Our approach

For Terna, service objectives are integrated with those of economic performance. The synthesis of the two aspects lies in the search for operating efficiency and opportunities for growth, while fulfilling service obligations, in particular the security of the electricity system.

In Italy, Terna manages the transmission of electricity as a monopolist. Therefore, it cannot increase its business or revenue by enlarging its market share and pursues these objectives mainly by:

  • promptly carrying out the investments provided for in the Grid Development Plan, which is also useful for improving the electricity service for society and provides a source of corporate income;
  • seeking operating efficiency and optimizing its capital structure;
  • developing non-traditional activities connected to transmission;
  • seeking business opportunities in industries other than transmission.

Other opportunities for growth lie in the expansion of activities abroad. The search for new investment possibilities in the transmission industry have focused on the southern Mediterranean and the Balkans, where a number of projects are being developed, in particular in regards to the construction of interconnection lines.

For a detailed presentation of the economic and financial results achieved by the Group, see the Annual Reports available online at www.terna.it in the Investor Relations section, especially the 2012 Annual Financial Report. In any case, the main results of the last three years are reported in this chapter, in conjunction with the subject discussed.

The paragraph "Revenue and Risk Management" provides information on the difference sources of Terna's revenues - with particular regard to the effects of the regulatory framework - and their respective relative weights, as well as the measures implemented by the Company to prevent and cope with the risks connected with its business.

The economic effects of Terna's business do not end with its financial results. The "Terna's Economic Impacts" section reports the most important qualitative and quantitative information connected with the Company's relationship with specific stakeholders. The most significant of these relationships are described in the final sections of the chapter, devoted to relationships with shareholders, with suppliers and with operators of the electric industry.