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Change Report

Regulation of business sectors

The Electricity and Gas Authority (AEEGSI) has regulated the gas transportation, storage, regasification and distribution segments in Italy since 1997. In the context of market liberalisation, regulation over time has become a tool enabling the economically sustainable development of infrastructure and non-discriminatory access to services by all operators in the free market.

The quality and regularity of relations between Snam and the Electricity and Gas Authority play a key part in this process. Over the years, Snam has established constructive dialogue and proactive cooperation with the Authority by continually maintaining an advisory role and providing the necessary support to changes in the regulatory framework of the natural gas segment.

Specifically, the Group’s companies individually:

  • respond, either directly or through trade associations, to the public consultations that the Authority holds on different activities in the segment prior to defining new regulations or revising current ones;
  • take part in technical working groups established by the Authority on changes to the regulatory framework;
  • draft changes to the transportation, distribution, storage and regasification Network Codes, which are then submitted to the Authority for approval;
  • participate in gathering data and in surveys conducted during the year for purposes of evaluating the status of the sector or of the individual services, and periodically send the data requested in compliance with reporting obligations.

The table below summarises relations with the Electricity and Gas Authority for each regulated segment:

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RELATIONS WITH THE AUTHORITY

 

 

 

 

 

Description

Transportation

Storage

Distribution

Regasification

*

In addition to responses to consultation documents, the presentation of observations through public hearings at the Authority must also be considered.

**

Responses to consultations (Electricity and Gas Authority, Ministry of Economic Development and Energy Market Operator) through trade associations. On one occasion, the company participated in a technical working group between trade associations and the Authority that was started during the year.

***

Includes: exploratory investigations in the transportation segment.

****

Includes proposals still being evaluated by the Electricity and Gas Authority, including agreements and contractual documents with operators in regulated services.

Responses to consultation documents (no.) *

5

9

4

3

Responses to consultations/observations through trade associations (no.) **

9

8

13

3

Tariff proposals (no.)

3

1

6

2

Data gathering (no.)

100

81

113

28

Investigations (no.) ***

5

 

 

 

Proposed amendments to codes and contractual documents (no.) ****

28

1

 

1

Approved amendments to codes and contractual documents (no.)

13

4

 

1

On the European level, the Electricity and Gas Authority is part of the Agency for the Cooperation of Energy Regulators (ACER) and Snam Rete Gas is part of the European Network of Transmission System Operators for Gas (ENTSOG). These two organisations are working towards the creation of a single market for natural gas by developing guidelines and rules for accessing and using cross-border infrastructures.

In this regard, in 2014 Snam collaborated in the process to establish new European codes to set common inter-operation rules and in the preparation of the Ten-Year Plan to develop the European Transmission System (TYNDP – Ten-Year Network Development Plan), the publication of which is scheduled for March 2015. In 2014 two regional investment plans (GRIPs) were published that were of interest to Snam: one related to the South-North European corridor (“South-North Corridor GRIP”), and the other regarding the nine guiding principles for the procurement of gas from the Caspian Sea area (“Southern Corridor GRIP”).

Through ENTSOG and GIE (Gas Infrastructure Europe, an association of European transportation, storage and regasification infrastructure operators), Snam also participated in the preparation of about 20 responses to public consultations and the development of association positions in response to documents mainly proposed by the European Commission and ACER. The main themes subject to consultation related to the development of EU energy policies, changes to the Gas Target Model and the guidelines relating to European Codes.

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