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

Half-yearly financial report at June 30, 2013Changes in legislationIntegrated water serviceDuration of existing allocationsFollowing the referendum which took place on June 12 and 13, 2011, the Decrees of the Presidentof the Republic stating that the legislative provisions referred to in the referendum had beenrepealed were published in the Official Journal no. 167 of July 20, 2011, including article 23-bis ofDecree Law no. 112/02008 on the assignment of local public services of economic importance.As concerns the existing management, as specified by article 34 of Decree Law no. 179/12,converted into Law no. 221/12, services allocated to in-house providing public companieswhich meet the requirements set by community jurisprudence (control over the manager thesame as that carried out over internal bodies, performance of activities mostly for theadministration or the administrations of shareholders, wholly publicly-held capital) remainactive until their natural expiry date.Tariff regime184By way of Resolution no. 585/2012/R/idr the Electricity and Gas Authority approved theTransitional Tariff Method (MTT) for 2012 and 2013 for management subject to thenormalized method. For 2012 an equalization method will be used.Compared to the Ambit Plans, the MTT is based on ex post regulation criteria: the accountingdata for year n-2 are the reference for the tariff calculation. Interest expense and tax charges arealso recognized on assets under construction, with a regulatory time lag of two years.Investments made from 2012 are entitled to an increase of 1% in the interest expense recognized.The new method supersedes the “remuneration of capital” and recognizes the “cost of thefinancial resource”, in accordance with the full cost recovery principle. With respect to thefinancial resource, the authority has established that such costs must not be recognizedagainst documentation, which encourages inefficient or opportunist conduct, but ratheragainst standard references (interest expense and tax charges).By way of Resolution no. 88/2013/R/idr the Authority has additionally adopted provisions forthe transitional period with reference to ex CIPE management.By way of Resolution no.273/13/R/idr, on the basis of the proceeding initiated by Resolution no.8/13/R/idr, the AEEG determines the means of returning to end users the SII tariff componentrelating to the remuneration of capital, repealed through a public referendum, with referenceto the period from July 21, 2011 - December 31, 2011 not covered by the MTT.In particular, within 3 months of the publication of the provision, the Ambit Bodies, or theentities responsible for drawing up the tariffs, must send to the Authority for the checks for