|Raw material component||346.77||363.01||405.32||19% of the bill’s total attributable to Hera|
|Retail sale quota||64.75||64.13||64.49|
Bill of a residential customer with an annual consumption of 1,200 m3 of gas and 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: 40% of Hera’s residential customers are in this category. Cities considered: Bologna, Ferrara, Forlì, Imola, Modena, Padua, Pesaro, Ravenna and Trieste (weighted average of inhabitants). The grey areas show tariff components that are not attributable to Hera. The complete data on gas supply tariffs are available on the Group’s website.
For the same consumption, on average the 2018 gas bill of a Hera residential customer under market tariff protection conditions costs about Euro 55 more (+6%) than the previous year. The share of sales of raw materials increased by about Euro 42 as a result of the increase in gas prices during the year while the retail component remained substantially in line compared to the previous year (up Euro 0.4 due to the change in the variable sales quota). The distribution tariff increased by about Euro 3 and system charges remained substantially unchanged (up Euro 0.3). Consumption tax and the regional tax are unchanged, while VAT increased by Euro 9.5 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 different for each of the country’s six macro-regional areas, and are determined so as to ensure coverage at the macro-area level of the cost of capital and operating costs incurred by the 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 2018 were approved by resolution 859/2017/R/gas of December 2017.
The distribution tariff impacted on average 12% of the total bill in 2018. Part of the distribution charge includes components to cover general gas system costs (such as energy saving promotion costs) which the individual distributors treat as contra-items, paying the resulting revenue to the Cassa per i Servizi Energetici e Ambientali (Energy and Waste Management Services Fund). These bill components are included in the “system charges” item. In 2018, system costs remained substantially unchanged compared to 2017.
The sales quota relating to the economic conditions of the supply for the protected service, 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. Its implementation started with ARG/gas resolution 116/2012, which, by transposing the indications laid down in Decree Law 1/2012, changes the previous indexing mechanism (bound to a basket of oil products to which the purchase formulas of the long-term procurement contracts entered into by leading Italian importers refer) 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 2018 account for 40% of the total bill. Resolution 916/2017/R/GAS updated the level of the retail sales component (QVD), recording a slight increase in the same, from January 2018 compared to 2017. In the event of payment of the amounts by direct debit and electronic billing, Resolution 610/2015/R/COM introduced, for the economic protection conditions, a bonus that is worth Euro 5.4 for the year 2018.
Lastly, in 2018, taxes account for 39% 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. Since January 2008, 10% VAT is applied for up to 480 m3 annually, and above that, VAT is set at 22% under Decree Law 76/2013.