Electricity transmission and security of supply are our responsibility. We are responsible for the transmission and dispatching of electricity in Italy. In fact, we are the sole transmission system operator (TSO) of the national high-voltage grid. Our other responsibilities include maintaining the balance between the supply and demand of electricity (dispatching) as well as ensuring the security of supply.
This means that we cover one of the four segments the electricity system is made up of. As we operate in a monopoly environment, to enable competition in the market, we are not allowed to operate in energy production, distribution and sale.
The regulated revenue makes up approximately 87% of the Group’s total revenue and is determined by the Italian Regulatory Authority for Energy, Networks and Environment (ARERA).
We have three main tasks:
1. Maintain and manage the high-voltage grid and investing in its infrastructure (“Transmission”)
2. Maintain the balance between energy supply and demand (“Dispatching”)
3. Facilitate the energy transition, by promoting the use of renewable sources
How we are remunerated
For our electricity transmission and dispatching services, we are remunerated via a tariff system established by the Italian Regulatory Authority for Energy, Networks and Environment (ARERA). Resolutions established by the Authority are the basis for remuneration for electricity transmission (resolution No. 654/15), and dispatching (resolution No. 351/07 and next changes and integrations).
At 5.6%, Terna’s remuneration is the lowest in the Italian electricity sector and is lower than the European average of 6.4%. Our remuneration is based on investments made and only takes place when these investments are actually realised.
Based on data published by ARERA, it is possible to estimate that, for a typical household, the cost of electricity transmission service on the electricity bill is equal to around 3.5% .Find out more about the main types of costs recognized.