Technical profile

Method for determining the economic conditions for the standard offer regime of natural gas for the period between 1 October 2016 and 31 December 2017

Resolution 166/2016/R/gas

April 01, 2016

Italian Flag Italian version

With resolution 166/2016/R/gas, the Italian Regulatory Authority for Electricity, Gas and Water defined the methods for calculating the CMEM (gas supply cost coverage) and CCR components (activities costs and associated risks, related to gas supply coverage method) for the period from 1 October 2016 to 31 December 2017 by extending the next thermal year by a quarter in view of the expected date for the termination of the standard offer regime in the protected market.

In addition to the remarks observed as a result of the consultation (DCO 61/2016/R/gas), the decision provides for, inter alia:
  • with regard to the CMEM component, the confirmation of the current calculation methods, maintaining the reference to natural gas market prices on the TFF market;
  • regarding the costs of national and international logistics, the confirmation of the methods already implemented (the current value of the QTint element, annualupdate on the basis of transport tariffs for the QTPSV element, and confirmation of the calculation method of the QTMCV element);
  • as for the CCR component, the confirmation of the quantification methods adopted for its determination in the previous thermal year with regard to balancing, profile and climate events risk (considering, for the profile and winter weather events risk, an adjustment following the auctions for the allocation of storage capacity); as for the level risk, the adjustment of the value in regard of the expected rate of exiting from the protected market  greater than that detected in the last two years and, for the per day risk, the inclusion of the different seasonal value of the CRVOS tariff component in the calculation, so as to cover the costs arising from the application of the correction factor of the reference revenues for the storage service.
In conclusion, this resolution extends by a quarter the application of the GRAD component (for the gradual application of the economic conditions of the standard offer as result of the 2013 reform) provided for the thermal year 2016-2017 (the latest period for its implementation), in order to limit possible price fluctuations in the quarter prior to the termination of the standard offer, for the same amount of revenue expected.   

This sheet is for disclosure purposes only; it is not a measure.