MILAN, May 13 (Reuters) - Italy's energy regulator said on Monday that starting Oct. 1 retail gas prices would be linked wholly to spot market prices, as it introduced a reform which could cut consumer gas bills by around 7 percent by end year.
In a statement, the regulator said the idea was to pass on to consumers the benefits of Italy's wholesale gas prices coming into line with those of Europe.
The formula used to review retail gas prices will no longer be linked to long-term take-or-pay contracts with producing countries like Russia and Algeria, seen by many as overly costly.
Until Italian energy markets operator GME gets a futures gas market up and running, the reference price will be that of the Dutch gas hub TTF, it said.
The GME is expected to launch a futures market in the autumn.
(Reporting By Stephen Jewkes, editing by Danilo Masoni)
((stephen.jewkes@thomsonreuters.com; +39.0266129695; Reuters Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))
Keywords: ITALY GAS/BILLS
