A more efficient energy market

Snam works closely with other sector operators, its partners, to guarantee the safety of the two-way gas flows between the UK and Italy and France and the Iberian peninsula. This is the first important step towards the European integration of networks. Snam is committed to continuing to develop services for the market, both on its own and with its partners, focusing on production quality in an attempt to satisfy the ever-changing demands of shippers and end customers.

Against this background, Snam favours constructive relationships with regulators and institutions, which are a key part of our social and relationship capital as well as being the stakeholders with the most direct interest and involvement in integration processes. This guarantees that existing reserves are used in full and that additional capacity is developed via a framework able to offer not only stability, continuity and transparency, but also sufficient financial returns to make investment strategies sustainable.

The importance of tariffs on revenues and financial capital

The clarity, stability and transparency of the regulatory framework for determining revenues and tariffs plays a crucial role in the Company’s economic sustainability and is also important for network users, who are affected by the costs of using infrastructure, and investors, who want to be able to predict what sort of return they can expect. Tariff criteria tend to be defined every four years (every six years for the distribution segment). The revenues recognised in all segments are determined in such a way as to guarantee the coverage of operating costs, depreciation and amortisation and a fair return on net invested capital. There are also incentives that differ according to the type of investments made over the course of each regulatory period. Every year, each Snam company makes a tariff proposal based on its own revenues that is submitted to the Electricity and Gas Authority for approval.

By way of Resolutions 438/2013/R/gas, 514/2013/R/gas, 573/2013/R/gas and 531/2014/R/gas, the Electricity and Gas Authority approved the criteria for determining the respective tariffs for the fourth regulatory period for regasification, transportation, distribution and storage.