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
V period: 1st Jan 2020 – 31st Dec 2023.
rab
Re-valued historical cost.
WACC real pre-tax
5.7% years 2019 – 2021.
INCENTIVES on new investments
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)
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
V period: 1st Jan 2020 – 31st Dec 2025.
rab
Re-valued historical cost.
Deduction for restoration costs recognized in tariff.
WACC real pre-tax
6.7% years 2019-2021.
INCENTIVES on new investments
Remuneration investments t-1 to offset the time-lag regulatory (from 2014).
Efficiency factor (X-factor)
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
V period: 1st Jan 2020 – 31st Dec 2023.
rab
Re-valued historical cost.
WACC real pre-tax
6.8% years 2019 – 2021.
INCENTIVES on new investments
Remuneration investments t-1 (starting from 2017 investments) to offset the regulatory time-lag.
Efficiency factor (X-factor)
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.
03 December 2021 - 10:33 CET