Resolution ARG/gas 92/08 – “Criteria for determining regasification service tariffs and amendments to Resolution 166/05 and Resolution 11/07”.
With Resolution ARG/gas 92/08, published on 9 July 2008, the Electricity and Gas Authority defined the tariff criteria for the regasification service applicable for the third regulatory period (1 October 2008 - 30 September 2012).
The mechanisms already in effect in the second regulatory period were confirmed in order to determine the base revenues, including the rate of return on net capital invested of 7.6%, in real terms, before taxes. With regard to the tariff structure, the breakdown of revenue into a regasification capacity component and a regasified volumes component was maintained at a ratio of 90/10.
The tariffs are updated using the price cap methodology applied only to the component relating to operating costs, with a productivity recovery coefficient of 0.5%.
The revenue component relating to the return and amortisation and depreciation is updated on the basis of an annual recalculation of invested capital and additional revenue from the higher rate of return for investments realised in prior regulatory periods.
New investments are remunerated by the payment of a return increased by up to three percentage points over the base rate (WACC), for a period of up to 16 years. Both the increase in the rate of return and the duration are differentiated depending on the type of investment.
Resolution 237/2012/R/gas – “Extension of the criteria for determining regasification tariffs for the transition period October 2012 - December 2013”.
With this resolution, published on 8 June 2012, the Authority extended the current tariff criteria for the regasification service for the transition period from 1 October 2012 to 31 December 2013, specifically providing for the real pre-tax rate of return on invested capital to be updated from 7.6% to 8.2%.
Resolution 312/2012/R/gas – “Approval of the tariff proposals for the regasification service for the transition period October 2012 - December 2013 for GNL Italia S.p.A. and Terminale GNL Adriatico S.r.l.”.
With this resolution, published on 27 July 2012, the Authority approved the tariffs for the regasification service offered by GNL Italia for the transition period from October 2012 to December 2013. The tariffs were determined based on reference annual revenue of around €28 million and the recognition of increased expenses resulting from local taxes following the resolution of disputes. As at 31 December 2011, the RAB for regasification activities was around €0.1 billion.
Resolution 438/2013/R/gas – “Regulation criteria for liquefied natural gas regasification tariffs for the 2014-2017 period”.
With this resolution, published on 9 October 2013, the Authority defined the criteria for regasification service tariffs applicable in the fourth regulatory period (1 January 2014 - 31 December 2017). For the purposes of determining the relevant revenues, the mechanisms already in force for the third period were essentially confirmed. The return rate of net capital invested (WACC) was set at 7.3% in real terms, before tax, for investments made up to 31 December 2013, and at 8.3% in real terms, before tax, for investments made after that date, in order to mitigate the impact of the “regulatory lag” in the recognition of new investments made in the year n, which are incorporated into the tariff for the year n+2. A revision of the WACC was also introduced halfway through the regulatory period via an update solely of the return from risk-free assets.
With regard to the tariff structure, 100% of the total revenue is allocated to the capacity component (90% to capacity and 10% to commodity in the third regulatory period). The tariffs are updated using the “price cap” method, applied exclusively to the component relating to operating costs. The revenue component relating to the return and amortisation and depreciation is updated on the basis of an annual recalculation of invested capital and additional revenue from the higher rate of return for investments realised in prior regulatory periods.
New investments made from the 2014 financial year onwards aimed at expanding the regasification capacity of existing terminals by more than 30% or building new terminals will earn a rate that is two percentage points higher than the basic WACC, for a period of 16 years.
The guarantee factor for covering revenue is set at 64% of total revenue.
Resolution 604/2013/R/gas – “Tariff provisions for the regasification service for 2014, for the companies GNL Italia S.p.A., Olt Offshore LNG Toscana S.p.A. and Terminale GNL Adriatico S.r.l.”.
With this resolution, published on 20 December 2013, the Authority approved tariffs for the regasification service provided by GNL Italia for 2014.
The tariffs were set on the basis of the base revenue of €27.6 million. Effective revenue must take account of contractual capacities. The net capital invested as at 31 December 2012 (RAB) was around €0.1 billion.
Ministerial Decree of 13 September 2013 – Amendments to the emergency plan, in accordance with Annex 2 of the Decree of 19 April 2013, relating to the emergency plan to handle unfavourable events for the natural gas system (Official Gazette No. 232 of 3 October 2013) and Ministerial Decree of 18 October 2013 – Terms and conditions for a peak shaving service during the winter period of the 2013-2014 thermal year (Official Gazette No. 258 of 4 November 2013).
With the Decree of 13 September 2013, the Ministry of Economic Development introduced changes concerning the rules for dispatching in emergency conditions and the security obligations of the national natural gas system. Specifically, a “peak shaving” measure was introduced in relation to the usage of LNG stocks. This measure may be activated by using partially used regasification terminals or dedicated LNG tanks. New measures were also introduced to increase gas imports via pipelines connected directly to the Italian gas transportation network, as well as via regasification terminals, including through contractual options for deferred deliveries. With a subsequent Decree of 18 October 2013, the Ministry defined the general conditions for the performance of the peak shaving service by regasification companies and for the allocation of the costs arising from the performance of the service.
Resolution 471/2013/R/gas of the Electricity and Gas Authority – “Provisions for the management of the peak shaving service during the winter period of the 2013-2014 thermal year”.
With this resolution, published on 20 December 2013, which transposes the provisions introduced by the Decrees of the Ministry of Economic Development of 13 September 2013 and 18 October 2013, the Authority defined the procedures for the management of the peak shaving service in the event that it is implemented during the winter period of the 2013-2014 thermal year by regasification companies and the Balancing Supervisor, the procedures for amending the regasification codes and the procedures for estimating the costs to be incurred for performing the service.