Discover the Acea Group online 2019 Sustainability Report

Tariffs

ELECTRICITY SERVICE PRICING

In Italy, with regard to the electricity sector, there are two main types of market (net of the residual safeguard segment): the standard market and the free market. For the standard market service, the operator offers the customer standard services at fixed prices based on the ARERA regulations and the quantities supplied wholesale by the Sole Purchaser. In the free market the services offered and their prices are the result of free competition among all operators. In this context, customers can choose their own suppliers based on their preferences

The costs included in the electricity bill cover cost items: electricity (supply and retail marketing), transport and meter management (costs for delivery to customers), system charges (costs for general activities of the electricity system, borne by all end customers) and taxes (consumption tax and VAT).
The standard market service, while in progressive reduction in favour of the free market, still today represents the segment most used by Italian customers (domestic and non-domestic), with a subscription rate of 53.6% (58.1% in the previous year).
The expansion of the free market is evident observing the volumes of electricity sold: free market customers consume 80.6% of the energy comprehensively sold to the end market (78.8% in the previous year)60.
In this segment, with “standard” consumption – amounting to 2,700 kWh/year, with 3 kW power – the overall annual expenditure for electricity amounted to about € 557 in 2019 (20.6 € cent/Wh), a slight increase compared to last year (with an average cost of 20.3 € cent/Wh, about € 548 per year). The final price was substantially affected by the increase in system charges.

CHART NO. 25 – ELECTRICITY PRICE TREND FOR A STANDARD DOMESTIC CUSTOMER (€ CENT/KWH) (2018-2019)

ELECTRICITY PRICE TREND FOR A STANDARD DOMESTIC CUSTOMER (€ CENT/KWH) (2018-2019)


WATER SERVICE PRICING

With resolution 664/15, ARERA established a framework of fair, certain and transparent rules concerning the tariff in the water sector for the period 2016-2019.
Such method, based on regulatory schemes, ensures an efficient and economically-financially balanced management, able to incentivize investments and improve services in light of full cost recovery principles (full coverage of industrial and environmental costs of the service) and “who pollutes pays”.

With resolution 918/17, the Authority intervened to amend and supplement resolution 664/15, regulating the updating criteria for the two-year period 2018-2019 regarding the cost components eligible for tariff recognition.

TABLE NO. 31 – AVERAGE WATER PRICES APPLIED (2019)

Company€/m3
LAZIO/CAMPANIA
Acea Ato 2 SpA1.65
Acea Ato 5 SpA2.49
Gesesa SpA1.65 (*)
Gori SpA2.32 (**)

(*) In 2018, pursuant to Resolution 665/17, Gesesa starndardized the tariff structure for all the municipalities managed and initiated convergence towards a single tariff, with a path that will lead to uniformity of the tariff in 2023.
(**) The figure is estimated.

60 Based on the number of served collection points and the volumes sold in 2018 (ARERA Annual report 2019).