Revenue structure

In 2009, the Terna Group’s revenue amounted to €1,361 million. About 94% of this comes from lines of business whose remuneration is established by the AEEG, the Authority for Electricity and Gas, and only the remaining 6% or so regards other ones, mainly the provision of services such as maintenance work on the lines of other owners, telecommunications, and consultancy in the field of transmission.

The regulated revenue  is  generated by different rates, the most important of which is consideration for transmission, paid to Terna by various categories of operators in the electricity industry (such as producers and distributors) in proportion to the quantity of electric power transported – withdrawn, injected, or dispatched – on the grid owned by Terna.

 The costs taken into account in determining transmission rates are based on the following three considerations:

  • remuneration of the Regulatory Asset Base (RAB). The value of the RAB is adjusted every year according to the change in the gross investment deflator calculated by the Italian National Institute of Statistics (Istat) and updated in accordance with Terna’s net investment.
  • depreciation/amortisation. Annual adjustment is provided for the depreciation/amortisation acknowledged because of the effect of new investment carried out, divestments, and the exhaustion of the useful life of assets. Terna estimates that remuneration of depreciation/amortisation constitutes about 27% of the total costs paid;
  • operating costs. These are the current costs of transmission, dispatching, and metering and, in general, the costs of labour and the procurement of goods and services that do not constitute investment. The component covering these costs, which in 2009 amounted to about one third of the total costs acknowledged by the AEEG, is subject to a price-cap mechanism; that is, it is adjusted according to inflation and reduced by an efficiency factor amounting to 2.3% for transmission and to 1.1% for dispatching.


The sharp decrease  in production that began in the second half of 2008, made the trend of energy demand more uncertain and led to AEEG to adopt ARG/elt Resolution no. 188/08, which introduced an optional mechanism to partially offset the quantity effect for the remaining part of the regulatory period, i.e. 2009-2011. This mechanism, which Terna decided to adopt, provides that the AEEG:

  • supplements Terna’s remuneration for all but 0.5% of the actual volume if the latter falls short of the one used to establish the rates for 2009;
  • requires Terna to refund its higher earnings for all but 0.5% of the actual volume if the latter exceeds the one used to establish the rates for 2009.