Gas prices can seem complicated because the gas processing chain on its way to the end customer is complicated.
So we want to try to help you understand it better.
The main components making up the price of gas are:
- SALES COMPONENT
- DISTRIBUTION AND METERING COMPONENT
- TAX COMPONENT
SALES COMPONENT
Our tariff includes the cost of purchasing gas wholesale (raw material cost), of transporting it and storing it, as well as all other sales related costs:
• Natural gas variable transport cost charge (QTI)
This is the charge to cover transport costs over national and regional networks. It is adjusted annually on 1 October by decision of the Regulatory Authority for Electricity and Gas.
• Natural gas variable storage cost charge (QS)
This is the charge to cover storage costs. It is adjusted annually on 1 April by decision of the Regulatory Authority for Electricity and Gas.
• Variable wholesale cost charge (CCI)
This is the charge to cover the cost of supplying wholesale natural gas. It is adjusted quarterly (1 January, 1 April, 1 July, 1 October) based on fluctuations in the price of petroleum products by decision of the Regulatory Authority for Electricity and Gas.
• Retail sale cost charge (QVD)
This is the charge to cover the cost of supplying retail natural gas, with a fixed part and a variable part. It is adjusted from time to time by decision of the Regulatory Authority for Electricity and Gas.
• Additional costs charge (QOA)
This is the component that covers general systems costs and is varied periodically by decision of the Regulatory Authority for Electricity and Gas.
The sum of the above variable items determines the sale price, shown separately on the bill, for quantity of gas used (in SCM).
DISTRIBUTION AND METERING COMPONENT
The compulsory distribution and metering charge set by the Regulatory Authority for Electricity and Gas at the start of the year is the cost the retailer has to pay to the distributor for use of the distribution network and the meter reading service.
Distribution and meter-reading charges vary according to the area tariff, which is made up of fixed and variable parts. The area tariff relates to the geographical location where one distribution and meter-reading charge applies. At the moment the Regulatory Authority for Electricity and Gas has established six areas throughout Italy.
The fixed part is billed on a monthly basis and/or according to the number of days in the usage period, while the variable part is applied to the quantity of gas (SCM – standard cubic metres) according to an 8-level scale.
Apart from the fixed and variable distribution and meter-reading components referred to above there are another two components for local government and disadvantaged users (gas bonus).
On 1 July 2009 new financial conditions concerning gas delivery were introduced by the Regulatory Authority for Electricity and Gas with Decision ARG/gas no. 159/08 and Distribution and Meter-Reading Tariffs, and Decision ARG/gas no. 64/09 and Distribution and Meter-Reading Tariffs (financial conditions for delivery to customers entitled to protection). Also from that date, under Decision ARG/gas no. 159/08 referred to above, retailers are required to show consumption as SCM (standard cubic metres) on bills, no longer as was the case until 30/6/2009, as meter units (cubic metres).
In order to transform meter units into standard cubic metres the meter reading is multiplied by a coefficient C, which varies depending on geographical location.
Coefficient C replaces coefficient M which until 30/6/2009 was used to adjust the variable part of the tariff to the altimetrical zone for the geographical supply area.
The separate components of the distribution and meter-reading tariff are also shown separately on the bill.
TAXES
Taxes vary according to locality and are as follows:
• excise (a consumption tax), a national tax which varies depending on location and use (domestic or business)
• regional tax, which may vary by region
• VAT which is calculated on the total (including excise and regional taxes) at either the 10% or 20% rate
From 01/01/2008 a four-step tax rate applies to consumption:
1) up to 120 SCM per annum
2) from 121 SCM/per annum up to 480 SCM/per annum
3) from 481 SCM/per annum up to 1,560 SCM/per annum
4) more than 1,560 SCM/per annum,
to which separate rates of excise, regional tax (in regions where this applies) and VAT apply.
Click here to see the gas price as determined by the Regulatory Authority for Electricity and Gas for the protected market> 2010 - first quarter - tariffs from 1 January 2010 > 2010 - second quarter - tariffs from 1 April 2010 > 2010 - third quarter - tariffs from 1 July 2010 > 2010 - fourth quarter - tariffs from 1 October 2010 Excise on gas 01/01/2009 > Friuli Venezia Giulia region - from 01/01/2009> Lombardia region - from 01/01/2009> Trentino Alto Adige region - from 01/01/2009> Emilia Romagna region - from 01/01/2009 > Veneto region - from 01/01/2009
Excise on gas 01/04/2009 > Friuli Venezia Giulia region - from 01/04/2009 > Lombardia region - from 01/04/2009 > Trentino Alto Adige region - 01/04/2009 > Emilia Romagna region - from 01/04/2009 > Veneto region - from 01/04/2009 To work out your annual usage charges based on your average consumption download the Family Rate Calculator
