Revenue for pass-through items

In order to keep the electricity system in balance, Terna must perform adjustment transactions entailing the purchase and sale of electricity, carried out in particular on the Dispatchingi Service Market (DSM). The regulations provide that the financial value of these transactions for Terna have a final balance of zero. They are, therefore, pass-through items that do not affect the marginal revenue in Terna’s income statement. The remuneration that Terna collects from distributors and producers and passes on to the other owners of portions of the National Transmissioni Grid is also part of these items.

In 2009, pass-through revenue and costs totalled €5,218 million (€6,545 in 2008). Measured by applying specific rates, pass-through items are settled by Terna with the other parties in the industry. A significant pass-through item is constituted by uplift, the payment to cover the net charges incurred in procuring resources on the DSM, which in 2009 amounted to about € 981 million (about € 2 billion in 2008). The uplift is passed through to the bill of the end user. Although it does not affect Terna’s profitability, pass-through revenue constitutes a considerable figure and has important effects on relations with the other industry players with regard to invoices and their settlement, as well as the commercial and administrative management of contracts.