Revenue from sales and services - 3,522,752 thousand euros

This item registered an increase of 308,947 thousand euros (+9.6%) compared to 31 December 2011, which closed with a total of 3,213,805 thousand euros.

That item is composed as shown in the table below.

€ thousand 31.12.2012 31.12.2011 Absolute increase/ (Decrease) Increase/ (decrease) %
Electricity sales and services revenues 2,414,185 2,151,479 262,705 12.2%
Gas sales revenues 53,432 39,274 14,158 36.0%
Revenues from the sale of certificates and rights 37,410 18,753 18,658 99.5%
Revenues from integrated water services 792,841 717,458 75,383 10.5%
Overseas Water Services 37,384 35,889 1,495 4.2%
Revenues from biomass transfer and waste management 32,111 28,943 3,169 10.9%
Revenues from services to customers 128,520 185,662 (57,142) -30.8%
Connection contributions 26,867 36,347 (9,480) -26.1%
Revenue from sales and services 3,522,752 3,213,805 308,947 9.6%

Electricity sales and services revenues

Electricity sales and services revenues amounted to 2,414,185 thousand euros and, excluding intercompany eliminations, essentially include following:

  • 39,059 thousand euros (28,510 thousand euros as at 31 December 2011) relating to electricity and heat generation, with particular reference to the thermoelectric and hydroelectric plants of Acea Produzione. The 10,549 thousand euro increase is broken down as follows: (i) 7,504 thousand euros from the change in the basis of consolidation by presenting the pro-forma data for 2011, and (ii) 3,045 thousand euros from the higher volumes produced following the repowering of the Salisano and Orte hydroelectric power plants in the previous year. Through its directly owned plants, in 2012 the company achieved a production volume of 366.8 GWh (+46.1 GWh),
  • 382,822 thousand euros (334,775 thousand euros as at 31 December 2011) relating to the transport and metering of energy for the free and protected markets; the increase in revenues (+48,047 thousand euros) was generated by the combined effect of less energy input into the network and the increase in balances, but especially by application of the new tariff structure in reference to the Fourth Regulatory Cycle, as defined by the AEEG (Electricity and Gas Authority) for the regulatory period 2012-2015. The main new element introduced since the previous regulatory period (2008-2011) is the reference tariff for the distribution service per company, which replaces the previous mechanism for calculating permitted revenue, based on the national average tariff integrated with general equalisations on HV, HV/MV and LV distribution and specific company equalisation. The tariff is broken down by withdrawal point (except for the public lighting-related tariff), unlike in the previous cycle when the reference distribution tariff was broken down not only by withdrawal point, but also by consumption and capacity (variables too subject to fluctuations in demand). The application of the general equalisation mechanisms resulted in income of 49,136 thousand euros at 31 December 2012 and, compared to last year, there is a greater impact of general equalisation, by 43,980 thousand euros.
    The amount of company specific equalisation resulted in lower revenues for the company of 39,507 euros, since it is already incorporated into permitted distribution revenues. In addition to the equalisation items mentioned above, there was less revenue of 12,925 thousand euros relative to recoveries of general equalisations for years prior to 2012, due to the Equalisation Fund and AEEG notifications relating to adjustments on general equalisation amounts.
    With regard to the markets service, note that for the free market there was a 2.43% increase in volumes distributed, from 7,471 GWh as at 31 December 2011 to the current 7,653 GWh. Note also that the average number of free market customers increased by roughly 97,803 compared to the same period last year.
    In contrast, the volume of electricity distributed to customers in the protected categories market (3,437 GWh) is down 6.12% compared with the previous year.
  • 1,944,400 thousand euros deriving from energy sales to the free and protected categories markets: these activities recorded a growth of 224,709 euros, essentially attributable to the change in the basis of consolidation (+173,543 thousand euros). The volumes sold on the free market by the Acea Energia Group amounted to 9,998 GWh, down approximately 22.6% compared to 31 December 2011 due to the consistent decrease in the portfolios of Elga sud and Voghera Energia Vendita, as well as a downsizing in the portfolio of Acea Energia, which decided to decrease volumes sold to the Public Administration and industrial customers. This decrease is however offset by an increase in the average price. The sale of electricity on the market subject to additional safeguards came to 3,418 GWh, a reduction of 6.6% compared to 2011, accompanied by an increase in average revenues, also due to AEEG resolution 583/2012, which contains an upward revision of the level of the RCV component for the remuneration of primary utility providers.

Electricity sales and services revenue also includes:

  • revenues from the energy produced by the plants owned by A.R.I.A. amounting to 45,462 thousand euros. This revenue essentially comprises the sale of electricity to GSE in the period January-December and increased by 18,917 thousand euros due to the effect of volumes produced by the two new lines at the San Vittore plant (operative from April and July 2011).
    Other revenue from this segment was allocated to Revenue from biomass transfer and waste management,
  • the revenues obtained by Arse and Ecogena for the transfer of the energy produced by PV and cogeneration plants (overall 2,333 thousand euros) are essentially in line with 2011.

 

Gas sales revenues

This item amounted to 53,432 thousand euros, up 14,158 thousand euros on the figure for 31 December 2011 due to the combined effects of changes in the basis of consolidation (+8,137 thousand euros) and the higher average sale prices which offset the decrease in volumes sold by the Acea Energia Group (-10% compared to 2011).

 

Revenues from the sale of certificates and rights

This item totalled 37,410 thousand euros, up 18,658 thousand euros on the same period last year. It also includes revenues from selling white certificates (Energy Efficiency Bonds) for 23,628 thousand euros (+6,536 thousand euros), obtained from the implementation of energy savings projects. Contributing to the change was the recognition of Acea Produzione revenue from green certificates (12,107 thousand euros) in relation to energy produced at the Salisano and Orte plants after the repowering completed in 2012.

The breakdown of this item by type is as follows:

€ thousand 31.12.2012 31.12.2011 Increase/ (Decrease)
Green certificates 12,107 2 12,105
CO2 rights 1,676 1,660 16
EEB 23,628 17,091 6,536
Total 37,410 18,753 18,658

 

Revenues from integrated water services

Revenues from integrated water services are generated by water companies operating in Tuscany, Umbria, Lazio and Campania.

These revenues amounted to 792,841 thousand euros, up 75,383 thousand euros (+10.5%) compared with the previous year (717,458 thousand euros).

Companies operating in Lazio and Campania generated total revenues of 616,966 thousand euros (+78,027 thousand euros) and those in Tuscany and Umbria closed the period with revenues of 175,875 thousand euros (-2,644 thousand euros).

Details of the breakdown by company are given below

€ thousand 31.12.2012 31.12.2011 Absolute increase/ (Decrease) Increase/ (decrease) %
ACEA Ato2 502,618 438,073 64,545 14.7%
ACEA Ato5 53,069 43,350 9,719 22.4%
GORI 51,956 48,165 3,791 7.9%
Gesesa 5,969 5,714 255 4.5%
Crea Gestioni 3,355 3,638 (283) -7.8%
Total Lazio-Campania 616,966 538,939 78,027 14.5%
Publiacqua 67,171 69,308 (2,137) -3.1%
Acque 45,534 46,749 (1,215) -2.6%
Acquedotto del Fiora 30,646 29,504 1,142 3.9%
Umbra Acque 24,627 24,306 321 1.3%
Nuove Acque 7,465 6,654 810 12.2%
Lunigiana 433 1,997 (1,565) -78.3%
Total Tuscany-Umbria 175,875 178,519 (2,644) -1.5%
Revenues from integrated water services 792,841 717,458 75,383 10.5%

The change compared to last year is mainly as a result of the different methods for determining integrated water service revenues measured on the basis of AEEG resolution 585/2012 (Temporary Tariff Method valid for 2012 and 2013) as well as, for ACEA Ato2,  the recognition of higher tariff adjustments (40,398 thousand euros) - deriving from the spread between guaranteed and actual revenues for the years 2006 - 2011 - as resolved by the Mayors’ Conference on 17 April 2012.

The recognition of adjustments for GORI relative to previous years, resulting from the tariff measures of 27 October 2012 passed by the Sarnese Vesuviano Area Authority General Meeting, contributed to the growth in water revenue for the year (4,841 thousand euros).

Please note that the quantification of the restriction on guaranteed revenues (VRG) of the operators to which the MTT applies represents the best estimate, calculated on the basis of elements available to date, generated by the interpretation of the new rules also borne out by the calculation models provided by AEEG on its website.

Those estimates should be confirmed in the tariff proposals that the Area Authorities must complete by 31 March 2013 and definitively approved by the AEEG by 30 June 2013.

With respect to the FoNI (New investments advance fund) tariff component set forth in AEEG resolution 585/2012, please note that on the basis of the analysis of the legal nature of FoNI and keeping in mind the structure of the reference accounting standards, the Companies considered that portion of the VRG as a tariff component of the integrated water service and, therefore, they recorded the AMMFONI component and DeltaCuit, estimated at approximately 6.8 million euros, as revenues for the year. Instead, as regards the FNI (New Investments Fund) component, the water companies did not include the relative amount for the year, estimated at roughly 15 million euros for the Group, within the period’s revenues, since on the basis of the provisions of resolution 585/2012, that component must be expressly recognised by the Area Authority which establishes if and to what extent that form of advance should be included in the tariff.

Finally, it should be noted that for ACEA Ato5, that revenue item includes the amount of 10.8 million euros, which represents the estimate of the difference between the maximum growth set forth in article 7.1 of the aforementioned resolution - that of the Standardised Method plus planned inflation rates (6.5%) - and the amount of the VRG determined as indicated above. Article 7.1 provides that that spread should be subject to a dedicated AEEG enquiry, in order to “...ascertain, with the involvement of the Area Authorities, the data provided, the correct application of the temporary tariff method and the efficiency of the metering service...”. The same article also sets forth that the surplus compared to the maximum growth shall be recovered as an adjustment component in the subsequent tariff period.

 

Overseas Water Services

Services amounted to 37,384 thousand euros, representing an increase of 1,495 thousand euros compared with the previous year (35,889 thousand euros).

The change is due to a favourable exchange rate following depreciation of the Euro, partially offset by lower volumes sold.

This revenue item comprises: (i) 31,740 thousand euros from Aguazul Bogotá, including the Conazul share (+926 thousand euros), (ii) 2,886 thousand euros from Acea Dominicana (+258 thousand euros) and (iii) 2,759 thousand euros from Consorcio Agua Azul (+312 thousand euros).

 

Revenues from biomass transfer and waste management

Revenues amounted to 32,111 thousand euros, representing an increase of 3,169 thousand euros compared with the previous year (28,943 thousand euros).

These revenues regard A.R.I.A. Group companies for a total of 24,607 thousand euros (+3,823 thousand euros) and Aquaser Group for 7,505 thousand euros (-655 thousand euros).

The period performance was essentially due to the increase both in volumes transferred and in the average price, also associated with the operational start-up of the second and third lines at the San Vittore plant.

 

Revenues from services to customers

This item amounted to 128,520 thousand euros (185,662 thousand euros at 31 December 2011), marking a decrease of 57,142 thousand euros.

This type of revenue comprises:

  • 64,583 thousand euros in income from public lighting services provided to Roma Capitale: that item decreased by 6,715 thousand euros compared to 31 December 2011 as a result, the change is basically caused by opposing factors: on one hand, the increase in the lump-sum payment (+5,332 thousand euros), and on the other hand a drop in revenues, including changes in work in progress (2,534 thousand euros), resulting from the design and construction of new plants, energy upgrading works, and the technological and legislative adjustments to plants (-12,047 thousand euros),
  • 7,598 thousand euros in income from the public works contract for management of the public lighting service in the Municipality of Naples. This item increased by 1,006 thousand euros and also includes the chargeback for electricity used in managing the service,
  • 29,520 thousand euros in revenue from services provided on request to third parties: this category of income saw an increase of 834 thousand euros essentially due to ACEA Ato2,
  • 5,755 thousand euros in revenue from service agreements and other intragroup services: this item recorded a 6,951 thousand euro decrease as a result of the change in the basis of consolidation generated by winding-up of the joint venture,
  • 13,248 thousand euros in income achieved by ARSE for marketing and installation of photovoltaic panels on behalf of third parties. This item decreased by 46,083 thousand euros compared to 2011, which closed with a total of 59,331 thousand euros,
  • 7,681 thousand euros in revenue from cemetery lighting systems management, essentially unchanged compared to 2011.

The table below shows the breakdown of this item by industrial area:

in €/thousand 31.12.2012 31.12.2011 Absolute increase/ (Decrease) Increase/ (decrease) %
Networks 26,600 74,961 (48,361) -64.5%
Energy 2,242 3,539 (1,297) -36.6%
Water 23,725 21,196 2,529 11.9%
Environment 1,425 2,018 (593) -29.4%
Parent Company 74,528 83,947 (9,419) -11.2%
Revenues from services to customers 128,520 185,662 (57,142) -30.8%

 

Connection contributions

This item amounted to 26,867 thousand euros, down by 9,480 thousand euros. These are broken down as follows:

  • free and protected markets: 20,925 thousand euros (-8,761 thousand euros compared to 31 December 2011) as a result of fewer works,
  • water: 5,943 thousand euros (-718 thousand euros compared to the previous year).