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 revenues by enlarging its market share and pursues these objectives mainly by:

  • promptly carrying out the investments provided for by the Grid Development Plan, which are at the same time useful for improving the electricity service for society and a source of corporate income;
  • seeking operating efficiency and optimizing its capital structure;
  • developing non-traditional activities linked to transmission, such as storage;
  • seeking business opportunities in industries other than transmission, such as the project for exploiting its assets by constructing photovoltaic plants on land adjacent to its power stations and other non-traditional ventures specified in the 2012-2016 Strategic Plan.

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

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 2011 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: for example, the share and dividend performances are reported in the “Relations with shareholders” section, while the investments carried out are presented in “Terna’s economic impacts” section.

The “Revenues and risk management” section provides information on the different 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. “Terna’s economic impacts” section includes 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, which also illustrate Terna’s commitment to developing initiatives and management instruments that are consistent with the provisions of its Code of Ethics. In particular, the following should be noted:

  • the pursuit of transparency and communicative clarity in relations with shareholders;
  • the selection of suppliers conducted according to compliance criteria with qualification requirements, including respecting regulations regarding the environment and occupational safety;
  • concern for the companies in the electricity industry, both in applying the non-discrimination principle and beyond the obligations established by the regulatory Authority.