Regulation in Snam
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 Regassification 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 639/2018/R/com - Update of the rate of return on invested capital for infrastructure services in the electricity and gas sectors, for the years 2019-2021;
Resolution 114/2019/R/gas - Criteria for the definition of Transport of natural gas for the V regulatory period.

Period

The duration of the regulatory period is 4 years

V period: 1st Jan 2020 – 31st Dec 2023.

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

5.7% years 2019 – 2021.

INCENTIVES on new investments

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

V regulatory period: +1.5% for 10 years (investments in new capacity of transmission and with an analysis of cost/benefits higher than 1.5, entry into service in the years 2020-21-22).
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

0.7% on operating costs (period 2020-2023).

 

CODES

Approval date

&

July 2003.

System access

&

Regulated TPA.

Main features

&

Entry-Exit Model.
Market based balancing regime.

QUALITY OF SERVICES

Quality resolution

&

Resolution 554/2019/R/gas – Service quality regulation for natural gas transportation activity – period 2020-2023.

TARIFF

TARIFF RESOLUTIONS

&

Resolution 639/2018/R/com- Update of the rate of return on invested capital for infrastructure services in the electricity and gas sectors, for the years 2019-2021;
Resolution 67/2019/R/gas - Regulation of access to storage services and their withdrawal phase. Criteria for the assignment of storage capacities for the thermal year 2019/2020;
Resolution 419/2019/R/gas – Tariff and quality criteria for the storage services for the period 2020-2025.

Period

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

V period: 1st Jan 2020 – 31st Dec 2025.

rab

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

Re-valued historical cost.
Deduction for restoration costs recognized in tariff.

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

6.7% years 2019-2021.

INCENTIVES on new investments

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

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% on operating costs (period 2020-2022)

 

CODES

Approval date

&

October 2006.

System access

&

Regulated TPA.

Main features

&

Virtual Hub.

QUALITY OF SERVICES

Quality RESOLUTION

&

Resolution 419/2019/R/gas – Tariff and quality criteria for the storage services for the period 2020-2025.

TARIFF

Tariff resolutions

&

Resolution 639/2018/R/com- Update of the rate of return on invested capital for infrastructure services in the electricity and gas sectors, for the years 2019-2021;
Resolution 474/2019/R/gas - Criteria for the definition of Regasification tariff for the period 2020-2023.

Period

The duration of the regulatory period is 4 years

V period: 1st Jan 2020 – 31st Dec 2023.

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

6.8% years 2019 – 2021.

INCENTIVES on new investments

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

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

0.7% on operating costs (period 2020-2023).

 

CODES

 

Approval date

&

May 2007.

System access

&

Regulated TPA.

Main features

&

Integrated service for regasification and injection into the grid.

 
Page Alert
updated
03 December 2021 - 10:33 CET