A market leader today and tomorrow
We operate in a regulated sector, we are the market leader in Italy and third largest operator in Europe, we invest in innovation and we aim to increase our market share.
Our network is extensive and geographically highly diversified, but we hope to grow further and increase our market share in Italy from around 30% to 40%. In fact, we are acquiring new entities, on the one hand to consolidate our presence in certain areas and, on the other, to invest in areas that do not yet benefit from the use of natural gas. Then we are investing in the digitisation of the network and giving a strong boost also in terms of reorganising the company and its operations.
The Italian gas distribution market lies at the heart of a profound change that will lead to a considerable decrease in the number of operators, as a result of legislation that no longer assigns the distribution service municipality by municipality, but for minimum territorial areas (ATEMs), according to the identification of optimal user pools, based on the criteria of efficiency and cost savings.
Today, over ¾ of the market is made up of small or micro operators and more than 80% of gas is distributed by large or extra-large operators. In the next few years, with the migration to the ATEM system, a major concentration of operators is expected as a result of the streamlining process already under way.
We intend to play a decisive role in the concentration process for the gas distribution sector, mainly by participating in calls for tender and acquiring strategic distribution networks.
In this context, in terms of our operating efficiency and our investment capacity, we are ready to take on the role of aggregator.
To remain a market leader in the coming years, we have defined a major investment plan that envisages targeted maintenance, modernisation and development works for our network. Added to this is the smart metering project, as a result of which - by replacing over half the meters - we will be able to outperform the obligations imposed by the Authority for the Mass Market segment in 2018, and we will complete the replacement of 100% of meters in this segment by the end of 2020. We are making further investments in digitisation of the networks and initiatives instrumental to distribution, particularly for implementation of the cloud strategy.
Providing all Italian households with smart meters, well in advance of deadlines, equates to end customers benefiting early from this technology, allowing the development of additional business opportunities arising from the stronger frequency of data about Italian household consumption.
The italian context
Italy is the third largest gas market in Europe, with one of the most highly-developed infrastructures and playing a strategic role as European gas hub. Like us, other operators are also working in the distribution industry in Italy, including:
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In Italy, the Italian Regulatory Authority for Energy, Networks and Environment (ARERA) determines the methods for access to the infrastructures, provision of the service and the definition of related tariffs to remunerate the activities carried out. To help define a clear, transparent and stable regulatory framework and to encourage sustainable development of the gas system, we at Italgas are committed to continuous and constructive dialogue with the regulatory authority. The regulatory structure of the gas distribution market in Italy offers us predictable revenues and therefore allows us to organise our development plans in a well-defined context.
ultimo aggiornamento Thu Feb 14 14:19:30 UTC 2019