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31 Revenue

The key items comprising revenue are described below. The reasons for the most significant changes are given in the “Financial review and other information” section of the Directors’ Report.

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(€ million)

2012

2013

Core business revenue

3,730

3,735

Other revenue and income

216

113

 

3,946

3,848

Core business revenue (€3,735 million) is reported net of the following items, involving tariff components, additional to the tariff, applied to cover expenses of a general nature of the gas system. Amounts received from Snam are paid in full to the Electricity Equalisation Fund.

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(€ million)

2012

2013

(*)

These mainly relate to the following fees: RE, to cover the expenses for calculating and implementing energy savings and development of renewable energy sources in the gas sector; (ii) RS as coverage for gas services quality; (iii) UG1, to cover any imbalances in the equalisation system and any adjustments; and GS, to cover the tariff compensation system for economically disadvantaged customers.

(**)

These mainly relate to the following fees: (i) GST and RET, respectively, to cover expenses for compensation for subsidised tariffs to disadvantaged customers in the gas sector and expenses for calculating and implementing energy savings and development of renewable energy sources in the gas sector (€405 million in total); and (ii) CVBL, to cover expenses connected with gas system balancing (€67 million).

Additional fees for the distribution service (*)

202

300

Additional fees for the transportation service (**)

324

508

 

526

808

Core business revenue includes revenue from the construction and upgrading of natural gas distribution infrastructure linked to concession agreements under IFRIC 12 (€319 million; €325 million in financial year 2012).

Core business revenue is analysed by business segment in Note 37, “Segment information”. Snam generates all of its revenue in Italy.

Other revenue and income

Other revenue and income (€113 million) break down as follows:

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(€ million)

2012

2013

(*)

Revenue from the balancing business, operational since 1 December 2011 and in accordance with Resolution ARG/gas 45/11 of the Electricity and Gas Authority, relates to sales of natural gas made for the purposes of balancing the gas network. The revenue is matched to operating costs linked to withdrawals from the gas storage system.

Income from gas sales for the balancing service (*)

46

80

Capital gains from disposals of property, plant and equipment and intangible assets

45

12

Income from property investments

5

5

Insurance compensation

1

4

Plant safety inspection fee

3

3

Income from disposal of assets no longer necessary for natural gas transportation activities

80

 

Contractual penalties and other income relating to commercial contracts

5

 

Other income

31

9

 

216

113

Capital gains from the disposal of property, plant and equipment and intangible assets (€12 million) basically relate to the disposal of plants to the municipalities that award the natural gas distribution service concessions (€11 million).

Other income (€9 million) mainly relates to income recognised by the Electricity and Gas Authority, linked to the achievement of quality and technical standards and various operating reimbursements relating to the natural gas distribution service.

Revenue from regulated and non-regulated activities

The analysis of revenue from regulated activities (€3,810 million) and non-regulated activities (€38 million) is reported below:

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(€ million)

2012

2013

(*)

Including revenue from the construction and upgrading of natural gas distribution infrastructure.

Natural gas transportation

1,946

2,061

Liquefied Natural Gas (LNG) regasification

23

22

Natural gas storage

353

400

Natural gas distribution (*)

1,480

1,327

Revenue from regulated activities

3,802

3,810

Revenue from non-regulated activities

144

38

 

3,946

3,848

Revenue from regulated activities

Natural gas transportation

Revenue from regulated activities (€2,061 million) refers mainly to: (i) fees for transportation activities (€1,986), essentially concerning Eni S.p.A. (€1,018 million) and Enel Trade S.p.A. (€272 million); and (ii) income from the sale of gas from balancing (€80 million).

Transport revenue includes the chargeback to users of the costs of connecting the Company’s network to that of other operators (€53 million)31. During the course of 2013, Snam provided transportation services to 121 companies (105 companies in 2012).

Liquefied Natural Gas (LNG) regasification

Revenue from regulated activities (€22 million) relates to fees for liquefied natural gas (LNG) regasification, carried out at the Panigaglia (SP) LNG terminal, and mainly concerns Enel Trade S.p.A. (€16 million) and Eni S.p.A. (€3 million). During the course of 2013, Snam provided regasification services to 3 companies (4 companies in 2012).

Natural gas storage

Revenue from regulated activities (€400 million) mainly relates to fees for modulation (€336 million) and strategic (€62 million) storage, and mainly concerns Eni S.p.A. (€109 million) and Enel Trade S.p.A. (€28 million).

During the course of 2013, Snam provided natural gas storage services to 118 companies (94 companies at 31 December 2012).

Natural gas distribution

Revenue from regulated activities (€1,327 million) relates essentially to: (i) fees for natural gas distribution services (€952 million) and mainly concerns Eni S.p.A. (€778 million) and Enel Energia S.p.A. (€70 million); (ii) revenue deriving from the construction and upgrading of distribution infrastructures (€319 million), recognised in application of international accounting standard IFRIC 12; (iii) capital gains on the disposal of facilities to the municipalities that award natural gas distribution service concessions (€11 million); and (iv) ancillary and optional services (mostly “Activation”, “Deactivation”, “Suspension and Reactivation of the gas supply” and “Moving and removal of meters”) and revenue for Authority incentives connected with the achievement of quality and technical standards, relating to the natural gas distribution service (€45 million in total).

During the course of 2013, Snam used its networks to distribute the gas of 218 commercial companies (213 companies at 31 December 2012).

Revenue from non-regulated activities

Revenue from non-regulated activities (€38 million) mainly concerns: (i) the rental and maintenance of fibre optic telecommunications cables (€11 million) leased to a telecommunications operator, for which Snam also provides the maintenance; (ii) technical services (€6 million); and (iii) insurance compensation (€4 million).

31 Where the provision of the transportation service involves the networks of multiple operators, Resolution 166/05 of the Electricity and Gas Authority, as subsequently amended, provides for the principal operator to invoice the users for the service, transferring to the other operators of the transportation networks the portion attributable to them.

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