In a report published today, entitled "Italian Electricity And Gas Transmission And Distribution Frameworks: Supportive," S&P Global Ratings said it views the regulatory framework for Italian gas and electricity transmission and distribution system operators (TSOs and DSOs, respectively) as stable, supportive, and consistent with a strong regulatory advantage.
We consider that regulations allow operators to recover their capital and operating costs in a comprehensive and predictable manner, and timely parametric reviews ensure the adequacy of regulations.
Furthermore, the regulator, Autorità di Regolazione per Energia, Reti e Ambiente, has a good track record of political independence, which we view as key given our assessment of higher country risk in Italy. There is also open and transparent dialogue between operators and regulatory bodies.
We view ongoing regulatory developments, including remuneration adjustments outside of the weighted average cost of capital and a move toward output-based incentives, as supportive of TSOs, DSOs, and their ability to make infrastructure investments and support the energy transition.
This report does not constitute a rating action.
