Performance of the Italgas Group

Every year, in order to guarantee the safety and efficiency of the gas distribution networks managed, extensive monitoring of the infrastructures is carried out.

To this end, with regard to the verification of “electrical protection” conditions of the underground steel pipes, the cathodic protection remote monitoring system was again used in 2020 at 14,002 significant points on the network. Moreover, approximately 27,533 cathodic protection measures were carried out with a qualified operator on non-remote controlled points.

An additional preventive control on the reliability of the distribution system, an important source of information for the choice of interventions to be carried out, was the search for gas leaks into the atmosphere.

In 2020, in compliance with the provisions of the Authority Resolution no. 569/19/R/gas, almost all the network managed was subjected to scheduled searches for leaks, recording quality standards that definitely exceeded those established by the Authority.

In this segment, the company has also adopted a new method for searching for leaks, the CRDS (Cavity Rind-Down Spectroscopy) Picarro method, as described below in the chapter on technological innovation.

The results show that, in addition to identifying leaks on aerial parts, which are normally impossible to access using the traditional method, the CRDS technology also performs much better at detecting leaks on underground parts of distribution plants.

At the gas delivery points – city gate – measurement and odorisation takes place (with systems equipped with innovative automatic injection systems that can dispense just the right quantity of odoriser, according to the volumes of gas distributed) and the transit gas pressure is reduced, set to be transported through to the re-delivery points at the individual end customers’ premises (domestic or industrial consumers) where the gas is once again measured. In 2020, a total of 30 gas chromatographs (Gretas) were installed for the continuous monitoring of the odorisation level at reduction plants considered to be significant; in 2021, another 70 will be installed. In addition, in compliance with the ARERAThe Italian Regulatory Authority for Energy, Networks and Environment (ARERA) is an independent body set up by Law no. 481 of 14 November 1995 to protect the interests of consumers and promote competition, efficiency and provisions, controls were carried out on the degree of odorisation at the significant points of the network, with laboratory gas chromatograph analysis (ACCREDIA certified) totalling 12,398 for natural gas and 136 for LPG.

The Group has 927 reduction and measurement collection plants (IPRM), equipped with a remote control system to guarantee prompt intervention both in the event of an anomaly and of limits or interruptions to the regional service, as well as a continuous smart metering system that measures the gas entering its network.

To reduce the gas pressure before delivering to individual end customers, the Company has equipped itself with 1,184 intermediate reduction plants (IRI), 10,952 final reduction units (GRF) and also has 7,917 industrial reduction units (GRI) at the end customers gas Delivery pointThis is the point of demarcation between the gas distribution plant and the plant owned or managed by the end user at which the distribution company redelivers gas transported for supply to the end user,.

In 2020, the plan to convert the distribution networks currently managed with LPG to natural gas, continued. A total of 22 locations were in fact converted (in 13 different municipalities nationwide), which were originally powered by LPG and now have new distribution systems for the supply of methane. The intervention involved extending the network by a total of 152 km.

At present, Italgas Reti has 9 distribution systems used to channel LPG that are approaching conversion to natural gas.

In general, the technical and commercial transactions with end customers are carried out in accordance with specific quality standards established by ARERAThe Italian Regulatory Authority for Energy, Networks and Environment (ARERA) is an independent body set up by Law no. 481 of 14 November 1995 to protect the interests of consumers and promote competition, efficiency and, refer to the budgeting and execution of works, supply activation and deactivation, keeping appointments and emergency service timing and, lastly, the odorisation checks carried out.

The operative management of quality aspects is hinged on the management systems certified according to ISO 9001 standards and implemented at the level of each individual company. In support of service safety and quality, Italgas has also activated two freephone numbers to be contacted as necessary by citizens and users:

Gas emergency intervention freephone number – 800 900 999

The service is operative 24 hours a day, 7 days a week. There is one Freephone Number for the whole of Italy for all the Municipalities where the distribution companies of the Italgas Group operate and is shown separately on the gas bill of the sales company, on the websites of Italgas and the Group companies and in the telephone directories of the municipalities served. The service is subject to control by the Italian Regulatory Authority for Energy, Networks and Environment (ARERAThe Italian Regulatory Authority for Energy, Networks and Environment (ARERA) is an independent body set up by Law no. 481 of 14 November 1995 to protect the interests of consumers and promote competition, efficiency and). Anyone contacting the Emergency Intervention service is put in direct contact with an operator of the Integrated Supervision Centre and never transferred to another number. The dispatch of all calls is guaranteed and operators respond within a few seconds. Upon receipt of a report, the operators provide initial indications on how to behave in the event of gas leaks, a lack of gas or irregularities in the flow and dispersion. At the same time, the Emergency Intervention unit is activated for the relevant verifications and technical operations, to safeguard citizens, make systems safe and restore the service to normal operating conditions as quickly as possible. Both the call and the technical intervention are free of charge.

Contact Centre freephone number – 800 915 150

There is a single freephone number used for the whole of national territory, for all municipalities in which Italgas Reti operates and it is highlighted on the Italgas website. The service is not subject to any obligations imposed by the Italian Regulatory Authority for Energy, Networks and Environment (ARERAThe Italian Regulatory Authority for Energy, Networks and Environment (ARERA) is an independent body set up by Law no. 481 of 14 November 1995 to protect the interests of consumers and promote competition, efficiency and).By contacting the freephone number, users can receive information about multiple technical and commercial aspects by means of IVR (Interactive Voice Response), with the possibility, where envisaged, of being transferred to a Contact Centre service operator, a service that operates weekdays from 8 a.m. to 8 p.m. and is managed entirely with in-house resources based in Italy. Through the Salesforce applications, Contact Centre operators manage customer requests received over the telephone (with the help of the Genesys application for the telephone bar) and by e-mail, only for the following activities:

• scheduled replacements of meters and displays that are not functioning, appointment management, reports of disservices to the Technical Units with respect to the activities described;
• information on metrology verifications, estimates and 40/14 documentation;
• problems relating to registration on the portal.

In November 2020, moreover, thanks to the use of the Salesforce technology, the new Customer View was launched: a unique view of the customer based on the Salesforce CRM, which enables various corporate units (such as Complaints, Sales, Contact Centre) to have a single tool offering more information about the customer (e.g. personal details, re-delivery points associated and history of the customer/re-delivery point, services requested), with the aim of on the one hand simplifying the work of the in-house staff and on the other of guaranteeing a more efficient handling of the requests of end customers and sales companies.

ONLINE HELP

In order to guarantee the end customer more immediate, direct access to information about the Group and activities relating to the distribution of gas, in 2020, Italgas launched “Help online”, a brand new self search tool of more than 90 digital pages of browsable support, accessible from the Italgas website (faq.italgas.it), to quickly find answers to the most frequently asked questions.

CUSTOMER PORTAL

In 2020, the redesign project was launched of the portals dedicated to the end customer MyItalgas, MyMedea and MyToscanaEnergia, with a view to improving the user experience yet further, guaranteeing ever simpler, more user-friendly processes. In the new version of the portal, users needing assistance can access a support section filled with answers and consult their own utility record (re-delivery point, meter serial number, etc.), check the trend of their readings, monitor the services requested and appointments, ask for estimates for construction works or the alteration or removal of the supply system and much more besides. If they have further questions or need to make a report, end customers can ask them and do so directly from the portal.

CONSUMER ASSOCIATIONS

In order to continually improve service quality indexes, 2018 saw Italgas launch a structured, continuous collaboration programme with the world of consumer associations, based on an equal relationship of mutual benefit and trust. This programme consisted, first of all, in a Memorandum of Understanding, which, after lengthy preparatory work started in 2017, was finalised in early 2018 at the Ministry of Economic Development. It was signed by Italgas and 19 of the 20 Consumer Associations recognised by the CNCU (Italian National Council of Consumers and Users).

The general objectives of the Memorandum of Understanding are ongoing improvement of the service provided by Italgas and raising awareness among consumers of the qualities of natural gas and how it is used.

During the first period of protocol implementation, particular importance was assigned to the programme of replacing traditional gas meters with smart meters, so as to better understand how, thanks to the replacement, greater operative efficiency is achieved, which is then reflected on the consumer, and a greater capacity to provide the sales companies with reliable, timely data on consumption, thereby limiting incorrect billing or that based on estimated readings. At the same time, it offers the customer a tool that can foster responsible consumption and – ultimately – increase customer trust. All this whilst at the same time reducing physical access to the customer’s home.

The targeted cooperation between associations and company has also led to the management of user reports of any disservices as quickly as possible and, ultimately, through a comparison with the requests made by the association, to study and implement interventions specifically aiming to limit the number of disservices that are likely to give rise to complaints.

Thanks to the Protocol signed, Italgas and the associations worked together during specific territorial campaigns like, for example, the transformation to methane of the networks previously isolated and managed with LPG or particularly important unforeseen events, in order to facilitate the conversion, limiting, through due information, potential negative fallout impacting the consumer.

In 2020, the cooperation particularly regarded the programme for the methanisation of Sardinia, highlighting the economic and environmental benefits of using natural gas instead of other fuels, with a further focus on the sale of different gases and the start-up of the sale of natural gas on the island, by the Italgas associate, Gaxa S.p.A.

In 2020, Italgas and the associations organised various virtual meetings to examine the main innovations made by the company to assure a more timely, efficient service and reduce complaints and operative malfunctions. The meetings offered an opportunity for updates and tutoring on the use of new functions in the Italgas tools and services, such as those of the Supplier Portal.

In all, seven meetings with consumer associations were organised, of which one centrally, with the national reference persons of the energy industry, and six on a local level. Of these, three concerned distribution and were held respectively in Sardinia, Sicily and Calabria. The other three concerned the commercial area, i.e. the scope of business of Gaxa S.p.A., with a specific focus on the regulation of the sale of gases other than natural gas.

In all, on a local level, 75 local operators of the associations were reached, i.e. the people who come into contact with the end consumer on a daily basis.

Natural gas consumers are already today free to choose their supplier on the free market. Also, with the end of the “protected market”, scheduled to become effective in January 2023, consumers using this service will also have to switch to the free market and choose their own supplier.

To this end, the distribution companies are obliged to grant access to their networks for all those so requesting. More specifically, with Resolution no. 138/04, the Authority issued orders to promote the development of competition in the sale of natural gas and, at the same time, to ensure, in respect of consumer rights, the correct transmission of information between distributors and sellers. This is why, in line with that requested by the Authority and defined in its Sustainability Plan, Italgas has embarked upon a route aimed at strengthening its relations with the sales companies.

With the objective of improving dialogue between the parties and fostering increasingly constructive debate and exchange, in 2019 Italgas organised a proper training and information programme dedicated entirely to the sales companies. Continuing on from what was done the previous year, in 2020, 3 single-themed meeting sessions were organised, involving more than 900 reference persons, for more than 140 different Sales Companies serving more than 95% of the Italgas portfolio re-delivery points. Through a survey, the participants expressed their appreciation, assigning an average score of 4.5 on a scale of 1 to 5 points.

In July 2020, Italgas organised a digital convention with a view to creating a true partnership to achieve common goals centred around satisfying the end customer. It invited all sales companies to take part. The event made it possible to explain the strategies to the whole group, along with the policies and tools characterising relations with the sellers and to share the Italgas commercial development plan. It also offered a natural opportunity for debate and the sharing of suggestions on common growth opportunities to be taken in the proper spirit of partnership.

Gas2Be

In line with the more extensive digital transformation process, Italgas has developed the Gas2Be portal in its Digital Factory. This innovative platform, launched in July 2020, aims to enhance and support the partnerships with the sales companies in an ever faster manner, with simple, user-friendly processes. Thanks to Gas2Be, the sales companies can be accredited on the Italgas Group networks, modify their corporate data with just a few, simple clicks and access useful information and news about the networks managed by the Italgas Group. Starting February 2021, thanks to the integration of the “GasOnLine” portal functions, the Gas2Be portal has thus become the main communication bridge offering service and support for the sales companies, improving and optimising their experience.

SalesSupport

In order to improve the systems used to collect and receive complaints and reports made by the sales companies, Italgas has activated the new “Sales Support” function on the GasOnLine web portal, in the “Talk to us” section, which, as from February 2021, has been integrated into the new Gas2Be portal. Thanks to “Sales Support”, sales companies can request support from Italgas with just a few clicks, thereby significantly simplifying and accelerating the formal submission process. “Sales Support” also has a section dedicated to reports, to offer information tools and tools to trace the support requests sent by each seller and their outcomes.

Thanks to Sales Support, Italgas is therefore able to digitally and more effectively manage not only complaints and requests made by sellers regulated by the Authority Resolutions, but also reports and requests for information that are not regulated. Through this new service, in 2020 Italgas digitally handled more than 5,000 reports made by the sales companies.

Customer Satisfaction Survey

Dialogue and listening are essential in order to strengthen partnerships and promote continuous improvement. In order to fully understand the point of view of the sales companies and obtain valuable feedback, in November 2020, Italgas launched its first ever Customer Satisfaction Survey (CSS). The on-line survey measured the degree of satisfaction of the sales companies through 37 questions divided up into 9 different areas relating to the main businesses and processes; more than 150 users of the sales companies took part.

Starting from the results obtained, the subsequent commitment aims to develop focus groups to listen and implement improvements, with a view to assuring even greater collaboration, involvement and further progress in the quality of service.

GaSmart e GaSmart Ti Premia

“GaSmart” and “GaSmart Ti Premia” constitute another important initiative: two new promotions dedicated to the sales companies that involve discounts and refunds linked to requests for connections and activation that come under the scope of the multi-year commercial plan whereby the Group has set itself the aim of continuing to increase the operative re-delivery points on its network.

As the top Italian operator in the distribution of gas and the third most important in Europe, the Italgas Group plays an active part in the work of the Italian and international trade associations, confirming its commitment towards the protection, optimisation and development of the segment in which it operates.

Italgas takes part in the work of the associations through the oversight of corporate bodies and the participation in working groups or formal or informal parties established by these associations, which discuss and define the organisation’s position on operative and policy matters. Some of the most important associations in which Italgas takes part, on a national level, include:

• Anigas (Italian National Association of the Gas Industry). This trade association, a member of Confindustria, represents firms operating along the entire natural gas supply chain, with the exception of transportation and storage, with a particular focus on the following sectors: distribution, sale of natural gas on the end market and wholesale market, trading and methane for motor vehicle use. The association aims to support the role of natural gas and LNG as an energy source with lower environmental impact compared to other fossil sources, particularly as a fuel for mobility, as well as the gradual development of renewable gas. The participation in Anigas also grants access to the CIG – Italian Gas Committee – a regulatory entity federated with the UNI, competent to define technical and safety standards in relation to gas infrastructures and gas-powered equipment.
• Assonime. This is an association of Italian joint stock companies, particularly those listed on the stock exchange. It studies and handles problems that directly or indirectly concern the interests and development of the Italian economy, focussing specifically on themes of corporate governance, corporate finance and legal tax matters.

Internationally, on the other hand, Italgas takes part in:

• Gd4S, a non-profit association under Belgian law that unites the seven major operators in the natural gas distribution sector in Europe, in France, Greece, Ireland, Italy, Portugal, Romania and Spain. The association’s mission is to represent the views of the gas distribution sector at European institutions, specifically concerning the role that such infrastructures can play in the energy transition process towards a low carbon economy. In particular, the association supports gas and LNG as fuels for the transport sector, biomethane development, the study and implementation of P2G technologies for the production of “green” hydrogen, thereby transforming excess electricity into an energy carrier able to transfer renewable energy in time and space, taking advantage of the existing infrastructure now used for natural gas.

The main topics covered in 2020 in the working groups of the Associations indicated above were:

• Energy transition and the role of infrastructure in the decarbonisation process;
• The development of hydrogen as an energy carrier able to facilitate the integration of the gas and electricity segments;
• The control and reduction of methane emissions, in particular resulting in Italgas’ adhesion to the OGMP 2.0 UNEP initiative;
• Regulatory aspects connected with the energy transition

All these topics have been discussed both through participation in formal consultations by supranational bodies and through the preparation and giving out of position papers on the main policy topics, as well as, finally, meetings with national and European institutional stakeholders as well as through participation in seminars, congresses and webinars.

In February 2021, the GD4S Annual General Assembly nominated Paolo Gallo (CEO of Italgas) as President of the Association for another year’s mandate.

Below is a summary of the expenses incurred in 2020 for joining trade associations. In order to guarantee the possibility of comparison, data for previous years has also been reported. Starting 2019, the data also includes the values relative to Seaside.