7 Trade and other receivables

Trade and other receivables of €1,545 million (€944 million at 31 December 2010) comprise:

These are reported net of the provision for impairment losses of €39 million (€36 million at 31 December 2010). The activity in the provision for impairment losses on receivables during the year is shown below:

The provision for the period of €4 million refers to the natural gas storage (€2 million) and distribution (€2 million) business segments.

Trade receivables of €1,367 million (€777 million at 31 December 2010) mainly refer to the natural gas storage (€525 million), transportation (€517 million)¹⁰ and distribution (€316 million) business segments.

For the storage business segment in particular, receivables mainly relate to fees charged on the use, by users, of strategic gas (gas not integrated by those users according to the terms of the Storage Code) which, when collected according to the regulatory framework in force, will be reversed into the Electricity Equalisation Fund. Considering the current regulatory framework (Resolution ARG/gas 119/10, Article 10, paragraph 5 in Appendix A) which leaves the storage company in a neutral position with regard to the effects of the withdrawal of strategic gas by users, against credits for the use of strategic gas not replenished, the recognition of a liability of equal amount was provided.

During 2011, Snam transferred trade receivables without recourse or notification, including not due, €55 million with an increase of cash equivalents by the same amount. The transfer concerned trade receivables relating to the natural gas transportation segment. By virtue of the contractual provisions agreed, Snam provides for the cash management of the receivables transferred and, within the limits of these, the transfer of the amounts received to the factoring company.

Other receivables of €176 million (€165 million at 31 December 2010) comprise:

Receivables from investment/divestment activities (€41 million) concern receivables from disposal of property, plant and equipment and intangible assets (€22 million) and public and private grants entered against investment activities (€19 million).

IRES receivables for the national tax consolidation scheme (€35 million) concern: (i) greater advance tax payments (€28 million), (ii) receivables with the ultimate parent Eni (€7 million) relating to the IRES refund request for 10% of the regional production tax (IRAP) for the 2004, 2005, 2006 and 2007 tax years (pursuant to Article 6 of Legislative Decree No. 185 of 28 November 2008, enacted by Law No. 2 of 28 January 2009).

Receivables from the Cassa Conguaglio Settore Elettrico (Electricity Equalisation Fund) (€26 million) concern: (i) additional tariff components in the distribution segment (€16 million); (ii) receivables for energy efficiency certificates¹¹ (€10 million).

The residual item “Other”, in the amount of €18 million, essentially comprises receivables with government bodies.

The fair value measurement of trade and other receivables has no material impact considering the short period of time from when the receivable arises and its due date.

All receivables are in Euros. Receivables from related parties are described in Note 36, “Related-party transactions”. Information on credit risk can be found in Note 28 “Guarantees, commitments and risks – Credit risk”.