Costs for the environment

Terna’s commitment for the environment is shown in the costs incurred for environmental reasons, as both capital and operating expenditure. The year 2009 is the first one for which environmental costs are presented separately, on the basis of the definitions described below, by aggregating the information inferable from the Company’s general and industrial accounting.

The costs shown in the table regard Terna S.p.A. The investment in SunTergrid’s photovoltaic project is not included.
These costs exclude expenses regarding internal resources and consider only expenses for external purchases. An exception is the item “Environmental activities - existing infrastructure”, which instead includes the costs of internal personnel.
 
It should be noted that – according to the method adopted and the notes to the table – the environmental costs shown are a subset of the total environmental costs actually incurred, as explained above.

2009 ENVIRONMENTAL COSTS - INVESTMENT AND OPERATING COSTS, TERNA S.P.A., MILLIONS OF EUROS

 

Investment  
Environmental compensation (1) 28.9
Environmental impact studies (2)  0.4
Enviornmental activities - new infrastructure (3) 2.8
Environmental activities - existing infrastructure (4) 7.8
Demolitions (5) 2.7
Total investment 42.6
Costs  
Costs for environmental activities (6) 9
Total operating costs

(1) Sums spent on compensation for works included in the Grid Developmenti Plan, as established by special agreements entered into with local institutions. These are recorded as investment when the commitment is undertaken, i.e. when the agreement is signed, while the cash flow depends on when the authorisation is granted and the work is done.
(2)
Environmental impact studies regarding the infrastructure provided for by the Grid Development Plan that is being constructed and is awaiting authorisation by the relevant government agencies.
(3)
The sum in question is an estimate. The analysis of several large investment projects showed that at least 1% of the total expense of the project was constituted by environmental items, usually stemming from requirements (for example, masking with trees, acoustical barriers, installation of dissuaders for birdlife, environmental monitoring, and analysis of excavated earth and rocks). Therefore, a value amounting to 1% of all 2009 investment costs has been considered for similar projects.   
(4)
Expense for adapting existing infrastructure to requirements and new provisions of the law regarding the environment (for example, noise, visual aspects, and the landscape).
(5)
Cost for the definitive dismantling of lines as part of rationalisation projects. The figure for 2009 shows only the sum for the most significant demolition (Val d’Ossola), because isolating the sums involved solely in demolitions requires an analysis beyond accounting.
(6)
Work regarding cutting plants, cutting grass, and waste management. These cost items – the only ones that at this time can be identified directly by industrial accounting – do not include all the environmental operating costs, but do constitute the largest part of them.