24. Revenue
The breakdown of revenue for the period, which totalled €2,501 million (€2,554 million in 2015), is shown in the following table:
| Download XLS (16 kB) |
(€ million) |
2015 |
2016 |
Core business revenue |
2,470 |
2,419 |
Other revenue and income |
84 |
82 |
|
2,554 |
2,501 |
The Group generates all of its revenue in Italy. An analysis of revenue by business segment can be found in Note 31 – “Information by business segment”.
Revenues from related parties are described in Note 32 “Related-party transactions”.
Core business revenue
Core business revenue, which totalled €2,419 million (€2,470 million in 2015), is analysed in the following table:
| Download XLS (16 kB) |
(€ million) |
2015 |
2016 |
Natural gas transportation |
2,040 |
1,925 |
Liquefied natural gas (LNG) regasification |
18 |
18 |
Natural gas storage |
397 |
434 |
Corporate and other activities |
15 |
42 |
|
2,470 |
2,419 |
Natural gas transportation
Core business revenue (€1,925 million) relates mainly to fees for transportation services (€1,918 million) and mainly relate to Eni S.p.A. (€1,069 million) and Enel Trade S.p.A. (€379 million). Transportation revenue includes the chargeback to users of the costs of connecting the Company’s network to that of other operators (€63 million)54. Snam provided its transportation service to 136 companies in 2016.
Liquefied natural gas (LNG) regasification
Core business revenue (€18 million) refers almost entirely to the factor for covering revenue paid by the AEEGSI pursuant to Resolution 438/2013/R/gas55. Snam provided its regasification service to four companies in 2016.
Natural gas storage
Core business revenue (€434 million) relates mainly to fees for modulation (€345 million) and strategic (€91 million) storage, and mainly concerns Eni S.p.A. (€60 million) and Enel Trade S.p.A. (€14 million). Snam provided its natural gas storage service to 91 companies in 2016.
Group core business revenue is reported net of tariff components, additional to the tariff, applied to cover expenses of a general nature of the gas system56. Amounts received from Snam are paid in full to the Energy and Environmental Services Fund (CSEA).
| Download XLS (16 kB) |
(€ million) |
2015 |
2016 |
Additional fees for the transportation service |
791 |
955 |
Other revenue and income
Other revenue and income, which amounted to €82 million (€84 million in 2015), can be broken down as follows:
| Download XLS (17 kB) |
(€ million) |
2015 |
2016 |
||
|
||||
Income from gas sales for the balancing service (*) |
49 |
72 |
||
Natural gas connection competitive tendering procedure |
3 |
3 |
||
Capital gains from disposals of property, plant and equipment and intangible assets |
3 |
|
||
Other income |
29 |
7 |
||
|
84 |
82 |
||
54 Where the provision of the transportation service involves the networks of multiple operators, Resolution 166/05 of the Authority, as amended, provides for the principal operator to invoice the users for the service, transferring to the other operators of the transportation networks the portion attributable to them.
55 Article 18 “Application methods for the factor for covering revenue” of Annex A of Resolution 438/2013/R/gas defined the factor for covering revenue at 64% of the benchmark revenues.
56 These items, totalling €955 million (€791 million in 2015) refer essentially to the following fees: (i) CRVOS, introduced by the Authority through Resolution ARG/gas 29/11 to cover the expenses pursuant to Article 9 of Legislative Decree 130/10, incurred by the Energy Services Operator (GSE) for paying the amounts due to the storage company relating to the SG guarantee factor (€293 million); (ii) GST and RET, respectively to cover expenses for offsetting tariff breaks for disadvantaged gas sector customers and expenses for energy-saving measures, and interventions and the development of renewable sources in the gas sector (€374 million in total); (iii) CVFG, to cover expenses arising from the application of the guarantee factor for LNG regasification revenue pursuant to Article 18 of Resolution 92/08 (€120 million); (iv) CRVBL, to cover expenses associated with balancing the gas system (€61 million); (v) CRVI, to cover expenses for reducing gas consumption (€45 million); (vi) UG3T introduced by means of Resolution 134/14/R/gas to cover expenses arising from the default service provided to customers who are directly connected to the regional transportation network (€46 million); (vii) established by Resolution ARG/gas 184/09 to cover the equalisation imbalances of revenues relating to the Regional network capacity fee (€12 million).