Main elements of the pricing framework

The transportation and regasification of LNG and the storage and distribution of natural gas are regulated by the Electricity, Gas and Water Authority (AEEGSI), in operation since 1997 and responsible for the regulation of the national electricity, natural gas and water markets. Among its functions are the calculation and updating of the tariffs, and the provision of rules for access to infrastructure and for the delivery of the relative services.

The tariff systems for the four business segments are based on shared principles and stipulate, in particular, that the revenue used to formulate tariffs is determined in such a way as to ensure that operators’ costs are covered and that return on invested capital is fair. There are three categories of recognised cost:

• the cost of net capital invested for regulatory purposes (regulatory asset base, RAB) through the application of a rate of return for the same;
• amortisation and depreciation, covering capital expenditure;
• operating costs for the year.

For development investments aimed at upgrading infrastructure, the increase in the rate of return varies according to the investment type.

Through Resolutions 438/2013/R/gas, 514/2013/R/gas and 573/2013/R/gas, the AEEGSI defined the tariff criteria for the fourth regulatory period, in force from 1 January 2014, for natural gas transportation, regasification and distribution, respectively. The third regulatory period for storage came to an end on 31 December 2014.

The following graphic shows the primary tariff components for each of the regulated activities carried out by Snam, based on the regulatory framework in force as at 31 December 2014¹⁹.

Information on the tariff criteria for each of the regulated activities can be found under “Business segment operating performance – Tariff regulations”.