Half-yearly financial Report at June 30, 2013 - A2A

Half-yearly financial report at June 30, 2013Changes in legislationThe tariff system currently in force provides for a reference tariff calculated in order toensure the following: the remuneration of net invested capital (WACC set at 7.7% fordistribution activities and 8% for measurement activities), in turn calculated on the basis ofrevalued historic cost and, only in part, on a parametric basis; the coverage of depreciation,calculated on the basis of useful lives valid for regulatory purposes; and the coverage ofoperating costs, calculated on a parametric basis and updated through a price-cap methodusing an X-factor depending on the size of the company (2.4% for the distribution service and2.8% for measuring and sales services with respect to large-scale operators).The mandatory and reference tariffs for the distribution and metering of natural gas valid for2013 were approved by the Authority by way of Resolution no. 553/2012/R/gas.Regulation providing incentives for the safety of the serviceBy way of Resolution no. 229/2013/R/gas the Authority gave an award to A2A Reti Gas S.p.A. forthe safety recoveries obtained in 2011 and the company received a total of 363,444.53 euro.182Electricity distributionDistribution and metering service tariff frameworkBy way of Resolution ARG/elt no. 199/11, the Electricity and Gas Authority adopted theConsolidated Text of provisions to regulate the transmission and distribution of electricity(TIT) and the Consolidated Text of provisions regulating the supply of the Electricity MeteringService (TIME) for the fourth regulatory period (2012-2015).In relation solely to the tariff adjustment for metering services, variations with respect to theprevious regulatory period were included in the return on invested capital (set at 7.6% perannum), in the value of the X-factor (set at 7.1% per annum) and also in revenue equalizationfor low voltage metering services. With reference to the distribution service, many of thetariff regulation schemes already in force during the previous regulatory period weremaintained, in particular:– the adoption of tariff decoupling, which requires a mandatory tariff to be applied to endusers and a reference tariff for the definition of revenue restrictions, specific by operatorcalculated on the basis of the number of users (PoD);– the application of the profit-sharing method for the definition of initial operating costlevels to be recognized in the tariff;– the updating of the tariff quota covering operating costs through the price-cap method,setting the annual objective for increased productivity (X-factor) at 2.8% for distributionactivities;