Abstract

Italy shows an energy cost per high usage industrial customer higher than the average value of the greatest countries in the world. As companies operating in the paper and steel industries are amongst the major energy consumers, the author has analysed the evolution of the economic structure of both industries in Italy during the ten-year period, 1991-2000. Reduction forecasts of energy cost in the medium term, updated on the basis of Italian government's energy policy, have been compared with reduction obtained in the countries with liberalised markets. By means of a sensitivity analysis the author has estimated that in the steel industry a 25 per cent energy cost reduction would increase the return on sales from 3,1 per cent in 2000 to 7,3, and a 56,4 per cent reduction would boost it to 8,6 per cent. In the paper industry a 25 per cent energy cost reduction would increase return on sales from 3,5 per cent in 2000 to 9,1.