The other unevaluated commitments and risks are:
Commitments arising from the contract for the acquisition of Italgas and Stogit from eni
The price determined for the acquisition of Italgas and Stogit is subject to adjustment mechanisms based on commitments made when the transaction was completed which were also intended to apply after the date of execution.
Acquisition of Italgas
At 31 December 2012, residual commitments from the aforementioned agreements relate to the adjustment of the acquisition price for Italgas to take into account part of the benefits/costs arising from the sale of property owned by Italgas and no longer used in its activities.
In 2012, eni S.p.A. paid Snam the amount of €44 million as final settlement of the asset adjustments in its favour. This constitutes compensation for allocations to the provision for environmental risks and charges relating to circumstances existing before the contract completion date.
Acquisition of Stogit
The Stogit acquisition price may be adjusted to take into account the different amount that might be recognised by the Electricity and Gas Authority for the tariff period 1 April 2014 - 31 March 2018 relating to the volumes of natural gas owned by Stogit on the share transfer date and which are part of RAB assets.
The purchase agreement also provides for hedging mechanisms aimed at ensuring eni keeps the risks and/or benefits that may arise from any sale of storage capacity which is no longer regulated and which may become freely available following negotiations, or from the sale of concessions held by Stogit when the share transfer took place which may be mainly dedicated to storage activities that are no longer regulated.
Other commitments include the commitment deriving from a put option for the banks (the lending banks) to sell to Italgas and Iren (the grantors) the loans awarded by said banks to associate company AES Torino S.p.A. The put option of the lending banks, separately and each limited to its own share of the loan, is subordinate to AES S.p.A. losing the gas distribution concession in the municipality of Turin, which expires in 2012. If the option is exercised, the grantors must pay the total nominal loan amount of €195 million, plus interest and other auxiliary expenses. At present, it is not thought likely that said option will be exercised.
Legislative Decree 216 of 4 April 2006 transposed Emissions Trading Directive 2003/87/EC on greenhouse gas emissions and Directive 2004/101/EC on the use of carbon credits arising from projects in respect of the Kyoto Protocol’s flexible mechanisms. The European Emissions Trading Scheme (ETS) has been in operation since 1 January 2005, in relation to which Resolution 20/2008 of the National Emissions Trading Committee was issued on 27 November 2008. The resolution governs the allocation to existing plants of emissions permits for the five-year period 2008-2012. Snam has been allocated emissions permits for approximately 4.4 million tonnes of carbon dioxide (approximately 0.88 million tonnes a year for each year from 2008 to 2012) as well as approximately 0.6 million in emissions permits for “new entrant” plants in the five-year period 2008-2012.
In 2012, the carbon dioxide emissions from Snam facilities were, overall, lower than the emissions permits allocated. Some 0.6 million tonnes of carbon dioxide was emitted into the atmosphere, whereas about 1.0 million tonnes had been allocated in emissions permits, including permits for new plants. This meant a surplus of 0.4 million tonnes.