2022 in numbers

Operating data U.M. 2022 2021 Change % Change
Electricity distributed GWh 9,355 9,172 183 2.0%
No. of customers No./1,000 1,653 1,647 6 0.4%
Km of grid (MV/LV) Km 31,768 31,160 608 2.0%
2G metering groups No. 273,294 316,176 (42,882) (13.6%)

 

Economic and financial results (€ million) 2022 2021 Change % Change
Revenues 606.5 626.0 (19.5) (3.1%)
Costs 254.3 254.4 (0.1) 0
EBITDA 352.2 371.6 (19.4) (5.2%)
Operating profit/(loss) 201.9 217.4 (15.6) (7.2%)
Average workforce 1,262 1,275 (13) (1.0%)
Capex 268.8 274.5 (5.7) (2.1%)
Net Financial Position 1,785.2 1,583.9 201.3 12.7%

 

EBITDA (€ million) 2022 2021 Change % Change
EBITDA – Energy Infrastructure Segment 352.2 371.6 (19.4) (5.2%)
EBITDA – Group 1,305.0 1,256.1 48.9 3.9%
Percentage 27.0% 29.6% (2.6 pp)

Year review

The EBITDA for the segment at 31 December 2022 was € 352.2 million, showing a decrease of € 19.4 million compared to 31 December 2021. EBITDA for areti fell by € 20.8 million as a consequence of the contrasting effects deriving from lower revenues (-€ 31.1 million), mainly due to energy balancing (the reduction totals € 26.0 million), the effect of the reduction in the WACC (from 5.9% to 5.2%) and the lower margin coming from the open fibre contract. These effects were partially offset by greater revenues for effects associated with resilience (+€ 3.3 million) and lower costs for services and personnel.

With reference to the energy balance, at 31 December 2022, areti had distributed 9,355 GWh to end customers, up by 2.0% with respect to the previous year.

EBITDA of public lighting, equal to € 0.8 million, recorded an improvement of € 3.8 million compared to 31 December 2021 due to lower personnel expenses (grid integration project - IP) and an increase in the fee charged to the Municipality of Rome (due to energy price increases).

The average number of employees fell slightly compared to the previous year (-13 units).

Operating profit decreased by € 15.6 million compared to 31 December 2021 and was affected by lower write-downs in the period (-€ 0.3 million) and lower depreciation/amortisation and provisioning (-€ 3.6 million) owing to the combined effect of lower amortisation of software due to the end of the useful life of the investments made in previous periods and lower allocations to the provision for risks and impairment of receivables due from users.

Investments amounted to € 268.8 million, a decrease of € 5.7 million compared to the previous year, and refer mainly to the expansion and upgrading of the HV, MV and LV grids, the mass replacement of 2G metering groups, work on the primary substations, secondary substations and meters, and remote control equipment as part of the grid “Adequacy and Safety” and “Innovation and Digitalisation” projects. Intangible investments refer to projects for the re-engineering of information and commercial systems. The public lighting sector contributed for € 1.6 million, down by € 2.3 million compared to the previous year.

The net financial position stood at € 1,785.2 million as at 31 December 2022, showing an increase of € 201.3 million compared to 31 December 2021, mainly due to operating cash flow dynamics.

Significant events for the 2022 financial year

GALA

With Resolution 50/2018/R/eel of 1 February 2018, the Authority approved a mechanism for recognising charges otherwise not recoverable due to the failure to collect general system charges.

At 31 December 2022 the total receivables accrued by the Company amounted to € 68.9 million, including billed interest.

Currently, also taking into account the changes in the regulatory framework deriving from the approval of the mechanism for reimbursing general expenses accrued over time, the reduction in the value of the Areti receivable from Gala was prudentially determined.

On 22 March 2022, Resolution no. 119/2022/R/eel was published, containing the provisions related to the unified mechanism to reimburse electricity distributors for receivables not collected and not otherwise recoverable in relation to general system charges (OGdS) and network charges (OdR). This Resolution, which repeals Resolution 50/2018/R/eel, sought to standardise the methods for requesting general system charges and network charges as part of a single application, the deadline for which is set for the first year of entry into force of such mechanism on 31 July 2022. Some of the most important developments introduced include the possibility to also request in the application receivables related to the specific tariff fee (CTS) from inadequate MV end users, since this is a fee pertaining to the transport service. The application related to this mechanism was presented by 31 July 2022. Thanks to this mechanism it will therefore be possible to recover an additional portion of the Gala receivable, the amount of which is still to be determined.

Technological innovation projects

2G digital meter project

In an increasingly advanced technological and energy context, the “2G Digital Meter” project was launched by Areti with the aim of replacing the first-generation electricity meter system with the 2G Smart Metering system in compliance with the requirements of ARERA Resolution 306/2019/R/eel.

Following the selection procedure of the supplier of the field equipment (meters and concentrators) and the related Central Purchasing System (Management Centre) concluded in September 2019 with the publication of the award and subsequent submission to ARERA of the Request for Authorisation to Recognise Investments (RARI), which were followed in 2020 by preliminary activities related among other things to the assessment of the suitable actions to counter the spread of the COVID-19 epidemic, ARERA with Resolution no. 293/2020 of 28/7/2020 approved Areti’s PMS2, as per the latest revision presented on 14 July 2020 and set the date for initiation of Areti’s PMS2 as 1 January 2020, admitting the investments regarding the 2G smart-metering system of Areti to the scheme for specific recognition of capital costs, starting from the same date.

At 31 December 2022, installations completed totalled around 12,600 concentrators, meaning the perimeter of activity has substantially been achieved, as well as around 648,000 metres, with continued delays with respect to the goals set in the RARI, already noted in previous quarters. This slowdown was caused by reduced availability of equipment and can be quantified at 23% based on 2022 and about 10% on a cumulative 2020-2022 basis.

At the beginning of 2022, equipment supplier Gridspertise srl announced that it was unable to meet its planned meter delivery schedule for 2022, due to unavailability of electronic components in the international market. A reduction in delivery of between 20% and 50% was assumed. As of 30 June 2022, the reduction in deliveries stood at 30% for the most critical equipment (2G Single-phase meters). Although Areti was able to offset this reduction in the first quarter of 2022 with available inventories, starting in April it was forced to reduce the number of monthly installations.

To ensure compliance with the new measurement processes and the operation of the new technology (concentrators and electronic meters), a complex evolution of the Areti application map was required. In addition to the introduction and integration of a new system for remote management and remote reading of the second-generation field equipment (Beat Suite), it was necessary to make changes to the main applications related to logistics and warehouse processes, field processes (replacement of the concentrator and first generation meter), commercial systems (development and management of the PDFM system), integration systems (middleware) and WFM and mobile systems, in addition to the development of a new metering acquisition, validation and publication system.

In particular, the progress of the development activities of the application map allowed for the release of all the functions planned for the wave date of 30 June. Further milestones will follow in the course of 2022 to release integration and optimisation features in addition to what has already been implemented in the new application map.

Since May 2021, the new corporate website was published online containing a large section dedicated to the new 2G digital meter. The activities dedicated to the refinement of the new operational and managerial reporting continued, as did the adjustment of the existing reporting. At the same time, data are being made available for the analytics systems with a view to monitoring the new processes for measurement and mitigation of risks to the regularity of the metering service.

areti’s single EData Lake

During the first half of 2021, the analysis environment of data for the distribution business was further extended. The calculation infrastructure operates in the Google Cloud environment. Activities run from the definition of a data model to the process of releasing it to an analysis environment, including infrastructure management.

As for data integration, to date the following are available:

  • 1G remote management system, both for LANDIS and EMO meters
  • Company Electric GIS mapping system
  • Company IP GIS mapping system
  • Integrated Low Voltage Network Survey in all tabular areas
  • SAP (IS-U and MDM)
  • TESS system (commercial quality).
  • RadarMeteo weather data recorded and forecasts.
  • SAP PM
  • SAP MM
  • SAP IS-U PDFM
  • Remote management system
  • Remote control system: load profiles at 10 minutes
  • ORBT history (selection of several tabular areas)
  • NPC Geocall system (selection of several tabular areas)

Further data integration is ongoing according to the priorities dictated by the business, with reference to the 2G Management Centre.

Network diagnostics and monitoring project

The project is divided into three main lines of action:

  • Primary station diagnostics
  • Substation diagnostics
  • Overhead line diagnostics
  • Public Lighting Monitoring

1. Primary station diagnostics with UGV Drones

The project involves the development of an UGV (Unmanned Ground Vehicle) prototype for autonomous or remotely piloted inspection of primary stations. The autonomus UGV drone has sensors for detecting environmental parameters (temperature sensors, partial discharges, cameras) and sensors for moving autonomously in the environment (lidar, GPS and cameras). It executes inspection plans independently and can be remotely controlled for targeted security checks and operations. The system may also transmit inspection information to an operator located at a location other than the place of operation.

During 2022, testing of the Control Room and new features for improved on-board sensor management resulting from the first trial was completed, and the first rounds of experimental inspections in consultation with the Network were initiated.

2. Substation diagnostics (CS-Plus)

The project involves testing an integrated IoT solution for remote monitoring, diagnostics and management services: e.g., environmental parameters, digital access management, etc.

During 2022, inspections aimed at extending the testing of the solution to 50 critical facilities were initiated. An integration interface was also engineered for simplification and standardisation of field assembly of the solution. The planned IoT services are: 1. access control, 2. Environmental temperature monitoring, 3. Transformer temperature monitoring, 4. Humidity monitoring, 5. Flood Monitoring.

3. Overhead line diagnostics

The project involves the combination of periodic analyses of satellite images using artificial intelligence algorithms (developed to detect man-made and/or vegetation interference) and targeted inspections with drones to enable a continuous monitoring of overhead lines.

During 2020, the platform for management of the process was developed and went live and operation of the process itself was launched. The process was found to be highly innovative both by the Politecnico di Milano university Drone observatory and Space Economy observatory.

During 2022, the plan to inspect MV and LV overhead lines carried out exclusively with drones in a mixed Engineering-Development/Network team was initiated. Developments are also underway to integrate the GIMMI satellite analysis platform with the SAP system and the development of an evolved Media Data Storage to build an integrated and easily searchable repository for all information collected from field inspections.

Finally, during 2022, the first BVLOS experimental flight was carried out. The experiment, which involved Enac and Anav, provided for a remotely controlled flight beyond the visual line of sight over the HV lines in the Marcigliana area. The trial aims to enable new remote and automated inspection methodologies on overhead power lines in non-highly populated settings.

4. Public Lighting Monitoring:

The project called for the launch of two POCs to verify the possibility of identifying lighting points in the territory and thereby determine the accuracy of the GSI database, identifying switched off lighting points taking advantage of new technology.

  • SAT Analysis POC: calls for the use of satellite images and IA analysis to identify lighting points and switched off lights.
  • IA Rounds POC: calls for the use of rounds done through video detection from vehicles and IA to identify lighting points and switched off lights.

During 2022, the SAT Analysis POC was completed, confirming the efficacy of the solution to obtain a census of all lighting points. However, it was found not to be suitable for identifying turned off lighting points.

Development of areti telecommunications network

In 2022, the TLC project involved:

  • the continuation of activities to build a high-speed and high-reliability fibre-optic network that will link all primary substations, which constitute the main backbone of the telecommunications network and from which all smart-grid services will be launched, and the linking of around 150 substations via fibre optic. This network will ensure security and reliability in the transmission of information between the centre and the periphery useful to allow the proper operation of Operation Technology systems and network management systems, also the remote control of equipment installed in substations and, where possible, the metering points and other types of sensors in order to convey to the central systems all the information acquired through sensors and field equipment. This network will also allow implementation of advanced automation for substations linked by fibre optic, in order to significantly improve the quality of the electricity service;
  • the connection and migration of services in 19 primary and 1 secondary substations;
  • the activation of the 4G mobile radio link in approximately 1,500 secondary substations;
  • the activation of advanced automation for resilience in 5 sections;
  • the activation of advanced FO/4G automation in approximately 100 backbones;
  • the activation of LV remote control in approximately 300 secondary substations.

By 2024, all primary substations are planned to be linked via fibre optics (owned or IRU) and approximately 6,000 secondary substations are planned to be connected to the main network (fibre optics/4G), which will substantially reduce the impact on the territory of maintenance activities by reducing inconvenience to the public.

During 2022, the project saw:

  • the commissioning of 12 supply and installation sections between aggregation nodes;
  • the connection of 21 primary substations and 1 secondary substation and migration of services to 10 primary substations;
  • the continuation of the implementation of 4G mobile radio links, both to speed up the deployment of advanced automation services in secondary substations in addition to those that will be reached by fibre optics (secondary access substations) and to continue with the transition of existing 2G/3G mobile radio links to 4G connection technology;
  • the activation of 4G mobile radio connections in 1,550 secondary substations;
  • the activation of fibre-optic remote control in 82 secondary substations;
  • the activation of fibre optic/4G advanced automation in 53 medium voltage backbones;
  • the activation of remote control of low-voltage circuit breakers in 153 secondary substations.
Public Lighting

As at 31 December 2022, extraordinary maintenance, modernisation and safety activities agreed to with Roma Capitale continued regularly, thus creating new lighting points as part of the lighting re-engineering and development projects, integrating operational activities through the ordinary and extraordinary maintenance activities provided for in the plan, which have characterised and consolidated various proposals for intervention for the improvement and renovation of systems and, consequently, the quality of the service offered. A portion of public lighting systems requires action to verify safety conditions and, when necessary, adjustment works to restore them to full efficiency; this work is necessarily part of a multi-year programme falling under the contract period. Regarding the Public Lighting Service, following the opinion given by the AGCM (Antitrust Authority) in Bulletin no. 49 of 14 December 2020, Roma Capitale began checking the conditions of congruity and economic convenience of the performance terms pursuant to the service contract between the Administration and Acea SpA (and through it areti) compared with the terms pursuant to the CONSIP Luce 3 Convention and, in addition, on the basis of the positions expressed by the AGCM in the said opinion, expressed queries over the legitimacy of the award to Acea SpA. On 8 February 2021, with a note ref. DG 1585/2021, Roma Capitale communicated the results of the said checks, affirming definitively “the congruity and convenience of the economic terms currently in being with respect to the qualitative and economic parameters of the CONSIP Luce 3 convention” and confirming “the correctness of the prices applied for the public lighting service”, overcoming definitively all reserves on the congruity of the prices charged in the context of the contractual relationship in being between RC and Acea SpA. In the same note, the Administration therefore ordered the restart of the procedures for payment of Acea/Areti’s ascertained receivables in relation to the service contract. We can note that the said communication regards the correctness of the prices charged, without affecting the Administration’s intention, already manifested, to terminate the relationship with Acea to call for tenders and thus make a new award for the service.

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