The objective to develop the business in close contact with the local communities and areas is placed at the heart of Iren Group’s commitment to constantly combine development with respect for rules and regulations, protecting the environment and promoting the protection of natural resources based on principles of sustainable development.
In order to identify and implement the most appropriate action plan, the Regulatory Affairs Department draws up a regulatory framework, at least quarterly. The document analyses the impact of the regulatory variables on the Group’s results. The Italian and international regulatory framework is constantly supervised and monitored through the following activities:
- reporting and analysis concerning the transposition of updates and the interpretation and application of relevant legislation;
- the coordination and direction of company departments assigned, either directly or indirectly, to comply with information obligations by sector Authorities;
- the coordination and support of the company departments in managing the “antitrust risk” and the “regulatory risk”.
The Group concentrates its activities on the active and proactive monitoring of regulatory developments relevant to all the business sectors in which it operates, participating in consultations, hearings before Chambers (both directly and through the trade associations it subscribes to) and promoting direct meetings with the Bodies involved. In particular, the topics observed in the various sectors are summarised below:
- energy business – market reform/updating (capacity market, MSD revision and expansion, adjustments on imbalances), regulation of district heating, reform of the Energy Efficiency Certificates mechanism, hydroelectric concessions for large-scale diversions, incentives for energy efficiency programmes, regulation of energy communities, development of projects involving hydrogen technology;
- market business – reform of protected market, revision of sale components (electricity and gas), reform of gas balancing, transport and settlement, regasification (combined capacity and storage auctions, tariffs for the actual recognition of costs incurred and revenue coverage factor);
- environment business – tariff regulation of the urban waste service (collection and treatment), regulation of transparency and quality (contractual and technical) of the urban waste sector, support for incentives for renewable sources and biomethane, monitoring of the reference regulatory framework at national level (PNRR, Decrees transposing EU directives on the circular economy – with particular attention to waste assimilation criteria, shared responsibility of the producer, reform of the consortium system, reorganisation of responsibilities and the National Waste Management Programme – and on the promotion of the use of energy from renewable sources) and at regional level (governance and planning of waste management), tenders for the award of the service;
- networks business (water, gas and electricity distribution) tariff regulation for cost coverage and technical and commercial/contractual quality regulation, smart meters and their technological evolutions, resilience, non-payment, safety obligations, tenders for service assignment; specifically for electricity and gas distribution: smart grid, network code and national equalisation.
The following topics were monitored across all Business Units: unbundling and compliance, implementation of the regulation on the integrity and transparency of wholesale energy markets (Remit), the implementation of the Directive and regulation of market abuse and the procedures of the Antitrust Authority (AGCM).
In addition, the Legal Affairs function monitors the legislation and, upon request, provides support in its interpretation, provides legal assistance and advice to all the structures of the Parent Company and to the Business Units and participates in working groups on issues involving the Parent Company or the Business Units.