ACQUE S.p.A.

The management agreement, which entered into force on 1 January 2002 with a twenty-year duration, was signed on 28 December 2001. In accordance with that agreement, the Management Body took over the exclusive integrated water service of ATO 2, comprising all the public water collection, abstraction and distribution services for civil use, sewage systems and the treatment of urban waste water. The Area includes 57 municipalities. The company pays a concession fee to all the municipalities, including the past liabilities incurred by previous management bodies, in exchange for taking over the service.

Based on the provisions of the concession, on 22 December 2008, the General Meeting of the Area Authority approved the tariff review for the years 2005-2007, in which checks were performed on the actual volume of investments carried out, operating costs, revenues generated, the amounts billed and the technical and organisational standards achieved. Based on the results of these checks, the adjustment was calculated (positive for the operator) for lost revenues for 2005-2007, given more than 0.5% lower than those forecast in the Area Plan.

Penalties were also applied during the revision, as provided for in the Agreement, for the failure to achieve certain technical and organisational standards.

During the second tariff review, the new Investment Plan was defined, later described in detail in the new three-year operating plan for 2008-2010 approved by the Authority in March 2009.

Details on the impacts of AEEG resolution 585/2012 are provided in the section “Service concession arrangements”.