Incentive schemes
- the quality of the transmission service
- improvement of forecasts regarding energy requirements and wind (applicable for the period 2008-2011)
- reduction of the volume of resources procured on the DSM;
- acceleration of investment to develop the NTG.
The bonuses earned for achieving in 2010 the objectives established as part of the incentive schemes are included in Terna’s total regulated revenue. In the case of the incentive for reducing the volume of resources procured on the MDS, Terna further improved its performance during 2010, reducing the volume of energy procured by about 41% compared to the 2009 volume. This result led to the payment of a bonus of about 160 million euro (40 million euro in 2009). Considering the three-year duration of the incentive mechanism and its characteristics, Terna recorded 77 million euro in its 2010 Financial Statements as the related fair value, taking into account the regulatory risks and those connected with the performance of the Electricity Market.
INCENTIVE MECHANISMS ACTIVATED IN 2010
Objective | Year introduced |
Period applicable |
Penalty-bonus range |
2010 result |
---|---|---|---|---|
Quality of transmission service | 2007 (Resolution 341/07) |
2008-2010 | Bonus 4.4 million euro | |
Improved forecasts of wind production |
2007 (Resolution 351/07) |
2008-2011 | Penalty maximum 1.5 million euro Bonus maximum 3 million euro |
Bonus 3.0 million euro |
Improved forecasts of requirements |
2007 (Resolution 351/07) |
2008-2011 |
Penalty maximum 5 million euro Bonus maximum 5 million euro |
Bonus 1.8 million euro |
Reduced volume of resources procured on the MDS | 2009 (Resolution 213/09) |
2010-2012 | - | Bonus 160 million euro (1) |
Acceleration of investment to develop the NTG |
2010 (Resolution 87/10) |
2010-2011 as a trial, from 2012 definitively |
- | Bonus 16.8 million euro |