During the period 2014-2017 there were no definitive criminal convictions or plea bargaining for injuries to third parties caused by Terna's assets. As of 31 December 2017, there was no pending litigation nor had any legal proceedings been conclusive regarding corruption, unfair competition, anti-trust, or monopolistic practices. Regarding these same matters, no definitive administrative or judicial, monetary or non-monetary penalties were imposed for non-observance of laws or regulations, including environmental ones, that imposed an obligation on Terna to “do/not do” (e.g. prohibitions) or criminally convicted its employees.
In the four-year period 2014-2017, no significant penalties were imposed regarding the provision of the service, the environment or, more generally, compliance with the law.
Since 2005 (the year in which ownership and management of the transmission grid was combined and Terna – Rete Elettrica Nazionale S.p.A. was established) and through the entirety of 2017, no significant monetary fines, or definitive administrative or judicial penalties have imposed a “do/not do” obligation on Terna, or criminally convicted its employees.
As a player and as a plaintiff, Terna is involved in a certain number of proceedings, linked to contracts, human resources and environment - and regarding regulations and public health that emerge from regular administration.
Environmental litigation is linked to Terna’s installation and operation of electricity plants, while fully respecting the existing regulations on the matter: particularly, the reference is to the effects of electromagnetic fields on the basis of their alleged risks.
Only in a very limited number of cases were claims submitted to Terna for health damages to be reimbursed. Various proceedings are pending regarding urban and environmental matters linked to the building and the operation of various electricity transmission lines. With respect to the decisions taken on these matters, unfavourable orders were issued against Terna only in a few cases. These orders were disputed and the relative sentences are still pending. Any negative outcome is excluded.
Another aspect of litigation connected with the plant owned by the Parent Company derives from legal actions brought before the competent administrative courts, aimed at obtaining the annulment of decisions granting consent for the construction and operation of infrastructure.
The Parent Company, as the concessionary of transmission and dispatching activities as of November 1st, 2005, was convened also in various legal proceedings for disputing the procedures issued by the ARERA - Italian Regulatory Authority for Energy, Networks and Environment and/or the Ministry for Economic Development and/or Terna and relative to such activities.
These are cases where the claimants have stated, in addition to the faults of the provisions being disputed, also the alleged violation on Terna’s part of the regulations issued by the above-mentioned authorities. As part of this litigation, although various proceedings were concluded in first and/or second level of judgment with the cancellation of ARERA resolutions, no negative outcome is expected, according to the information provided by the external attorneys who provide counselling to the company.