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Gas distribution

By issuing resolution 218/06, AEEG completed the revision of the legislation on gas for the current regulatory period, providing sellers with a stable legal framework around the tariff-setting mechanisms for the above-mentioned period. Following the administrative appeal filed by some distributors, the original tariff reference resolution on gas distribution, no. 170/04, was suspended by the ruling of the Lombardy Regional Administrative Court of February 2005. On the basis of this ruling, AEEG issued resolution  122/05, which adopted only some of the motions included in the appeal, in particular introducing the algorithm for the reversal of real investments made by the companies into the tariffs. However, the revision of the scheduled productivity recovery rate amounts that impact recognised management costs and technical amortisation of capital was left unresolved. Said revision was defined in October 2006 through resolution 218/06 illustrated above in its calculation values and mechanisms.

Thanks to the significant merger operations concluded by Hera over the last few years, the incentive mechanism included in resolution 218 resulted in Hera Spa being recognised company-specific productivity recovery rates of 3.1% for the thermal year 2006/07 and 2.5% for the thermal year 2007/08 compared to base values of 4.6% and 4.4% respectively, recognised to companies not affected by merger processes.

The recent resolution 53/07 issued by AEEG in March 2007 and no. 261/07 of October 2007, formally approved the distribution tariffs for the 2006/07 and 2007/08 thermal years on the basis of the new elements introduced by resolution 218/06. Hence the 2007 financial statements of Hera Spa reflect the above-mentioned approvals for gas transport revenues, and are therefore based on stable tariff parameters.

Against this backdrop, gas transport revenues for 2007 amounted to about Euro 119.5 million with distribution volumes of about 2.1 billion of cubic metres, with a corresponding average revenue per unit of Euro cents 5.77 per cubic metre.

Gas distribution - transport revenues



change %

Hera Spa with former Geat Riccione




Revenue (millions of euro)




Volumes (millions of cubic metres)




Average revenue per unit (Euro cent per cubic metre)




Against a 6.9% reduction in volumes distributed due to the extremely unfavourable weather conditions, 2007 revenues for the consolidated Hera Spa companies were therefore substantially stable compared to 2006. In fact, the significant reduction in volumes was fully offset in terms of revenue by the increase in average  revenue per unit of about 7.9% due to both the tariff adjustments introduced by AEEG resolution 218/06, and to a perceptible increase in the average tariffs following the reduction in the volumes distributed.  This effect is actually the natural consequence of the prevailing gas distribution tariff structure, based on consumption brackets associated with variable amounts that decrease in accordance with the increase in volumes.

The consolidation perimeter for 2007 also includes also Aspes Multiservizi. Reported below are the consolidated revenues from gas transport, distributed volumes and average revenue per unit for the Hera Group. Compared to what we said above regarding the legal framework, we note that Aspes Multiservizi did not benefit from incentives recognised by AEEG to Hera Spa in relation to the scheduled productivity recovery rate.

Hera consolidated
gas distribution - transport revenues
20062007change %
Revenue (millions of euro)124,2124,50,20%
Volumes (millions of cubic metres)2.3122.150-6.8%
Average revenue per unit (Euro cents per cubic metre)                                                                                                                                                                                                       5,385,797,80%