Annual Report 2011 - Snam

Snam Annual Report 2011 / Natural gas distribution51Operating review(€ million) 2009 2010 2011 Change Change %Distribution 192 237 215 (22) (9.3)Network maintenance and development 158 196 171 (25) (12.8)Replacement of cast-iron pipes (2% incentive) 34 41 44 3 7.3Metering (8% return) 110 112 144 32 28.6Other investments 32 37 35 (2) (5.4)334 386 394 8 2.1Investments in distribution (€215 million) mainly relate to the renovation of sections of pipes byreplacing cast-iron pipes, and extending and upgrading the distribution network.Investments in metering (€144 million) mainly relate to the meter replacement programme andremote meter reading.Other investments (€35 million) mainly relate to investments in IT, property, and other operatingassets.Gas distributionDuring 2011, 7,450 million cubic metres of gas were distributed, a decrease of 503 million cubic metres,or 6.3%, compared to 2010, mainly due to the milder temperatures recorded during the year.At 31 December 2011, Snam had concessions for gas distribution services in 1,449 municipalities (1,448at 31 December 2010), of which 1,330 were in operation and 119 had to complete and/or create thenetworks. It had 5.897 million active meters at gas redelivery points to end users (households, businesses,etc.), compared with 5.848 million at 31 December 2010.SHARE OF INVESTMENTS BY INCENTIVE(% of total investments)ACTIVE METERS AND VOLUMESOF GAS TRANSPORTED9%5%28%10%7%29%9%37%Other investmentsMetering (8% investment)Replacement of cast-ironpipes (2% incentive)7,5377,9537,45058%54%11%Network maintenanceand development5,7715,8485,89743%Volumes distributed(million m 3 )active meters (thousands)2009 2010 20112009 2010 2011Snam Annual Report 2011