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Electricity Distribution

Regulated Electricity Revenues

Like the end of 2008, the first half of 2009 experienced a stable legislative framework regarding the mechanisms for determining tariffs for electricity distribution and metering, as set forth in AEEG resolution 348/07. They are essentially based, on the one hand, on AEEG's setting of tariffs by single customer types nationwide and, on the other, on defining appropriate and different mechanisms for equalising revenues and costs.

With ARG/elt resolution 188/08, AEEG updated the prices for the electricity transport, distribution and measurement services for 2009. Determining regulated revenues for the first half 2009 is based on these prices, which are consequently based on stable tariff parameters.

In such a context, the revenues from the distribution of electricity were, for the first half of 2009, equal to Euro 22.9 million, against a level of distributed volumes of approximately 1,063 million kWh and an average return of 2.16 Euro cent/kWh.

Compared to the first half of 2008, a total 3.1% increase in revenues (from Euro 22.2 to 22.9 million) is recorded against a 5.2% decline in delivered volumes (from 1,121 to 1,063 million kWh). Said increase is justified with an 8.8% unit revenue increase (from Euro cents 1.98 to 2.16), to a large extent attributable to growth in the tariff levels approved for 2009 with ARG/elt resolution 188/09, compared to those forecast for 2008. In the second place, moreover, the increased unit revenue also depends on the greater impact of fixed rate revenues in a setting of appreciably decreased delivered volumes.

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