DOCAL GAZ DERGiSi SAYI. 24 74 competitiveness; 6) The setting up ofan effective regime of prices fixed by the State for goods and services considered essential for a balanced development of the community; c) The setting ofprices for those goods and services deemed to be ofstrategic importance for the country; d) The incentivation and promotion of specific sectors ofproduction; e) The containment and control of inflation. In Italy, Scate intervention has historically followed two main lincs: a) Direct issue of legal regulations; 6) Endowing specific adrniniseraeive bodies with the power to control and fix prices. The State also enacts the direccives of ehe European Econornic Cornrnuniey ehat are eending to acquire increasing importınce. In Icaly, State Administration imervenes in ewo ways: surveillance and adrniniseracion. Price surveiilance is the loosest form of control and is effocted through deposieing ofprıce lıses by sales cornpanies or ehrough ex-post analysis of price performance o-:ı ehe m:ı ·ket. Price adrnınistration is adüeveJ by fix;ng rnaximum values with mechanisms that in !ine wieh ehe growing incernationalızation ofehe economic system, are based on the situatıon existing in other EIC countries or which take into account parameter-based formulas. 3. THE TARIFF METHOD iN THE GAS SECTOR Tariff problems, in the gas distribution secror, are easier to understand giving a brief look at the past. In 1910, tariffs were under the responsibility ofa Central Committee for the Gas Service which established the price taking into account gas production systems, quality of fuels used, recovery of by-products, operating expenses, plant depreciation, interest on invested capital. With some adjustments, this "Tariffıng Method" remained in force until May 1949 when the Interdepartmental Committee on Prices (CIP) issued a new criterion for evaluation of ehe price of gas « P », expressed by the following formula (ın Lire/cubic meter): personnel-relaeed expenses m3 of gas sold This regulation was set aside in the mid 60's following far-reachin,; evn1ution of production syseems, increased d,ffusion of companies distributing natura! gas and ever ıncreasing diversification of use. Variations ın ehe sales price of gas, no l ger fixed according to paramecers iss,ı)end by the cemral authority, were approved by decentralızed authorities accorJıng to evolution ofeffective costs as support�d by company documentary evidence. l'lıe resulting chaotic, irregular situation was to be ascribed mainly to the dıversirıe.:l operaeing scenarıos chac lead ehe aecencraLzed authorities to behave in dıfferent ways. rn 1968, the Interdepartmental Commı• �e on Prices set up a commıssion wich i.:ıe task ofdeveloping a new tarıffmechod. h August 1975, a new method for detertı'ıning and revısıng rates charge.J [•r 1! s dıstributed through urban networks w,ıs introduccd irı Lıly. The "TariffMeehod" is stili in force tlu-oughouc ltaly, and provides meam for 1eterminıng, each year, loca! raees chargec.! w gas cuscomers in accordanc.e witlı spe- fic condition in each loca! area. In formulacing ehe "TariffMethod", elıe inrent of the Central Adminiscration was to sta•1dardize gas rates throughout Italy and minimize ehe cost to the cuscomer while maincaining a proper balance berween corporate income and expenses. The ıneroduction of the "TariffMethod'' improved the situacion of the Diseributing Companies: in 1976, a new fillip was given to invescments thae had ground to a seandstill in the precedent years, and the trend concinued to hold up well in subsequent years. --------- - d
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