99.7%
compliance
with quality standards set by the
Authority for 4 services
10.6
minutes
average waiting time at branches
and chance to reserve an
appointment with an operator
399
thousand analyses
Group drinking water, 1,100 per day, of which 63% on the supply network

The electricity bill

The electricity bill
Euro 2015 2016 2017  
Energy generation quota 167.16 133.83 161.42 Attributable to Hera: 28% of the bill’s total
Dispatching quota 34.20 40.08 34.86
Distribution and sales quota 100.,87 120.53 146.44
System charges 134.66 131.19 104.21
Taxes 21.57 21.37 21.63
VAT 10% 45.84 44.70 46.85
Total 504.30 491.71 515.42

Weighted average on residents of a bill for a residential customer residing in the municipalities of Modena, Imola and Trieste with an installed capacity of 3 kW and annual consumption of 2700 kWh, with automatic debit and electronic billing. The grey areas refer to tariff components that are not attributable to Hera. A customer of the market with the highest protection was considered; 21% of Hera’s residential customers are in this category.

Considering equal consumption, the electricity bill of a residential customer to which the service subject to the highest protection is applied increased by 4.8% in 2017 compared to the previous year (Euro 23.76). The energy quota increased by Euro 27.59, due to the increase in the cost of raw materials, partly offset by the decrease in the dispatching fee of Euro 5.22 and by positive and negative changes in the other components. Only the distribution and sales quota is attributed to Hera for coverage of the management and maintenance costs of the power grid incurred by the distributor and of the costs for sales activities (invoicing, bill sending, etc.) which are incurred by the Hera Comm sales company. This portion accounts for only 28% of the total bill.

The 2017 bill is calculated by using the twin rate tariff and the profile type defined by Arera (one third of consumption in the peak period, from 8 am to 7 pm from Monday to Friday, and two-thirds during off-peak periods), which causes no difference between the twin rate and single rate prices.

The electricity bills include the following costs: sales costs, costs incurred to purchase energy and for the dispatching service, which ensures a balance between electricity supply and demand at all times, costs to cover the service for transporting electricity on the national transmission and local distribution grids through to the meter (transport, distribution and metering costs and system charges), and taxes;

In January 2016, implementing the European Directive 2012/27/EU on energy efficiency, Arera defined with resolution 582/2015/R/eel, a programmatic framework to implement the reform of network tariffs and tariff components to cover general system charges for residential customers. The Directive requires gradual adjustment of the tariff components to the costs of the service involved. The adjustment of the charging structure must be such as to stimulate virtuous behaviour by the residents and encourage achieving energy efficiency objectives. The Reform is designed to be carried out in several steps. The fees for network services (transmission, distribution and metering), were redefined starting 1 January 2016 to mitigate the effect of progressiveness on consumption (first step), while from 1 January 2017 (second step) the definitive non progressive tariff structure called “TD” was adopted, consisting of network services fees that are the same for all residential customers and that are compliant with the criterion of consistency of the tariffs with the costs of the underlying services. The fees for general system charges were redefined from 1 January 2017 to mitigate the effect of progressiveness on consumption and to limit the number of annual consumption brackets to two, and a fee expressed in Euro/year was introduced for non-resident residential customers only. The completion of the process (third step), initially scheduled for January 2018, was postponed by one year (by Resolution 867/2017/R/eel) and sets 1 January 2019 for the reform to be operational, applying also to system charges a tariff structure that is not progressive but rather differentiated between resident customers (to whom they will be fully applied as energy-related charges) and non-resident customers (to whom they will be applied partly as a fixed quota and partly as an energy-related charge).

Among the system charges, the highest cost component for final customers (equal to 76% of overall system charges) promotes the production of energy from renewable and similar sources through an incentive system which ensures definite compensation for the energy produced and special conditions for connecting the plants to the networks. This component has constantly increased over the past years, following the increase in production from renewable sources and the costs for adapting the network to these sources.  For payments of electronic bills using automatic debit, resolution 610/2015/R/COM introduced a bonus for customers entitled to protective economic conditions, worth Euro 6 in 2017.

In addition, in 2017 signing up for Hera Comm’s Prezzo Netto Special Web offer generated savings of approximately Euro 26, amounting to 5% of the bill shown in the table.

Hera Comm also informs residential customers of the advantages of its free market rate plans by providing a comparative sheet with an estimate of what the customer is likely to pay according to the economic conditions of the tariff protection conditions service defined by AEEGSI. The comparative sheets are drafted in accordance with the criteria established by the Authorities (Arg/com resolution 104/2010) and are available on the Hera Comm website.

In 2016, 19% of the electricity sold by Hera Comm on the free market came from renewable sources and for the remainder, mainly from natural gas and coal. In addition, more than 75,000 customers (8.7% of the total) have signed up for a free market offer called “Pacchetto natura” [Nature Package] which guarantees that the electricity consumed comes from renewable sources.