Snam Rete Gas
Piazza Santa Barbara, 7
20097 San Donato Milanese (MI)
Ph.: +39 02.3703.1
Fax: +39 02.3703.9227
Natural gas transportation and dispatching activity in Italy is regulated on the basis of the provisions set out by the Italian Authority for Electricity and Gas.
The rules for access to and use of the transportation service provided by Snam Rete Gas and the quality standards of the service are defined in the Network Code approved by the Authority.
At European level, following EC Regulation n.715/2009, ENTSOG will set out network codes for cross-border matters related to market integration which will be binding for Snam Rete Gas, following their implementation according to the initiative of the Eu Commission.
The Authority also regulates the of natural gas transportation tariff system establishing the criteria for the determination of tariffs for each regulatory period. In particular, Resolution ARG/gas 184/09 defines the tariff criteria for the current regulatory period, which lasts for four years (1 January 2010- 31 December 2013).
Revenues are determined on the basis of the following:
- Recognised cost of the capital invested (CIR or Regulatory Asset Base - RAB)
RAB rate of return
technical and economic amortisation
higher return for new investments
recognised operating costs
the recovery cost quota of the storage sites
annual updating of revenues related to capacity (i.e. RAB rate of return, new investments and amortisation) using the "Cost Plus" method
annual updating of revenues related to commodity (recognised operating costs) using the "Price Cap" method
The Authority has introduced the incentive system for new investment aimed at developing the transportation network which has been confirmed in each of the three regulatory periods of the natural gas transportation and dispatching service. Furthermore, starting from the third regulatory period, costs related to consumptions, losses and non computed gas in the transportation network are recognized in kind by the network users. The tariff system is therefore designed to award efficiency, guarantee clarity, stability, transparency and support the development of investments on the basis of long-term regulatory continuity.