Pursuant to Executive Resolution 1406 of 10 September 2012, the Municipality of Rome awarded Italgas the tender to distribute gas in the municipal region of Rome Capital, securing authorisation to run the biggest concession in Italy by network (almost 5,000 kilometres) and number of users (around 1.3 million redelivery points) for 12 years. The concession was formally granted on 20 November 2012.
The key points of the Italgas offer concerned the extension of the network of around 330 kilometres, the updating of a total of 700 kilometres of existing pipes and structures, the further improvement of the functional characteristics of the gas withdrawal and reduction plants and the replacement of the existing meters with new remote meter-reading devices. In addition to these specific technical activities, the bid also provided for a series of significant interventions aimed at improving energy efficiency of the entire network. With regard to the safety and quality of the service, the Italgas tender offered the highest level of compliance with the obligations set forth by the Electricity and Gas Authority, used as a benchmark standard of service.
During 2012, Italgas and Acea signed an agreement aimed, inter alia, at verifying the possibility of jointly carrying out certain activities related to the distribution of natural gas in the municipal region of Rome. The agreement also entitles Acea to require Italgas to acquire a stake of between 5% and 25% in a newly created company to which the Italgas business unit concerned with distributing gas in the municipality of Rome would be transferred, in compliance with the applicable competition regulations and subject to the obtainment of the necessary authorisations. The consideration for the said stake is to be determined by taking into account, inter alia, the sum paid by Italgas to the Municipality of Rome in exchange for the granting of the concession to distribute gas in the municipal region of Rome.