Since 1998, Telecom Italia, as a notified operator having Significant Power in the fixed network market, has been subject to accounting separation and cost accounting obligations (RA) imposed by AGCom (the Italian Communications Regulatory Authority).
Regulatory accounting consists in drafting "separate" accounting records, for revenues, costs and net invested capital, of the main regulated markets/services, aimed at verifying compliance with the obligation of transparency, non-discrimination and price control.
In particular, the regulatory accounts (RA), prepared with a "FDC" logic, are divided into the following schedules:
· Balance Sheet and Income Statements
· Detail of network components and activities
· Detail of unit costs of regulated wholesale services
The RA costs also include the WACC set by AGCom following a special procedure. At present, the WACC before tax has been set at 8.64%.
The RA are sent every year to the Authority, within 120 days from the approval of the statutory financial statements. These are reconciled with the said financial statements and are subject to audit by independent auditors appointed by the Authority with a specific call for tenders.
Once certified, the RA are published on the Authority’s website, in the version that can be disclosed, accompanied by the "compliance reports" issued by the independent auditors.
The most recent RA (2018) were sent to the Authority on 28 June 2019.
The last RA certified by the auditors relate to the accounting period 2016. For the accounting years 2017 and 2018, the Authority has not yet launched the call for tenders for the award of the contract to a competent third party.
The last RA certified by the appointed auditor and published on the AGCom website refer to the accounting period 2014. We are therefore waiting for the publication of the RA already certified, i.e., those relating to the years 2015 and 2016.