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.

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.

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:

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:

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).