Login    

Regulation in Snam

Transport and dispatching, storage and regassification activities are regulated, as defined by the Legislative Decree No. 164 of 23 May 2000 (the so-called "Letta Decree"), on the basis on specific measures defined by the Italian Authority.

The main areas subject to regulations are the definition of allowed revenues and tariffs, the access rules to the infrastructures and the quality levels standards on provided services.

Following the regulatory framework set by the Authority, Snam prepared for each service provided, the Network, Storage and Regassifction Codes containing the transparent and non-discriminatory rules for the access and the use of the services; those Codes, approved by Autorità per l'energia elettrica, il gas e il sistema Idrico, are published on Snam's web pages.

Regulatory matters therefore play a very significant role in the business of Snam and of its subsidiaries.


TARIFF

Tariff resolutions

&

Resolution 514/2013/R/gas - Criteria for the definition of Transport and dispatching tariff for the IV regulatory period;

Resolution 583/2015/R/com - Criteria for WACC calculation and updating for electricity and gas sector;

Resolution 575/2017/R/gas – Criteria for the definition of Transport and dispatching tariff for the transitional period 2018-2019

Period

The duration of the regulatory period is 4 years

IV period: Jan 2014 - Dec 2017
Transitional period: Jan 2018 – Dec 2019

rab

The RAB sets the value of the capital invested by a company to provide its service

Re-valued historical cost

WACC real pre-tax

The WACC identifies the allowed return to the invested capital and is calculated according to the Capital Asset Pricing Model (CAPM) methodology

5.4% years 2016-2018
5.7% year 2019

INCENTIVES on new investments

The investments are incentivized through a further remuneration that is added to the base return rate (WACC)

Transitional period (investments in FY 2018-2019):
+1% for 12 years (investments in new capacity of transmission and with an analysis of benefits positive)

Remuneration investments t-1 (starting from 2017 investments) to offset the regulatory time-lag

Efficiency factor (X-factor)

The operating efficiency is set through an annual target of operating cost reduction for the company

1.3% on operating costs (period 2018-19)

 

CODES

Approval date

&

July 2003

System access

&

Regulated TPA

Main features

&

Entry-Exit Model
Market based balancing regime

QUALITY OF SERVICES

Quality resolution

&

Resolution 43/2018/R/gas – Service quality regulation for natural gas transportation activity – period 2018-19
Resolution 602/2013/R/gas – Service quality regulation for natural gas transportation activity – period 2014-17

TARIFF

TARIFF RESOLUTIONS

&

Resolution 531/2014/R/gas - Criteria for the definition of storage tariff for the period 2015-2018;

Resolution 583/2015/R/com - Criteria for WACC calculation and updating for electricity and gas sector;

Resolution 68/2018/R/gas - Tariff criteria for the transition period 2019

Period

The duration of the regulatory foriod is 4 years for each business

IV period: Jan 2015 - Dec 2018
Transitional period: 2019

rab

The RAB sets the value of the capital invested by a company to provide its service

Re-valued historical cost

WACC real pre-tax

The WACC identifies the allowed return to the invested capital and is calculated according to the Capital Asset Pricing Model (CAPM) methodology

6.5% years 2016-2018
6.7% year 2019

INCENTIVES on new investments

The investments are incentivized through a further remuneration that is added to the base return rate (WACC)

Withholding for 8 years of 20% of the greater revenue with respect to recognised revenue deriving from the procedures insolvency

Remuneration investments t-1 to offset the time-lag regulatory (from 2014)

Efficiency factor (X-factor)

The operating efficiency is set through an annual target of operating cost reduction for the company

1.4% on operating costs

Transitional period: to be defined with 2019 tariffs

 

CODES

Approval date

&

October 2006

System access

&

Regulated TPA

Main features

&

Virtual Hub

QUALITY OF SERVICES

Quality RESOLUTION

&

Resolution 596/2014/R/gas - Service quality regulation for natural gas storage activity – period 2015-18

TARIFF

Tariff resolutions

&

Resolution 438/2013/R/gas - Criteria for the definition of Regasification tariff for the period 2014-2017;

Resolution 583/2015/R/com - Criteria for WACC calculation and updating for electricity and gas sector;

Resolution 653/2017/R/gas – Criteria for the definition of Regasification tariff for the transitional period 2018-2019

Period

The duration of the regulatory period is 4 years

IV period: Jan 2014 - Dec 2017
Transitional period: Jan 2018 - Dec 2019

rab

The RAB sets the value of the capital invested by a company to provide its service

Re-valued historical cost

WACC real pre-tax

The WACC identifies the allowed return to the invested capital and is calculated according to the Capital Asset Pricing Model (CAPM) methodology

6.6% years 2016-2018
6.8% year 2019

INCENTIVES on new investments

The investments are incentivized through a further remuneration that is added to the base return rate (WACC)

Transitional period (investments in FY 2018-2019):
+ 1,5% for 12 years (investments in new capacity of regasification)

Remuneration investments t-1 (starting from 2017 investments) to offset the regulatory time-lag

Efficiency factor (X-factor)

The operating efficiency is set through an annual target of operating cost reduction for the company

0%

 

CODES

 

Approval date

&

May 2007

System access

&

Regulated TPA

Main features

&

Integrated service for regasification and injection into the grid

 
Page Alert
updated
06 May 2019 - 11:10 CEST