Pass-through items

To keep the electric system in a state of equilibrium, Ternai S.p.A. has to regulate it. This involves transactions of buying and selling energy in particular on the Dispatching Service Market (DSM)i. Because the rules require that the economic balance of these transactions be zero for Terna, they are pass-through items that do not influence the net income in Terna’s Income Statement. These items also include the remuneration that Terna receives from distributors and pays to the owners of segments that are part of the National Transmissioni Grid, including its subsidiary TELAT.  

In 2010 Terna’s pass-through revenues and expenses totaled 4,969 million euro (5, 218 million in 2009). Valued by the application of specific rate payments, these items are regulated by Terna with the industry companies. An important pass-through item is the so-called uplift, a payment covering the net expenses incurred to procure resources on the DSM, which for 2010 amounted to about 1,153 million euro (about 981 million euro in 2009, about 2 billion euro in 2008). The uplift is included in the user’s bill. Even if it does not influence Terna’s profitability, pass-through revenue – among other things, because of its size – has important repercussions on its relationship with the industry companies with regard to the commercial and administrative management of contracts and receivable and payable billing.