get in many hotels and Europe has always been in the hotel industry with that concept.

In some hotels there are things like "please, help us to wash less," something like that . Hotel laundries generate a high electrical cost, among other things obviously.

Sometimes this type of news is an unnecessary catalyst to say negative things about a real issue, I repeat it, but this hotel instead of reinventing itself and announcing reductions, they do the simple; ..."we close and when things improve maybe we will open again,"... it's okay, it's a logical business decision, perhaps framed in not being able to sustain prices in the face of the competition? not wanting to lower the status of the hotel?... the price of electricity in the tourist sector, like in many other sectors, is badly hit, but without a doubt it is one of those that can perhaps be better reinvented, most than other areas.

I leave the article from an English source: https://pledgetimes.com/bills-of-500-thousand-euros-historic-hotel-chain-closes-in-puglia/

Some of what I mention:

<sup>Source:https://www2.deloitte.com/ro/en/pages/about-deloitte/articles/studiu-deloitte-industria-hoteliera-europeana-estimeaza-ca-va-ajunge-din-nou-la-nivelurile-de-performanta-din-2019-incepand-din-2023.html

Source:https://www2.deloitte.com/ro/en/pages/about-deloitte/articles/studiu-deloitte-industria-hoteliera-europeana-estimeaza-ca-va-ajunge-din-nou-la-nivelurile-de-performanta-din-2019-incepand-din-2023.html


source:https://www.e-unwto.org/doi/pdf/10.18111/9789284414970</sup>


Whatever the matter is, the current situation definitely brings to the fore an issue that has always been resolved by bringing the costs to the end consumer and the polluting consequences to the environment. That is the true reality.

We are going to see this happen more and more because many businesses are yet to really adapt to their first year running at much higher energy costs - at least throughout places like Europe, but it affects even the poorest countries worldwide. It feels like we're currently in a very volatile situation and consumers are starting to watch where they spend, so there isn't even room to raise prices too much or you will simply drive away custom. There was a slight bounce back in fortunes after Covid, but Russia's war against Ukraine has really ruined life for many people. However these situations can also prove which companies are more resourceful and trim out the most wasteful.