compliance with quality standards
set by the Authority for four services
minutes average waiting time
at help desks and chance to book
an appointment with an operator
thousand analyses
carried out on Group drinking water,
1,100 per day, of which 63% on the
distribution network

The electricity bill

The electricity bill
Euro 2016 2017 2018  
Energy generation quota 133.83 161.42 188.73 Attributable to Hera: 27% of the bill’s total
Dispatching quota 40.08 34.86 29.93
Distribution and sales quota 120.53 146.44 152.42
System charges 131.19 104.21 102.68
Taxes 21.37 21.63 21.79
VAT 10% 44.70 46.85 51.14
Total 491.71 515.42 545.10

Bill for a residential customer with 3 kW contract, whose yearly consumption totals 2,700 kWh, with direct debit and electronic billing. A customer of the market with the highest protection was considered, based on the economic conditions set by the Regulatory Authorities: 20% of Hera’s residential customers are in this category. Cities considered: Modena, Imola and Trieste (weighted average of inhabitants). The grey areas show tariff components that are not attributable to Hera.

Considering equal consumption, the electricity bill of a residential customer to which the service subject to the highest protection is applied increased by about 6% in 2018 compared to the previous year (Euro 29.68). The energy share increased by Euro 27.31, due to an increase in the cost of raw materials, partly offset by a decrease in dispatching charges of Euro 4.93 and an increase in the sales quota of Euro 6.7 due to an increase in the PPE (Energy Equalization Price) component; this component ensures that the total amounts paid each quarter by customers served under market tariff protection conditions with the generation and dispatching components match the purchase and dispatching costs actually incurred to supply them with energy, and of system costs, which have been structurally modified since January 2018 and which decreased by Euro 1.53. Only the distribution quota and part of the sales quota are paid to Hera for coverage of the management and maintenance costs of the power grid incurred by the distributor Hera SpA and of the costs for sales activities (invoicing, bill sending, etc.) which are incurred by the Hera Comm sales company. This portion accounts for 28% of the total bill.

The 2018 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 European Directive 2012/27/EU on energy efficiency, in resolution 582/2015/R/eel, ARERA defined 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 two years (initially by Resolution 867/2017/R/eel and then by Resolution 626/2018/R/eel) and sets 1 January 2020 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 77.6% 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 direct debit, resolution 610/2015/R/COM introduced a bonus for customers entitled to protective economic conditions, worth Euro 6 in 2018.

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 ARERA. The comparative sheets are drafted in accordance with the criteria established by the Authorities (ARG/com resolution 104/2010) and are available on Hera Comm’s website.