MTI 3 – Water Tariff Methodology for the third regulatory period 2020-2023
Published with Resolution 639/2021/R/idr the Biennial Update of Tarifflay Provisions.
This update mainly concerns the quantification of some parameters, such as:
- inflation rates for the update of operating costs;
- the deflators of gross fixed investment;
- the calculation of financial and tax charges;
- the average sector cost of electricity supply incurred over the last two years for the definition of recognised electricity costs;
- the redefinition of the Water Losses Indicator (adding losses detected not only on the main pipes but also at the connections) regarding Technical Quality (RQTI);
- the updating of certain parameters required for the recalculation of the costs of fixed assets;
- the quantification of additional charges – or lower operating costs – resulting from the initiatives adopted in 2021 for the management of the COVID-19 emergency;
- the inclusion in the maximum allowable overdue payment cost of turnover relating to the application of the Equalisation Components (UI1-UI2-UI3-UI4).
Finally, further corrections and elements of flexibility have been introduced, namely:
- further rules for adjustments in compliance with Council of State judgments concerning tariff calculation rules relating to the financial years 2012 and 2013, as well as the period 21 July – 31 December 2011;
- new elements of flexibility in evaluation mechanisms performance in contractual quality, therefore the contractual quality maintenance/improvement targets for the years 2022 and 2023 are identified on the basis of data relating to simple indicators recorded in 2021, and the Contractual Quality and Technical Quality targets for 2022 and 2023 are evaluated cumulatively on a biennial basis.
Among the VERY IMPORTANT developments, we feel it is our duty to highlight:
- that from 1 January 2022 The UI3 component is €0.0179 per cubic metre (and always applies to Water, Sewerage, and Purification consumption);
- With reference to the Convergence Regulatory Framework referred to in Article 31 of Annex A to Resolution 580/2019/R/IDR, where the application provides for the allocation of the obligations set out in paragraph 31.9, concentrating them solely in the years 2022 and 2023, the Theta increase factor is recalculated so that it is equal to 7% for 2022 and 7% for 2023, setting the tariff increase for the years 2020 and 2021 to zero.
Contact us for more information on 3486185167 or at commerciale@sikuel.it
photo by Scott Graham on Unsplash
