Resolutions of the Authority for Electricity and Gas

Resolution ARG/elt 148/11

 By this provision, the Authority, in addition to approving the draft project for the Consolidated Records Management system of Production Plants and the related units (GAUDÌ), as proposed by Terna and to defining the time frames for the related implementation, recognised costs to the related institution of said system.
These costs will be recognised in the price to cover the costs recognised for Terna’s operation (DIS).
Finally, the provision contains amendments to the Consolidated Act on Active Connections (TICA) in order to simplify information flows connected with the function of GAUDÌ.

 

Resolution ARG/elt 149/11

By Resolution ARG/elt, the Authority has dictated provisions implementing Article 20 of the Decree by the Ministry for Economic Development, jointly with the Ministry for the Environment and the Protection of the Territory and the Sea, 5 May 2011, in order to encourage the production of electricity from solar photovoltaic plants. More specifically, the Authority has defined the price for the remuneration of certification of works end activities carried out by the grid managers for a fixed price of:

  • 2,000 for plants with power ranging between 6 and 10 MW;
  • 4,000 for plants with power above 10 MW.

Additionally, the Authority has defined the specific methods by which to regulate this price, establishing that, as from 1 December 2011, said prices must be paid by the party requesting the connection when the communication of completion of the construction of the production plant is sent to the manager. Failure to make payment will mean suspension of the terms for the activation of the connection and, in the event no payment is made, even after demands by the grid manager, it shall notify the GSE, which will suspend disbursement of the incentive.
Should a manager fail to make the check within 30 days as established by the Decree of 5 May 2011, without prejudice to cases of force majeure or causes that can be traced to the applicant or third parties, it must pay automatic indemnity amounting to 20 per working day’s delay.

 

Resolution AGR/com 153/11

By this provision, the Authority has defined the regulations of the certification procedures of businesses acting as natural gas transport system managers or electricity transmission operators, in implementation of the provisions of Directive 2009/72/EC - as also incorporated by the national legislator with Italian Legislative Decree no. 93/11 - which establishes a timely certification process of the transmission/transport system operators aimed at proving compliance by said parties with the conditions established by European Community Regulations for the three models of separation of the transmission/transport activities from the generation/production and supply activities - the ownership unbundling (OU) the institution of an independent transmission operator (ITO); the institution of an independent system operator (ISO).
The certification procedure, carried out by the Authority on the basis of the information sent by the transmission and transport operators, includes, in short: a) a preliminary certification decision, taken by the Authority within four months of receiving the data sent by the operators; b) the opinion of the European Commission on this preliminary certification, to be obtained during the next two months; c) the definitive decision on certification, which will be made by the Authority within 2 months of receiving the European Commission opinion.
A subsequent “re-certification” procedure is also established if significant changes should be made to the data declared by the operators and, in any case, three years after certification.
The model to be certified, for Terna, is that of ownership unbundling, the option chosen as “preferable” by the European Community legislator.

 

Resolution ARG/elt 158/11

By this provision, the Authority approved, under the scope of the more extensive interconnector regulations pursuant to Art. 32 of Italian Law no. 99/09, the Regulation governing tenders for virtual imports for 2012, as proposed by Terna. The provision is issued in accordance with Resolution ARG/elt 179/09, which establishes that each year, by 31 October, Terna shall send the Authority the Regulation for approval governing the tender procedures by which to identify the parties undertaking to provide the virtual importation service for the following year.

 

Resolution ARG/elt 162/11

By this provision, the Authority, also on the basis of that established by the Decree of the Ministry for Economic Development of 11 November 2011 - incorporating terms and conditions for the import of electricity for 2012, by means of the National Transmission Grid, has:

  • approved the “Rules for capacity allocation by explicit auction within Central West Europe Region, Central South Europe Region and Switzerland’ (Access Rules) prepared by Terna jointly with other grid operators involved in the works of the Regional Initiatives for the Central South and Central West Europe and Switzerland. The new rules for accessing the interconnection grids are, for the first time, basically the same for all interconnections of the Central South and Central West Europe and Switzerland;
  • approved provisions on the management of congestion in imports and exports on the Italian interconnection grid with abroad;
  • confirmed that the income from the procedures for assigning transport capacity, due to Terna, will be used to reduce the prices for accessing the grid for end users of the national electricity system, through the reduction in the price for the procurement of resources on the Market for Dispatching Services.

 

Resolutions ARG/elt 172/11, 176/11, 208/11 and 209/11

These provisions defined, for 2012, the regulations of the essential units.
More specifically, with Resolution ARG/elt 172/11, the Authority, in addition to approving the proposals sent by Terna with regard to the standard parameters calculated for the essential units defined for 2012, has specified some criteria by which to determine the price of the essential units. By Resolution ARG/elt 176/11, the Authority subsequently defined some aspects in relation to alternative regulations of essential plants with specific reference to the quantities and prices of contracts concerned by the contracts pursuant to Art. 65-bis of Annex A to Resolution no. 111/06.
Additionally, with Resolution ARG/elt 208/11, the Authority has upheld the requests made by some dispatching users owning essential units in relation to the admission to the reintegration of costs regime (which establishes the recognition of a price, determined by the Authority as amounting to the difference between the production costs recognised to the plant, considering the revenue it obtains upon inclusion on the list of essential plants at the end of the validity of said list).
Finally, with Resolution ARG/elt 209/11, the Authority has approved, for 2012, the contractual proposals sent by Terna pursuant to Article 65-bis, paragraph 65-bis-5 of the Resolution no. 111/06, containing the alternative methods by which users of dispatching owning essential units can fulfil their obligations.

 

Resolution ARG/elt 177/11

By this provision, the Authority has determined the amount recognised to Terna to cover the adjusted costs for 2010 and forecast costs for 2012 for the performing of activities associated with the monitoring function pursuant to Article 3, paragraph 3.2 of AEEG Resolution 115/08 of 5 August 2008. More specifically, the final amount of costs adjusted and recognised to Terna for 2010 for carrying out these activities amounts to 662,600, whilst the amount of costs forecast for recognition for 2012 is 920,200.
The difference between the forecast costs pursuant to the paragraph above for 2012 and the income obtained from the difference between costs actually recognised upon adjustment for 2010 and the costs forecast for that same year, is covered by means of the price for the operation of Terna for 2012.

 

Resolution ARG/elt 181/11

By this provision, the Authority updated Resolution 111/06 and Resolution ARG/elt 74/08 (in situ exchange) in order to incorporate the new definition of high performance cogeneration on the basis of the provisions of Ministerial Decrees of 4 August 2011 and 5 September 2011. With reference to Resolution 111/06, the Authority has introduced a definition of a high performance cogeneration unit in order to recognise dispatching priorities, based on the prevalence criteria. In actual facts, considering that the new definition of high performance cogeneration established by the Ministerial Decrees establishes that a cogeneration section or plant may also be partially high performance, the Authority has established that, for the purpose of recognising dispatching priorities, a production unit can be considered a high performance cogeneration unit as long as it complies with the conditions set out by Italian Legislative Decree no. 20/07 and the Decree of 4 August 2011 and the related size E is greater or equal to half the total gross production of electricity by said production unit. Additionally, there is also the option of recognising the qualification of high performance cogeneration unit and consequently dispatching priorities for a part of a year.
The Authority has also amended Articles 56, 57 and 58 of Resolution 111/06 in relation to the admission procedure of CHP dispatching users of cogeneration production units to the recognition of dispatching priorities.

 

Resolution ARG/elt 186/11

By this provision, the Authority has determined the price, to supplement generation costs, in relation to 2009, for the plants owned by Enel Produzione S.p.A., essential to the security under the territorial scopes served by electricity grids with the obligation to connect of third parties, not interconnected with the National Transmission Grid. It has also asked Terna to publish the updated list of essential plants for the security of the electrical system, valid for 2009, including the essential plants above.

 

Resolution ARG/elt 187/11

By this provision, the Authority established amendments and supplements to Resolution ARG/elt 99/08 on the technical and economic conditions for connection to grids with obligation to connect third parties production plants (TICA), upon completion of the process undertaken with Resolution ARG/elt 73/11, aimed at reviewing the instruments, implemented in the Consolidated Act of Active Connections, aimed at overcoming the problem of the virtual saturation of the electricity grids.
The main new features introduced by the provision can be summarised as follows:

a. payment for the production plants from renewable sources and cogeneration plants that must be connected to a critical line or a critical area, of a price for the booking of capacity by the applicant, other than the end customer, potentially in the form of bank surety and for the same amount as the product of power for the purpose of connection and 20.25 per kW, to be presented when the estimate is accepted. Alternative to paying the price, a first demand letter of guarantee of the Parent Company is also permitted.
The price for booking capacity is also paid in the event of connection requests underway at the date of provision adoption, according to the times and methods detailed in the provision;

b. it regulates, in detail, hypothesised requests to alter an estimate that has already been accepted and the related assignment of costs connected with the release of the estimate between the grid operator and applicant;

c. update of the provisions relating to cogeneration to consider the new high performance cogeneration definition introduced by Italian Legislative Decree no. 20/07 and Ministerial Decree of 4 August 2011;

d. new provisions on automatic indemnity and related time frames.

 

Resolution ARG/elt 189/11

By this provision, the Authority positively checked the convention between Terna and the energy market operator and approved the related price and the other prices for 2012 connected with the participation in the market and platforms managed by GME.

 

Resolution ARG/elt 196/11

Review, in force as from 1 January 2012, of the conventional percentage factors of the losses of electricity on the grids with the obligation to connect third parties, pursuant to table 4 of Annex A to the Resolution by the Authority for Electricity and Gas no. 107/09 of 30 July 2009 (Settlement Code).

 

Resolution ARG/elt 197/11

 By this provision, the Authority dictated provisions on the regulation of the quality of electricity transmission services for the regulatory period 2012-2015.
The provision confirms the premium/penalty mechanism for Terna already established by Resolution 341/07 for the previous regulatory period, making some changes. The main news concern the gradual application of this mechanism to the entire NTG (including Terna Rete Italia), its simplification through the use of the sole indicator of RENS (Reference Energy Not Supplied) and a different valuation of this. The obligation has also been introduced to monitor new transmission service quality indicators: Energy not supplied to MV or LV users (ENS-U) and energy collected by MV or LV users (ENR-U) following power failures of HV user sites of distributing companies.
Additionally, corrective measures were established in relation to the mitigation services.

 

Resolution ARG/elt 199/11

The provision, incorporating the provision of the electricity transmission, distribution and metering services for the regulatory period 2012-2015 and provision on the economic conditions for the supply of the connection service, contains three annexes:

  • Annex A, incorporating the consolidated act of the provisions of the Authority for Electricity and Gas for the supply of electricity transmission and distribution services for the regulatory period 2012-2015 (hereinafter: TIT);
  • Annex B, incorporating the consolidated act of the provisions of the Authority for Electricity and Gas for the supply of electricity metering services for the regulatory period 2012-2015 (hereinafter: TIME);
  • Annex C, incorporating the consolidated act of the provisions of the Authority for Electricity and Gas of the economic conditions for the supply of the connection service (hereinafter: TIC).

The TIT defines the tariff rules for the fourth regulatory period 2012-2015 and the remuneration due to Terna for the supply of the transmission and metering services. Without prejudice to the recognition of the extra remuneration recognised by the regulation concerning development interventions already entered into operation as at the date of 31 December 2011, the Resolution introduces some changes to the incentive regime of the new NTG development interventions; more specifically, the Resolution recognises extra remuneration amounting to respectively 1.5% and 2% for the development work on the NTG belonging to types I2 and I3, recognised for a period of 12 years as from the date of the entry into operation of the investments, also reducing the scope of type I3 interventions to purely transport capacity development works in relation to strategic projects, namely aimed at reducing congestion between market zones or increasing net transfer capacity (NTC) on the electrical frontiers (in limited cases, previously approved by the AEEG, this type may also include other investment projects, as long as they are of primary strategic capacity) and introduces a new type I4 for investments in pilot projects relating to accumulation systems, for which an extra remuneration is recognised equal to that of type I3. Projects classed as category I4 will be selected according to a specific procedure defined with subsequent AEEG Provision.
With reference to the metering service, the Authority, despite referring to a subsequent provision to be issued during the IV regulatory period, the completion of the rationalisation process of the regulation of that service, has introduced into the TIME some changes with respect to the previous regulation, above all in the matter of assigning service responsibilities, with specific reference to the collection/registration and validation of energy collected from end customers on the NTG and energy exchange on interconnection points in addition to collection of measurements relating to input points on the NTG.
To carry out those activities, TIME has consequently reviewed the methods by which this service is remunerated.
Finally, with regard to the TIC, with respect to the previous regulatory period, some news has been introduced in relation to the criteria by which the costs are divided up between grid operators in the event of requests for the development of plants for grid interconnection. In particular, it is established that in these cases, the operator developing the plant for interconnection obtains coverage of the costs incurred by means of the remuneration of investments envisaged by the TIT whilst the operator who does not develop the plant does not incur any costs.

 

Resolution ARG/elt 204/11

By this provision, the Authority issued provisions aimed:

  • at updating dispatching prices for 2012;
  • at reviewing some provisions of Resolution 351/07 with reference to the methods by which to determine the price to cover costs recognised for Terna’s operation for the regulatory period 2012-2015 (DIS);
  • at reviewing some provisions of the Settlement Code and Resolution no. 111/06.

The Resolution specifies that the DIS price is calculated for 2012 considering, as specified by the provisions, the premiums (relative to 2010) for the forecasting of demand and forecasting of wind power production and the premiums relating to the incentives relating to the procurement of resources for the dispatching services. With specific reference to the remuneration criteria of the dispatching service, continuity is envisaged with the current regulations in force in the III regulatory period: valuation and remuneration of costs recognised (operating expenses, amortisation and depreciation and invested capital) will take place in accordance with that established for the transmission service.
The resolution in question has also made some changes to Resolution 111/06 and the provisions of the Settlement Code.
In particular, the provision has established a change to the regulation of effective imbalances, amending the threshold to below that of imbalances for consumer units measured at MGP price rather than at the effective imbalance prices pursuant to Resolution 111/06. Lastly, with Resolution 204/11, the Authority approved the proposed integration of the Network Code made by Terna with regard to the methods by which to apply the settlement regulation in the event of a change to the ownership structure of the distribution grids.