Ladies and gentlemen, thank you for standing by. Welcome to today's Terna's nine -month 2020 consolidated results. At this time, all participants are in the listen -only mode. There will be a presentation followed by a question -and-answer session. At which time, if you wish to ask a question, you will need to press star one on your telephone and wait for your name to be announced. I must advise you that this conference is being recorded today, Wednesday, the 11th of November 2020. I would now like to hand the conference over to your speaker today, Agostino Scornajenchi, CFO. Please go ahead.
Good afternoon, welcome to Terna Nine Months 2020 Result Presentation. As you can appreciate from this chart, the first chart is page four of the presentation that you should have. In the first nine months of the year, due to the COVID-19 health emergency, national demand was 225 TWh, 6.9% lower versus the same period of 2019, where the national demand was about 242 TWh. Despite this situation, let me highlight that starting from the month of July, we started to register a recovery with a monthly flat demand in September compared to September 2019. Let me also underline that in the first nine months of the year, renewable sources covered about 40% of the total demand, compared to 35.7% in the corresponding period of 2019.
Concerning national net overall production, they stood at 206 terawatt-hours, with a strong increase registered in solar and hydro generation, which grew by 8% and 4% , respectively, versus the same period of last year, confirming the strong growth plan for renewable in Italy. Despite the challenging situation on the electricity market caused by COVID-19, Terna continued to manage the grid and ensuring a high quality of service and high security of supply. Let's move to the main figures of the period at page five. In the first nine months of the year, group revenues and EBITDA were up by 7% and 4%, respectively, which means EUR 115 million and EUR 45 million higher than the last year.
We reported a group net income of EUR 569 million, EUR 17 million higher versus last year, while group CapEx stood at EUR 749 million, 12% more versus September 2019, confirming the strong CapEx acceleration even in this challenging scenario of emergency. To support this massive CapEx acceleration, our net debt stood at EUR 8.8 billion versus about EUR 8.3 billion at year-end 2019. Now, let's make a deeper analysis of the figures. Let me start with revenues analysis. Total revenues in the first nine months of 2020 increased by 6.9%, reaching EUR 1,781 million, up by EUR 115 million versus the same period of last year. The growth was mainly attributable to regulated activities, which contributed for more than EUR 27 million. I remind you that from the last quarter, we consolidated the new acquired Brugg Kabel AG, for which the closing was signed in February.
Let's now go into the details of the regulated and non-regulated revenues evolution, moving to the next slide. Regulated revenues reached EUR 1,545 million, EUR 27 million better than last year. This increase reflects tariff solution driven by our investment activities, while other regulated revenues increased by EUR 5 million, mainly as a consequence of higher revenues related to quality of service. Non-regulated and international revenues reached EUR 236 million, about 60% higher than last year. This growth was mainly due to the already mentioned integration of Brugg Kabel AG. Let's go through operating cost analysis. On page nine. As shown in the chart, total operating costs stood at EUR 457 million, 18% higher than last year. The increase was mainly attributable to group consolidation. For a deeper analysis of the group's OPEX component, let's turn to the next slide.
Starting from regulated OPEX, we reported EUR 284 million, substantially in line versus last year, despite the strong increase of our asset base and some extra costs related to the COVID-19 emergency. Non-regulated and international operating expenses amounted to EUR 173 million, EUR 70 million more than last year, mainly due to the Brugg Kabel integration. Net of this perimeter effect, non-regulated and international OPEX were substantially in line versus last year. Let me now analyze the EBITDA, moving to the next slide. Considering the above -mentioned effects, group EBITDA reached EUR 1,323 million, EUR 45 million better than last year. Registered a positive EBITDA contribution both from regulated and non-regulated and international activities, which grew by EUR 27 million and EUR 18 million , respectively, versus last year. This increase was mainly attributable to higher regulated revenues, as well as to the contribution coming from Brugg Kabel acquisition.
Let's now have a look to the lower part of the profit and losses, turning to the next slide. I am now at page 12. Depreciation and amortization amounted to EUR 458 million. The increase versus last year was mainly due to the impact of new assets becoming operational in the period. As a consequence, EBIT reached EUR 865 million, EUR 23 million higher versus the first nine months of 2019. We reported net financial expenses of EUR 70 million, EUR nine million higher than the same period of last year, mainly as a consequence of the lower capitalized financial charges and the adjustment of the valuation of some equity investments in associated companies.
Taxes stood at EUR 223 million, EUR four million lower versus last year, due to high income not relevant for tax purposes recognized in the period. As a consequence, the tax rate stood at 28% versus 29% of the first nine months of 2019.
Consequently, the group net income reached EUR 569 million, EUR 17 million higher versus the same period of last year, despite a higher depreciation and amortization level linked to the business acceleration of the period. Moving to CapEx analysis. For the first nine months of 2020, total CapEx amounted to EUR 749 million, 12% higher than the same period of last year, confirming Terna's great ability to pursue its objectives despite the nowadays emergency context. We invested about EUR 705 million in regulated activities. Among the main projects of the period, it is worth mentioning the works to increase exchange capacity between the different market zones in Campania and Sicily. The rationalization of Naples metropolitan area, as well as the progress on construction sites for the Italy-France interconnection. Among CapEx categories, development CapEx represented the 35% of total regulated CapEx. Asset renewal and efficiency was 48%. Defense represent the 17%.
Non-regulated and other CapEx stood at EUR 45 million, which includes capitalized financial charges and other investments. Regarding net debt and cash flow analysis, net debt at the end of September 2020 was EUR 8,825 million, EUR 566 million higher than 2019 year-end level, and mainly as a consequence of the CapEx acceleration made on the national grid. Let me say that on working capital side, we confirmed that during the COVID emergency, we registered no relevant delays on cash settlements. There was no issue with bad debts. Moreover, the working capital increase shown in the chart was related to the increase of market payments connected to the uplift resolution that will progressively normalize in the coming months. Let's now make a deeper analysis of our debt profile at page 15.
Our debt management approach is aimed to keeping a high level of efficiency and a solid financial structure, potentially mitigating any potential financial risk. Indeed, at the end of the period, we registered a fixed over floating ratio on gross debt of about 84% and an average duration of about five years. Regarding the proactive debt management activities delivered as usual also in this period, let me remind you about the bond issue made in September for EUR 500 million, with a duration of 10 years and a coupon of 0.375%, the lowest for an Italian corporate bond with this duration. This bond followed the green bond launched in July for a total nominal amount of EUR 500 million and an actual cost equal to 0.78%, confirming our absolute leadership in the sustainable financial market.
Finally, it is worth mentioning that at the end of October, Standard & Poor's affirmed the long-term corporate credit rating on Terna at BBB+, one notch above the sovereign rating, while revising the outlook of Terna to stable from negative. At the same time, the agency also affirmed Terna's standalone credit profile at A-. You remember that this decision followed a similar decision on the rating of the Italian Republic. To conclude this presentation, I would like to remind you that on 19th of November, we will present the new industrial plan. Moreover, we also remind you that on the 25th of November, we will pay the 2020 interim dividend of EUR 0.0909 per share, as decided in the Board of Directors of today. Thank you very much for your attention. We are now ready for the Q&A session.
Thank you. Ladies and gentlemen, we will now begin the question -and-answer session. As a reminder, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the hash key. Once again, please press star one if you wish to ask a question. Your first question comes from the line of Harry Wyburd from Bank of America. Please ask your question.
Hi. Good afternoon, everyone. I appreciate that you'll be taking the sort of big issue questions next week. Just one from me. I understand that the regulatory review process has formally kicked off, and I think you and your peers have said fairly consistently over the course of this year that the formula, as it stands, implies no change to the allowed return. If I'm not wrong, I think the formula is due to be reviewed under the current regulatory review. I'm just interested in your thoughts as to what the timeline, firstly, of the regulatory review process will be from here, and then specifically whether you envisage any changes to the formula for how the allowed return is calculated.
Well, in general terms, as you know, according to current rules, the 5.6 WACC has been set until the end of 2021. Regarding the post-2021 WACC update, the process just started with the resolution published only a few weeks ago. The document was pretty general, and it refers only to the overall regulatory principle without entering in any specific detail. We can say that the resolution aligns the intention of the regulator to operate in full continuity with past methodology in order to preserve the stability of regulatory framework. This is something that, as you know, is of mandatory importance for us. For what concern the duration, the document indicates that the new WACC period will last at least for four years, maintaining the principle to have an interim review to adjust eventually the parameters in accordance with some evolution of the macroeconomic scenario.
To make a long story short, we expect to have a little bit more visibility in the second part of 2021, maybe in the third quarter of 2021. Again, we expect full continuity in the principles.
Okay. Thank you.
Your next question comes from the line of Javier Suárez from Mediobanca. Please ask your question.
Hi. Good afternoon, and thank you for the presentation. Three questions also on the third quarter numbers. The first one is on the CapEx, that I think it has been a surprise, the level of CapEx that is ahead of expectations, I guess. The question here is that, what is behind that increase of CapEx? If the company feels an improvement in the overall process for administrative approval for the investment, if that is something that is happening, and you as a company are feeling that tailwind coming from less of a heavy administrative burden. That is the first question. The second question is on also taxation during, so far this year, it looks a little bit lower than expected. If you can help us to understand the level of taxation by the year end.
The third question is on the cash flow statement on slide number 14, there is a working capital negative impact of EUR 350 million. If you can help us to understand where that number should be by the year -end. Thank you.
Thank you, Javier, for your questions. Let me start from the first one. Nothing magic behind the evolution of the CapEx. Only, let me say, an impressive, huge commitment, a huge sense of belonging to the team, demonstrated from our operational people. They did something really exceptional, given that in nine months, we had basically two months in which the country was completely closed. We were not obliged to stop our jobs, our works, our realizations. The problem was the logistic in the country. It was not possible to move for providers, for our suppliers, for our technicians in the different areas of the country. The team demonstrated huge flexibility. They, of course, were obliged to postpone some activities, but they also decided in the meantime to reschedule other activities in order to cover with something else what was missed.
At the very end, the fact that we are able to show an increase of 12% respect the same period of 2019. If you compare also these figures with our internal expectation, we are full in line with our internal expectation at the end of September. Again, they basically worked seven months out of nine, because for two months, the company was completely blocked. Really an excellent job made by the operational team. Regarding taxation, slight decrease in the tax rate. Yes. Slight decrease in the tax rate from the average 29% to 28%, is mainly related to non-taxable items. Non-recurrent, non-taxable items. We expect that in the long term, nothing will change. Last question on cash flow. Due to the nature of this figure, on one side, the positive effect to our net debt registered in the last year has started to be absorbed.
In particular, with reference to net energy -related pass-through payables during these months, there has been an increase in the cost of service against the lower cost of energy and the lower demand of energy. Saying in other terms, we were obliged to buy on the market ancillary service in a particular part of the periods in which we had a lot of very low demand, a lot of renewable generation. A lack of stability service on the system. We were obliged to buy for this, so we paid for this. On the basis of the agreement that we have with the authority, this cash out will be compensated by corresponding cash-ins from the distributor in the coming months. It will be reabsorbed, but we expect by the first half of 2021.
Thank you.
Your next question comes from the line of Stefano Gamberini from Equita SIM. Please ask your question.
Good afternoon, everybody. Three questions from my side. First, regarding what happened during the summer in the renewable sector. Are you experiencing an acceleration of demand for new connection from this sector as well? Are your CapEx also related to this acceleration? At the end of the day, after the lockdown, no main changes on this point of view happened? The second, regarding the financial charges. Could you elaborate a little bit more what happened in the third quarter with these higher financial charges? If you have a guidance for the full year. The last one, just if you can remind us, the main guidance for full year in terms of EBITDA, CapEx, and net debt. Many thanks.
Regarding the first question, this is something that we will discuss more in detail on the 19th. What I can anticipate here is that, yes, we had a lot of additional new requests for connection coming from private entrepreneurs that are investing in renewable. No, there is not a direct connection for the time being for the CapEx we asked, because in any case, we were talking about CapEx that were already planned for 2020. Of course, it will be not the case for the future, because in the future, a relevant part of our business plan will be connected with increase of renewables in the system. The second question was related to less financial charges. We are talking about an increase of EUR 90 million that is connected to two main items.
The first one is that we have less capitalized financial charge for a reduced capitalization rate. The second one is that we decided some adjustment in valuation of investment in some minor associated company. In any case, we are talking about a one-off impact of low single digits, nothing relevant. The third one. For the guidance, yes, of course. We are going to confirm the guidance already communicated last March. We will confirm EUR 2.49 billion of revenues, EUR 1.79 billion of EBITDA, and EUR 1.3 billion of CapEx. All the others. We confirm everything was communicated already. Nothing changed.
Okay. [Non-English content].
Let me add that this is a really impressive demonstration of the resiliency of our business model. What happened in 2021, and what is still happening, unfortunately, is something that has a massive impact on the economy. If you look to the September figures, they are basically COVID -free. Thank you.
If there are no further questions, I will hand the conference back to your speakers.
Well, really, thank you for your time. Let's have additional conversation on 19th, in which we will dedicate all our attention and all our effort to have a good presentation of our business plan update for 2021, 2025. Thank you very much.