|Raw material component||409.90||346.77||363.01||19% of bill attributable to Hera|
|Retail sale quota||67.64||64.75||64.13|
Weighted average on residents for residential customers that use 1200 m3 of gas a year and with direct debit and online billing, considering the bills in the Bologna, Ferrara, Forlì, Imola, Modena, Padua, Pesaro, Ravenna and Trieste municipalities. The grey areas refer to tariff components that are not attributable to Hera. A customer under market tariff protection conditions was considered, according to the economic conditions defined by Arera; 47% of Hera’s residential customers are in this category. The complete data regarding gas supply tariffs are available on the Group’s website.
For the same consumption, on average the 2017 gas bill of a Hera residential customer under market tariff protection conditions cost about Euro 3 more (+0.4%) than the previous year, remaining Euro 71 (7%) below 2015. The share of sales of raw materials increased by about Euro 16 as a result of the increase in gas prices during the year while the retail component decreased slightly by Euro 0.6 due to decrease in the variable share of sales. Distribution tariffs decreased by Euro 9; system charges also decreased by Euro 9, mainly due to the decrease in the component used to ensure that the total amounts paid by customers for the distribution tariff correspond to those paid to the various distribution companies to cover the costs of the service. Consumption tax and the regional tax are unchanged, while VAT increased by almost Euro 7 as a result of the above variations.
Gas distribution tariffs are set annually by Arera. Resolution 367/2014/R/GAS of July 2014 defined the regulation of the gas distribution and metering service tariffs for the 2014-2019 regulatory period. Tariffs are differentiated for the six macro-regional areas into which the country is divided, and are determined to guarantee coverage at the macro-area level of the cost of capital and operating costs incurred by distributors. The Consolidated Law for the regulation of the quality and rates of gas distribution and metering services for regulatory period 2014-2019 (TUDG) establishes that, from 1 January 2015, the fixed rates of the obligatory distribution tariffs are structured by metering unit class (meter class) while the G4 metering class has been taken as the reference for an average family that lives in the municipalities served. Specifically, the obligatory tariff levels for the distribution services and natural gas metering for January-December 2016 were approved by resolution 774/2016/R/gas of December 2016.
The distribution tariff impacted on average 12% of the total bill in 2017. Part of the distribution tariff includes components to cover general gas system charges (such as energy saving promotion costs) which the individual distributors treat as contra-items, paying the resulting revenue to the Cassa per i Servizi Energie e Ambientale (Energy and Environmental Services Fund). These bill components are included in the “system charges” item. In 2017, system charges were down Euro 9 compared to the previous year.
The sales quota relative to the economic conditions of the supply for the service subject to protection, defined by Arera, is governed by ARG/gas resolution 64/2009 (Consolidated act for the retail sale of gas). This resolution defines the protected service economic conditions for entitled customers. In 2011, AEEGSI started a reform of these conditions. Implementation commenced with ARG/gas resolution no. 116/2012, which, by transposing the indications laid down in Decree Law no. 1/2012, establishes the modification of the previous indexing mechanism (connected to a basket of oil products which the purchase formulas of the long-term procurement contracts entered into by leading Italian importers refer to) with gradually increasing indexing based upon the gas wholesale market. In 2016, raw material costs were indexed according to the gas price of the Dutch hub TTF, which reflects the costs of the European market. The tariff components that together make up the raw material purchase costs in 2017 account for 38% of the total bill. Resolution 817/2016/R/GAS updated the level of the retail sales component (QVD), recording a slight increase in the same, from January 2017 compared to 2016. In the event of payment of the amounts by automatic debiting and electronic billing, Resolution 610/2015/R/COM introduced, for the economic conditions of protection, a bonus that is worth Euro 5.4 for the year 2017. Lastly, in 2017, taxes account for 42% of the total, on average. These taxes are due to the State and regional government authorities (consumption tax, additional regional tax and VAT). Taxes are set by specific provisions by the Ministry of the Economy and Finance and the regional government authorities, and vary according to the use of the gas, whether for heating or only for cooking or industrial uses. Beginning from January 2008, VAT is applied at 10% for up to 480 cubic metres annually, and above that, VAT is set at 22% under Decree Law 76/2013.
In addition, in 2017 signing up for Hera Comm’s Prezzo Netto Special Web offer generated savings of approximately Euro 41, equal to 4% of the bill indicated in the table.