logo di stampa inglese
 

A2009 Services

IR Utility

You are in: Regulatory framework & regulated revenues » Regulated revenues » Gas Distribution

Gas distribution

Year 2009 is the first of the third regulatory period (2009-2012) for gas distribution and measurement tariffs. The regulatory reference for this four-year period was introduced by resolution AEEG arg/gas no. 159/08 of November 2008 and is in many respects highly innovative compared to previous methodologies (resolution no.  237/00 and 87/03 for the first period and resolution no. 170/04 for the second regulatory period).

First of all, the new standard ensures each operator the achievement of certain permitted revenues calculated by the AEEG based on the recognized costs and the delivery points served, effectively rending the company's revenue independent from the volume distributed during the period. This is possible through appropriate mechanisms for tariff equalization, allowing operators to adjust, through the adjustment fund, the difference between their permitted and invoiced revenue. The latter derives from the application of standard tariffs determined by AEEG for macro-regional areas and of equal level for all operators.

Furthermore, resolution no. 159/08 has seen the introduction of new criteria through which the calculation of permitted revenues shall cover both operating and capitalised costs. With regard to operating costs, the new tariff method identifies unit cost levels set by the size and density of the customer base served, considering decreasing costs for increasing size of corporate users and disadvantaged so than the average, large operators. The reading and management of consumption data, previously under the responsibility of vendor companies, shall also b e included in the operating costs remuneration.

With regard to capitalised costs, resolution no. 159/08 introduced a discontinuity in the determination criteria of invested capital for regulatory purposes and in its corresponding depreciation rate, thus generating significant variations with the levels previously approved. The methodology introduced is based on accurate historical calculation of the economic data held in accounting, selected according to a suitable set of rules. In parallel, the new method has established a mechanism for the gradual implementation of new criteria in an attempt to dilute, over the four-year regulatory period, the variances registered compared to the approved values for thermal year 2007/08. The gradual implementation mechanism shall come into force upon reaching a 5% variance at the national level relative to the approved values.

With specific reference to the calculation of the invested capital, the AEEG, through resolution no. ARG/gas 79/09 of 30 June 2009, launched surveys intended to establish whether the data transmitted could be reconciled with the accounting policies followed and the proper use of those policies in accordance with resolution no. 159/08. These surveys concerned the majority of operators, including Hera S.p.a.

Upon completion of these surveys, through resolution no. ARG/gas 197/09 of 21 December 2009, the AEEG finally proceeded to approve the reference tariffs for 2009. For certain companies, including Hera S.p.A., this approval shall be deemed final, albeit subject to the survey completion, and therefore to the validation of the economic data submitted. For other operators, however, the AEEG determined tariffs on its own motion, resulting in a recognised cost reduction compared to the previous method. These penalties shall be deemed provisional, pending the outcome of further studies undertaken under the same resolution no. 197/09.

Therefore, the Financial Statements of Hera S.p.A. for 2009 reflect, in relation to gas distribution and measurement revenues, a stable regulatory framework. Against this backdrop, revenues for 2009 amounted to Euro 143.8 million, with distribution volumes of 2,179 million of cubic metres, and a corresponding average revenue per unit of Euro cents 6.6 per cubic metre.

Gas distribution - transport revenues20082009% change
Hera consolidated   
- Revenue (millions of Euro)134.30155.6015.90%
- Volumes (millions of cubic metre)2370.002334.00-1.50%
- Average revenue per unit (Euro cent per cubic metre)5.706.7017.60%
    
Gas distribution - transport revenues20082009% change
Hera Spa   
- Revenue (millions of Euro)124.40143.8015.60%
- Volumes (millions of cubic metre)2216.002179.00-1.70%
- Average revenue per unit (Euro cent per cubic metre)5.606.6017.50%

The significant increase registered on 2008, amounting to Euro 19.4 million (+15.6%), may be explained as follows:

  • for Euro 13.3 million, due to the introduction in 2009 of the separation of revenues from distributed volumes; conversely, in 2008, distributed volumes (equal to 2,216 million cubic meters) had generated a level of revenue below the permitted revenues threshold;
  • for Euro 5.5 million, due to increased permitted revenues determined by the new tariff method, which represented a Euro 7.6 million increase in recognized capitalised costs, and a simultaneous reduction of Euro 2.1 million in operating costs;
  • for the remaining Euro 0.6 million, due to fee expenditure transfers, and to increased management scope following the merger through acquisition of GasTecnica Galliera.

The consolidation perimeter for 2009 also includes MARCHE MULTISERVIZI Spa. Reported below are the consolidated revenues from gas distribution and measurement, distributed volumes and average revenue per unit for the Hera Group. With regard to the regulatory framework outlined above, it should be noted that resolution no. 197/09 has approved the reference tariffs for MARCHE MULTISERVIZI provisionally and on the AEEG's own motion.

Gas distribution - transport revenues20082009% Change
Hera Spa   
- Revenue (millions of Euro)124.40143.8015.60%
- Volumes (millions of cubic metre)2216.002179.00-1.70%
- Average revenue per unit (Euro cent per cubic metre)5.606.6017.50%

It should be noted that the Net Invested Capital for regulatory purposes, at the baseline revenue indicated for the year, is of approximately Euro 800 million for the Hera Group.

 
Post a question