Annual Report
Enel Américas
2018
Santiago Stock Exchange
ENELAM
New York Stock Exchange
ENIA
Enel Américas was initially established under the name Compañía Chilena Metropolitana de Distribución
Eléctrica S.A. On December 1, 2016 the company changed its name to Enel Américas S.A. The Company’s paid-
in capital on December 31, 2018 reached $6,763,204,424 and was represented by 57,452,641,516 shares. These
shares are traded in the Chilean stock exchanges and in the New York Stock Exchange in the form of American
Depositary Receipts (ADR).
The main business of the Company is the operation, development, generation, distribution, transmission, transfor-
mation and/ or sale of energy in any of its forms or nature, directly of through other companies. The Company can
also exercise activities in the telecommunications sector, provide engineering advisory in the country and abroad,
and also can invest and manage its investments in its subsidiaries and associate companies.
Total assets amounted to $27,396,356 thousand on December 31, 2018. Enel Américas controls and manages a
group of companies that operates in the electricity markets in four countries in Latin America (Argentina, Brazil,
Colombia and Peru). In 2018, net income attributable to the controlling company reached $1,201,381 thousand
and operational income was $2,434,520 thousand. By the end of 2018, the Company employed 18,3931 people
through its subsidiaries companies in Latin America.
1 Includes senior executives shared with Enel Chile.
Annual Report
Enel Américas
2018
2
Annual Report Enel Américas 2018 Content
> Letter From the Chairman ...................................................................................................... 4
> Enel Américas is Open Power .................................................................................................. 6
> Milestones in 2018 ................................................................................................................... 8
> Main financial indicators ......................................................................................................... 13
> Identification of the company and constituent documents ................................................... 17
> Property and control ............................................................................................................... 21
> Administration ........................................................................................................................ 27
> People and organization ......................................................................................................... 41
> Exchange Transactions ........................................................................................................... 51
> Dividends .............................................................................................................................. 57
> Investment and financing policy for 2018 .............................................................................. 61
> Business of the Company ...................................................................................................... 65
> Investments and financial activities ....................................................................................... 73
> Risk Factors ........................................................................................................................... 83
> Regulatory framework of the electricity industry ..................................................................101
> Description of the electricity business by country ............................................................. 131
> Sustainability ........................................................................................................................ 159
> Direct and Indirect Economic Participations ........................................................................ 165
> Significant Events of the Company ...................................................................................... 171
> Identification of subsidiaries and associate companies ....................................................... 179
> Statement of Responsibility ................................................................................................. 195
Content
3
1. Letter From the
Chairman
Dear shareholders:
You are holding the Annual Report and Financial State-
ments of Enel Américas S.A. for to the year 2018, in which
you will find the main actions taken by the company. This
was a period where important milestones were achieved in
accordance with our business strategy.
The year 2018 has been determined by events that are
transforming the social, political and economic context in
the countries where we operate, being sometimes hard to
predict, which also brought other long-term change factors
and deep long-term consequences, such as technological
advances, growing digitalization…. All of the aforemen-
tioned circumstances are constantly challenging the ability
of the companies to achieve their goals.
In any case, our company has been able to achieve excel-
lent economic and financial results, thus being capable to
meet its commitments, all of which are detailed below.
Results of the period
Enel Américas showed fairly positive financial results. Ac-
tually, the company´s EBITDA grew 13.9% compared to
2017, mainly explained by the accomplishments of our
companies in Argentina and the actions carried out in Bra-
zil, particularly through the incorporation of Eletropaulo and
the good results of Enel Distribución Río and Enel Distribu-
ción Goiás.
Enel Américas’ net results increased 69.4% compared to
the previous year, reaching US$ 1,201 million.
Industrial growth
2018 was a positive year in terms of industrial growth,
while revenues amounted to US$13,184 million, meaning
26.3% growth in relation to 2017. This result is mainly ex-
plained by the revenues obtained in Brazil, country where
the year was particularly good, which also resulted in im-
portant consolidation of our clients’ base in the country.
Enel Brasil Investimentos Sudeste was awarded the ac-
quisition of Eletropaulo Metropolitana Eletricidade de Sao
Paulo, becoming the largest energy distribution operator in
the country, with more than 17 million clients and a mar-
ket share of nearly 20% in the distribution business. This
acquisition meant the brand name change of Eletropaulo
to Enel Distribuição São Paulo. In addition, this transaction
proves a fundamental commitment in our growth strate-
gy, while the first results show that it will become a great
investment. Also the company Celg changed its name to
Enel Distribuição Goiás, firm acquired in 2017, which added
new 2.9 million clients to our clients’ base.
In Argentina, we carried out large investments that im-
proved the quality of supply for our clients in different ar-
eas of the country. In this country, our works plan for 2018
reached 5,000 million Argentinean pesos. As such, Ede-
sur commissioned three Substations: Móvil Puesto Roca,
in Temperley, benefiting 90,000 clients; Padre Novak, in
Florencio Varela, benefiting 42,000 clients; and finally the
Substation in Sarandí, meaning an improvement in service
quality for more than 150,000 people.
In Peru, we also had a year of strong investments in distri-
bution, with the construction of the new Electricity Trans-
mission Substation Izaguirre, which will supply energy to
large businesses and also improve service to 110,000 cli-
ents in North Lima.
4
Annual Report Enel Américas 2018 In Colombia, through our subsidiary Codensa, we inaugu-
Our company is living a positive development cycle. Our
rated a modern service center in Bogotá, located in Re-
achievements consolidate our growth and stability. This is,
strepo neighborhood, which required and investment of
without any doubt, a reason for satisfaction, but at the same
2,900 million Colombian pesos.
time means to take great current and future responsibilities,
Our future
while maintaining high standards of corporate behavior, being
capable of combining competition, skills and ethics in the ex-
pansion of our business.
In 2018 Enel Américas consolidated as one of the largest
Finally, I would like to express my gratitude to the Directors,
private electricity companies in Latin America, achievement
CEO, executives, professionals, technicians and employees
based on steady growth both in energy generation and dis-
of Enel Américas for their permanent effort and dedication.
tribution businesses. Nevertheless, we have the challenge to
All of them have been absolutely essential for the develop-
keep our long-term position, following the path of looking for
ment of the company in 2018. With nothing more to add, I
new opportunities in the region which will enable us to con-
invite you to continue making positive contributions to the
tinue growing.
future of Enel Américas as an energy leader in Latin America.
These efforts have greatly paid off. We are very proud to in-
Thank you.
Francisco de Borja Acha
Chairman of the Board
Enel Américas
form you that in 2018 Enel Américas was included in Dow
Jones Sustainability Emerging Markets Index and in Dow
Jones Sustainability MILA Pacific Alliance INDEX, in addition
to the confirmation for the second consecutive year of our
presence in Dow Jones Sustainability Chile.
The continued safety of our collaborators, with no distinc-
tion between own employees and contractors, is other fun-
damental pillar of Enel Américas. We need to redouble our
efforts to achieve our main priority, which is zero accidents at
the workplace, through the consciousness and promotion of
the awareness of procedures and safety norms, its systemat-
ic application at all times and the detailed analysis of any risk
or incident.
In conclusion, our strategy is clearly oriented towards mak-
ing Enel Américas an active company in building sustainable
future through the execution of our values, which are aimed
at facilitating access to progress through energy in every
community where we are present, in the promotion of new
technologies, uses and more efficient ways of managing and
using energy, and establishing lasting partnerships with our
stakeholders in order to achieve our common objectives.
5
2. Enel Américas
is Open Power
B
e
k
e
e
n
t
o
g
u
a
r
a
n
t
e
e
c
u
s
t
o
m
e
r
C
o
m
m
i
t
t
o
i
n
t
e
g
r
a
t
i
o
n
,
a
c
k
n
o
w
e
d
g
e
l
a
n
d
i
m
p
r
o
v
e
Q
u
i
c
k
l
y
c
h
a
n
g
e
p
r
i
o
r
i
t
i
e
s
i
f
c
o
n
d
i
t
i
o
n
s
B
e
h
a
v
e
s
a
f
e
l
y
,
p
r
o
m
o
t
e
s
a
f
e
t
y
c
h
a
n
g
e
i
n
d
i
v
i
d
a
n
d
b
e
s
a
t
i
s
u
a
l
d
i
f
f
f
a
e
p
r
o
a
c
c
t
i
o
n
,
r
e
n
c
t
i
v
e
e
t
s
o
P
r
o
p
o
s
e
n
e
w
A
c
k
n
o
w
e
d
g
e
l
t
h
e
s
u
c
c
e
s
s
o
f
p
e
e
r
s
a
n
d
/
o
r
c
o
w
o
r
k
e
r
s
o
l
u
t
i
o
n
s
a
n
d
d
o
n
´
t
g
i
v
e
u
p
a
n
d
o
f
f
e
r
s
u
g
g
e
s
M
a
k
e
d
e
c
i
s
i
o
n
s
o
n
e
v
e
r
y
K
e
e
p
y
o
u
r
c
o
m
m
i
t
m
S
h
a
r
e
i
n
f
o
r
m
a
t
i
o
n
e
n
t
s
,
a
n
d
c
o
l
l
a
b
o
r
a
t
i
n
g
w
o
r
k
w
i
t
d
a
y
t
a
s
k
s
B
E
H
A
V
I
w
i
t
h
a
n
d
O
R
h
o
d
t
h
e
e
t
r
b
e
a
c
c
e
s
o
r
u
m
i
n
a
n
n
t
d
a
O
b
t
a
i
n
a
t
i
o
r
n
b
e
b
l
e
o
p
f
o
r
u
l
t
n
n
d
t
o
s
p
a
i
m
i
n
g
a
s
s
i
o
n
f
o
r
t
h
e
m
t
h
e
c
o
ll
a
b
o
e
,
v
e
e
s
a
e
b
e
h
a
(
c
u
l
t
i
m
p
u
r
r
o
w
h
v
i
n
e
g
a
n
g
h
e
f
fi
e
e
,
c
d
i
i
s
a
l
t
e
h
t
i
o
n
s
t
f
a
c
i
n
g
n
t
l
a
b
i
l
i
t
h
o
y
a
b
t
i
m
s
t
a
n
y
,
p
a
d
,
s
a
f
e
t
y
c
l
e
s
p
r
o
v
e
r
a
p
i
d
l
y
o
r
f
a
e
r
s
a
n
o
d
e
x
c
n
a
l
i
t
y
,
e
w
e
l
l
b
e
ll
e
n
c
e
u
l
t
s
t
c
.)
e
i
n
g
r
a
ti
o
n
o
f
o
t
h
e
r
s
t
h
e
i
r
e
f
f
o
r
t
ovation
n
In
R
e
s
p
o
n
sibility
VALUES
O
p
e
greate
n P
o
w
e
r t
st c
h
o o
v
e
alle
V
I
S
I
O
N
n
g
e
r
c
o
s
f
a
m
e
c
i
n
s
o
g
m
e
t
h
e
o
f
w
t
h
e
o
r
l
d
T
r
u
s
t
y
g
o
l
o
n
h
c
e
t
w
e
n
o
t
y
g
r
e
n
e
n
e
p
O
s
r
e
m
u
s
n
o
c
r
o
f
y
g
r
e
n
e
e
g
a
n
a
P r o a ctivity
N
SIO
MIS
y to m
erg
s
e
s
w u
e
n
n e
e
p
s
orator
b
Open energy to n
O
Open to new colla
n e n erg y to m ore people
e
p
O
2. Enel Américas
is Open Power
VALUES
O
p
e
n P
greate
o
w
e
r t
st c
h
o o
alle
V
I
S
I
O
N
v
e
r
c
o
n
g
e
s
f
a
m
e
c
i
n
s
o
g
m
t
h
e
e
o
f
w
t
o
h
e
r
l
d
T
r
u
s
t
y
g
o
l
o
n
h
c
e
t
w
e
n
o
t
y
g
r
e
n
e
n
e
p
O
ovation
n
In
C
o
m
m
i
t
t
o
i
n
t
e
g
r
a
t
i
o
n
,
a
c
k
n
o
w
l
e
d
g
e
a
n
d
B
e
k
e
e
n
t
o
g
u
a
r
a
n
t
e
e
c
u
s
t
o
m
e
r
B
e
h
a
v
e
s
a
f
e
l
y
,
p
r
o
m
o
t
e
Q
u
i
c
k
l
y
c
h
a
n
g
e
p
r
i
o
r
i
t
i
e
s
i
f
c
o
n
d
i
t
i
o
n
s
M
a
k
e
d
e
c
i
s
i
o
n
s
o
n
S
h
a
r
e
i
n
f
o
r
m
a
t
i
o
n
K
e
e
p
y
o
u
r
c
o
m
m
i
t
m
e
n
t
s
,
A
c
k
n
o
w
l
e
d
g
e
t
h
e
s
u
c
c
e
s
s
o
f
P
r
o
p
o
s
e
n
e
w
s
o
l
u
t
i
o
n
s
a
n
d
/
o
r
c
o
w
o
r
k
e
r
i
m
p
r
o
v
e
s
a
f
e
t
y
i
n
d
i
v
i
d
a
n
d
b
e
c
h
a
n
g
e
p
e
e
r
s
a
n
d
d
o
n
´
t
a
n
d
o
f
f
e
r
g
i
v
e
u
p
s
u
g
g
e
s
s
a
t
i
s
u
a
l
d
i
f
f
f
a
e
p
r
o
a
c
c
t
i
o
n
,
r
e
n
c
t
i
v
e
e
t
s
o
b
e
h
a
(
c
u
l
t
i
m
p
u
r
r
o
w
h
v
i
n
e
v
e
r
y
d
a
y
c
o
l
l
a
b
o
r
a
a
n
d
w
o
r
k
w
i
t
t
a
s
k
s
t
i
n
g
w
i
t
h
a
n
d
B
E
H
A
V
I
O
R
h
o
d
t
h
e
e
t
r
b
e
a
c
c
e
s
o
r
u
m
i
n
a
n
n
t
d
a
O
b
t
a
i
n
a
t
i
o
r
n
b
e
b
l
e
o
p
f
o
r
t
i
o
n
s
t
f
a
c
i
n
g
e
g
a
n
n
e
,
v
e
e
s
a
e
n
g
h
d
t
h
e
u
l
t
s
p
m
e
f
fi
e
e
,
c
d
i
i
s
a
e
h
a
l
t
,
s
n
t
l
b
i
l
i
t
s
t
a
n
y
,
p
a
d
a
i
m
i
n
g
a
s
s
i
o
n
a
f
e
t
y
f
o
r
c
l
e
r
a
e
r
s
a
n
o
d
e
x
c
s
n
t
o
t
h
e
c
o
ll
a
b
h
o
y
a
b
o
r
a
ti
o
n
t
i
m
p
r
o
v
e
p
i
d
l
y
a
l
i
t
w
e
l
l
b
y
,
e
t
c
.)
e
i
n
g
e
ll
e
n
c
e
o
f
o
t
h
e
r
s
t
h
e
i
r
o
r
f
a
u
l
t
s
e
f
f
o
r
t
R
e
s
p
o
n
sibility
P r o a ctivity
N
SIO
MIS
n e n erg y to m ore people
e
p
O
s
e
s
w u
e
y to m
erg
orator
n
n e
e
p
O
b
s
Open to new colla
Open energy to n
s
r
e
m
u
s
n
o
c
r
o
f
y
g
r
e
n
e
e
g
a
n
a
3. Milestones in 2018
FEBRUARY
Codensa inaugurated a
modern service center in
Restrepo neighborhood in
Bogotá
T h e S e r v i c e C e n t e r
e s t i m a t e s t o s e r v e
monthly approximately
12,500 clients. The project
required investments of
COP$2,900 million and
has 18 service modules,
being especially designed
to be closer to clients.
The Service Center was
designed with modern
i n f r a s t r u c t u r e a n d
comfortable facilities,
allowing clients to have a
better service experience.
Moody´s assigns “Baa3”
to Enel Américas
On February 23, Moody’s
credit risk rating agency
assigned “Baa3” rating
to Enel Américas, and
changed the outlook from
stable to negative mainly
due to the macroeconomic
situation in Colombia.
MARCH
Celg changed its name to
Enel Distribución Goiás
The brand name change is
part of the transformation
o f t h e c o m p a n y
t h a t s t a r t e d a f t e r i t s
acquisition and included
greater investments and
a restructuring process
addressed to improve
service quality to satisfy
clients’ needs.
Codensa and Emgesa
were the first companies
of the electricity sector in
Colombia to gain the Sello
de Oro de Equidad Laboral-
Equipares
This acknowledgement
was the first in Colombia.
Codensa and Emgesa were
certified as companies that
have introduced verifiable
equity policies, closing
g e n d e r g a p r e g a r d i n g
salaries, opportunities and
inclusion.
JANUARY
Maintenance works started
in Emgesa’s hydroelectric
power plant El Quimbo
The Colombian company
announced the beginning
o f s e v e r a l w o r k s i n
t h e m a i n d a m o f t h e
hydroelectric power plant
El Quimbo, as part of the
scheduled maintenance
programs for the power
plant’s main civil works.
E d e s u r i n a u g u r a t e d
Substation Padre Novak,
in the Florencio Varela area
Edesur is subsidiary of Enel
Américas in Argentina.
This substation directly
b e n e f i t s 4 2 t h o u s a n d
clients in the Florencio
V a r e l a a n d A l m i r a n t e
Brown areas. Investment
reached ARS$102 million,
being part of a whole
i n v e s t m e n t s p l a n o f
ARS$5,000 million in 2018.
Works at Florencio Varela
included the construction
of a new substation with
a 40 MVA transformer,
a medium voltage room
with 8 feeders and 13
kilometers of medium
voltage wires.
C o d e n s a i n a u g u r a t e d
t h e f i r s t g e n e r a t i o n
and distribution energy
r e n e w a b l e p r o j e c t i n
Cundinamarca
This small grid benefited
20 families living in sites
d i f f i c u l t t o a c c e s s i n
the Alto Redondo area,
located 230 kilometers
from Bogotá, but almost 8
commuting hours.
E d e s u r r e c e i v e d t h e
“Ring the bell for gender
equality” award, due to the
integration of women in its
board of directors
Comisión Nacional de
Valores distinguished
Edesur for being one of
the companies with better
g e n d e r e q u a l i t y i n i t s
board of directors. Mónica
Diskin, Legal Manager,
and Alejandra Martínez,
Communications Manager,
attended the ceremony.
A n n o u n c e m e n t o f a n
agreement between Enel
Argentina and Margarita
Barrientos, for health
improvement of people
living in Los Piletones
neighborhood
The sustainability area
of Enel Argentina hired a
health professional in the
neighborhood’s Health
Center to carry out “non-
invasive” checkouts with
cutting-edge technology.
These controls can identify
chronic diseases. The plan
is to expand this project to
other communities where
the company operates.
APRIL
Successful local bond
i s s u e o f C o d e n s a f o r
COP$360,000 million
The company performed
a successful bond issue
in the Colombian capital
m a r k e t a m o u n t i n g t o
COP$360,000 million at
7 and 12-year term. This
issuance was registered
under the Bond Issuance
and Placement program
approved by the Financial
S u p e r i n t e n d e n c e o f
Colombia.
E l Q u i m b o b e c a m e a
scientific international
benchmark regarding the
research and restocking
of fish
Emgesa, in alliance with
Universidad Surcolombiana
(USCO) and Experimental
Station of Hydrobiologic
R e s o u r c e s o f S o u t h
C o l o m b i a ( E S R H i n
its Spanish acronym),
p e r f o r m e d t h e “ I
International Seminar
f o r t h e E c o l o g i c a l
Management of Dams”,
in which El Quimbo was
a scientific reference
regarding the restocking
and relocation of native
f i s h . T h i s a c t i v i t y i s
part of the Fishery and
Fishing Program of Alto
Magdalena, and developed
by Emgesa at El Quimbo
for six years. This initiative
has driven cooperation
agreements with different
universities and funding
r e a c h e d m o r e t h a n
COP$15,000 million.
8
Annual Report Enel Américas 2018 JUNE
E n e l B r a s i l a c q u i r e s
Eletropaulo (currently Enel
Distribución São Paulo)
Enel Brasil Investimentos
Sudeste, subsidiary of Enel
Américas, accomplished
successfully the voluntary
offer for the acquisition of
the entire social capital of
Eletropaulo Metropolitana
Eletricidade de São Paulo
SA. With this transaction,
Enel Américas became
the largest electricity
distribution operator in the
country, with more than 17
million clients and 19.0%
market share in energy
distribution. Enel Brasil
Investimentos Sudeste
received confirmation
t h a t b e t w e e n J u n e 5
and July 4, 2018, in line
w i t h t h e r e g u l a t i o n s
o f t h e B r a z i l i a n s t o c k
exchange, shareholders of
Eletropaulo Metropolitana
Eletricidade de São Paulo
SA sold additional shares
of Eletropaulo to Enel
Sudeste equivalent to
19.9% of the social capital
of the company. Along with
this, Enel Sudeste reached
93.3% share ownership of
the distribution company.
Codensa and Emgesa,
w e r e r e c o g n i z e d a s
c o m p a n i e s t h a t h a d
advance most in the PAR
Ranking of Gender Equality
since 2015
These companies were
acknowledged as the ones
that that had advanced
most in the Ranking of
Gender Equality of PAR-
O r g a n i z a t i o n s - P A R i n
Colombia since 2015.
This Ranking is developed
by the consulting firm
Aequales, Women District
Secretariat and Colegio de
Estudios Superiores de
Administración (CESA for
the Spanish abbreviation).
A total of 209 organizations
were assessed in 2018.
Emgesa and Codensa were
recognized for having the
best work environment
The award was granted in
the context of ANDESCO
C o n g r e s s 2 0 1 8 . T h i s
acknowledgement was the
result of an evaluation of
the policies, practices and
initiatives implemented by
Codensa and Emgesa, with
the purpose of promoting
gender equality, working
development and safety
and occupational health of
employees.
Credit Rating Agencies
affirmed Enel Américas’
rating after the acquisition
o f E l e t r o p a u l o ( E n e l
Distribución São Paulo)
After the acquisition of
Enel Distribución São
Paulo, on June 5 S&P
affirmed the international
rating of the company
at “BBB” and “Stable”
outlook. Likewise, Fitch
Ratings reviewed and
affirmed Enel Américas’
international rating at
“BBB+” and “Stable”
outlook and “AA (cl)”
national scale rating with
“Stable” outlook. Later,
o n J u n e 7 , M o o d y ’ s
assigned Enel Américas at
Baa3 rating with negative
outlook. Similarly, the
following day, Feller Rate
assigned national rating to
Enel Américas at “AA-”
with “Stable” outlook.
Enel Américas affirmed
i t s p r e s e n c e i n t h e
FTSE4GOOD Index Series
T h i s i n d e x c l a s s i f i e d
t h e t o p c o m p a n i e s
globally, assesses its
environmental, social,
and governance practices
( E S G i n i t s E n g l i s h
acronym). Enel Américas
was distinguished in the
Emerging Markets Index
and Latin America Index
c a t e g o r i e s , a f t e r t h e
revision carried out in the
second semester.
JULY
Enel Américas’ Board
of Directors appointed
Maurizio Bezzeccheri as
Chief Executive Officer
A t t h e e x t r a o r d i n a r y
meeting, Enel Américas’
B o a r d o f D i r e c t o r s
a p p o i n t e d M a u r i z i o
Bezzeccheri as the new
Chief Executive Officer of
the company, as of August
1, 2018.
M a u r i z i o B e z z e c c h e r i
obtained a Doctor Cum
Laude degree in Chemical
E n g i n e e r i n g f r o m
Università degli Studi di
Napoli. His career in the
Enel Group started in 1999.
Before taking the position
of general manager of
Enel Américas, he held
the position of Country
Manager of Enel Argentina.
E n e l A m é r i c a s w a s
awarded a certificate on
Crime Prevention Model
E n e l A m é r i c a s w a s
a w a r d e d a c e r t i f i c a t e
o n C r i m e P r e v e n t i o n
M o d e l i n a c c o r d a n c e
with Law N° 20,393, of
Chilean regulation, which
establishes the criminal
responsibilities of legal
entities concerning asset
l a u n d e r i n g , f i n a n c i n g
o f t e r r o r i s m , i l l i c i t
enrichment and bribery.
T h e c e r t i f i c a t i o n w a s
granted in July 2018 for
two years, the maximum
period established by
l a w , t h u s c o n f i r m i n g
the commitment of the
company in maintaining
control and compliance
systems as mandated
b y l o c a l r e g u l a t o r y
frameworks.
MAY
Enel Distribución Perú
launches digital energy bill
in Lima and Callao
This initiative benefits
1,400,000 clients in Lima and
Callao, enabling annual savings
of up to 40 tons of paper and
250,000 liters of water.
C o d e n s a i s t h e f i r s t
e l e c t r i c i t y c o m p a n y
t o c e r t i f y a s h e a l t h y
organization
T h e C o l o m b i a n H a r t
F o u n d a t i o n g r a n t e d
Codensa the certification
of Healthy Organization,
thanks to the enforcement
of policies and practices
that promote healthy life
routines. This distinction
was granted for the first
time ever to an electricity
company, recognizing
Codensa as a pioneer in the
implementation of actions
to manage its employees’
health, which is based
on seven fundamental
premises designed to
d e c r e a s e w o r k p l a c e
absenteeism, provide
timely detection of health
problems and increase
physical and mental well-
being of employees.
V u e l t a d e O b l i g a d o
Combined Cycle Power
Plant located in in Santa Fe
Province was commissioned
Enel Américas Group, Central
Puerto and Orazul Energy
Argentina are the owners of
the combined cycle facilities
Vuelta de Obligado power
plant. Together with other
the authorities, the Minister
of Energy in Argentina, Juan
José Aranguren, participated
in the inauguration ceremony.
The plant is located in the city
of Timbúes, province of Santa
Fe; its installed capacity is
800 MW, being one of the
thermal power plants with the
most advanced technology
in the country. The plant can
supply electricity to slightly
more than one million homes.
Total investments for this
project amounted to US$744
million.
Milestones in 2018
9
SEPTEMBER
Enel Américas announced
c h a n g e s i n t h e
Administration, Finance
and Control Department
Enel Américas’ Board
of Directors appointed
Aurelio Bustilho as new
Chief Financial Officer of
the company. The new
executive has a Degree in
Business Administration
and an MBA from Coppead
/ UFRJ, with a major in
Competitive Intelligence.
He previously held the
position of CFO of Enel
Brasil.
Enel Américas confirms its
leadership in sustainability,
being included in the Dow
Jones Index
The company was included
for the first time in the
Dow Jones Sustainability
Emerging Markets Index
a n d t h e D o w J o n e s
Sustainability MILA Pacific
Alliance Index. Additionally,
i t w a s c o n f i r m e d i t s
presence in the Dow Jones
Sustainability Chile Index
for the second consecutive
year.
Fundación Enel Colombia
and Uniminuto granted
scholarships for higher
education
Codensa and Emgesa,
through Fundación Enel
Colombia and Universidad
Minuto de Dios, opened
a call for 21 people in
7 n e i g h b o r h o o d s o f
Cundinamarca district to
apply for the scholarship
i n s u c h u n i v e r s i t y f o r
technical, technological
and professional careers.
The granted scholarship
consisted on 70% of the
tuition and transport costs
equivalent to 50% of a
minimum monthly wage.
E d e s u r i n a u g u r a t e d a
substation in Sarandí,
whose investment reached
ARS$154 million
E d e s u r i n a u g u r a t e d
r e p o w e r i n g w o r k s o f
Sarandí Substation, directly
benefitting 47 thousand
homes and businesses –
more than 150 thousand
neighbors–in Sarandí, Villa
Domínico, Wilde, Monte
Chingolo and Gerli. The
company’s investment
reached ARS$154 million,
in the context of a broader
plan of more than 5,000
million pesos for this year
in the entire concession
area.
OCTOBER
Enel Distribución Perú
invested 42 million soles
for the improvement of
electricity service in the
Lima North area
Enel Distribución Perú
started the construction
of the new Electricity
Transmission Substation
( S E T f o r t h e S p a n i s h
a c r o n y m ) I z a g u i r r e ,
located in San Martín de
Porres district. The latter
represents an investment
of PEN$42 million and will
improve the electricity
service of approximately
110 thousand clients, in
addition to satisfy the
energy demand of large
businesses.
Enel Generación Perú
will install the first energy
storage battery in Peru
A 1 4 M W c a p a c i t y
device will be installed in
Ventanilla thermal power
p l a n t . T h e e s t i m a t e d
i n v e s t m e n t a m o u n t s
t o U S D 9 m i l l i o n . T h e
beginning of civil works
and the lasts licensing are
estimated to take place
during the first half of
2019, so the new system
would start in the second
half of the year.
Fitch Ratings affirmed Enel
Americas’ rating
On September 20, Fitch
R a t i n g s a f f i r m e d t h e
national rating at AA with
Stable outlook and the
international rating at
BBB+ with Stable outlook.
Institutional Investor in the
Latin America Executive
Team 2018 recognized
Enel Américas
The award was the result
o f t h e t o t a l v o t e s o f
924 managers, portfolio
managers and investment
analysts that cover Latin
A m e r i c a n s t o c k . T h e
company ranks top three
in the Electric & Other
Utilities category.
E d e s u r i n s t a l l s s m a r t
meters to make energy
c o n s u m p t i o n m o r e
efficient
W i t h t h e p u r p o s e o f
i m p r o v i n g s e r v i c e
quality and digitize the
grid, Edesur started the
installment of the first
smart meters. The pilot
p r o j e c t i n c l u d e s t h e
installation of 5,000 units
in the concession area in
Argentina before the end
of the year.
In Colombia, Enel defines
its growth strategy with
the evolution of its brands
After 20 years operating
in Colombia, Codensa
and Emgesa incorporate
Enel brand in their logos,
evolving to Enel - Codensa
and Enel -Emgesa.
AUGUST
E n e l A m é r i c a s w a s
acknowledged as one of
the best companies in the
capital markets in 2018
This award was presented
in Capital Markets Awards,
p a r t o f t h e f i n a n c i a l
markets magazine Latin
Finance. The magazine
highlights the successful
company restructuring
s t a r t e d i n 2 0 1 5 , w i t h
which its assets in Chile
were divided from the
rest of the region and the
acquisition of Eletropaulo
(currently Enel Distribución
São Paulo) in June 2018,
b e c o m i n g t h e l a r g e s t
electricity distribution
company of Sao Paulo in
Brazil.
Codensa was recognized
as one the most inspiring
companies in the country
T h e c o m p a n y w a s
recognized as one the
most inspiring companies
i n t h e c o u n t r y , i n t h e
context of ANDI Congress
2 0 1 8 . T h i s a w a r d
distinguishes Colombian
companies committed
to solve the main social
challenges in the world
and in the country, through
strategic activities of their
businesses. In the case
of Codensa, the company
was acknowledged by its
program Cundinamarca at
100%, which is focused
on supplying energy to
families living in hard to
reach areas and also due
to geographic dispersion,
didn’t have access to this
service in the past.
10
Annual Report Enel Américas 2018 T h e a l l i a n c e b e t w e e n
Codensa and Bancóldex
promotes electric mobility
projects in Colombia
O n O c t o b e r 4 , t h e s e
c o m p a n i e s s i g n e d a
collaboration agreement
to foster electric mobility
projects in Colombia. This
new alliance will create a
new joint working group
in order to identify and
evaluate electricity mobility
projects regionally and
nation wide, and with the
objective of participating
in these initiatives as
structuring, proponents,
funders and/or investors.
The companies of Enel
Group in Colombia were
once again recognized by
the stock exchange for
their IR performance
For the sixth consecutive
year, Codensa and Emgesa
w e r e a w a r d e d b y t h e
Colombian Stock Exchange
f o r t h e i r I R ( I n v e s t o r
Relations) performance.
This recognition considers
high standards in terms of
disclosure of information,
relationships and corporate
governance of the Group in
the country.
NOVEMBER
Enel Brasil was awarded
with Prêmio Guia Exame
de Sustentabilidade
Nacional Exame magazine
ranks annually the most
sustainable companies
in Brazil, Enel Brasil and
Eletropaulo (currently Enel
Distribución São Paulo)
were among them. Enel
was ranked as the most
s u s t a i n a b l e B r a z i l i a n
company in every sector
and Enel Distribución São
Paulo was awarded in the
ethics and transparency
category.
E m g e s a p r e s e n t e d
successful results in the
pilot plan for the ecological
restoration of El Quimbo
The successful results
of the Pilot Plan for the
Ecological Restoration of
the Tropical Dry Forest,
d e v e l o p e d b e t w e e n
2 0 1 4 a n d 2 0 1 8 , w e r e
presented in the context
of the Symposium for
Ecological Restoration
a n d E n v i r o n m e n t a l
Sustainability organized
b y t h e c o m p a n y . T h e
p r o g r a m c o v e r s 1 4 0
hectares, located in the
biotic compensation area
of El Quimbo hydroelectric
power plant.
Edesur inaugurated the
mobile Substation Puesto
Roca to improve its service
in Temperley
This investment directly
b e n e f i t s 9 0 t h o u s a n d
inhabitants at Lomas de
Zamora and Almirante
Brown. Investment carried
out by the company in this
project reached ARS$26
million, in the context of a
broader plan of more than
5,000 million pesos for
2018 with the purpose of
improving the distribution
network.
Edesur installed remote
control devices in the
medium voltage network
I n o r d e r t o r e d u c e
t h e a m o u n t o f p o w e r
blackouts in the Cañuelas
d i s t r i c t – e s p e c i a l l y i n
the countryside–Edesur
i n s t a l l e d f o u r c o n t r o l
d e v i c e s i n s t r a t e g i c
locations of the medium
voltage network. These
d e v i c e s a r e r e m o t e l y
controlled and when a
shortage emerges, its
possible to drift the supply,
thus accelerating detection
times and the repair of
electrical faults.
DECEMBER
Eletropaulo changes its
name to Enel Distribución
São Paulo
The brand change positions
this electricity distribution
c o m p a n y a s p a r t o f a
multinational energy group,
which operates in every
segment of the energy
sector, and its prepared to
offer all sorts of products
and services related to
the energy market. The
brand change also seeks
to emphasize the global
s c a l e o f E n e l a n d t h e
focus of the company on
digitization, technology and
innovation.
Enel Américas is awarded
i n t h e B e s t E m e r g i n g
M a r k e t s P e r f o r m e r s
ranking of Vigeo-Eiris
T h e m e a s u r e m e n t
comprises companies in
emerging markets with
the best performance,
and is determined by the
Equitics© methodology.
The selected companies
have reached the highest
scores in the emerging
markets universe. A total
of 855 companies were
evaluated, from 35 sectors
and 31 countries. Enel
Américas was awarded in
the Electric & Gas Utilities
Emerging Market.
Edesur was awarded with
the Quality prize
The National Quality Award
for “Management of Board
of Directors’” is the most
important and renowned
award for companies and
nonprofit organizations, in
exposing their excellence
i n o r g a n i z a t i o n a l
management. The directors
of Edesur received this
acknowledgement in Casa
Rosada.
T h e N a t i o n a l Q u a l i t y
A w a r d i s t h e o n l y
distinction that Argentina
gives to companies that
stands out as a model
o f e x c e l l e n c e i n t h e i r
management, in order to
support and incentive their
modernization, innovation
and competitiveness.
The assessment process
i s r i g o r o u s a n d h a s
three levels, including
an individual diagnosis,
c o n s e n s u s a m o n g
evaluators and the final
c h o i c e c a r r i e d o u t b y
prestigious judges.
Milestones in 2018
11
12
Annual Report Enel Américas 2018 04
Main
financial
indicators
13
Letter From the Chairman Total Assets
15,177,664
15,921,322
15,449,154
11,281,556
20,168,991
27,396,356
2013
2014
2015
2016
2017
2018
Total Liabilities
6,670,199
7,642,104
7,259,346
6,006,307
11,890,484
18,564,456
Operating Revenues
6,264,446
7,253,876
5,301,440
5,197,286
10,438,003
13,184,062
2,251,489
2,300,020
1,615,112
1,643,369
2,947,261
3,357,708
658,514
610,158
661,587
383,060
709,043
1,201,381
1.31
0.78
1.23
0.92
1.01
0.65
1.25
1.14
0.92
1.44
0.66
2.10
As of December 31 of each year
2013
2014
2015
2016
2017
2018
628
25
4,522
14,422
16,549
200
13
987
4,992
6,826
563
29
2,925
12,748
16,090
316
27
1,842
8,489
9,497
1,707
94
10,276
40,651
48,962
645
25
4,522
14,390
15,276
208
13
987
5,225
7,108
589
32
3,059
13,559
15,773
324
27
1,949
9,062
9,916
1,766
97
10,517
42,236
48,073
657
25
4,522
15,204
15,770
194
13
987
4,398
6,541
484
36
3,459
13,705
16,886
292
27
1,983
8,801
9,283
1,627
101
10,951
42,108
48,480
632
29
4,419
13,124
13,312
185
13
974
3,665
9,448
551
36
3,457
14,952
18,015
310
27
1,934
8,698
9,800
1,678
105
10,784
40,439
50,575
578
29
4,419
14,825
14,852
146
17
1,354
4.034
12,587
604
36
3,467
14,765
18,156
320
27
1.979
7,430
10,457
1,648
107
11,219
41,053
56,051
581
29
4,419
13,949
13,952
158
17
1,354
3,755
22,236
615
36
3,499
14,052
18,544
325
30
1,985
8,106
10,597
1,679
112
11,257
39,863
65,329
Ebitda
Net Income (2)
Liquidity Ratio
Leverage (3)
Generation Business
ARGENTINA
Number of employees
Number of generating units
Installed capacity (MW) (4)
Electricity generated (GWh)
Energy sales (GWh)
BRAZIL
Number of employees
Number of generating units
Installed capacity (MW) (4)
Electricity generated (GWh)
Energy Sales (GWh)
COLOMBIA
Number of employees
Number of generating units
Installed capacity (MW) (4)
Electricity generated (GWh)
Energy Sales (GWh)
PERU
Number of employees
Number of generating units
Installed capacity (MW) (4)
Electricity generated (GWh)
Energy Sales (GWh)
TOTAL
Number of employees
Number of generating units
Installed capacity (MW) (4)
Electricity generated (GWh)
Energy Sales (GWh)
14
Annual Report Enel Américas 2018 Distribution Business
ARGENTINA
Energy sales (GWh)(5)
Number of customers (5)
Energy Losses
Number of employees
Clients / employees
BRAZIL
Energy sales (GWh)(5)
Number of customers (5)
Energy Losses
Number of employees
Clients / employees
COLOMBIA
Energy sales (GWh)(5)
Number of customers (5)
Energy Losses
Number of employees
Clients / employees
PERU
Energy sales (GWh)(5)
Number of customers (5)
Energy Losses
Number of employees
Clients / employees
Total
Energy sales (GWh)(5)
Number of customers (5)
Energy Losses
Number of employees
Clients / employees
As of December 31 of each year
2013
2014
2015
2016
2017
2018
18,137
17,972
18,492
18,493
17,736
17,548
2,444,013
2,464,117
2,479,559
2,504,558
2,529,307
2,529,953
10.80%
10.75%
12.30%
12.04%
12.04%
14.25%
3,320
736
3,823
645
4,142
596
4,290
584
4,251
595
3,760
673
21,767
22,842
22,776
22,809
34,876
61,310
6,301,582
6,500,500
6,754,327
6,943,600
9,974,471
17,143,979
16.10%
16.42%
17.30%
16.10%
15.22%
14,00%
2,370
2,659
2,415
2,732
2,348
2,877
2,244
3,237
3,336
2,990
10,632
1,612
13,342
13,660
13,946
13,632
13,790
14,024
2,686,919
2,772,376
2,865,159
3,248,447
3,340,457
3,438,620
7.00%
1,036
2,594
7.19%
1,043
2,658
7.30%
947
2,771
7.10%
1,337
2,430
7.84%
1,376
2,428
7,74%
1,529
2,249
7,045
7,338
7,624
7,782
7,934
8,045
1,254,624
1,293,503
1,336,610
1,367,044
1,396,966
1,422,608
7.90%
616
2,037
7.95%
619
2,090
8.30%
570
2,191
7.80%
620
2,216
8.24%
588
2,376
8,09%
590
2,411
60,291
61,812
62,838
62,715
74,337
100,927
12,687,138
13,030,496
13,435,655
14,063,649
17,241,201
24,535,160
10.45%
10.58%
11.30%
10.76%
12.30%
10,96%
7,342
1,728
7,900
1,649
8,007
1,678
8,491
1,656
9,551
1,805
16,511
1,486
(1) Accounting figures are in accordance to the instructions and regulations issued by the CMF. Figures are presented in million Chilean nominal
pesos for the years 2012, 2013, 2014, 2015 and 2016, and figures are in million dollars for 2017 and 2018.. The Extraordinary Shareholders
Meeting held on April 27, 2017 approved the change of functional currency of the company from Chilean pesos to US dollars.
(2) Net Results attributable to the dominant company.
(3) Total Liabilities/ Equity plus Minority Interest.
(4) In contrast to the previous years, net installed capacity is considered for the years 2016, 2017 and 2018, and the difference with gross
installed capacity is the discount for self-consumption.
(5) Due to changes in the criteria, non-billable consumptions (CNF) are not included in 2014, 2015, 2016, 2017 and 2018.
Main financial indicators
15
16
Annual Report Enel Américas 2018 05
Identification of
the company
and constituent
documents
17
Letter From the Chairman Identification of the
company
Name or company name
Domicile
Type of company
Rut
Address
Postal code
Phones
P.O. Box
Securities Registration number
External auditors
Subscribed and paid-in capital (USD)
Web site
Email
Investor Relations phone
Ticker symbol in Chilean stock exchanges
Ticker symbol in New York stock exchange
ADR’s Custodian Bank
ADR’s Depositary Bank
Local credit rating agencies
International credit rating agencies
Enel Américas S.A.
Santiago, Chile, being able to establish agencies or subsidiaries in other parts of
the country or abroad
Publicly traded company
94,271,000-3
Santa Rosa Nº 76, Santiago, Chile
833-009 SANTIAGO
(56-2) 2353 4400 - (56-2) 2 378 4400
1557, Santiago
Nº 175
Ernst & Young
6,763,204,424
www.enelamericas.com
comunicacion.enelchile@enel.com
(56-2) 2353 4682
ENELAM
ENIA
Banco Santander Chile
Citibank N.A.
Feller Rate Clasificadora de Riesgo Limitada, Fitch Chile Clasificadora de Riesgo
Limitada
Fitch Ratings, Moody´s Investor Services y Standard & Poor´s International
Rating Services
Constituent
Documents
On August 1, 1988, the company’s name was changed to
Enersis S.A.
In April 2015 Enersis S.A. started a corporate reorganization
process. As part of this process, on December 18, 2015
the Company’s Extraordinary Shareholders Meeting was
The company that gave rise to Enel Américas S.A. was
held, where shareholders of Enersis S.A. approved the first
formed initially under the name Compañía Chilena Metro-
stage of the reorganization process called “the Spin-off”.
politana de Distribución Eléctrica S.A. by public deed dat-
Therefore, the Spin-off of the Company was approved, and
ed June 19, 1981, granted by the notary Patricio Zaldívar
the entity “Enersis Chile S.A.” was created, which repre-
Mackenna in Santiago, and modified by public deed on July
sented the unique vehicle for the control of generation and
13 the same year and in the same notary. The company’s
distribution assets that the Group owns in Chile and, the
incorporation was authorized and its bylaws approved by
former Enersis S.A. was named “Enersis Américas S.A.”,
Resolution 409-S of July 17, 1981 of the Securities and
which controls the businesses in the other countries of the
Insurance Commission (SVS). The extract of the incor-
region (Argentina, Peru, Brazil and Colombia). The Spin-off
poration authorization and approval of the bylaws was
was formalized in a public deed of January 8, 2016, granted
registered in the Santiago Trade Registry on page 13,099
in the Notary Iván Torrealba Acevedo in Santiago, whose
Nº7,269 for the year 1981, and were published in the Offi-
excerpt was registered on pages 4013 N° 2441 of the Com-
cial Gazette of July 23, 1981. The bylaws of Enel Américas
merce Registry in 2016 of the Property Register in Santia-
S.A. have undergone a number of modifications ever since.
go and was published in the Official Journal on January 22,
2016. A supplementary extract was registered on pages
10.743 N° 6.073 in the same Registry, year and the Prop-
erty Register and was published in the Official Journal on
February 10, 2016.
18
Annual Report Enel Américas 2018 The Extraordinary Shareholders Meetings of Enersis
The Company’s purpose is to perform in the country or
Américas S.A. and its subsidiaries Endesa Américas S.A.
abroad the exploration, development, operation, gener-
and Chilectra Américas S.A. were held on September 28,
ation, distribution, transmission, transformation and/ or
2016. Among other topics, at these meetings the second
sales of energy in any of its forms and nature, or directly
stage of the corporate reorganization plan denominated
or through intermediate companies, likewise, and also tele-
“The Merger” was approved. Therefore, Enersis Améri-
communications activities and the provision of engineering
cas S.A., the absorbing entity, acquired all the assets and
consultancy in the country and abroad. It may also invest
liabilities of the subsidiaries Chilectra Américas S.A. and
and manage its subsidiaries and associate companies,
Endesa Américas S.A., succeeding them in every right and
whether generators, transmission companies, distributors
obligation and incorporating to Enersis Américas S.A. the
or traders of electricity or whose business is any of the
entirety of shareholders and equity of Chilectra Américas
following: (i) energy, in any of its forms or nature, (ii) the
S.A. and Endesa Américas S.A.
supply of public utilities or whose main raw material is en-
ergy, (iii) telecommunications and information technology,
In addition, it was agreed that after the Merger, on Decem-
and (iv) trading over internet. In complying with its main
ber 1, 2016, Enersis Américas S.A would change its name
objects, the company will carry out the following functions:
to “Enel Américas S.A.”. Such meeting was formalized in
a public deed of October 18, 2016, granted in the Notary
a) Promote, organize, build, modify, dissolve or liquidate
Iván Torrealba Acevedo, whose excerpt was registered on
companies of any nature, which have similar corpo-
pages 79,974 N°43,179 of the Commerce Registry in 2016
rate objects to its own.
of the Property Register in Santiago and was published in
b) Propose investment, financing and business policies
the Official Journal on October 29, 2016.
to subsidiary companies, as well as accounting crite-
ria and systems that these should follow.
The functional currency of the company was changed
c) Supervise subsidiary management.
from pesos to US dollars at the Extraordinary Shareholders
d) Provide subsidiary or associate companies with the
meeting held on April 27, 2017, thus the fifth permanent
necessary financing for their business development
article and the first transitory article of the bylaws were
and provide management services; financial, techni-
modified.
Corporate
Purpose
The corporate purpose of the Company is stated in the stat-
utory modification approved by the Extraordinary Share-
holders Meeting held on September 28, 2016, formalized
in a public deed of October 18, 2016, granted in the Notary
Iván Torrealba Acevedo in Santiago, whose excerpt was
registered on pages 79,974 N°43,179, of the Commerce
Registry in 2016 of the Property Register in Santiago and
was published in the Official Journal on October 29, 2016.
cal, legal and auditing advice; and in general any type
of service that appears necessary for their best per-
formance.
In addition to its main objects and always acting within the
limits established by the Investment and Financing Policy
approved by the Shareholders Meeting, the Company may
invest in:
1.- The acquisition, operation, construction, rental, ad-
ministration, intermediation, trading and disposal of
all kinds of movable and immovable assets, either di-
rectly or through subsidiaries or associate companies.
2.- All kinds of financial assets, including shares, bonds
and debentures, commercial paper and in general all
kinds of titles or securities and company contribu-
tions, either directly or through subsidiaries or associ-
ate companies.
Identification of the company and constituent documents
19
20
Annual Report Enel Américas 2018 06
Property and
control
21
Letter From the Chairman Ownership Structure
Ownership structure
The company’s capital is divided into 57,452,641,516 shares, with no nominal value, all holds the same single series and
each share represents one voting right, and there are no state-owned preferred shares.
As of December 31, 2018, all shares were subscribed and paid-in, and were distributed as follows:
Shareholders
Enel S.p.A.
Chilean Pension Funds
ADR´S (Citibank N.A. according to circular N°1,375 of the CMF)
Foreign Investment Funds
Custodian banks
Stockbrokers, insurance companies, mutual funds
Other shareholders
Total Shares
Number of shares
Shareholding
29,762,213,531
7,946,536,863
4,384,417,428
831,284,457
8,190,992,728
4,824,578,112
1,512,618,397
51.80%
13.83%
7.63%
1.45%
14.26%
8.40%
2.63%
57,452,641,516
100.00%
Identification of Controllers
As defined in Title XV of Law No. 18,045, Enel Américas S.A. is a publicly traded company directly controlled by Enel
S.p.A., an Italian joint stock company, and owner of 51.8030% of the shares issued by Enel Américas S.A.
Shareholders of Enel S.p.A
Ministero dell’Economia e delle Finanze de Italia
Other Investors (Institutional and Retail)
Total
Controller's members don’t have a joint action agreement.
Shareholding
23.6%
76.4%
100.0%
22
Annual Report Enel Américas 2018 List of the Twelve Main Shareholders
of the Company
As of December 31, 2018, 23,286 shareholders owned Enel Américas. The twelve main shareholders were:
Name or Company Name
Rut
Number of Shares
Shareholding
ENEL SPA
59,243,980-8
29,762,213,531
51.80%
CITIBANK N.A. SEGUN CIRCULAR 1375 S.V.S.
BANCO DE CHILE POR CUENTA DE TERCEROS NO RESIDENTES
BANCO SANTANDER POR CUENTA DE INV EXTRANJEROS
59,135,290-3
97,004,000-5
97,036,000-K
4,384,417,428
3,210,128,764
2,401,980,484
BANCO ITAU CORPBANCA POR CTA DE INVERSIONISTAS EXTRANJEROS
97,023,000-9
2,344,499,854
AFP PROVIDA S.A. PARA FDO. PENSION C
AFP HABITAT S. A. PARA FDO PENSION C
AFP CAPITAL S. A. FONDO DE PENSION TIPO C
JP MORGAN SECURITIES INC
AFP CUPRUM S. A. PARA FDP PENSION C
BANCHILE C DE B S A
AFP CUPRUM S. A. FONDO TIPO A
Subtotal twelve major shareholders
OTHER 23,274 SHAREHOLDERS
TOTAL 23,286 SHAREHOLDERS
76,265,736-8
98,000,100-8
98,000,000-1
47,009,201-7
76,240,079-0
96,571,220-8
76,240,079-0
1,246,543,955
891,818,720
798,743,379
761,063,736
748,242,585
632,343,103
514,913,078
47,696,908,617
9,755,732,899
57,452,641,516
7.63%
5.59%
4.18%
4.08%
2.17%
1.55%
1.39%
1.32%
1.30%
1.10%
0.90%
83.02%
16.98%
100.00%
There are no shareholders representing the founding families of the Company neither related to the government or state
entities owning shares exceeding 5% ownership.
Property and control
23
24
Annual Report Enel Américas 2018 Most Significant Changes in Ownership
During 2018, the most important changes in the ownership of Enel Américas are the following:
Name or Company Name
RUT
Dv
CITIBANK N.A. SEGUN CIRCULAR 1375 S.V.S.
BANCO DE CHILE POR CUENTA DE TERCEROS NO RESIDENTES
59,135,290
97,004,000
BANCO ITAU CORPBANCA POR CTA DE INVERSIONISTAS EXTRANJEROS
97,023,000
AFP PROVIDA S.A.
AFP CAPITAL S A
BANCO SANTANDER POR CUENTA DE INV EXTRANJEROS
AFP HABITAT S A
AFP CUPRUM S A
BANCHILE C DE B S A
AFP MODELO S.A.
LARRAIN VIAL S A CORREDORA DE BOLSA
AFP PLANVITAL S A
SANTANDER CORREDORES DE BOLSA LIMITADA
BTG PACTUAL CHILE S A C DE B
BICE INVERSIONES CORREDORES DE BOLSA S A
76,265,736
98,000,000
97,036,000
98,000,100
76,240,079
96,571,220
76,762,250
80,537,000
98,001,200
96,683,200
84,177,300
79,532,990
BANCO SANTANDER-HSBC BANK PLC LONDON CLIENT ACCOUN
97,036,000
3
5
9
8
1
K
8
0
8
3
9
K
2
4
0
K
Number of
shares on
12/31/2017
Number of
shares on
12/31/2018
Variation in
percentage
points with
respect to
subscribed and
paid capital
Number of
shares variation
4,384,417,428
5,064,445,978
1.18363
680,028,550
3,210,128,764
3,895,552,189
1.19302
685,423,425
2,344,499,854
2,523,158,948
0.31097
178,659,094
2,247,892,567
2,278,366,257
0.05304
30,473,690
1,646,207,724
1,995,066,955
0.60721
348,859,231
2,401,980,484
1,883,016,703
-0.90329
-518,963,781
1,671,887,493
1,797,479,247
0.21860
125,591,754
1,633,734,907
1,780,798,933
0.25597
147,064,026
632,343,103
495,159,971
-0.23878
-137,183,132
485,430,607
468,847,590
-0.02886
-16,583,017
510,591,005
290,453,220
-0.38316
-220,137,785
261,383,565
286,008,391
0.04286
24,624,826
228,911,532
216,115,682
-0.02227
-12,795,850
232,602,612
203,106,375
-0.05134
-29,496,237
236,490,136
202,660,202
-0.05888
-33,829,934
178,732,113
198,136,422
0.03377
19,404,309
Exchange Transactions Performed by
Related Individuals during 2018
No exchange transactions between related individuals were made during 2018.
Summary of Directors' Committee and
Shareholders Comments and Proposals
Enel Américas S.A. received neither comments nor proposals with regards to the progress of company business between
January 1st and December 31st, 2018 from the Directors' Committee or Shareholders who own or represent 10% or
more of the shares issued with voting rights as stated in Articles 74 and 136 of Law No. 18,046 of the Regulation to Public
Companies.
Property and control
25
26
Annual Report Enel Américas 2018 07
Administration
27
Letter From the Chairman Board of Directors
1
4
2
5
3
6
1. CHAIRMAN
Francisco de Borja Acha Besga
Attorney at Law Universidad
Complutense de Madrid
DNI: 05263174-S
From 04.28.2016 (1)
2. DIRECTOR
José Antonio Vargas Lleras
Attorney at Law
Universidad Colegio Mayor del
Rosario, Colombia
DNI: 79.312.642
From 04.28.2016
5. DIRECTOR
Hernán Somerville Senn
Lawyer
Universidad de Chile
Master of Comparative
Jurisprudence
University of New York
DNI: 4,132,185-7
From 04.28.2016 (2)
6. DIRECTOR
Domingo Cruzat Amunátegui
Industrial civil engineer
Universidad de Chile
MBA The Wharton School de la
Universidad of Pennsylvania
Rut: 6,989,304-K
From 04.28.2016
3. DIRECTOR
Enrico Viale
Engineer Degree
Universidad Politécnica de Turín
MBA Escuela de Negocios
Universidad de Santa Clara
DNI: AU 2580379
From 04.28.2016
7. DIRECTOR
Patricio Gómez Sabaini
Business Administration Degree
George Mason University,
Virginia
Master of Business
Administration
George Washington University,
Washington DC
Passport: 16941675N
From 04.28.2016
7
4. DIRECTOR
Livio Gallo
Electronic Engineer
Universidad Politécnica de Milán
DNI: AV 0246369
From 04.28.2016
(1) He was originally appointed
Director of the former Enersis
Américas S.A. on 06.30.2015,
currently Enel Américas.
(2) He was originally appointed
Director of the former Enersis
Américas S.A. on 07.29.1999,
currently Enel Américas.
Enel Américas is managed by a Board of Directors comprised of seven members, who remain in office for a three-year
period and may be re-elected. The Board was appointed at the Ordinary Shareholders' Meeting held on April 28, 2016.
According to the Corporations Law, if a Director's vacancy occurs, the whole board shall be renewed at the next ordinary
shareholders' meeting the corporation shall hold, and, in the meanwhile, the board may name a substitute. The Company
doesn’t consider any substitute members.
28
Annual Report Enel Américas 2018 Board of Directors’ and
Directors’ Committee
Compensations
Pursuant to Article 33 of Law No. 18,046 Corporations
The compensation for the Directors’ Committee consists
Law, the Ordinary Shareholders’ Meeting held on April 26,
on a fixed monthly compensation, part at any event and
2018 approved the compensations for the Board of Direc-
the other part eventual. This compensation consists on 72
tors and Directors’ Committee for the 2018 accounting pe-
UF of monthly fixed compensation at any event and 26,4
riod. The compensation for the Board of Directors is a fixed
UF of attendance fees per meeting of the Board, up to a
monthly payment. It was agreed to pay a fixed monthly
maximum of 16 sessions altogether.
compensation, part at any event and the other part eventu-
al. This compensation consists of 216 UF of monthly fixed
Total compensation expenses in 2018 were US$ 642,836
compensation at any event and 79,2 UF of attendance fees
and are shown in the following table. The Board of Direc-
per meeting of the Board, up to a maximum of 16 sessions
tors did not incur in any expenses for external consulting
altogether. The compensation of the Chairman of the
services.
Board will be twice the compensation of a Director.
2018
Figures in US$
Name
Francisco de Borja Acha (1)
José Antonio Vargas Lleras (1)
Livio Gallo (1)
Enrico Viale (1)
Hernán Somerville Senn
Domingo Cruzat Amunátegui
Patricio Gómez Sabaini
Total
Position
Chairman
Director
Director
Director
Director
Director
Director
Fixed
Compensation
Ordinary and
Extraordinary
Board
Sessions
Committee’s
Fixed
Compensation
Committee’s
Ordinary and
Extraordinary
Sessions
Total
2018
103,798
103,798
103,798
311,394
62,032
62,032
59,253
183,318
34,636
34,636
34,636
103,909
14,739
14,739
14,739
44,216
215,205
215,205
212,426
642,836
(1) Messrs. Francisco de Borja A., José Antonio Vargas Ll., Livio Gallo and Enrico Viale, renounced to any compensation payment.
Total compensation expenses in 2017 were US$526,856 and are shown in the following table. The Board of Directors did
not incur in any expenses for external consulting services.
2017
Figures in US$
Name
Francisco de Borja Acha (1)
José Antonio Vargas Lleras (1)
Livio Gallo (1)
Enrico Viale (1)
Hernán Somerville Senn
Domingo Cruzat Amunátegui
Patricio Gómez Sabaini
Total
Position
Presidente
Director
Director
Director
Director
Director
Director
Fixed
Compensation
Ordinary and
Extraordinary
Board
Sessions
Committee’s
Fixed
Compensation
Committee’s
Ordinary and
Extraordinary
Sessions
Total
2017
93,417
93,417
93,417
280,250
39,968
37,106
39,968
117,042
31,139
31,139
31,139
93,417
12,367
11,413
12,367
36,147
176,891
173,075
176,891
526,856
(1) Messrs. Francisco de Borja A., José Antonio Vargas Ll., Livio Gallo and Enrico Viale, renounced to any compensation payment.
29
Administration
Social responsibility and
sustainable development
Board diversity
Number of people by gender:
Female
Male
General Total
Number of people by nationality:
Chilean
Spanish
Argentine
Colombian
Italian
General total
0
7
7
2
1
1
1
2
7
Number of people by age range:
Between 41 and 50 years old
Between 51 and 60 years old
Between 61 and 70 years old
Over 70 years old
General Total
Number of people by seniority:
Less than 3 years
Between 3 and 6 years
More than 12 years
General total
0
4
2
1
7
5
1
1
7
Board of
Directors’
Consulting
Expenses
During 2018, the Board of Directors did not make any ex-
penses in consulting services.
Property
over Enel
Américas
As of December 31, 2018, according to the Shareholders'
Register, none of the current Directors held ownership of
the company. Nevertheless, Director Mr. Hernán Somerville
is controlling shareholder in Inversiones Santa Verónica Lim-
itada, entity that owns 5,044,782 shares of the company.
30
Annual Report Enel Américas 2018
Directors'
Committee
Pursuant to Article 50 bis of law No. 18,046 Corporations
Law, Enel Américas S.A. has a Directors' Committee com-
prised by three members, with faculties and duties enu-
merated in said article and those delegated by the Board as
established in the Regulation of the Director's Committee.
The Company’s Board of Directors created the Audit Com-
mittee on June 29, 2005, which is composed of three direc-
tors that are also members of the Board, as mandated by
Sarbanes-Oxley Law and corporate governance regulations
of the NYSE. Later, on April 22, 2010, the Company’s bylaws
were amended at Extraordinary Shareholders Meeting, and
the Audit Committee merged with the Directors’ Committee.
As of January 1, 2018, the Directors’ Committee of Enel
Américas S.A. was comprised by Messrs. Hernán Somer-
ville (independent), Domingo Cruzat Amunátegui (indepen-
dent) and Patricio Gómez Sabaini (independent). The Chair-
man and Financial Expert was Mr. Hernán Somerville Senn
and the Secretary of the Directors’ Committee was Mr. Do-
mingo Valdés Prieto.
Directors’
Committee
Management
Annual
Reports
The Directors’ Committee held fourteen meetings in 2018.
During the sessions held in 2018, the Director's Commit-
tee addressed subjects regarding their interests, giving
due fulfillment of their obligations dictated by the Article
50 statue number 18,046 about Public Limited Companies
and the Sarbanes Oxley Act of the United States of Ameri-
ca, as well as the other applicable regulations.
1. Consolidated
Financial Statements
At the ordinary session held on February 28, 2018, the
At the ordinary session of the Board of Directors held on
following documents were unanimously declared to have
April 29, 2016 were appointed as members of the Directors’
been examined; the Consolidated Financial Statements as
Committee Messrs. Hernán Somerville Senn, Patricio Gómez
of December 31, 2018, its Notes, Financial Statements and
Sabaini and Domingo Cruzat Amunátegui. Mr. Hernán Somer-
Significant Events, as well as the External Auditor's and
ville Senn was appointed Financial Expert of the Directors’
Account Inspectors opinions. At the ordinary session held
Committee. On the other hand, at the ordinary session of
on May 3, 2018, the Directors’ Committee unanimously
the Directors’ Committee held on April 29, 2016, Mr. Hernán
declared examined the Consolidated Financial Statements
Somerville Senn was appointed Chairman of the Directors’
of the Company as of March 31, 2018, it’s Notes, Income
Committee and Mr. Domingo Valdés Prieto, Legal Counsel
Statement and Significant Events.
of the Company, was appointed secretary of the committee.
At the extraordinary session held on July 27, 2018, the Di-
rectors’ Committee unanimously, declared to have exam-
ined the Consolidated Financial Statements of the Com-
pany as of June 30, 2018, it’s Notes, Financial Statement
Analysis, Income Statement and Significant Events, as well
as the opinion “without any observation” issued by exter-
nal auditors on July 27, 2018, signed by Mr. Gastón Villarro-
el Olivares, partner of Ernst & Young.
31
Administration At the ordinary session held on April 26, 2018, the Direc-
of the asset Eletropaulo Metropolitana de Eletricidade de
tors’ Committee unanimously, declared to have examined
Sao Paulo S.A. (Eletropaulo). Also in this session, the Board
the Consolidated Financial Statements of the Company un-
declared to have reviewed the operation that consisted on
der IFRS contained in 20-F form to be presented to the Se-
providing a guarantee to the subsidiaries Enel Brasil S.A.
curities and Exchange Commission of the United States of
and Enel Brasil Investimentos Sudeste S.A., in favor of the
America (SEC), with the goal of complying by their norms
Brazilian entity Banco BTG Pactual S.A. and/or any other
and requirements issued by said public authority.
entity, valid for 90 days renewable, and for the total amount
needed to guarantee the obligations contracted by Enel
At the ordinary session held on October 31, 2018, the Direc-
Brasil S.A. and Enel Brasil Investimentos Sudeste S.A.
tors’ Committee unanimously, declared to have reviewed
with Banco BTG Pactual arising from the “Contrato para
the Consolidated Financial Statements of the Company
Prestacao de Grantía Firme”, to be subscribed by these
as of September 30, 2018; it’s Notes, Income Statement,
companies regarding the public offering launched by Enel
Significant Events and the letter concerning the operations
Brasil Investimentos Sudeste S.A. for the stock purchase
between related parties prepared by the external auditors.
of Eletropaulo. The guarantee included a compensation for
2. Services provided
by External Auditors
and the recruitment of
former employees of
Ernst & Young Review
Enel Américas from the respective subsidiary.
At the extraordinary session held on May 3, 2018, the
Directors’ Committee of Enel Américas S.A., regarding
the voluntary public tender offer for the shares (IPO) of
Eletropaulo, carried out by the subsidiary Enel Brasil S.A.
through its vehicle Enel Brasil Investimentos Sudeste S.A.
(100% owned by Enel Brasil S.A.), declared to have exam-
ined unanimously by its members, the transactions related
to the granting of guarantees and joint co-debt from the
At the ordinary sessions held on January 31, February 28,
Company in association with the Issuances and the sched-
March 28, April 26, May 30, June 27, August 29, Septem-
uled repayment agreements, pursuant to Chilean law, in a
ber 28, October 31 and at the extraordinary session held of
irrevocable, joint, supportive and unconditional manner, as
July 27, all during 2018, the services provided by external
co-debtor and main beneficiary of the Issuer (Enel Brasil
auditors were analyzed, those that were not from exter-
S.A. and/or Enel Brasil Investimentos Sudeste S.A.) and
nal auditors, and it was agreed to declare that they do not
the y el Offeror (Enel Brasil Investimentos Sudeste S.A.),
compromise the suitable technique nor the independence
the total and timely payment of: (i) every capital payment
of judgment of the respective external auditing companies.
obligations, interests, interest on arrears, fines and other
The latter is in conformity to what is written in Section 202
amounts due in the Commercial Documents and Reim-
of the Law Sarbanes Oxley, in article 242, final subsection,
bursement Agreements, either on the maturity date nor as
of the Law 18.045, of the Value Market and in the Direc-
a result of the acceleration of debt, as well as any other
tors’ Committee Guidelines.
3. Operations between
Related Parties Review
At the extraordinary session held on April 15, 2018, the
Committee declared unanimously to have examined the
operation between related parties consisting on the inter-
company loan granted by Enel Américas to its subsidiary
Enel Brasil and/or Enel Brasil Investimentos Sudeste S.A.
for an amount that would not exceed the acquisition price
amount due, as long as they are registered in any other
instrument that the Issuer and the Offeror may execute
or accept in the future related with the Commercial Doc-
uments or the Reimbursement Agreements, as well as
the debts or documents that may replace totally or partial-
ly these obligations, in any manner, extension, renovation
and/or amendment to be agreed in the future regarding the
obligations included in the Commercial Documents and
Reimbursement Agreements; (ii) any other payment obli-
gation assumed by the Issuer and the Offeror in relation
to the Commercial Documents and Reimbursement Agree-
ments, including the fees, expenses, costs, charges, tax-
es, reimbursements and indemnities of lawyers; (iii) reim-
32
Annual Report Enel Américas 2018 bursement obligations of every amount that the holders of
Commercial Documents and/ or their agents may disburse
pursuant to Commercial Documents and/ or resulting from
the execution, improvement, maintenance, charge and/or
compliance y/o fulfillment of the Corporate Guarantee, or
the reimbursement of expenses related to the Reimburse-
ment Agreements of the corresponding banks; (iv) every
payment obligation owed to the subscribers of the Com-
mercial Documents as defined in the Offers, including fees
and compensations; y (v) each and every one of the obliga-
tions that the Issuer and the Offeror agree in the future, as
a replacement to the Commercial Documents or the Re-
imbursement Agreements. This operation included com-
pensation from Enel Brasil and/ or Enel Sudeste to Enel
Américas, for the granting of guarantees and joint co-debt.
The Directors’ Committee declared in both situations that the
operations between related parties contributed to the social
interest and were fair in price, terms and conditions to those
prevailing in the market as of the time of their approval.
4. Supervision
and Evaluation of
External Auditors
At the ordinary session held on February 28, 2018, the
Committee unanimously graded as reasonable the work
performed by the external auditors of the Company, Ernst
& Young, carried out during the fiscal year 2017.
5. External Auditors
Report on money order
and money brokerage
6. Review of the Internal
Control Letter Notice
Nº422 of the SVS
The Directors’ Committee examined this issue during the
session held on February 27, 2018. On December 6, 2007,
the National Stock Market Commission, issued Notice N°
422, complementing Notice N° 980 of December 24, 1990.
This Notice gives specific instructions regarding internal con-
trol procedures, so it provides an interim report and extends
the period indicated in Notice N° 980 for internal auditors to
submit an internal control final report, indicating that the de-
livery should be at the latest as of the date when the Board
of Directors takes notice of the financial statements for the
period ended December 31 of each year. The Chairman of
the Directors’ Committee, Mr. Hernán Somerville Senn,
said that these regulations were revoked, nevertheless this
derogation norm, article 246 of the Securities Market Law,
among other subjects, establishes that external audit should
indicate the Board and the Directors’ Committee the defi-
ciencies detected in the development of the external audit
in the adoption and maintenance of standard accounting
practices, administrative systems and internal audit, identi-
fy discrepancies between accounting principles related to
financial statements and relevant criteria generally applied
in the industry where the company carries out its business,
and compliance with tax obligations of the company and its
subsidiaries included in the referred external audit, which
accordingly the need to inform internal control situations
detected by EY is still required. He also said that the afore-
mentioned revocation has not affect the submission terms
mandated by NCG N°30 for the Financial Statements and
therefore it must be understood that the internal control
report is part of the information to be provided by external
auditors during the first quarter each year together with the
revision and approval of the annual Financial Statements. As
At the ordinary session held on February 28, 2018, the Di-
such, at the ordinary session held on February 28, 2018, the
rectors’ Committee unanimously agreed to record that they
Directors’ Committee agreed unanimously that have formal-
had received formal and express consent on the report of
ly become aware of the compliance with aforementioned
money brokerage and money orders prepared by the exter-
regulation through the Internal Control Letter of February 28,
nal auditors, Ernst & Young, dated February 28, 2018. The
2018.
Committee also mentioned that the described regulation
was no longer valid, therefore this is the last time that the
referred report would be presented by External Auditors.
33
Administration 7. Review of the
External Auditors of
Matters Covered in
the NCG Nº385
(i) the audit company presented the most competitive pro-
posal according to verified technical and economic evalu-
ations of the proposals received; (ii) it has a high qualifica-
tion in the quality of available resources and has extensive
experience in the electricity sector; (iii) is one of the four
most important national and international audit firms, (iv) it
is the audit firm with the highest level of synergy for Enel
Américas S.A., as the parent and holding companies of
At the ordinary session held on February 28, 2018, unani-
Enel Américas S.A. , Enel S.p.A. have E&Y as their lead au-
mously it was agreed as reviewed by the External Auditors
ditor, and . (v) The Directors’ Committee has qualified the
the matters referred in paragraph 1 d) of the General Stan-
relationship of the company with EY as reasonable.
dard Legislation Nº 385 of the SVS, and it was declared
that none of the matters mentioned in sub-paragraphs ii,
iii and v were referred to, of the previously mentioned item
have occurred.
8. External Audit
Contract between
Enel Américas S.A.
and Ernst & Young
for the period 2018
10. Private Risk Rating
Agencies’ Proposal
At the ordinary session held on February 28, 2018, the
Directors’ Committee unanimously agreed to propose to
the Directors’ Committee that Feller Rate Clasificadora de
Riesgo Limitada and Fitch Chile Clasificadora de Riesgo
Limitada will be proposed at the respective Shareholder’s
Meeting as private risk national rating agencies, and Fitch
Ratings, Moody’s Investors Service and Standard & Poor’s
International Rating Services will be appointed as the pri-
vate international risk rating agencies for the accounting
At the ordinary session held on May 3, 2018, the Direc-
year 2018.
tors’ Committee unanimously declared to have examined
and approved the contract to be subscribed between Enel
Américas S.A. and the external auditors Ernst & Young.
9. External Auditors’
Proposal
At the ordinary session held on March 28, 2018, the Di-
rectors’ Committee unanimously resolved to suggest the
Board to propose at the Ordinary Shareholder Meeting
that the following in priority order would be appointed for
the examining of the current external auditing firm of Enel
Américas S.A., for the year 2018: 1° E&Y; 2° PKF, 3° RSM
and 4° BDO. The main reasons for proposing E&Y as the
external auditor for Enel Américas S.A. are the following:
11. Analysis of
Complaints to the
Ethical Channel
At the ordinary session held on January 31 and at the or-
dinary session of August 29, both in 2018, the Directors’
Committee issued unanimously its opinion on each of the
complaints presented, delivering guidelines to follow up
each one of them and confirming what has been resolved
by this entity, in the sense that it will be responsibility of
the Chairman of the Directors’ Committee to agree upon
a special meeting in the event that the complaint deem it
appropriate, in the opinion of the Chairman of the Commit-
tee itself.
34
Annual Report Enel Américas 2018 12. Self Assessment
on Internal Control
At the extraordinary session held on July 27, 2018, the Di-
rectors’ Committee unanimously agreed to declare that the
Self-Assessment structures and procedures on Internal
Control of Enel Américas S.A. have been reviewed.
13. Review of the
Compensation System
and Compensation
Plans for Managers,
Senior Executives
and Employees of
the Company
At the ordinary session held on June 27, 2018, the Direc-
tors’ Committee unanimously declared to have examined
the remuneration systems and compensation plans of the
company’s managers, senior executives, and employees.
14. Directors’
Committee budget
proposal for 2018
At the ordinary session of February 28, 2018, the Direc-
tors’ Committee approved unanimously the Directors’
Committee budget proposal for the accounting year 2018,
consisting on 10.000 Unidades de Fomento for expenses
related to the operation of the Committee and its advisors.
Likewise, the Directors’ Committee decided unanimously
to submit the proposal to the next Ordinary Shareholders’
Meeting of Enel Américas S.A. for its approval, to be held
on April 2018, which will finally resolve within its sphere of
competence.
15. Other
At the ordinary session of January 31, 2018, the Directors’
Committee unanimously declared to have examined the
payments made to external auditors regarding the com-
panies of the Enel Américas Group to different external
audit companies during 2017, differentiating the recurring
and non-recurring external audit services and the services
different from external audit, and the conclusion was that
these have nor impacted neither their independence not
their suitability.
At the ordinary session held on April 26, 2018, the Direc-
tors’ Committee was informed by the then General Man-
ager, Mr. Luca D’Agnese, of the progress of the IPO for the
acquisition of Eletropaulo.
As such, and as explained in this report, the Directors’
Committee has fully complied the obligations included in
the article 50 bis of the Corporations Law N°18,046.
Expenses
of Enel
Américas S.A.
Directors’
Committee
The Directors’ Committee did not make use of the expense
budget for ordinary functions approved by the Ordinary
Shareholders Meeting held on April 26, 2018.
35
Administration
Organizational Structure
j a A c h a B e s g a
r m a n
a n c i s c o D e B o r
C h a i
F r
s
t
n
e m e
g
a
n
M a
c u t
e
x
f E
h i e
C
i v e O f fi c e r
O f fi c e r
f F i n a n c i a l
C h i e
C o m m u n i c a t
General Counsel And Secretary
Planning and Control Officer
Of The Board
Human Resources and Org
Liliana Schnaidt
i o n s O f fi c e r Enel X South America
Simone Tripepi
I n t e r n a l A udit Officer
Cutrignelli (*)
R a f f a e l e
(*) Senior executives
a
nizatio
n O
f
fi
c
e
r
Maurizio Bezzeccheri(*) Aurelio Bustilho de Oliveira (*)Bruno Stella (*) Domingo Valdés Prieto (*) José Miranda Montecinos (*)
j a A c h a B e s g a
r m a n
C h a i
a n c i s c o D e B o r
F r
s
t
n
e m e
g
a
n
M a
i v e O f fi c e r
c u t
e
x
f E
h i e
C
f F i n a n c i a l
C h i e
C o m m u n i c a t
O f fi c e r
Planning and Control Officer
Of The Board
General Counsel And Secretary
i o n s O f fi c e r Enel X South America
Simone Tripepi
I n t e r n a l A udit Officer
Cutrignelli (*)
R a f f a e l e
Human Resources and Org
Liliana Schnaidt
(*) Senior executives
a
nizatio
n O
f
fi
c
e
r
Senior executives
1
4
2
5
3
6
1. CHIEF EXECUTIVE OFFICER
Maurizio Bezzeccheri
Doctor Cum Laude degree in Chemical
Engineering
Università degli Studi di Napoli
R+D Development of Steam Generators
Official Professional Qualification for
engineering practice
Rut: 26,490,357-2
From 08.01.2018(1)
2. INTERNAL AUDIT OFFICER
Raffaele Cutrignelli (3)
International Businesses Degree
Nottingham Trent University (United
Kingdom)
Audit and Internal Control Masters Degree
Universitá di Pisa (Italy)
Certificate in Strategy, Innovation,
Management and Leadership
Massachusetts Institute of Technology (MIT)
Rut: 25,553,336-3
From 10.01.2016
3. COMMUNICATIONS OFFICER
José Miranda Montecinos (3)
Audiovisual Communicator
Professional Institute DUOC UC
Executive Competencies Diploma,
Universidad de Chile
Corporate Undertaking and Open Innovation
Studies, Berkeley University
Rut: 15,307,846-7
From 02.29.2016
4. CHIEF FINANCIAL OFFICER
Aurelio Bustilho de Oliveira
Business Administration
Universidad de Brasilia
MBA de Universidad Federal Rio Janeiro/
COPPEAD
Rut: 26,102,661-9
From 10.01.2018(2)
5. GENERAL COUNSEL AND SECRETARY
OF THE BOARD
Domingo Valdés Prieto (3)
Lawyer
Universidad de Chile
Master Degree in Law of University of
Chicago
Rut: 6,973,465-0
From 04.30.1999
6. PLANNING AND CONTROL OFFICER
Bruno Stella
Economics and Business Degree
Universitá degli studi di Messina (Italy)
Rut: 25,52,.957-6
From 07.01.2018
(1) Maurizio Bezzeccheri took position on 08.01.2018 replacing Luca D’Agnese.
(2) Aurelio Bustilho de Oliveira took position on 10.01.2018 replacing Paolo Pallotti.
(3) They also exercise the same positions in Enel Chile.
37
Administration Maurizio Bezzeccheri(*) Aurelio Bustilho de Oliveira (*)Bruno Stella (*) Domingo Valdés Prieto (*) José Miranda Montecinos (*)
Officers and senior executives’
compensations
During 2018, remunerations and benefits received by the Chief Executive Officer and senior executives of the company
amounted to US$2,586 thousand in fixed remunerations and US$21 thousand in benefits.
During 2017, remunerations and benefits received by the Chief Executive Officer and senior executives of the Company
amounted to US$4,046 thousand in fixed remuneration and US$119 thousand in benefits.
This amounts included compensations for senior managers and executives in exercise as of December 31, each year, as well
as those that left the company during the respective period.
Benefits for managers and
senior executives
The company provides the benefits of supplementary health insurance and a catastrophic insurance for its main executives and
their family group recognized as a dependent charge. In addition, the Company has life insurance for its main executives. These
benefits will be granted in conformance to the management level that corresponds to the employee in due time. In 2018, the
amount spent in benefits was US$10,128, which is included in the remunerations received by the senior management.
Incentive plans for officers and
senior executives
Enel Américas has an annual bonus plan for complying with objectives and the level of individual contribution to the company
results for its executives. This plan includes a definition of the ranges of bonus according to the hierarchical level of the exec-
utives. Bonuses are given to the executives is determined by a number of gross monthly wages.
Severance paid to managers and
senior executives
There were no compensations for years of services paid to managers and senior executives during 2018.
38
Annual Report Enel Américas 2018 Property over Enel Américas
As of December 31, 2018 the shareholders' registry reflected that no main executives had ownership on the Company.
There are no requests for the Chief Executive Officer and senior executives to hold securities issued by the Company;
however there is an obligation to inform securities’ holdings and their transactions, both in the Securities Market Law and
the Company’s Information Management Manual of Market Interest.
Administration of main
subsidiaries
ARGENTINA
BRAZIL
COLOMBIA
PERU
Enel Generación Costanera
Andrea Biasotto
Degree in mechanical -
energetic engineering, industrial
engineering
Università degli Studi di Padova
Enel Generación El Chocón
Daniel Garrido
Electrician Engineer
Universidad Tecnológica Nacional
Edesur
Giuseppe Fanizzi
Electrical Engineer
Politecnico di Bari
Central Dock Sud
Juan Jose Marcet
Electrician Engineer
Universidad Tecnológica Nacional
Masters in Business
Administration
Universidad de Palermo
Enel Brasil
Nicola Cotugno
Mechanic Engineer
Università di Roma, La Sapienza
Emgesa
Bruno Riga
Aeroespace Engineer
Universidad de Pisa
Enel Generación Perú
Marco Raco
Aeronautical Engineer
Universitá di Pisa - Italy
Codensa
David Felipe Acosta Correa
Electrical Engineer
Universidad Pontificia Bolivariana
Enel Distribución Perú
Riccardo Lama
Electrician Engineer
La Sapienza University of Rome
Enel Green Power Cachoeira
Dourada
Matteo Francucci
Electrical Engineer
Università di Pisar
Enel Generación Fortaleza
Raimundo Câmara
Lawyer
Pontifícia Universidad Católica de
Río de Janeiro
Enel Cien
Guilherme Gomes Lencastre
Civil and Production Engineer
Pontifícia Universidad Católica de
Río de Janeiro
Enel Distribución Río
Artur Manuel Tavares Resende
Computer Engineer
Universidad Simón Bolivia/
Venezuela
Enel Distribución Ceará
Roberto Zanchi
Electrician Engineer
Universidad de Padova
Enel Distribución Goiás
Abel Alves Rochinha
Mechanic Engineer
Pontifícia Universidad Católica de
Río de Janeiro
Enel Distribución São Paulo
Max Xavier Lins
Electrician Engineer
Universidad Federal de
Pernambuco
39
Administration 40
Annual Report Enel Américas 2018 08
People and
organization
41
Letter From the Chairman Human resources
distribution
The employees’ distribution of Enel Américas as of December 31, 2018, including information related to the subsidiaries in
the four countries where Enel Group operates in Latin America and the joint control entities, was the following:
Company
Enel Américas (1)
Enel Brasil
Cachoeira Dourada
Enel Generación Fortaleza
Enel Cien
Enel Distribución Río (2)
Enel Distribución Ceará
Enel Distribución Goiás
Enel Distribución São Paulo
Enel Generación Costanera
El Chocón
Edesur
Enel Trading Argentina
Dock Sud
CTM y TESA
Enel Generación Perú (3)
Enel Distribución Perú
Emgesa
Codensa (2)
Total
(1) Includes senior executives shared with Enel Chile.
(2) Includes Enel X.
(3) Includes Enel Generación Piura.
Managers and
Senior Executives
Professionals
And Technicians
Employees and
Others
13
10
1
3
1
8
9
3
21
0
1
18
2
0
0
19
22
14
24
169
44
66
63
39
24
768
626
421
2,832
59
36
1,761
7
47
4
306
568
601
1,503
9,775
3
0
30
22
9
342
500
677
4,425
385
12
1,981
20
41
0
-
-
-
2
8,449
Total
60
76
94
64
34
1,118
1,135
1,101
7,278
444
49
3,760
29
88
4
325
590
615
1,529
18,393
42
Annual Report Enel Américas 2018
Social responsibility and
sustainable development
Diversity in senior
executives of
Enel Américas
Number of people by gender:
Female
Male
General Total
Number of people by nationality:
Chilean
Brazilian
Italian
General Total
Number of people by age range:
Less than 30 years old
Between 30 and 40 years old
Between 41 and 50 years old
Between 51 and 60 years old
Between 61 and 70 years old
General Total
Number of people by seniority:
Less than 3 years
Between 3 and 6 years
More than 6 and less than 9 years
Between 9 and 12 years
More than 12 years
General Total
Diversity in the rest
of the organization
in Enel Américas
Number of people by gender:
Female
Male
General Total
Number of people by nationality:
Argentine
Brazilian
Chilean
Spanish
Italian
Peruvian
Romanian
General Total
Number of people by age range:
Less than 30 years old
Between 30 and 40 years old
Between 41 and 50 years old
Between 51 and 60 years old
Between 61 and 70 years old
General Total
Number of people by seniority:
Less than 3 years
Between 3 and 6 years
More than 6 and less than 9 years
Between 9 and 12 years
More than 12 years
General Total
1
3
43
1
4
1
1
54
9
22
11
11
1
54
18
6
8
4
18
54
Average fixed salary of
women with respect
to men according to
their professional level
0
6
6
2
1
3
6
-
2
1
3
-
6
5
-
-
-
1
6
Contents:
Senior Management
Middle Management - Level 1
Middle Management - Level 2
Middle Management - Level 3
14
40
54
Professionals - Level 1
Professionals - Level 2
Administratives
Average
0%
61%
65%
83%
87%
97%
182%
83%
43
People and organization
Human Resources
Activities
Labor Relations
During 2018, the Company continued having regular meet-
ings program with unions, enabling an open dialogue with
the employees’ representatives, therefore improving work
conditions and environment at the workplace.
Safety and
occupational health
For Enel Américas safety and occupational health are ob-
jectives directly linked to the business, whose nature is
subject to critical risks. In terms of occupational health,
worth is to highlight the following:
Health Dissemination and
Promotion
The objective of this program is to provide health, educate
and train employees through activities related to the pro-
motion quality of life, including a massive diffusion through
posters, graphic material and information sent by mail.
Among the topics that feature every month, we outline the
following:
> September: Prostate and cervical cancer, an invita-
tion to an annual preventive examination.
> October: Breast cancer prevention: Invitation to par-
ticipate in the prevention of this disease through its
early detection and self-examination.
> November: Healthy eating campaign: practical rec-
ommendations to improve nutrition, for a better life
style.
> December: Skin care campaign: Advises for skin care
from ultraviolet radiation and other agents.
Immunization Program
The immunization of Enel Américas’ employees is a preven-
tive measure whose objective is to foresee the occurrence
of diseases with the consequent massive contagion. The
company gives every employee the vaccination to prevent
seasonal influenza. This is delivered during the first quarter
of the year, preventing the outbreak starting in early June.
Preventive exams program
Its objective is to carry out periodic medical evaluations to
employees for the early detection of alterations or pathol-
ogies with potential damage for human health. This initia-
tive is addressed to every employee of the company and is
carried out through a defined protocol according to gender
and age.
> March: anti-stress campaign: including practical rec-
Cardiovascular risk program
ommendations to suppress its causes.
This project falls within the framework of care of those em-
> April: Immunization campaign, a massive invitation to
ployees that have cardiovascular risk, according to the pre-
vaccination to prevent influenza.
ventive exams and its objective is to provide tools for health
> May: Anti tobacco campaign, including advises to pre-
care, through specific fitness programs and nutrition control.
vent its consumption.
>
June: Colon and gastric cancer campaign: recom-
mendations for the timely detection of these diseases
through preventive examination.
>
July: Viral contagion and respiratory diseases preven-
tion: Recommendations to prevent infections.
> August: Heart care campaign: Practical recommen-
dations for its care.
44
Break gym program
Work Gym or Active Break, is an exercise program that
helps to prevent the main diseases produced in the work-
place, such as stress, tendonitis, lumbago, carpal tunnel
syndrome, neck and shoulders discomfort, among others.
Annual Report Enel Américas 2018 People Management
Work environment
management
Work environment and commitment are priorities for Enel
América’s strategy. In 2018 the Environment and Safety
Survey was carried out, which counted with a participation
of 93% of employees in Chile. Work environment manage-
ment and commitment are the fundamental cornerstones
of the company’s strategy, due to its close relationship
with the people that constitutes the human resources of
the company. For this reason, the company has continued
developing several initiatives that seek to maintain the em-
ployees’ motivation, satisfaction and commitment, in the
lines of leadership, communication, meritocracy and devel-
opment, reconciliation measures and good labor practices.
These include, among others, Team building programs, col-
laborative work experiences, whose main focus is to devel-
op relational skills and cooperation of work teams, in order
to strengthen confidence and align for the achievement of
common goals.
Enel Américas has a program developed to promote and
strengthen the role of leaders in the generation of a cor-
porate environment that enables satisfaction and develop-
ment of its employees. The “Leader to Coach” program
has been designed to leverage the exercise of leadership
and the role of the Manager in our “Open Power” culture,
being an active and strategic role focusing on the mobiliza-
tion of their equipment and the ability to promote learning.
This is a comprehensive program for skills training, educa-
tion and accompaniment that comprises the development
of individual itinerary for each manager. The activities in-
cluded in this program are: skills training workshop, indi-
vidual coaching, guided accompaniment for meetings and
the creation of a network of good practices and people
management.
With the purpose of establishing a permanent and close
contact with employees, Enel Américas has implemented
a set of communication initiatives under the brand People
& Organization, which daily informs and explains various
topics of interest focused on people management. To that
end, a weekly radio show is developed, a website, good
practice manuals for managers and employees, among
other actions.
The company has developed a professional management
development for the programs oriented to meritocracy
and development, through promotion actions by merit and
through local work opportunities and abroad where the
Group operates.
45
People and organization At Enel Américas, the chances for feedback of manag-
ers with employees are opportunities to generate greater
closeness, transparency, align expectations and support
for professional development. The promotion of a culture
of continuous feedback guides us to the development of
employees’ talents and the conformation of high perfor-
mance teams.
In 2018 the “Recognize” Program continued in a renovat-
ed version, which seeks to foster a culture of recognition
within the company and to generate formal meetings
where employees recognize their colleagues. The “Recog-
nize People” Program is target to identify those initiatives
that have produced great value for the entity through the
“Recognize Contributions” Program. So also massive cer-
emonies were performed in the Company to recognize out-
standing employees, work trajectory, among others.
Another interesting activity that has been developing in
2018, program agent of change comprised of approximate-
ly 50 employees in Chile. This team has developed initia-
tives for cultural change that help businesses to enforce
their projects under the principles of cooperation and inno-
vation. Each team had a Manager of the Company as Spon-
sor that supports and guides their initiatives, and make a
link between the technical project and the initiatives of cul-
tural change that the implementation demands.
Diversity
For Enel Américas, to have diverse team works and to
promote an inclusive work environment is fundamental for
generating a culture of innovation, enabling the formulation
of different points of view that fortify the workplace and
constantly add value.
Under the Diversity dimension and Inclusion Policy, Enel
Américas has developed as part of its strategy a series of
practices related to gender, age, nationality and disability.
This policy promotes the principles of no discrimination,
equality of opportunities, inclusion and balance between
personal and work lives, and also fundamental values in the
activities of the companies of the Group.
The Policy has established three general principles:
1. Reject any form of arbitrary discrimination, ensure and
promote diversity, inclusion and equality of opportuni-
ties.
2. Promote and maintain a climate of respect for the dig-
nity, honor and identity of the individual.
3. Ensure the highest confidentiality standards in rela-
tion to any information related to the private lives of
employees that they would have access to.
46
Annual Report Enel Américas 2018 In the Gender dimension, the Company evaluated the
the participation of a group of volunteers that support the
population and looks for a balance in the initial stage of
cause.
the recruitment and selection processes, and to generate
relationships with universities and professional institutes
to promote the participation and inclusion of women stu-
dents, specially in technical areas.
In the Age dimension, and in the context of the digital trans-
formation of the company, this year the Company imple-
ments new On-Boarding platform, where each employee
that joins Enel Américas has the chance to anticipate the
contact and knowledge of the firm, being better prepared
to his/ her labor and cultures adjustment. This personal and
professional support to the new employee, shows how will
be his/ her work daily routine.
In the Nationality dimension, a tutor is assigned to expatri-
ate workers for assistance and support during the expatri-
ation period in order to acknowledge, respect and manage
the contrasts between people from different nationalities
and promote their integration.
In the Disability dimension, in order to acknowledge, re-
spect and manage the different skills of employees with-
in the company, this year Enel Américas addressed the
issues related with the people with disabilities’ needs,
supporting them in the acquisition of the credential estab-
lished by Law and accredits them against the State. This
also ensured the continuity of structural adjustments (din-
ing room, bathrooms, ramps, delineated parking lots, ac-
cess to the auditorium, elevators with braille system, etc.)
in the company’s facilities.
Regarding the series of awareness actions, the Enel Group
in Chile had a special participation in the Diversity and
Inclusion week, with the performance of the play called
“With Open Arms”, in which different issues related with
diversity and inclusion were addressed in a playful way.
Also the activity “In Your Shoes for One Day” enabled
employees to experience on their own the obstacles that
disabled people daily face.
Reconciliation measures
and labor flexibility
One of the reconciliation and labor flexibility measures car-
ried out during 2018, the telework program method "Smart
Working" has consolidated in this period, being one of the
most appreciated options in terms of reconciliation in the
company, providing more flexibility in the job execution for
the employee. Currently in Enel in Chile there are 360 em-
ployees that subscribed in the program, 9 of them from
Enel Américas, who one day per week chosen by them
(between Tuesday and Thursday), work from their homes
or wherever they choose, and must comply with the safe-
ty and health measures established by current regulations.
This initiative contributes to the harmony in the workplace
and with their families, together with their quality of life.
Additionally, during 2018, and among those measures, the
Company carried out the following initiatives oriented to
strengthen the quality of live of their employees:
Extension Program of Sports and Culture: its a traditional
program of sports activities performed in the facilities of
the company and through external partnerships, with work-
shops and the practice of different sports, such as football,
baby football, basketball, volleyball, among others. Also,
the Company offers art workshops, exhibitions, tours,
family trips and other extension initiatives addresses to
the employee and their families. There are several actions
addressed to the employees’ children, both recreational
and educational, among which summer and winter camps
stand out, consisting in recreational days for the employ-
ees’ children between 6 and 15 years old, which take place
during the first month of the year and during the winter va-
cation period. The company also offers training workshops
during the summer addressed to the employees’ families.
The Company also signed an alliance The Inclusive Com-
panies Network of Sofofa, ReIN, where best practices are
shared monthly with more than 30 companies. Especially
this year, Enel Group participated in Teletón campaign, with
During the year, the company also performs also various
events to foster the reconciliation of work and family, is
the Christmas Party, consisting on a family celebration for
employees’ children; “Come to my Birthday”, is a celebra-
tion performed each month at the company’s stadium for
47
People and organization children under 12 years old. The following important events
also stand out: the End-of-Year Party, a corporate event
for all employees, consisting on a dinner and entertain-
ment party, contests and dance; and the “Work Trajectory
Internships and Young
Talent Attraction Program
Award”, which is a corporate celebration that each year ac-
In this area, an important project in terms of the generation
knowledges employees with over twenty years of service
of new recruitment sources is the incorporation of young
at the company.
Recruitment and
Selection
Recruitment and Selection
The main objective of Enel Américas is to incorporate the
best professionals, who additionally must have the skills re-
lated to the cultural changes we are experiencing with the
digital transformation of the Company and Open Power.
During 2018, 8 vacant positions emerged in Enel Améri-
cas, 12.5% of which was covered internally. Regarding the
work force that joined the company in 2018 (62.5% of the
total vacants of Enel Américas), 45% were women.
future professionals from the best universities of the coun-
try as practitioners and thesis students. These students get
the opportunity to consolidate theoretical learning in the
context of Enel Américas’ business, thus achieving profes-
sional training with knowledge of reality and the challenges
of the group, being an important source of recruitment.
This internship program is carried out on a permanent basis
during the year, being the summer is the most active peri-
od. In 2018 a total of 3 students were practitioners of thesis
in Enel América, 70% of them were women.
At a transversal level and considering the different lines of
business of Enel Américas, 80% is concentrated in Audit
and the remaining 20% in Procurement.
48
Annual Report Enel Américas 2018 Diversity and inclusion
For Enel Américas, to foster an inclusive work environment
is essential for promoting an innovation culture and respect
for diversity. Diversity gives the possibility to visualize dif-
ferent points of view and opinions that enrich the work
environment, adds value to the business, provides new op-
portunities and facilitates collaboration and the integration
of teams.
The Company values the differences and turn them into
competitive advantages, so it becomes empowered to
improve processes, products and services, through incen-
tives to creativity, learning, flexibility and respect. These
also strengthen our brand and make us more attractive to
the talents available in the market.
Finally, and in the field of continuous improvement, this
year the On Boarding process was carried out to accom-
pany and follow up the new employees through presen-
tations to know the company, and the designation of a
Tutor to guide them to become part of the company and
transmits our Open Power culture, and in summary guide
their integration to the Company. The Agile methodology
is used for the design and development of the On-Board-
ing digital platform, which is oriented to provide a better
experience to the new employees, offering them an early
welcome with the connection to the platform.
Educational Action
Training
Enel América’s training program for 2018 was built and ex-
ecuted on the basis of two main management principles:
the first principle is to achieve the right balance between
educational activities focused on skills development and
essential technical knowledge in order to support the per-
formance of our employees. The second principle is the
training program financing, regarding the needs detection
mechanism that enables the identification, together with
the collaborator and the manager, the technical and behav-
ioral gaps that needs to be covered, with regards to the
individual productivity in the workplace in order to access
to possible future development opportunities. The needs
detection system is denominated IDP (Professional Devel-
opment Itinerary), whose implementation takes two years.
In relation to the development of behavioral and manage-
ment skills, diverse programs were implemented in 2018.
Among them, the internal certificate of Project Manage-
ment and Evaluation stands out, which Universidad de
Chile offers under a design specially made for our com-
pany’s needs. In this same context, the activities related
to the development of leadership skills are also relevant,
being especially important those addressed to consolidate
and strengthen teamwork skills (cooperation, confidence,
growth and productivity).
Finally, and as declared in every level and segment of em-
ployees within the company, risks prevention, health and in
general safety of people is a particularly relevant focus and
permanent attention.
49
People and organization 50
Annual Report Enel Américas 2018 09
Exchange
Transactions
51
Letter From the Chairman Exchange Transactions
Below you will find a detail of the quarterly transactions in the last three years made in the stock exchanges where the Enel
Américas’ shares are traded: in Chile through the Santiago Stock Exchange, the Electronic Stock Exchange of Chile and the
Valparaíso Stock Exchange, and in the United States through the New York Stock Exchange (NYSE).
Santiago Stock Exchange
During 2018, 14,329 million shares of Enel Américas were traded at the Santiago Stock Exchange, equivalent to
CLP$1,716,422 million. The closing price of the share in December was CLP$122.51.
Period
1st quarter 2016
2nd quarter 2016
3rd quarter 2016
4th quarter 2016
Total 2016
1st quarter 2017
2nd quarter 2017
3rd quarter 2017
4th quarter 2017
Total 2017
1st quarter 2018
2nd quarter 2018
3rd quarter 2018
4th quarter 2018
Total 2018
Units
1,540,145,250
1,753,142,660
1,232,162,338
2,168,846,180
6,694,296,428
2,229,781,463
2,009,919,858
2,356,887,602
2,796,096,892
9,392,685,815
2,771,570,034
3,290,495,998
3,404,682,608
4,862,216,660
14,328,965,300
Amounts (Chilean Pesos)
266,620,137,076
212,677,167,355
140,048,801,925
239,278,798,879
858,624,905,235
273,721,586,257
261,422,184,124
309,180,255,882
366,879,556,230
1,211,203,582,493
383,425,705,091
427,006,940,711
364,271,802,874
541,717,097,465
1,716,421,546,141
Average Price
172.74
110.85
113.49
110.6
126.92
122.9
130.71
131.24
131.46
129.08
138.45
130.51
107.10
111.99
122.01
Chilean Electronic Stock Exchange
At the Electronic Stock Exchange, a total of 923 million shares of Enel Américas were traded during 2018, equivalent
CLP$113,974 million. The closing price of the share in December was CLP$119.56.
Units
130,742,124
122,026,677
88,217,958
228,583,097
569,569,856
78,056,955
253,547,191
367,188,645
272,011,584
970,804,375
265,640,945
315,617,793
206,898,749
134,618,362
922,775,849
Amounts (Chilean Pesos)
22,440,123,693
14,581,565,262
10,001,108,374
25,262,018,950
72,284,816,279
9,660,465,656
32,973,128,058
48,153,275,546
35,937,385,836
126,724,255,096
37,149,674,644
40,051,124,833
21,982,108,385
14,791,542,973
113,974,450,835
Average Price
172.97
121.46
113.65
111.66
129.94
121.16
130.37
130.87
132.97
128.84
139.09
130.94
106.26
110.56
121.71
Period
1st quarter 2016
2nd quarter 2016
3rd quarter 2016
4th quarter 2016
Total 2016
1st quarter 2017
2nd quarter 2017
3rd quarter 2017
4th quarter 2017
Total 2017
1st quarter 2018
2nd quarter 2018
3rd quarter 2018
4th quarter 2018
Total 2018
52
Annual Report Enel Américas 2018 Valparaíso Stock Exchange
A total of 207,2 thousand shares were traded during the year at the Valparaíso Stock Exchange, equivalent to CLP$24.1
million. The closing price of the share in 2018 was $103.5.
On October 5, 2018, la Financial Market Commission (CMF for the Spanish acronym) issued a resolution revoking the
authorization on the existence of the Valparaíso Stock Exchange, due to the non-compliance of the requirement to have at
least 10 stockbrokers pursuant to Securities Markets Law Nº 18,045, No. 4 of article 40. Therefore, from October 8, 2018,
Valparaíso Stock Exchange ceased to operate.
Period
1st quarter 2016
2nd quarter 2016
3rd quarter 2016
4th quarter 2016
Total 2016
1st quarter 2017
2nd quarter 2017
3rd quarter 2017
4th quarter 2017
Total 2017
1st quarter 2018
2nd quarter 2018
3rd quarter 2018
4th quarter 2018
Total 2018
Units
0
0
120,460
0
120,460
5,576
29,273
2,070
126,000
162,919
53,601
2,077
147,880
3,680
207,238
Amounts (Chilean Pesos)
0
0
13,512,912
0
13,512,912
697,388
3,816,345
270,232
15,624,000
20,407,965
7,370,604
268,972
16,079,132
380,880
24,099,588
Average Price
112.46
112.46
125.06
128.68
130.54
124.00
127.07
137.46
129.50
109.29
103.50
119.94
New York Stock Exchange (NYSE)
The shares of Enel Américas began to trade in the New York Stock Exchange (NYSE) on October 20, 1993. At that time,
the name of the company was Enersis and the ticker symbol was ENI. One ADS (American Depositary Share) of Enel
Américas represents 50 shares and its current ticker symbol is ENIA. Citibank N.A. acts as depositary bank and Banco
Santander Chile is custodian in Chile.
During 2018 272 million ADS were traded in the United States, equivalent to US$2.516 million. The ADS closing price in
December was US$8.92.
Period
1st quarter 2016
2nd quarter 2016
3rd quarter 2016
4th quarter 2016
Total 2016
1st quarter 2017
2nd quarter 2017
3rd quarter 2017
4th quarter 2017
Total 2017
1st quarter 2018
2nd quarter 2018
3rd quarter 2018
4th quarter 2018
Total 2018
Units
58,523,621
59,311,337
45,809,391
52,176,921
215,821,270
55,867,021
66,972,268
59,641,261
54,800,714
237,281,264
47,259,808
65,764,152
61,238,283
97,296,394
271,558,637
Amounts (US Dollars)
719,235,235
562,497,059
395,562,633
432,967,188
2,110,262,115
532,101,627
653,636,388
603,478,379
564,766,815
2,353,983,209
540,952,152
687,363,196
488,063,068
799,163,804
2,515,542,219
Average Price
12.35
9.68
8.59
8.32
9.73
9.45
9.81
10.14
10.34
9.94
11.44
10.50
8.08
8.12
9.53
53
Exchange Transactions
Santiago Stock
Exchange
In the local market, the performance of Enel Américas’
share during the last two years compared to the Selective
Stock Prices Index (S&P/CLX IPSA)(1) is the following:
Variation
Enel Américas
S&P/CLX IPSA
2017
25.9%
34.0%
2018
-10.6%
-8.3%
(1) In August, 2016, the Santiago Stock Exchange (“the
Stock Exchange”) and S&P Dow Jones Indexes (“S&P
DJI”) signed an Operation and Licensing Agreement for
Indexes. The alliance between the Stock Exchange and
S&P DJI, the main global provider of concepts, data and re-
search on indexes, includes the implementation of interna-
tional methodological standards, as well as the integration
Market Information
During 2018, the Chilean stock market prices trended
downwards, the S&P/CLX IPSA index fell 8% compared to
the previous year, being the worst annual yield since 2013
and offsetted the good performance in 2017 (34%). Like-
wise, the main global markets also dropped, such as New
York (Dow Jones, -5.6%) and London (FTSE 100, -12.5%)
and some Latin American markets where Enel Américas
operates, such as Colombia (COLCAP, -12.4%) and Peru
(IGBVL, -3.1%). This is mainly due to the investors’ concern
for the rising tendency of interest rates in the United States
and the potential negative effects of a trade war between
China and the United States. Meanwhile, in Brazil the
IBOVESPA grew 15.0% reflecting the market’s optimism
with presidential elections. Argentina was in line compared
to the close of the previous year (Merval, 0.8%), despite
the poor macroeconomic situation of the country with an
inflation reaching 47.6% in the year, being the highest in-
crease since 1991, and additionally de Argentinean peso
depreciated against the US dollar and the GDP fell 2.6%.
The currencies in the countries where Enel Américas op-
erates, Brazil, Colombia and Peru, also depreciated against
the US dollar in 2018, while the GDP grew in these coun-
tries (Brazil, +1.1%; Colombia, +2.7%; Peru, +4.0%).
54
Annual Report Enel Américas 2018 of operating processes and business strategies, which has
fostered greater visibility, governance and transparency of
the existing indexes. The agreement also enables the de-
velopment, the granting of licenses, distribution and man-
agement of current and future indexes, which will develop
as innovating and practical tools at the local and interna-
tional investors’ disposal. The Santiago Stock Exchange
Indexes, both the new and the existing ones, will use the
shared brand “S&P/CLX” and shall be used as underlying
indexes for liquid financial products, thus contributing to
the expansion and depth of the Chilean capital markets.
According to this agreement, S&P DJI took charge of the
calculating tasks, production, maintenance, licensing and
distribution of indexes as of Monday August 6, 2018. Cur-
rently, 30 stocks comprise the S&PCLXIPSA index,, and
rebalancing is biannual, in March and September.
New York Stock
Exchange (NYSE)
The performance of Enel Américas’ ADRs listed in the
NYSE (ENIA) compared to Dow Jones Industrial Index and
the Dow Jones Utilities Index during the last two years is
shown below:
Variation
ENIA
Dow Jones Industrial
Dow Jones Utilities
2017
36.1%
25.1%
9.7%
2018
-20.1%
-5.6%
-1.4%
55
Exchange Transactions 56
Annual Report Enel Américas 2018 10
Dividends
57
Letter From the Chairman According to General Norm N°283, Number 5, the dividends policies of the company for the periods 2019 and 2018 are
transcribed below.
Dividend Policy for period
2019
General aspects
1. Deposit in current account of the shareholder.
2. Deposit in saving account of the shareholder.
3. Nominative check or bank note to be send by mail to
The Board of Directors of the Company, in session held on
the residence of the shareholders and
February 27, 2019, approved the following Dividend Policy
4. Withdrawal of nominative check or bank note at the
and the corresponding Procedure for the dividends pay-
ment of Enel Américas S.A. for the period 2019.
Dividend policy
offices of DCV Registros S.A., as its condition of ad-
ministrator of the Enel Américas S.A’ shareholders,
or in bank or branch offices established for such pur-
pose and that will be informed in notification to be
published regarding the payment of dividends.
The Board of Directors intends to distribute an interim div-
For the above mentioned purposes, current or savings ac-
idend, charged to the net income of the 2019 accounting
counts can be any branch of the country. The methodology
period, of up to 15% of the net income as of September
chosen by each shareholder will be used by DCV Registros
30, 2019, according to what is shown in the Enel Américas
S.A. for all dividend payment, while the shareholder does not
S.A.’s financial statements up to such date, to be paid in
express in writing his intention of a new option. The share-
January 2020.
holders who do not have a payment modality, will be paid
according to methodology No. 4 mentioned above.
The Board of Directors plans to propose to the Ordinary
Shareholders Meeting, to be held during the first four
In cases where the checks or on-site drafts are returned by
months of 2020, to distribute, as a definite dividend, an
mail to DCV Registros S.A., they will remain in their custody
amount equal to 50% of the net income for the 2019 ac-
until the shareholders pick them up or request them. In case
counting period. The final dividend will be the one that will
of a deposits in current accounts, Enel Américas S.A. and/or
be established by the Ordinary Shareholders’ Meeting, to be
DCV Registros S.A. may request, for security reasons, verifi-
held during the first four months of 2020. The compliance
cations by the corresponding banks. If the accounts indicated
of the aforementioned dividend program will be subject the
by the shareholders are rejected, whether in a prior verifica-
net income effectively recorded, as well as to maintain the
tion process or for any other cause, the dividend will be paid
according to the methodology No. 4. At the same time, the
Company has adopted and will continue to take in the future
all necessary security measures required by dividend pay-
ment process, in order to safeguard both the shareholders as
well as Enel Américas S.A.
financial balance of the company.
Dividend Payment
Procedure
For dividend payments, whether interim or definite, and in
order to avoid their undue collection, Enel Américas S.A.
considers the methodologies indicated below:
58
Annual Report Enel Américas 2018 Dividends
Policy for
2018
General Aspects
At the session held on February 28, 2018, the Board of Di-
Distributable
Income of 2018
The distributable income of 2018 is shown below:
Net Income *
Distributable Income
* Attributable to the controlling shareholder.
Thousand US$
1,201,381
480,552
rectors of the Company approved the following Dividends
Policy and the procedures for payment of Enel Américas
Distributed Dividends
S.A. dividends for the 2018 accounting period.
The following chart shows the dividends per share paid in
the last years:
N°
Dividend
Type of
dividend
Closing Date
Payment
Date
Pesos/
Dollars per
share (1)
Exercise
86
87
88
89
90
91
92
93
94
95
Interim
01/19/2013
25/01/2013
1.21538
Final
05/04/2013
10/05/2013
3.03489
Interim
01/25/2014
31/01/2014
1.42964
Final
05/10/2014
16/05/2014
5.27719
Interim
01/24/2015
30/01/2015
0.83148
Final
05/18/2015
25/05/2015
5.38285
Interim
01/23/2016
29/01/2016
1.23875
Final
05/17/2016
24/05/2016
3.40599
Interim
01/21/2017
27/01/2017
0.94664
Final
05/20/2017
26/05/2017
2.38705
96 (1)
Interim
01/20/2018
26/01/2018
0.001
97
98
Final
05/18/2018
25/05/2018
0.00517
Interim
01/19/2019
25/01/2019
0.00134
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
(1) The Extraordinary Shareholders’ Meeting held on April 27, 2017
approved the change of functional currency of the Company from
Chilean Pesos to US Dollars. Then, from the period 2017 onwards,
dividends are presented in dollars per share.
Dividend policy
The Board of Directors intends to distribute an interim div-
idend, charged to the net income of the 2018 accounting
period, of up to 15% of the net income as of September
30, 2018, according to what is shown in the Enel Américas
S.A.’s financial statements up to such date, to be paid in
January 2019.
The Board of Directors plans to propose to the Ordinary
Shareholders Meeting, to be held during the first four
months of 2018, to distribute, as a definite dividend, an
amount equal to 40% of the net income for the 2018 ac-
counting period.
The final dividend will be the one that will be established by
the Ordinary Shareholders’ Meeting, to be held during the
first four months of 2019.
The compliance of the aforementioned dividend program
will be subject the net income effectively recorded, as well
as to the forecast result periodically prepared by the Com-
pany or the existence of determined conditions, as rele-
vant.
Dividends
59
60
Annual Report Enel Américas 2018 11
Investment and
financing policy
for 2018
61
Letter From the Chairman The Ordinary Shareholders’ Meeting held on April 26, 2018 approved the Investment and Financing Policy detailed below.
Investments
Areas of Investment
Enel Américas will invest, as authorized by its bylaws, in
the following areas: Contributions for investment in, or for
the creation of subsidiaries and related companies whose
activity is aligned, related or linked to any form or type of
energy, the supply of public utilities, or whose main raw
material is energy. ii) Investments consistent in the acqui-
sition, exploitation, construction, rental, administration,
trading and disposal of any class of fixed assets, whether
directly or through subsidiaries. iii) Other investments in all
kinds of financial assets, titles or securities.
Maximum
investment limits
Participation
in controlling
investment area
In order to control the investment areas and pursuant to
Enel Américas S.A.’ corporate purpose, the following pro-
cedure will be followed whenever possible: i) At the Ordi-
nary Shareholders Meeting will be proposed for subsidiar-
ies or related companies the Directors of Enel Américas
S.A. in proportion of at least the stake in those companies,
and preferably they should be chosen among directors or
executives of Enel Amércias S.A. or its subsidiaries, ii) In-
vestment, financial and commercial policies as well as ac-
counting criteria and systems that they should follow will
be proposed to the subsidiaries and related companies, iii)
The management of the subsidiaries and related compa-
The maximum investment limits for each investment area
nies will be supervised, and iv) A permanent control of the
shall be the following:
debt level will be undertaken.
i) Investments in subsidiaries in the electricity sector:
amounts required by the subsidiaries to meet their respec-
tive corporate purposes, with a maximum amount equal to
50% of the Net Equity in the consolidated balance sheet
of Enel Américas S.A. as of December 31, 2017. ii) Invest-
ments in other companies outside the electricity sector,
as long as at least 50.1% of Enel Américas consolidated
assets are part of the electricity sector.
62
Annual Report Enel Américas 2018 Financing
Maximum
Indebtedness Level
The maximum indebtedness of Enel Américas S.A. is
defined as the relation between the Total Financial Debt
(measured as Other current financial liabilities and Other
non-current financial liabilities) lower than or equal to 2.2
times total equity, based on the consolidated statements
of financial position of Enel Américas S.A. as of December
31, 2017.
Management
attributions for agreeing
Enel Américas’ dividend
payment restrictions
with lenders
Dividend payment restrictions may only be agreed upon
with lenders if previously approved by a shareholders’
meeting (ordinary or extraordinary).
Management
attributions for granting
liens to lenders
An Extraordinary Shareholders Meeting must approve the
granting of liens or warranties to third parties obligations,
related to essential assets described below
Assets that are essential
for the normal operation
of the Company
An essential asset for the operation of Enel Américas is
its direct and/or indirect participation that allows control,
by way of holding the majority of shares, agreements or
shareholder agreements, of Enel Brasil and Emgesa.
Investment and financing policy for 2018
63
64
Annual Report Enel Américas 2018 12
Business of
the Company
65
Letter From the Chairman Business Structure
GENERATION
DISTRIBUTION
ENEL GENERACIÓN COSTANERA
EDESUR
ENEL GENERACIÓN EL CHOCÓN
ENEL DISTRIBUCIÓN RÍO
CENTRAL DOCKSUD
ENEL DISTRIBUCIÓN CEARÁ
ENEL GENERACIÓN FORTALEZA
ENEL DISTRIBUCIÓN GOIÁS
EGP CACHOEIRA DOURADA
ENEL DISTRIBUCIÓN SÃO PAULO
EGP VOLTA GRANDE
ENEL CODENSA
ENEL DISTRIBUCIÓN PERÚ
ENEL CIEN*
ENEL EMGESA
ENEL GENERACIÓN PERÚ
ENEL GENERACIÓN PIURA
*TRANSMISSION
OTHER BUSINESSES
ENEL X
66
Annual Report Enel Américas 2018 Historical
Background
The Company went through a corporate restructuring pro-
cess that started in April 2015 and was completed in De-
cember 2016. This process consisted in the division of the
electricity generation and distribution activities developed in
Chile, from those performed in the rest of the countries. As
such, the former Enersis S.A. was divided and the following
companies were born: a) Enel Américas S.A., the continu-
On June 19, 1981, the Compañía Chilena de Electricidad
ing company of Enersis with activities in Argentina, Brazil,
S.A. created a new corporate structure, which gave birth
Colombia and Peru, and, b) Enel Chile S.A. which owns the
to a parent company and three subsidiaries. One of these
assets related to the development of the activities in Chile.
was Compañía Chilena Metropolitana de Distribución Eléc-
trica S.A. In 1985, under the Chilean government’s privat-
Currently Enel Américas S.A. is one of the largest private
ization policy, the process of transferring the share capital
electricity companies in Latin America, both in terms of con-
of Compañía Chilena Metropolitana de Distribución Eléctrica
solidated assets and also in terms of operating revenues,
S.A. to the private sector begun, and ended on August 10,
which has been achieved through steady and balanced
1987. In this process, the pension fund management com-
growth in its electricity businesses: generation, transmis-
panies (AFPs in its Spanish acronym), company employees,
sion and distribution.
institutional investors and thousands of small shareholders
joined the company. Its organizational structure was based
on activities or operative functions whose results were eval-
uated functionally and its profitability was limited by a tariff
structure as a result of the Company’s exclusive dedication
to the electricity distribution business.
In 1987, the Company’s Board proposed forming a division
for each of the parent company’s activities. Then four sub-
sidiaries were created to operate as business units with its
own objectives, thus expanding the company’s activities to-
wards other non-regulated activities but linked to the main
Expansion
and
development
business. This division was approved at the Extraordinary
Enel Américas began its international expansion in 1992
Shareholders’ Meeting of November 25, 1987 thus defin-
with the participation in different privatization processes in
ing its new corporate purpose. With this, Compañía Chilena
Latin America, thus developing a significant presence in
Metropolitana de Distribución Eléctrica S.A. became an in-
the electricity sectors of Argentina, Brazil, Colombia and
vestment holding company.
On August 1, 1988, as agreed at the Extraordinary Share-
Peru.
1992
holders’ Meeting held on April 12, 1988, one of the compa-
> On May 15, Enel Americas, Enersis at that time, ac-
nies born from the division changed its name to Enersis S.A.
quired a 60% shareholding and control of Central
At the Extraordinary Shareholders’ Meeting held on April 11,
Costanera generation company, currently Enel Gener-
2002, the company’s corporate purpose was modified, in-
ación Costanera, located in Buenos Aires, Argentina.
troducing telecommunications activities and the investment
> On July 30, the Company was awarded 51% of Em-
and management of companies whose businesses are in
presa Distribuidora Sur S.A., Edesur, a company that
telecommunications and information technology, and Inter-
distributes electricity in the city of Buenos Aires, Ar-
net trading businesses.
gentina.
67
Business of the Company 1993
>
In July, the Company acquired Hidroeléctrica El
Chocón, today Enel Generación El Chocón, located in
the provinces of Neuquén and Río Negro, Argentina.
> On September 15, with a total investment of US$951 mil-
lion, the Company acquired a 75% shareholding of Emge-
sa, a Colombian generation company, and an additional
5.5% of Empresa Eléctrica de Bogotá S.A.
>
Endesa, S.A. (Spain) acquired 32% of Enersis (cur-
rently Enel Américas).
1994
1998
>
In July, Enel Américas acquired for US$176 million the
> On April 3, Enersis (currently Enel Américas) again in-
60% share capital of Empresa de Distribución Eléc-
vested the Brazilian market, this time being awarded
trica de Lima Norte S.A., Edelnor (currently Enel Dis-
89% and control of Companhia Energética de Ceará
tribución Perú) in Peru. Also the Company acquired
S.A., Coelce (currently Enel Distribución Ceará), com-
Edechancay, another electricity distribution company
pany that distributes electricity in the northeast region
in that country, which was later absorbed by the for-
of the country, in the state of Ceará. The transaction
mer.
1995
reached US$868 million.
1999
> On December 12, Enel Américas acquired an addi-
>
Endesa, S.A. (Spain), took control of Enersis (today
tional 39% shareholding of Edesur.
Enel Américas). Through a Public Share offering,
> Additionally, the Company acquired the generation
Endesa acquired an additional holding of 32% in Ener-
company Edegel in Peru (currently Enel Generación
sis, which, together with the 32% already acquired in
Perú).
1996
> On December 20, Enel Américas entered the Brazilian
market with the acquisition of a large portion of shares
in the previously called Companhia de Eletricidade do
Río de Janeiro S.A., Cerj, a company that distributes
electricity in the city of Río de Janeiro and Niteroi, Bra-
zil, whose business name changed to Ampla Energía
e Serviços S.A. and currently is Enel Distribución Río.
> On December 20, the Company acquired a 99.9%
shareholding in Central Hidroeléctrica de Betania S.A.
E.S.P, in Colombia.
1997
> On September 5, the Company acquired in Brazil
for US$715 million a 78.9% shareholding in Centrais
Elétricas Cachoeira Dourada (currently Enel Green
Power Cachoeira Dourada).
August 1997, resulted in a total holding of 64%. This
transaction was completed on April 7, 1999, and in-
volved an investment of US$1,450 million. As a result
of the capital increase made afterwards by Enersis in
2003, this shareholding decreased to 60.62%.
> On May 11, Enersis (currently Enel Américas) acquired
35% of Endesa Chile (today Enel Generación Chile), in
addition to the 25% already held, thus reaching 60%
shareholding of the generation company. The compa-
ny therefore consolidated its position as one of the
main private electricity companies in Latin America.
2000
> As part of the Genesis Plan strategy, the subsidiaries
Transelec, Esval, Aguas Cordillera and real estate as-
sets were sold for US$1,400 million.
2001
> On September 15, Enel Américas (at that time, En-
>
The Company performed large investments this year:
ersis) successfully participated in the capitalization
US$364 million for increasing its shareholding in Chi-
of Codensa S.A. E.S.P., acquiring a shareholding of
lectra (today Enel Distribución Chile), US$150 million
48.5% for US$1,226 million, company that distributes
in the acquisition of 10% of the share capital of Ede-
electricity in the city of Bogotá and the department
sur, in Argentina, a stake that was held by the compa-
of Cundinamarca, Colombia. The Company also ac-
ny’s employees; US$132 million to increase its share-
quired 5.5% of Empresa Eléctrica de Bogotá.
68
Annual Report Enel Américas 2018 holding in the Brazilian distribution company Ampla;
> On June 25, the agreement between Enel S.p.A. and Ac-
US$23 million to increase its shareholding by 15% in
ciona, S.A. came into effect whereby Enel became the
Río Maipo, in Chile, and US$1.6 million to increase its
controller of 92.06% of the share capital of Endesa, S.A.
shareholding by 1.7% in Distrilima, in Peru.
> On October 9, Endesa Chile (currently Enel Gener-
2002
>
In Brazil, Central Termoeléctrica Fortaleza, located in
the state of Ceará, was awarded to the company. Ad-
ditionally, started the commercial operation of the sec-
ond phase of the electricity interconnection between
Argentina and Brazil, CIEN, completing a transmission
capacity of 2,100 MW between both countries.
2005
>
The subsidiary Endesa Brasil S.A. (currently Enel Bra-
sil) was formed with all the assets held in Brazil by
the Enersis Group and Endesa Internacional (later it
was absorbed by Enel Iberoamérica): Cien, Fortaleza,
Cachoeira Dourada, Enel Distribución Río, Investluz
and Enel Distribución Ceará.
ación Chile) acquired 29.3974% of the Peruvian gen-
eration subsidiary Edegel (currently Enel Generación
Perú). Shares were acquired at market price from
Generalima S.A.C., a company which in turn is a sub-
sidiary of Endesa Latinoamérica S.A. Endesa Chile
thus now holds directly and indirectly 62.46% of the
shares of Edegel.
> On October 15, Enersis S.A. (currently Enel Améri-
cas) acquired 153,255,366 shares, representing 24%
of the share capital of its Peruvian subsidiary Enel
Generación Perú (formerly Edegel), at a price of 2.72
soles per share. This was purchased from Generalima
S.A.C., a Peruvian subsidiary of Enel Latinoamérica
S.A., the parent company of Enersis. With this trans-
action, the direct and indirect shareholding of Enersis
S.A. in Edelnor rose from 33.53% to 57.53%.
2006
2010
>
In February, Enersis acquired for approximately
>
Enersis (currently Enel Américas) accepted the offer
US$17 million Termocartagena (142 MW) combined
of the company Graña y Montero S.A.A., for the ac-
cycle power plant in Colombia, which operates either
quisition of its entire direct and indirect shareholding in
with fuel oil or gas.
its subsidiary Compañía Americana de Multiservicios
>
In June, Edegel (currently Enel Generación Perú) and
Limitada, CAM; and in the same way, accepted the of-
Etevensa merged, the latter a subsidiary of Endesa
fer presented by Riverwood Capital L.P to acquire the
Internacional in Peru.
2007
>
In September the merger of Colombian generation
companies Emgesa and Betania was completed.
> On October 11, Enel S.p.A. and Acciona, S.A. took
control of Enersis, through Endesa, S.A., and of Ende-
sa Internacional, S.A. (currently absorbed by Enel
SpA.).
2009
>
The companies Acciona, S.A. and Enel S.p.A. an-
nounced an agreement whereby Acciona, S.A. will
directly and indirectly transfer to Enel Energy Europe
S.L. the 25.01% shareholding in Endesa, S.A. As
such, Enel Energy Europe S.L., controlled 100% by
Enel S.p.A., will thus hold 92.06% of the share capital
of Endesa, S.A.
entire direct and indirect shareholding in its subsidiary
Synapsis Soluciones y Servicios IT Ltda. The price of-
fered for CAM and its subsidiaries in Argentina, Brazil,
Colombia and Peru amounted to US$20 million. In the
case of Synapsis, the price offered for the company
and its subsidiaries in Argentina, Brazil, Colombia and
Peru amounted to US$52 million.
2011
>
In August, Endesa, S.A. informed through a Signifi-
cant Event, the formalization of a purchase agreement
for which Endesa Latinoamérica S.A. (100% owned
by Endesa, S.A.) acquired 7.70% stake owned by EDP
Energias de Portugal S.A. in Endesa’s Brazilian sub-
sidiaries Ampla Energia e Serviços S.A. and Ampla
Investimentos e Serviços S.A. for Euro 76 million and
Euro 9 million, respectively. After these acquisitions,
Endesa S.A. controlled 99.64% of the share capital of
both companies.
69
Business of the Company 2012
>
The Extraordinary Shareholders Meeting held on De-
cember 20 ruled on the capital increase. A very large
majority, almost 86% of all shareholders with vot-
ing rights present, equivalent to 81.94% of the total
shares with voting rights of the Company, approved
the capital increase of the following characteristics:
1) maximum amount of the capital increase: Ch$
2,844,397,889,381, divided into 16,441,606,297 ordi-
nary nominative payment shares of the same series,
with no preferences and no par value, 2) value of non-
in-kind contributions to be capitalized: The total issued
capital of Cono Sur, Company that will concentrate the
Generandes Perú S.A., equivalent to a 39.01% stake,
whose investment amounted to US$413 million. The
transaction ended in September, and as a result Ener-
sis (currently Enel Américas) reached 58.60% share-
holding of Edegel (today Enel Generación Perú).
> On July 31, 2014, Enel Energy Europe S.R.L., current-
ly Enel Iberoamérica SRL, controller of Endesa S.A.
(92.06% share) proposed the acquisition of 100% of
the share capital of Endesa Latinoamérica S.A. The
transaction was completed in October 2014, and as a
result Enel S.A. reached the direct control of Enersis
(today Enel Américas) with 60.62%.
2015
activities that are identified in the reports that have
> On November 16, 2015, the commissioning of El
been made available to the shareholders and that
Quimbo power plant, a 400 MW hydro facility in Co-
would be contributed by Endesa (currently Enel Gen-
lombia took place, after five years of construction.
eración Chile) to Enersis (currently Enel Américas),
> On December 18, 2015, at the Extraordinary Share-
will amount to Ch$ 1,724,400,000,034 corresponding
holders Meeting shareholders of the company ap-
to 9,967,630,058 shares of Enersis S.A. (today Enel
proved the corporate restructuring of Enersis and its
Américas) at a price of Ch$ 173 per share, 3) place-
subsidiaries Endesa Chile and Chilectra (currently Enel
ment share price: a fixed price of Ch$173 for every
Américas). This operation consisted on the division
payment share to be issued as a result of the capital
of generation and distribution activities in Chile from
increase.
2013
> Capital increase: With an historic result for this type of
operation in the local market, shareholders of Enersis
(today Enel Américas) subscribed a total of approxi-
mately $ 6,022 million, a placement of 100% of the
shares available for the capital increase.
2014
>
Public Tender Offer for the shares acquisition for
Coelce. On January 14, Enersis (currently Enel Améri-
cas), which until then controlled 58.87% of its sub-
sidiary Coelce, launched a voluntary OPA of all series
of shares issued by Coelce at a price of R$49 per
share. With this, Enersis acquired 3,002,812 common
shares, 8,818,006 preferred shares type A and 424
preferred shares type B, equivalent to an investment
of approximately US$243 million. After the operation,
the company obtained a 74.05% direct and indirect
interest in Coelce.
>
In April, Enersis (currently Enel Américas) closed an
acquisition agreement for the purchase all the shares
that Inkia Americas Holdings Limited indirectly had of
those performed in the rest of the countries in Latin
America both for Enersis and also for its subsidiaries
Endesa Chile and Chilectra.
2016
> On March 1, the non-material Division of the former
Enersis, Endesa and Chilectra was made, as a result
of which Enel Chile, Endesa Américas and Chilectra
Américas were born.
> On April 21, 2016, shares’ Division of Enersis, Ende-
sa and Chilectra became effective, and the resulting
companies - Enersis Américas, Enersis Chile, Endesa
Américas, Endesa Chile, Chilectra Américas and Chi-
lectra Chile – began trading at the Santiago Stock Ex-
change. Likewise, the ADR’s ENIA, ENIC, EOCA and
EOCC began trading on April 27 the same year at the
New York Stock Exchange. (NSYE).
> On September 28, the Extraordinary Shareholders
Meeting took place at the Enersis Stadium, where
the Merger of Enersis Américas, Endesa Américas
and Chilectra Américas was approved, and comprised
the following: on the part of Enersis Américas, it ab-
sorbed Endesa Américas and Chilectra Américas. The
70
Annual Report Enel Américas 2018 main purposes of The Merger were: 1) align every in-
clients and operates in the Brazilian region of Goiás.
vestment interests in generation and in distribution in
The amount of the operation reached BRL$ 2,187
the scope of Latin America; 2) create a simpler struc-
million (approximately US$640 million). The financing
ture with greater visibility, and eliminate the cross
of this transaction came from the capital increase of
participations; 3) greater efficiency and dynamism in
Enel Américas (former Enersis) approved by the end
the decision making processes, costs reduction and
of 2012.
remove any potential conflicts of interest.
> On October 4, Enel Perú (100% owned by Enel
> On December 1, the name change of Enersis Améri-
Américas S.A.) acquired 47,686,651 shares issued by
cas to Enel Américas happened, after the intangible
the subsidiary Enel Distribución Perú. The transaction
merger with the companies Endesa Américas and
closed at a total price of PEN$ 262,276,580 (equiva-
Chilectra Américas.
lent to approximately US$ 80 million) and was carried
> On November 30, it was announced that the compa-
out at the Lima Stock Exchange.
ny presented the best offer for the acquisition of the
> On September 27, Enel Brasil was awarded the con-
electricity distribution company CELG-D, which was
cession to operate Volta Grande power plant, whose
performed through a bidding process arranged by
installed capacity is 380 MW. The amount of the
the Brazilian Government through Banco Nacional do
transaction reached BRL$1,420 million (US$ 445 mil-
Desenvolvimento. The offer presented by our subsid-
lion approximately). This term of the concession is 30
iary Enel Brasil amounted to BRL$ 2,187 million.
years.
> On December 29, Endesa Américas and Chilectra
Américas ceased trading at the Santiago Stock Ex-
2018
change and the New York Stock Exchange, in the
> On June 4, Enel Américas accomplished successfully
ADR form. As such, the company proceeded with
the voluntary offer for the acquisition of Eletropaulo
the exchange of shares and the Merger is achieved.
(currently Enel Distribución São Paulo), the leader dis-
tribution company in Sao Paulo, Brazil. The offer was
performed the same day that the Company acquired
73.4% of the shares. During the following month,
shareholders of Eletropaulo Metropolitana Eletrici-
dade de São Paulo SA sold additional shares of Elet-
ropaulo to Enel Sudeste equivalent to 19.9% of the
social capital of the company. Along with this, Enel
Sudeste reached 93.3% share ownership of the distri-
bution company. Later, in September, Enel Américas
carried out a capital increase in the company, and then
the final shareholding reached 95.88%.
2017
> On February 1, in Argentina the National Electrici-
ty Regulatory Entity (ENRE by its Spanish acronym)
approved the Integral Tariff Review – known as RTI
- defining a structural change in energy distribution in
the country. This new regulation is the result of an ex-
tensive work made between the government and the
distribution companies involved in the tariff revision
process, consisting on a gradual increase of the tariff
with the purpose of softening the impact for the final
consumer.
> On February 14, Enel Américas completed the acqui-
sition of Celg Distribuição S.A. (currently Enel Distri-
bución Goiás) through its subsidiary Enel Brasil with
the acquisition of nearly 94.8% of its share capital.
This distribution company has more than 2.9 million
71
Business of the Company 72
Annual Report Enel Américas 2018 13
Investments
and financial
activities
73
Letter From the Chairman Material Investments
Related to the Company’s
Investment Plan
The global financing strategy of the group’s subsidiaries
The chart below shows the capital expenditures expected
and intercompany loans is coordinated in order to optimize
to carry out from 2019 to 2021 and the capital expenditures
debt management, in addition to the terms and conditions
incurred by our subsidiaries in 2018, 2017 and 2016.
of our funding.
The Group’s subsidiaries develop independent capital in-
Investment (1) (million US$)
vestment plans that are funded by funds generated inter-
nally or by direct funding. One of our goals is to focus on
those investments that will yield long-term benefits, such
as projects to reduce energy losses. Additionally, focusing
on Enel Group and seeking to provide services to every
company in the group, our goal is to reduce investment at
the individual subsidiary companies in elements such as
procurement systems, telecommunications and informa-
tion systems. While we have studied how to finance these
investments as part of the budget process of the company,
no particular financing structure has been committed and
our investments will depend on market conditions at the
time they need to get the cash flow.
Our investment plan is flexible enough to adapt to the
2019-2021
5,330
2018
1,541
2017
1,371
2016
1,230
(1)Capex figures represent the effective payments for each year, with
the exception of forecasts.
Investments
in 2018, 2017
and 2016
changing circumstances by giving different priorities to
In the distribution business, investments were the follow-
each project according to its profitability and strategic con-
ing: (i) expand our distribution service to meet the growing
sistency. Investment priorities are currently focused on de-
energy demand, (ii) improve the quality of service, (iii) im-
veloping the works plan in Brazil, Colombia and Argentina.
prove safety, and (iv) reduce energy losses, particularly in
Brazil.
For the period 2019 - 2021, on a consolidated basis, the
firm expects to spend US$5,330 million in investments in
subsidiaries directly controlled, in those investments cur-
rently under development, the maintenance of distribution
networks, maintenance of the existing generation plants,
and studies required to develop other potential generation
projects.
74
Memoria Anual Enel Américas 2018
Generation
Distribution
Capital expenditures reached US$295 million in 2018,
During 2018, the company’s capex amounted to US$1,429
while in 2017 these expenses totaled US$253 million.
million, mainly to meet consumption needs, as a result of the
In Peru, total maintenance investments amounted to
through investments not only related with them, but also in
US$58 million in 2018. The main projects are the recon-
capacity increases and strengthening of AT, MT and BT of
struction of Callahuanca power plant, the recovery of Calla-
the companies. Meanwhile, in 2017, investments reached
growth of population and the entrance of new customers,
huanca basin, several maintenance activities and the mod-
US$1,430 million.
ernization of civil works and hydraulic units, acquisition of
contingencies pieces for thermal units, major maintenance
In 2018, Edesur in Argentina carried out investments for
of Ventanilla power plant, overhaul of thermal units, reha-
US$149 million in order to meet the growth of demand and
bilitation of generator TG7 in Ventanilla, digital projects and
improve the quality of service. These investments enabled
multiple maintenance activities in thermal units. Expansion
the commissioning of SE Padre Novak, the expansion of SE
capex was focused on HER Huampaní and E4E projects.
Santa Rita, Paseo del Bajo, infrastructural improvements in
Red MT, new feeders in SE Móvil Roca, and technological
In Colombia, maintenance capex was concentrated on proj-
improvements of the RED (digitization).
ects related to the improvement of the generation plants’
facilities, among which the environmental improvement
Investments reached US$ 143 million in Enel Distribución
plan for Termozipa stands out. In relation to expansion
Perú. Energy demand is related to new requirements from
capex, progresses were made in the works for the closing
customers, which has generated investments in distribution
of El Quimbo hydroelectric project and investments for the
networks of US$ 68 million, US$ 25 million of which were
Life Expansion of Termozipa.
used for the expansion and reinforcement of networks to
meet the requirements of residential, commercial and indus-
In Argentina, maintenance investments were focused on
trial customers, US$ 3 million for the electrification of human
the major of TG9 in Dock Sud, and in Costanera improve-
settlements, US$ 3 million in the enlargement of public light-
ments in TV 6 and TV 7 were carried out, stoppage of MHI
ning and US$ 37 million to ensure quality and safety of the
cycle and LTE Siemens cycle, and lastly should be noted
supply. With regards to Sub-Transmission, investments in ca-
the modernization of Arroyito in El Chocón power plant.
pacity expansion and safety of the networks and transmission
lines reached US$ 48 million. Additionally US$ 8 million were
In Brazil, total investments were US$13 millions. Enel Gen-
assigned to Energy Losses Control and US$ 19 million to in-
eración Fortaleza carried out investments of US$9 million,
formation services and infrastructure.
mainly related to the continuous investment of the power
plant. In the case of Volta Grande and Cachoeira Doura-
In Brazil, total investments reached US$851 million. In partic-
da, investments amounted to US$4 millions, mainly for the
ular, Enel Distribución Río performed investments for a total
generation turbines UG1 and UG2 repair works and the
of US$184 million. Of this amount, 35% were for the imple-
step-up transformers.
mentation of new connections, 32% energy losses reduction
projects, improvements in the quality of distribution networks
with positive impact in the services offered to clients and re-
mote control systems through the use of technology. The re-
maining amount was used in the maintenance of distribution
networks.
Investments of Enel Distribución Ceará totaled US$223 mil-
lion, 46% of which was allocated to meet the network de-
mand and clients’ connections and support the sustained
75
Investments and financial activities growth of demand in the State of Ceará, 33% was invested in
maintenance of distribution networks projects and 21% ser-
vices for quality improvement and losses reduction.
Enel Distribución Goiás carried out investments for a total
of US$207 million. Of this amount, 40% of which was used
for energy losses projects and to improve the quality of dis-
tribution networks. The company invested 33% of the total
in new connections and 28% in maintenance of distribution
networks.
Financial
activities
Finance
The international macroeconomic scenario was highly in-
fluenced by the greater dynamism of the United States,
The consolidation of Enel Distribución São Paulo started in
whose economic growth was above its growth potential,
June 2018, and during these seven months investments
the strengthening of the dollar and the rapid increase of the
reached US$236 million, 52% of which were allocated to the
FED’s monetary policy rate. The trade war between China
maintenance of network, 37% quality projects and 11% for
and United States lead to uncertainty, thus mainly impact-
new connections.
ing emerging markets, whose main effects were the de-
preciation of local currencies and outflows of capitals.
In Colombia, investments of Codensa during 2018 reached
US$ 262 million, and were mainly focused on service quality
The central banks of main economies have acted cautiously
and efficiency (US$ 91 million), with the purpose of continue
in withdrawing monetary stimuli and have started to raise
with the maintenance of quality indicators; connections and
interest rates. The FED decided to expedite its interest
public lightning (US$ 83 million) and expansion of capacity
rates hikes from 1.5% to 2.25%, generating higher volatili-
(US$ 9 million) to meet the new demand; losses control (US$
ty in emerging markets and increasing exchange rates. The
5 million), and the replacement of network (US$ 23 million)
strengthening of internal economy supported this decision.
and normalization (US$ 16 million) of electricity infrastructure.
During 2018, South American countries, and particularly
the countries where Enel Américas operates, have expe-
rienced a positive development and economic growth, but
76
Memoria Anual Enel Américas 2018 still below the expected potential, due to the unequal per-
Finally, Peru grew 4% in 2018, economic expansion is
formance of some economies in the region. Such is the
mainly explained by higher internal demand, where retail
case of Peru, country that experienced higher growth with
sales is the main growth factor, and also by the expansion
respect Latin American average (4.0%). In turn, Colombia y
of consumption loans and non-durable consumer goods
Brasil grew 2.7% and 1.1% respectively. Finally, Argentina
imports. Additionally, the growth of exports of non-tradi-
suffered an economic downturn, with a negative growth
tional goods, such as grapes, cranberries and avocados,
of 2.6%.
helped to consolidate the expansion of the domestic econ-
omy. On the other hand, the Peruvian Central Bank lower
The slowdown of the Argentine economy as opposed to
the monetary policy rate in half a percentage point, from
the results obtained in 2017, period in which the trade lib-
3.25% to 2.75%, with the objective of stimulate growth
eralization and pro-investment policies promoted by the
and keep inflation within the target range.
government, created the conditions to achieve an econom-
ic growth above the average in the region. The economic
downturn in 2018 was consequence of the complex do-
mestic landscape, triggered by the devaluation of the cur-
rency and hyperinflation. In 2018, the Argentine peso was
the currency that experienced the highest depreciation in
relation to the dollar in the region– with the exception of
Venezuela – with a depreciation of more than 50%, which
made the Central Bank of Argentina to set the benchmark
interest rate in 60%, becoming the highest interest rate in
the world. In order to face this situation, the government
asked requested aid from the International Monetary Fund.
Brazil continued its economic recovery, growing 1.1% in
2018. The increase of private demand is explained by the
Central Bank of Brazil historic reduction of monetary policy
rate in 6.5%, together with lower inflation and relieved pol-
itic uncertainties after the presidential elections, boosting
optimism and domestic activity. Moreover, unemployment
dropped, thus showing clear signs of greater dynamism
and the recovery of the market. Nevertheless, the strength-
ening of the dollar globally was the main cause for the cur-
rency weakening, so the Real was among the emerging
Main
completed
financial
operations
Brazil
One of the highlights of the year was the acquisition of the
electricity distribution company Eletropaulo, currently Enel
Distribución São Paulo. After the settlement of the take-
over bid, Enel Américas through Enel Sudeste acquired
93.3% holding of the company, thus consolidating Enel
Group, through Enel Américas, as the private electricity
company leader in terms of number of clients in Brazil and
markets currencies that lost most value in relation to the
the region.
dollar in 2018, with a depreciation of approximate 18%.
In Colombia, economic growth in 2018 was 2.7%, mainly
explained by the improvement of private consumption–
leaded by household expenses – and public spending.
Meanwhile, monetary policy remained stable during most
of the year in 4.5%, enabling inflation to reach 3.2% by
the end of the year, slightly above the 3.0% goal set by
the Colombian Central Bank. In terms of politics, the year
was marked by presidential elections that took place in the
middle of the year and the cases of corruption that shook
the country.
Enel Brasil (together with its investment vehicle Enel Sud-
este) carried out in June the issuance of promissory notes
of BRL $9,300 million (equivalent to approximately US$
2,400 million), which were refinanced in October through
an intercompany loan with Enel Finance International (EFI)
of BRL $9,400 million (equivalent to US$ 2,426 million ap-
proximately), both operations were part of the acquisition
of Enel Distribución São Paulo.
In March, Enel Distribución Ceará issued promissory notes
in the local market of BRL $150 million (US$ 39 million).
77
Investments and financial activities Additionally, the company issued local bonds of BRL $310
million (equivalent to US$ 80 million). Apart from that, the
Colombia
company contracted financing with Banco de Desenvolvi-
mento Econômico e Social (BNDES) of BRL$340 million
(equivalent to US$ 88 million). Finally in December, the
company closed an intercompany loan with EFI of BRL
$300 million (equivalent to US$ 77 million).
Enel Codensa performed a local bond issuance of COP
$555,000 million (equivalent to US$ 171 million).
Peru
In 2018, Enel Distribución Goiás closed a bank financing of
In March, Enel Distribución Perú performed a local bond
BRL $250 million (equivalent to US$ 65 million). Likewise,
issuance of PEN $100 million (equivalent to US$ 30 mil-
in April issued promissory notes in the local market of BRL
lion), likewise the company also received bank financing of
$200 million (equivalent to US$ 52 million). Additionally,
PEN $75 million (equivalent to US$ 22 million) and signed
during the year, the firm contracted financing with BNDES
a leasing contract of PEN $96 million (equivalent to US$28
of BRL $100 million (equivalent to US$ 26 million).
million).
Enel Distribución Río obtained bank financing of BRL $464
Also, Enel Perú obtained bank financing of PEN $87 million
million (equivalent to US$ 120 million) during the year.
(US$ 26 million).
In September, Enel Distribución São Paulo refinanced its
debt with a BRL $3.000 million (equivalent to US$ 774 mil-
lion) local bonds issuance, thus reducing financial cost and
increasing the average life of the debt. Moreover, in De-
cember the firm closed an intercompany loan with EFI of
BRL $420 million (equivalent to US$ 108 million).
78
Memoria Anual Enel Américas 2018 Coverage Policy
Exchange Rate
Over time, most credit ratings have changed. Currently,
they are all “investment grade”, which is based on the di-
versified portfolio of assets, liquidity and adequate policies
of debt coverage service.
In summary, the following main events that took place in
The exchange rate hedging policy of the Group is based on
2018 are detailed below:
cash flows and seeks to maintain a balance between flows
indexed to foreign currency, and the levels of assets and
On June 5, 2018, Standard & Poors reviewed and ratified
liabilities denominated in that currency. The goal is to min-
the corporate rating of Enel Américas, assigning a “BBB”
imize the flows' risk exposure from changes in exchange
rating and stable outlook. This reaffirmation was granted
rates. As part of this policy, the Enel Américas individually
after the acquisition of the largest electricity distribution
contracted forwards for US$ 366 million to cover the flows
company in Brazil, then Eletropaulo, and currently named
in different currencies coming from foreign subsidiaries.
Enel Distribución São Paulo.
Interest rates
Interest rates variations change the fair value of those as-
sets and liabilities that accrue variable interest rate, as well
as the future flows of asset and liabilities referenced to a
variable Interest rate. The objective of risk management
is to reach a balance of debt structure, in order to mini-
mize the cost of debt with reduced volatility in the income
statement. Depending on the Group’s estimations and the
objectives of debt structure, hedging transactions would
be made through derivatives contracts that mitigate those
risks. The instruments currently used are interest rate
swaps to fixed rates.
At year-end 2018, the comparative structure of financial
debt of Enel Américas Group in relation to fixed interest
rate and/or protected interest rates versus gross total debt,
after contracted derivatives was 59% of fixed rate debt.
Credit Risk Rating
On November 9, 1994, Standard and Poor's and Duff &
Phelps rated Enersis (currently Enel Américas) for the first
time at BBB+, that is, an investment grade company. Lat-
er, in 1996, Moody's rated the company’s foreign currency
long-term debt at Baa1.
Likewise, on June 8, 2018, Feller Rate rated Enel Américas
in local scale rating and assigned “AA-” rating with stable
outlook.
Conversely, on September 20, 2018, Fitch Ratings reaf-
firmed once again the rating and outlook given on June
6, 2018, where Fitch Ratings reviewed and reaffirmed
the international scale rating of Enel Américas, assigning
“BBB+” with stable outlook, and national scale in “AA (cl)”
also with stable outlook. As in the aforementioned cases,
the review carried out in June was after the acquisition of
Enel Distribución São Paulo.
Every rating agency mentioned above, reaffirmed their rat-
ings after the capital increase proposal of Enel Américas
announced on February 27, 2019.
Finally, after the capital increase proposal announcement
on March 4, 2019 Moody’s reaffirmed the “Baa3” rating
and changed the outlook from negative to stable. Previ-
ously, on February 23, 2018, Moody’s rated Enel Américas
with “Baa3” rating, and changed the outlook from stable
to negative because of the situation in Colombia. And later,
on June 7, 2018, the rating agency reaffirmed the afore-
mentioned rating and outlook, after the acquisition of Elet-
ropaulo, currently Enel Distribución São Paulo.
79
Investments and financial activities Its diversified portfolio of assets, strong credit parameters,
adequate debt structure and high liquidity supports the
company’s ratings.
International Ratings
Properties and
facilities
Enel Américas
S&P
Moody’s
Fitch
Corporate
BBB / Stable
Baa3 / Stable
BBB+ / Stable
Enel Américas as a “holding” entity, does not directly own
properties or facilities to develop its business.
Local Ratings
Enel Américas
Feller Rate
Fitch
Stocks
Bonds
1° class, Level 2
1° class, Level 1
AA- / Stable
AA (cl) / Stable
Brands
The company has registered “Enersis Américas” brand in
services, products, industrial and commercial facilities. In
July 2016, through a communication addressed to the Board
of Enel Américas S.A., Enel S.p.A authorized the free use of
“Enel” brand to Enel Américas S.A., being entitled to include
it to its business name, its logo and other forms of use.
The brand Enel Américas is duly registered.
80
Memoria Anual Enel Américas 2018 Suppliers, Customers and
Main Competitors
Enel Américas S.A. in its capacity of a “holding” company
Pass do Brasil Servicos e Comércio, Saneamento de Goias
that mainly operates in the field of electricity generation
S..A., Vorantim Cimentos N/NE S.A., Secretaria Municipal
and distribution in Latin América, considers the following
de Infr. e Servicos Publicos- Goiana, State Grid, AES and
suppliers, customers and competitors as the most relevant
CEMIG.
ones for its main subsidiaries.
Colombia: Petromil, Carbones San Fernando, Minas y Mi-
The Company established that its main suppliers, custom-
nerales S.A.-Minminer-, Grupo EPM.
ers and competitors are the following:
Argentina: IMC Ingeniería y Montajes Industriales S.A.,
Wheeler Energía, S.L.U., Andritz Hydro Ltda., CAM Colom-
Servicios Industriales Otero S.A., Grupo MTR S.A. SADE-
bia Multiservicios S.A.S., Quanta Colombia Services Co-
Electricaribe, Emcali, Consorcio M&M, Amec Foster
SA, PAMPA ENERGÍA, AES Argentina, Argencobra S.A.,
lombia S.A.S and Deltec S.A.
Prysmian Energía Cables y Sistemas, Elsewedy Cables
Egypt, GCBA, Municipalidad de Quilmes and Telefónica
Peru: Nordex Windpower Perú S.A., GCZ Ingenieros SAC.,
Argentina S.A.
Prodiel Perú Sociedad Anónima Cerrada, Luz del Sur, Min-
era Las Bambas, Minera Chinalco Perú, Engie, Electroperú,
Brazil: Alstom Energia Termica e Ind. Ltda., Alstom Bra-
Kallpa, Generación, Cobra Perú S.A., Consorcio CAM
sil Energia e Transporte Ltda., P.Q.A. Productos Químicos
Lima, Cabelte-Cabos Eléctricos y Telefónicos, S.A., Grupo
Aracruz Ltda., Multiplan, Volskswagen, Ferbasa, Compahia
Falabella, Corporación Celima, Compañía Industrial Nuevo
Eletrica de Sao Francisco- Chesf, Furnas Centrais Eletricas
Mundo S.A., Kallpa. Engie and Termoselva.
S.A., Centrais Eletricas do Norte do Brasil S.A. Eletronor-
te, Compel Construcoes Montagens e Projetos Eletricos,
Chile: Travel Security S.A., Ernst & Young Servicios Pro-
Endicon Engenharia Instalacoes e Construcoes, Sodexo
fesionales y Asesorías Limitada and Team Work Recursos
Humanos Limitada.
81
Investments and financial activities 82
Annual Report Enel Américas 2018 14
Risk Factors
83
Letter From the Chairman Risk
Management
Policy
The companies of Enel Américas Group are exposed to de-
termined risks that are managed through the application of
a system to identify, measure, limit the concentration and
supervise.
Some of the underlying principles defined by the Group in
the establishment of their risk management policy are:
•
Comply with the norms of good corporate gover-
nance.
•
Strictly comply with the normative system of the
Group.
•
Each business and corporate area defines:
I.
The markets where the Company can operate in
relation to the knowledge and sufficient capabili-
ties to ensure effective risk management.
II. Criteria on counterparts.
III.
Authorized operators.
•
The business and corporate areas establishes for
each market in which they operate their predisposi-
tion to coherent risk with the defined strategy.
•
Every business operation and corporate areas are per-
formed within the approved limits in every case.
Interest Rate
Risk
Interest rate variations modify the fair value of those as-
sets and liabilities that bear a fixed interest rate, and also
the aforementioned future asset and liabilities flows at a
variable interest rate.
The objective of risk management of interest rates is to
reach a debt structure equilibrium that allows a minimiza-
tion of cost of debt with a reduced volatility in the income
statement.
The Company performs coverage transactions through de-
rivatives contracts to mitigate these risks depending on the
estimations of the Group and the objectives of the debt
structure. The instruments currently used are interest rate
swaps that sets variable to fixed rate.
The comparative structure of the financial debt that Enel
Américas Group has, according to the fixed interest rate
and/or protected by the total gross debt, after contracted
derivatives, is the following:
Gross position
12-31-2018
%
59%
12-31-2017
%
46%
•
The business, corporate areas, lines of business and
Fixed interest rate
companies establish risk management policies neces-
sary to ensure that the market transactions are com-
pleted according to policy, regulations, and the proce-
dures of Enel Américas.
84
Annual Report Enel Américas 2018 Exchange
Rate Risk
Commodities
Risk
Enel Américas Group is exposed to commodities price vari-
Exchange rate risks fundamentally correspond to the fol-
ation risks, mainly through the following:
lowing transactions:
•
Debt contracted by the Group’s companies denomi-
generation.
nated in a different currency of which the flows are
•
Energy purchase-sell operations that take place in the
•
Fuel purchases in the process of electricity energy
indexed.
local markets.
•
Payments to be made related to the acquisition of ma-
terials associated to projects and corporate insurance
With the purpose of reducing risk in situations of severe
policy payments being made in a different currency of
drought, the Group has designed a commercial policy de-
which the flows are indexed, among others.
fining the level of commitment of energy sales according
•
Revenues of the companies of the Group that are
to the generation capacity of power plants in a dry year, in-
directly linked with the evolution of currencies not
cluding risk mitigation clauses in some contracts with free
related to the companies’ flows.
clients. In the case of regulated clients, they are subjected
•
Flows from the subsidiaries abroad to the head offices
to a long-term tender process, and indexing polynomials
in Chile, which are exposed to exchange rate varia-
are determined enabling the reduction of commodities ex-
tions.
posure.
With the objective of mitigating the exchange rate risk,
Considering the operational conditions that face electrici-
Enel Américas’ hedging policy for exchange rates is based
ty generation, hydrology, and commodities price volatility
on cash flows and contemplates to maintain a balance be-
in the international markets, the Company is permanently
tween the flows indexed in dollars and the levels of assets
verifying the convenience of taking coverage positions to
and liabilities denominated in that currency. The objective
reduce the impacts of price variations in results.
is to minimize the exposition of the cash flows to variations
in the exchange rates.
On December 31, 2018, the company signed operations of
purchase future energy contacts of 5.28 GWh. These pur-
The instruments currently being used to comply with policy
chases backed up an energy-selling contract in the whole-
are currency swaps and exchange rate forwards. Likewise,
sale market. On December 31, 2018, the company settled
the policy seeks to refinance debt in the functional curren-
selling contracts for 10.92 GWh and 7.2 GWh of purchase
cy of each company.
future energy contacts.
On December 31, 2017, operations of purchase future en-
ergy contracts amounted to 5.4 GWh, for the period Jan-
uary - March 2017. These purchases backed up an energy
purchase contract in the Colombian wholesale market. As
of December 31, 2017, the company settled 24.23 GWh of
energy-selling contracts and 77.45 GWh of purchase future
energy contacts.
85
Risk Factors Liquidity
Risk
The Group maintains a liquidity policy consistent with the
contract of committed long-term credit facilities and tem-
porary financial investments, in sufficient amounts to sup-
port the projected needs for a period of time related to the
context and expectations of the debt and capital markets.
The aforementioned projected needs include net financial
debt maturities, after financial derivatives. For further de-
tails regarding the features and conditions of financial debt
and financial derivatives see Notes 21 and 23 of the Finan-
cial Statements of Enel Américas.
As of December 31, 2018, the liquidity of Enel Américas
Group reached US$ 1,904 million in cash and cash equiva-
lents, and US$ 1,269 in available non-committed long-term
credit facilities. As of December 31, 2017, the liquidity of
Enel Américas Group reached US$1,473 million in cash and
cash equivalents, and US$225 million in available non-com-
mitted long-term credit facilities.
86
Credit Risk
Enel Américas performs a detailed monitoring of its credit risk.
Receivable Commercial
Accounts
With regards to credit risk related to the receivable ac-
counts coming from commercial activity, this risk is his-
torically very limited given the short term client’s recovery
time, so they do not individually accumulate a significant
amount. This is applicable for both our electricity genera-
tion and distribution businesses.
In some countries, in our line of business of electricity gener-
ation, the company may face a supply disruption due to the
lack of payment, and also in almost every contract it’s consid-
ered lack of payment as a cause for terminating the contracts.
For this end, the credit risk is constantly monitored and its
measured in maximum amounts exposed such risk.
In the case of our electricity distribution companies, the
supply disruption in all cases is our company’s decision
facing our client’s lack of payment. This is implemented
according to the existing regulation in each country, which
facilitates the evaluation process and credit risk control,
which is also limited.
Financial Assets
Cash surplus investments are made by top of the line na-
tional and international financial entities, with limits estab-
lished by each institution.
In the bank selection for investments, the ones considered
are those that have an investment grade credit risk rating,
considering the three main international rating agencies
(Moody’s, S&P and Fitch).
Placements can be backed up by treasury bonds of the
country where the operation takes place and/or bank secu-
rities issued by top of the line banks, privileging the latter
because they offer greater returns (always following the
existing placement policies).
Annual Report Enel Américas 2018 Measuring
Risk
Other Risk
Factors
Enel Américas Group develops a Value at Risk measurement
for its debt positions and financial derivatives, with the objec-
Some South American economies have historical-
tive of monitoring the risk assumed by the company, limiting
ly been characterized by frequent and, occasionally
the volatility of the income statement.
drastic, interventionist economic measures by their
The portfolio includes for the calculation of the Value at Risk
which may adversely affect the business and financial
composed by:
results of Enel Américas.
governmental authorities including expropriations,
•
•
Financial debt
Government authorities have modified monetary, credit, tar-
Derivatives for debt coverage
iff, tax and other policies with the purpose of influencing the
direction of the economies of Argentina, Brazil, Colombia
The calculated Value at Risk represents the possible varia-
and Peru. Although Enel Américas has no assets in Chile,
tion of the portfolio's value previously described in the du-
it’s a company constituted under the laws of the Republic
ration of a quarter with 95% confidence. For that purpose
of Chile. Therefore it’s subject to changes in tax, labor and
there is a volatility study of the risk variables that affect the
monetary laws, among others. Other government actions
position portfolio’s value, including:
carried out in these South American countries have also
•
•
Libor for the US dollar.
interventionist measures such as expropriation and nation-
included wages, processes and tariffs controls, and other
The different currencies in which our company op-
alization.
erates, the regular local indexes for banking transac-
tions.
In the distribution business, if a certain service and technical
•
Exchange rates of the different currencies considered
standard is not met, there is a risk of losing concessions. In
in the calculations.
some concessions, such as Buenos Aires and Rio de Janei-
ro, it may be especially difficult to meet some of the mini-
The Value at Risk calculations are based on the extrapola-
mum standards required. In the event that it is not possible
tion of future scenarios (in one quarter) of the market val-
to comply with these regulatory standards, the local power
ues of the risk variables in terms of the scenarios based
regulator might revoke the concession and reallocate it to a
on real observations for the same period (quarter) during
competitor.
five years.
It’s expected for 2019 that there would be fiscal reforms and
The Value at Risk of a quarter with a 95% of confidence is
amendments to the taxation laws in Chile, Colombia, Brazil
calculated as a 5% percentile more adverse of the possible
and Peru. The changes in governmental and monetary poli-
variations in the period.
cies in relation to duties, exchange controls, regulations and
taxation may reduce the compnay’s profitability. Inflation,
Considering the hypothesis described above, the Value at
devaluation, social instability, and other political, economic
Risk in a quarter of the positions described corresponds to
or diplomatic events, including the response to these cir-
US$ 630 million.
cumstances by the region's governments, may also reduce
the company's profitability.
This value represents the potential increase in the debt and
derivatives portfolio, so this value at risk is directly related,
among other factors, to the value of the portfolio at the end
of each quarter.
87
Risk Factors Since the Company’s businesses depend to a large ex-
Operational costs of thermoelectric plants can be consid-
tent on hydrological conditions, drought conditions,
erably higher than the costs of hydroelectric plants. Op-
flooding and other weather conditions may adversely
erational expenses increase considerably during drought
affect the operations and profitability
periods, when thermoelectric power plants are dispatched
more frequently. Also, depending on our commercial com-
The struggle against climate change is one of the main
mitments, we may have to purchase electricity from the
global challenges, which exposes Enel Américas to a se-
spot market in order to comply with all our contractual sup-
ries of medium and long-term risk factors. These include
ply obligations and the cost of these purchases of electric-
the risks related with legislative and regulatory changes
ity may exceed the price at which we must sell the con-
associated with climate change. The company has experi-
tracted electricity, thus causing losses for these contracts.
enced extreme climate events, such as the severe drought
that impacted hydroelectric generation.
Droughts also have an effect on the operation of thermo-
electric power plants, including facilities that use natural
In 2018 approximately 56% of the consolidated installed
gas, diesel, or coal as fuels, as follows:
generation capacity was hydroelectric. As such, the ex-
treme dry hydrological conditions can adversely affect
•
Thermal plants require water for cooling and droughts
the company’s business, the operational results and its fi-
not only reduce the availability of water, but also in-
nancial condition. The hydrological condition of the region
crease the concentration of chemicals such as sul-
has been frequently affected by two weather phenomena
fates in water. The high concentration of these chem-
—“El Niño” and “La Niña”— which had an impact on rains
icals in the water used for cooling increases the risk
and have resulted in droughts, affecting the Company’s
of damage to the equipment of the thermoelectric
ability to distribute energy from its hydroelectric facilities.
plants, as well as the risk of infringing relevant envi-
In Brazil, where 76% of the Company’s installed capacity
ronmental regulations. As a result, water may have to
is hydroelectric, authorities were forced to make regulatory
be purchased from agricultural areas, which are also
changes by modifying the maximum price limit, which is
experience water shortages. These water purchases
reviewed annually and is consequence of the low hydrolog-
can increase operational costs and force the negotia-
ical contributions registered since 2014; the latter also had
tion with local communities.
a direct impact in the short-term electricity market result-
ing in an increase of thermal dispatch and spot prices. The
•
Thermal power plants that burn natural gas generate
Brazilian regulation considers a relocation mechanism that
emissions such as nitrogen oxide (NO), carbon diox-
allow hydroelectric generators with energy deficit to buy
ide (CO2) and carbon monoxide (CO) gases. When
energy at the prices established by other generators with
operating with diesel they release NO, sulfur dioxide
superavit; nevertheless, due to the existing drought, every
(SO2) and particulate matter into the atmosphere.
energy generation company had deficits in relation to their
Coal fired plants generate emissions of SO2 and NO.
supply contracts, therefore these companies were forced
Therefore, greater use of thermal plants during pe-
to buy energy in the spot market at higher prices.
riods of drought generally increases the risk of pro-
ducing a higher level of pollutants that could lead to
Likewise, the “El Niño” phenomenon has affected hydro-
penalties if emissions are above certain levels.
logical conditions in Colombia in the past, where 88% of
the installed capacity is hydroelectric, leading to a scarcity
The recovery from the drought that affected the regions
of precipitations and high temperatures during the period,
where most of the hydroelectric power plants of the com-
and therefore to an increase in energy prices. Each event
pany are located can last for a prolonged period of time and
of “El Niño” is different and, depending on its intensity and
new episodes of drought may occur in the future. A pro-
duration, the magnitude of its social and economic effects
longed drought may exacerbate the risks described above
can be more material.
and have an adverse effect on Enel Américas business,
operational results and financial condition.
88
Annual Report Enel Américas 2018 An economic downturn of Argentina or a sharp depre-
Governmental regulations may adversely affect the
ciation of the Argentine peso would adversely affect
company’s businesses, cause delays, hinder the devel-
the company’s businesses.
opment of new projects or increase operating costs
and capital expenditures.
In 2018, the Argentine peso suffered a sharp depreciation
against the dollar, with a depreciation of 20% in just one
Subsidiaries of Enel Américas are subject to extensive reg-
day on August 30, 2018. This devaluation is the result of
ulations regarding tariffs for their clients and other aspects
the domestic economic downturn, the increase of external
of the business, and these rules may negatively impact
debt and high inflation. Even though the rate of depreciation
profitability. For example, governments in the countries
of the Argentine peso against the US dollar has recently ac-
where the company operates may implement rationing
celerated, the increase of interests paid for time deposits
policies during droughts or prolonged failures in rationing
has been insufficient to compensate inflation. The interest
services, which could adversely affect the Company’s
rate established by the Argentinean Central Bank has been
business, operating results and financial condition. Opera-
already at a maximum of 45%, when the monetary authori-
tional subsidiaries are subject to environmental regulations
ty raised interest rate to 60%. Despite the fiscal, monetary
that force the company to carry out environmental impact
and others measures that the government has been taking
studies for future projects and obtain constructions and
to soften the effect of devaluation, including several agree-
operating licenses from local and international regulators.
ments with the International Monetary Fund, the devalua-
Governmental authorities may retain and delay the approv-
tion of the Argentinean peso may continue in 2019 and in
al of these environmental impact studies.
the years ahead.
In the case of existing facilities, current regulation has been
The sovereign creditworthiness of Argentina also has se-
increasing in the four countries where the company has
riously deteriorated, reaching a maximum of 780 basis
investments, which resulted in significant non-compliance
points over the nominal value of sovereign debt during Au-
risk, so it has been necessary to create teams specialized
gust 2018. The international credit risk rating of Argentina
in compliance regulation and the maintenance of a closer
fell from "B +" to "B" by Standard & Poor's in November
technical relationship with the authorities in order to better
2018, with stable outlook. Moody's reaffirmed the " B2 "
understand the possible implications.
rating, which was updated in November 2017 with stable
outlook. While Fitch maintained the "B" rating, but change
Governmental authorities may also delay the distribution
the outlook from “stable” to “negative” in November 2018.
tariff revision process, or tariff adjustments determined by
the authorities may be insufficient transfer costs to clients,
Due to the above, from July 2018, Argentina is consid-
such was the case of Codensa, the Colombian distribution
ered a hyperinflationary economy according to accounting
company, whose tariff revision was scheduled for 2015,
standards IFRS. The general prices index was used retro-
but will take place in 2019. Similarly, electricity regulations
spectively in order to present the amounts related with the
issued by governmental authorities in the countries where
Argentine subsidiaries in the consolidated financial state-
the company operates, may affect the capacity of genera-
ments of Enel Américas and therefore be able to reflect
tion companies to gain revenues to compensate operating
Argentine peso's purchasing power, according to the dis-
costs.
positions described in the NIC 29, “Financial Information in
Hyperinflationary Economies”. Non-monetary assets and
The delays or modifications of any proposed project, and
liabilities were restated since February 2003, the most re-
the laws or rules that can change or be interpreted in a way
cent date in which inflation adjustments were applied for
that can adversely affect the operations or plans for the
accounting effects in the Argentine subsidiaries.
companies in which the Company has investments, which
can adversely affect its business, operational results and
A further deterioration of the Argentine economy may ad-
the financial condition.
versely affect operating results and the financial condition
of the company. For further information, see Note 8 of the
Financial Statements of Enel Américas.
89
Risk Factors Regulatory authorities may impose fines on the com-
government regulations, strategic and economic consider-
pany’s subsidiaries due to operational failures or
ations, and credit restrictions. In the future, the likelihood
non-compliance of regulations.
of being able to rely on cash flows of those entities’ opera-
tions for the company’s debt payment is reduced.
Electricity businesses may be subject to regulatory fines
for any breach of current regulations, including power out-
Limits on dividends and other legal restrictions. Some of
ages, in the four countries in which the company operates.
the subsidiaries are subject to legal reserve requirements
and other restrictions on dividends payment. Other legal
The generation subsidiaries of the Group are supervised
restrictions, such as currency controls, may limit the ability
by local regulators and may be affected by these fines in
of subsidiaries and associates to pay Enel Américas divi-
cases where, in the opinion of the regulator, operational
dends, and amortize credits or the company will distribute
failures that affect the regular supply of energy to the sys-
other distributions. Furthermore, the ability of any of the
tem is defined as a responsibility of the company as when,
subsidiaries that are not wholly owned by Enel Américas
for example, there is no coordination of the agents with the
to deliver cash payments may be limited by the fiducia-
system operator. In addition, subsidiaries may be required
ry duties of the directors of such subsidiaries to minority
to pay fines or compensate customers if subsidiaries can’t
shareholders. Moreover, some of the subsidiaries may be
provide electricity, even if such non-compliance is due to
required by local authorities, in accordance with applica-
forces beyond the subsidiaries’ control, or if they don’t
ble regulations, to reduce or eliminate the payment of divi-
comply with environmental or other regulation.
dends. As a result of such restrictions, any subsidiary may,
under certain circumstances, be prevented from delivering
In 2018, ANEEL imposed fines to Enel Distribución São
cash to Enel Américas.
Paulo for the equivalent to US$ 91 million for five breaches,
two of them related to failures or inaccuracies in account-
Contractual Obligations. The restrictions for dividends
ing record and/or the asset base, and the other two associ-
distribution include credit agreements that the subsidiary
ate with non-compliance with the supply quality standards.
Enel Generation Piura and several subsidiaries in Brazil can
REVISAR
prevent the payment of dividend and other distributions to
shareholders if they are in non-compliance of certain finan-
In Argentina, the result of the tariff revision for the period
cial ratios. In general, credit agreements ban any type of
2017-2021 imposed fines to Edesur for the technical qual-
distribution in the event of non-compliance underway.
ity service, the technical product and commercial quality,
which are gradually increasing in line with higher tariffs.
Subsidiaries’ Operating Results. The subsidiaries and asso-
ciate companies capacity to pay dividends, credit amortiza-
In order to meet payment obligations, Enel Américas
tions or to deliver other distributions that Enel Américas is
depends on payments from its subsidiaries and asso-
limited by its operational results. As long as the cash needs
ciate companies.
of any subsidiary overcome their available cash flow, said
subsidiary will not dispose of the cash to be delivered to
With the aim of paying its obligations, the company de-
the company.
pends in part on the cash received from dividends, loans,
interest payments, capital reductions and other payments
Additionally, the currency of any dividend paid by our sub-
from its subsidiaries. The ability of subsidiaries to pay divi-
sidiaries is subject to depreciation in comparison to our
dends, interest and credit payments, and deliver other dis-
functional currency, which will have a negative impact on
tributions is subject to legal limitations, such as dividend
our capacity to pay dividends to shareholders.
restrictions, fiduciary duties, contractual restrictions that
may be imposed by local authorities.
Any situation described above could adversely affect the
business, operational results and the financial condition.
Historically, the company has not always been able to ac-
cess its subsidiaries’ cash flows at all times due to certain
90
Annual Report Enel Américas 2018 Enel Américas is involved in litigations.
Political developments or financial crisis or any other
Enel Américas is currently involved in several litigations
impact in the countries where Enel Américas operates
that can conclude in unfavorable decisions of financial fines
and therefore might negatively affect operations and
crisis anywhere in the world may have a substantial
for the company. For example, in 2016 three claims against
liquidity.
Enel Distribución Goiás, recall that the privatization process
was illegally executed and demands the nullity of the pro-
The four countries where the company operates are vul-
cess and also compensation. Plaintiffs include BNDES and
nerable to external impacts, including financial and political
the IFC. The main risk of this litigation is the loss of conces-
events, which may cause important economic problems
sion of Enel Distribución Goiás from Enel Brasil. As of the
and impact growth. If any of these economies would expe-
date of this Report, legal proceedings are pending. There-
rience lower economic growth than expected or recession,
fore, there is neither an estimation of the potential loss nor
it’s likely that clients would demand lower electricity and
an associated provision. The resolution of cases can take
some of them might face difficulties to pay the electricity
up to ten years. Enel Distribución Goiás is also involved in
bill, and probably the uncollectible accounts of the Compa-
tax litigation for claims originated in a period previous to its
ny would increase. Any of these situations may negatively
privatization, and this claim can not only have an adverse
affect operational results and financial situation.
effect in the Group, but also deplete resources and atten-
tion for many years.
Political or financial developments in other places in the
world may also adversely affect the company’s business.
Enel Américas controls Emgesa and Codensa in Colom-
For example, since 2018, the United States and China have
bia through a shareholders agreement with Grupo Energía
been involved in a trade conflict that comprises protec-
Bogotá S.A. ESP (“GEB” for the Spanish abbreviation). In
tionists measures, thus increasing volatility in the global
December 2017, the company was informed that GEB sub-
financial markets, due to the uncertainties that political de-
mitted to arbitration the differences that come up between
cisions carries. Instability in the Middle East or in any other
the parties in relation to the distribution of new revenues of
important region involving oil producers, may also sharply
2016 of these two Colombian subsidiaries. GEB says that
increase oil prices globally, so operating costs of thermal
Enel Américas breached the requirements of shareholders
generation power plants would grow, therefore adversely
agreements, in relation to the norms that determine the
affecting operating results and financial condition.
distribution of income method, forcing parties to vote in
favor of distributing 100% of income, with the distribution
Lately, the federal government of the United States expe-
of only 70% of net income in 2016. Complaints want the
rienced temporary shutdowns, such as the most recent
distribution of net income obtained in 2016 to reach 100%
one involving the SEC among many other federal agencies,
for each company. The amounts in dispute are US$ 21 mil-
lasting 35 days, and becoming the longest federal shut-
lion for Codensa and US$ 27 million for Emgesa. An ad-
down in the history of the United States. Even the tem-
verse ruling would bring a precedent that might force Enel
porary or predicted shutdowns of the government of the
Américas to always vote for the distribution of 100% of net
United States might have an adverse effect over time, the
income every year, which wouldn’t be financially cautious
execution and higher expenses related to our main transac-
for our subsidiaries and our company.
tions that involve the SEC.
The financial situation or the operating results might be af-
Additionally, an international financial crisis and its negative
fected if the defense of this arbitrage is not successful or
impact in the financial industry may have a detrimental im-
other claims that may be taken against the company. For
pact in the company’s capacity to obtain new banks financ-
further information regarding lawsuits, see note 36.3 of the
ing in the historical terms and conditions.
Enel Américas’ Financial Statements.
91
Risk Factors
Political or financial developments of other kind may also
The construction of power plants may suffer delays,
decrease the capacity to access the capital markets in the
works stoppages and significant cost over-runs, as well
countries where the company operates, as well as the in-
as the opposition of stakeholders, which can damage
ternational capital markets for other liquidity sources, or
the company’s reputation and potentially deteriorate its
raises of interest rates offered to the company. In turn,
goodwill.
reduced liquidity may affect capital expenses, long-term
investments and acquisitions, growth perspectives and
Power plants projects can be delayed in the process of ob-
dividends policy.
taining regulatory approvals, or may face the shortage of
equipment or workforce, and also can be subject to con-
Economic fluctuations in South America may affect
struction delays, strikes, adverse weather conditions, nat-
the operations and financial condition, and also in the
ural disasters, social conflicts, accidents or human errors.
value of the securities of the company.
Any event of this kind may negatively affect the company’s
operating results and financial condition.
Every operation of Enel Américas is located in South Amer-
ica. Therefore, consolidated revenues may be affected by
Existing markets conditions in the initial phase of the proj-
the performance of South American economies as a whole.
ect’s approval might be totally different to the existing ones
If local, regional or global economic trends adversely affect
when the project is completed, therefore in some cases
the economy in any of the four countries where the com-
these projects could be commercially unfeasible. Deviation
pany has investments or operations, the financial condition
from these assumptions, including the forecast of dead-
and operational results may be negatively affected. Enel
lines and the estimation of expenses related to these proj-
Américas has investments in Argentina, Brazil and Peru,
ects, might result in cost overruns and execution periods
which are instable economies and in occasions have ex-
greater than the estimations, which in turn could have a
perienced political instability due to the scandals of corrup-
negative effect for the business, operational results and
tions involving several high-ranking government officials.
financial situation.
Insufficient cash flows of subsidiaries located in countries
The adequate sites to develop new projects are sometimes
with volatile economies have led, in some cases, to their
in greatly challenging areas in terms of geographical topog-
inability to comply with financial obligations and the need
raphy (mainly in Colombia and Peru), and in some cases
to request for exemptions for the compliance of certain
in mountain slopes or inside jungles with limited access.
financial covenants, or at some point, to request collater-
Moreover, in some cases the geographic location of some
als or other emergency measures from Enel Américas as
projects may also represent risks in terms of archaeological
shareholder, especially in Brazil and Argentina.
heritage. These factors also can provoke significant delays
The occurrence of future adverse events in these econ-
and excessive costs.
omies may hinder the ability to carry out strategic plans,
Also de operation of thermal power plants of Enel América,
which eventually would affect adversely operational results
especially those that use coal for generation, may affect
and financial condition.
the stakeholders’ goodwill, because of the greenhouse gas
Moreover, in South America the financial and securities
and the community. Also, communities could have their
markets are influenced in different degrees by economic
own interests and different perceptions than the compa-
and market conditions of other countries, which may ad-
ny, being influenced by other interested parties or motiva-
versely affect the value of the company’s securities.
tions unrelated with the project. Therefore, if the company
emissions, which may negatively affect the environment
doesn’t commit with its relevant stakeholders, it may face
92
Annual Report Enel Américas 2018 opposition that finally might negatively affect its reputa-
Additionally, any delay or difficulty related to the acquisition
tion, paralyze operations or be sued. The reputation of
and integration of multiple transactions could have an adverse
Enel Américas is the foundation of its relationships with
effect on Enel Américas’ business, financial condition or op-
the main stakeholders and other groups of interest. If the
erational results.
company doesn’t manage effectively the real or perceived
problems, those might cause negative consequences for
The business and profitability of Enel Américas may
the firm, and therefore create a negative effect for the busi-
be adversely affected if water rights are rejected, if
ness, operational results and financial situation.
water concessions are granted for a limited time or if
their cost increases.
Reputational damage can exert significant pressure on reg-
ulators, creditors and other interested parties, and ultimate-
The Company owns water rights over river and lakes lo-
ly induce to embrace projects and operations that can be
cated in the vicinity of its generation facilities, which were
withdrawn, which may trigger a drop of stock prices and
granted by the authorities of the respective countries. In
also hinder our capacity to attract and retain competent
Colombia, the water rights or water concessions are grant-
collaborators, which could deteriorate our stakeholders’
ed for periods of 50 years and are renewable for the same
goodwill.
period of time; however, these concessions can be re-
voked, for example, when there is a progressive decrease
It’s possible that the company may not be able to
or depletion of the waters. In Colombia, the access to
make the appropriate acquisitions or successfully in-
water for human consumption is the first priority before
corporate the businesses acquired.
any other use. In Peru, water concessions are granted for
indefinite periods, and can be revoked due to scarcity or a
The company permanently verifies acquisitions prospects for
decline in service quality.
the purpose of increasing market coverage or complement
existing businesses, although it cannot ensure that appropri-
Any limitation to current water rights, the need to obtain
ate procurement transactions can be identified and specified
additional water rights, or the current unlimited water con-
in the future. The acquisition and integration of independent
cessions could have a material adverse effect over the hy-
companies that are not controlled by Enel Américas is gener-
droelectric development projects and profitability.
ally a complex, time-consuming and expensive process. If an
additional acquisition is made, such as the one carried out in
Exchange risks could adversely affect the results and
Enel Distribución São Paulo in 2018, there might be important
the value in dollars of the dividends paid to the ADS
debts and have to assume unknown obligations, the potential
holders.
loss of key employees, depreciation expenses related to tan-
gible assets and the distraction of management from other
Even though the functional currency is the US dollar, sub-
business concerns. Additionally, any delay or difficulty relat-
sidiaries generate revenues in Argentine Pesos, Nuevos
ed to the acquisition and integration of multiple transactions
Soles, Brazilian Reais and Colombian Pesos. Also, the
could have an adverse effect on the business, financial con-
company pays dividends in Chilean pesos. In general, Enel
dition or operational results. In the case of the acquisition car-
Américas has been and continue being highly exposed to
ried out by Enel Distribución São Paulo, liabilities grew signifi-
the variations of local currencies with respect to the dol-
cantly, due to the new debt needed for the acquisition and the
lar, due to temporary differences and other limitations to
consolidation of the own debt of the distribution company.
adjust tariffs to the dollar. Because of this exposure, cash
generated by the subsidiaries, expressed in dollars, may
Moreover, the integration of the acquired businesses may be
substantially decrease when local currencies are devalued
hard, difficult, and expensive, require plenty of time and could
with respect to the dollar. The future volatility of exchange
be a burden for the resources and the relationships with col-
rates in currencies in which the company receives reve-
laborators and clients, and lastly either may not be successful
nues or in which incurs costs, can affect the business, fi-
or bring the expected benefits.
nancial condition, and operating results, especially when
expressed in US dollars, the currency that affects ADS
holders.
93
Risk Factors Long-term energy sales contracts are subject to fluc-
On October 16, 2018, Enel announced its intention to
tuations of market prices of certain commodities, en-
increase its shareholding in Enel Américas of up to 5%
ergy and other factors.
through the acquisition of shares according to the stock
swap agreements for 2019. If these transactions were
Enel Américas is economically exposed to market price
completed, minoritary shareholdings would decrease, thus
fluctuations of certain commodities due to long-term en-
reducing their capacity to exert pressure on controlling
ergy contracts. As selling counterparts, subsidiaries have
shareholder in the case of disputes.
material obligations due to the long-term energy contracts
at a fixed payment. The prices of these contracts are in-
The electricity business is exposed to risks arising
dexed at the value of different commodities, exchange
from natural disasters and extreme weather phenom-
rates, inflation, and the market electricity prices. Adverse
ena in the current climate scenario, catastrophic ac-
changes to these rates could reduce the fees that a rea-
cidents and acts of terrorism, which could adversely
sonably applied to the electricity sales contracts in the long
affect the operations, revenues and cash flows.
term at a fixed price, which could adversely affect the op-
erational results and financial condition. In Argentina, these
The Company’s main facilities include power plants, trans-
risks would be greater in the future with the liberalization
mission and distribution assets. Earthquakes, floods, ex-
of the energy market.
treme weather phenomena, fires or other catastrophes,
may damage the company’s facilities, and other cata-
In the countries, where clients can freely choose non-regu-
strophic disasters caused by nature or by human action,
lated tariffs, including Peru, this choice may be harmful for
as well as acts of terrorism, vandalism, and riots. A cata-
operating revenues that the company would have received
strophic event could lead to extended business disruption,
in a regulated regime. In some cases, clients may choose
resulting in significant reductions in revenues due to lower
an alternative supplier of energy, which would negatively
demand or significant additional costs not covered by in-
affect the business, operational results and financial situ-
surance clauses for business interruptions. There may be
ation.
delays between the occurrence of a significant accident or
a catastrophic event and the definitive reimbursement of
The controlling shareholder could have substantial in-
Enel Américas insurance policies, which normally contem-
fluence over Enel Américas and may have a different
plate a deductible and are subject to maximum amounts
strategic vision than the minority shareholders when
per claim.
it comes to the development of the company.
Enel SpA (Enel) is the controlling shareholder of Enel
non in Peru caused unusually heavy rains that caused the
Américas, with 51.8% of its share capital, therefore it can
temporary stoppage of several hydroelectric power plants
determine the results of almost every important issue that
due to the overflowing of rivers, such as Callahuanca (81
For example, in March 2017, “El Niño Costero” phenome-
requires a shareholder vote, as is the appointment of the
MW) and Moyopampa (69 MW).
majority of members in the Board of Directors and, sub-
ject to Chilean regulatory framework, legal and contract
The distribution business y also affected by the severe
restrictions, the dividend policy. Enel can also exert influ-
weather, mainly in Argentina. In extreme temperatures sce-
ence over the operations and strategy of the business.
narios, demand may significantly boost in a short period of
Its interests may, in some cases, differ from the minori-
time, which could affect the service and cause shortages,
ty shareholders interest. For example, Enel carries out its
which may also result in fines for the company. Depending
commercial operations in a field of renewable energy in
on weather conditions, results of the distribution business
South America through the company Enel Green Power
may fluctuate from one year to the other.
S.p.a., in which the company has no capital interest. Cer-
tain conflicts of interest that may affect Enel in these mat-
Extreme weather events have become more frequent due
ters could be solved against Enel Américas or its minoritary
to climate change, and are among the emerging risks that
shareholders’ interests.
have been identified in our planning process.
94
Annual Report Enel Américas 2018 The company is subject to financing risks, such as
Not being able to finance new projects, capital expendi-
those related with the financing of new projects and
tures or refinance the company's existing debt, could ad-
capital expenditures, and the risks related to the re-
versely affect operating results and its financial condition.
financing the maturing debt; it’s also subject to the
compliance with debt obligations, all of which could
Enel Américas depends on the electricity transmis-
adversely affect liquidity.
sion facilities that are neither their property nor in
their control, and also depends on gas pipelines infra-
As of December 31, 2018, the Company’s consolidated
structure and fuel supply contracts. If these facilities
debt amounted to US$ 8,916 million (including US$ 2,652
do not provide a proper transmission service, it can
million of debt contracted to Enel Finance International NV).
impede the energy delivery sold to final clients.
Some of the debt contracts are subject to: (1) financial
In order to deliver the electricity sold, the Company de-
agreements, (2) affirmative and negative covenants, (3)
pends on the transmission system property of other com-
events of default, (4) mandatory prepayment events for
panies that are not related and are operated independently.
breach of contractual conditions, and (5) certain clauses for
This dependency exposes the Company to severe risks. If
change of control by significant mergers or divestments,
the transmission is interrupted or the transmission capaci-
among other provisions. A significant portion of the compa-
ty is inadequate, it can prevent the sale and the delivery of
ny's financial debt is subject to cross-default clauses that
electricity. If the energy transmission infrastructure is inade-
have varying definitions, criteria, materiality thresholds,
quate in a region, the costs recovery and profits might not be
and applicability in the subsidiaries in which such cross-
sufficient. If restrictive price regulatory transmission norms
breach would arise.
are imposed, transmission companies that the entity relies
on, may not have sufficient incentives to invest in infrastruc-
In the event that Enel Américas or its significant subsid-
ture transmission expansions, which could adversely affect
iaries breach any of these material contractual provisions,
operations and financial results. The construction of new
debt holders may demand immediate repayment, and a
transmission lines may take longer time than in the past,
significant portion the debt may be due and payable. It’s
mainly due to new social and environmental demands that
possible that the company would not be able to achieve
are creating uncertainty about the possibility of completing
debt refinancing or obtain such refinancing in terms that
the projects. Moreover, in some of the countries where the
are acceptable to the company. In the absence of such a
company operates, the growth of Non-Renewable Conven-
refinancing, Enel Américas could be forced to dispose of
tional Energy (NRCE for the English abbreviation) projects, is
assets in order to make overdue payments of its indebt-
congesting the current transmission systems, since these
edness under circumstances that could be unfavorable to
are projects of fast construction, while the new transmission
obtain the best price for such assets. Moreover, it’s possi-
processes can take longer to be constructed. For instance,
ble that the assets could not be sold fast enough or at high
in Argentina, the lack of investments in transmission lines
enough amounts to enable such payments to be made.
reduces the incentives to develop NCRE projects.
Another scenario is that company may not have the capaci-
The company also depends on gas pipelines to obtain natu-
ty to obtain the required financing to complete the projects
ral gas, mainly in Peru, country whose most of the installed
under development or under construction. Existing market
capacity is thermal. The Peruvian system faced congestions
conditions when requiring the funds or other unplanned
of gas and energy due to the lack of installed capacity of
cost over-runs may compromise the ability to finance these
gas pipelines and transmission lines, respectively, resulting
projects and investments.
in higher spot prices. Thermoelectric generation facilities in
As of the date of this report, the company considers that
gas, coal, diesel and other fuels to generate electricity, de-
Brazil is the country with the highest refinancing risk. As of
pending on the technology of the respective power plants.
December 31, 2018, third-party debt of the Brazilian sub-
Any contractual breach or supply shortage may prevent the
sidiaries of Enel Americas amounted to US$ 2,837 million.
facilities from producing electricity in a timely manner.
the four countries where the Company operates purchase
95
Risk Factors Due to the liberalization of the energy market in Argentina,
The business can experience adverse consequences
including the fuel market, the company’s Argentine genera-
if it does not have the ability to reach satisfactory
tion subsidiaries are exposed to fuel prices volatility, mainly
agreements in the collective negotiation contracts
Natural Liquefied Gas (LNG), which may be scarce especial-
with the unionized workers and retain key employees.
ly during winter because of the higher seasonal residential
demand. In order to face these regulatory changes, these
A large percentage of the employees are members of a
risks have been undertaken by CAMMESA.
union that has collective negotiation contracts that need
to be regularly renewed. The business, financial condition,
The subsidiary Enel Generación Fortaleza owns and oper-
and operational results of Enel Américas could be adverse-
ates a gross 327 MW natural gas combined cycle power
ly affected in the case that an agreement cannot be found
plant, whose capacity supplies one third of the power de-
with any of the unions that the employees represent, or
mand of 8.8 million people in the State of Ceará in Brazil.
by an agreement with the trade union that contains con-
In order to generate electricity and fulfill its energy commit-
ditions that Enel Américas finds unfavorable. The laws in
ments, Fortaleza maintains a contract with Petrobras, the
the various countries where the company operates estab-
Brazilian company appointed by the federal government to
lish legal mechanisms for the judicial authorities to impose
supply natural gas in accordance with the Thermoelectric
work contracts if the parts are not capable of reaching an
Priority Program, whose terms establishes that the gas sup-
agreement, which can increase costs.
ply to Fortaleza would be guaranteed until 2023 at a price
defined contractually.
Additionally, some employees have highly specialized abil-
ities and certain actions such as strikes, walk-outs or work
The main purpose of the contract is to avoid a short-term
stoppages by those employees could adversely impact the
energy crisis ensuring thermoelectric generation due to the
business performance, operational result, and financial, as
vulnerable situation of hydroelectric facilities exposed to
well as the company’s reputation.
weather conditions, as was the case in 2018. In February
2018, Petrobras suspended the gas supply alleging existing
The relative lack of liquidity and volatility in the Chilean
inequality between the contractual price and the current
securities market and its dependence on the economical
market conditions. Fortaleza stop operating on July 2018,
conditions in Latin America and other parts of the world,
after some legal allegations, and as of the date of this report
could negatively affect stock prices and the company’s
it is still out of service. Operational costs of Fortaleza sharply
ADS.
increased during 2018, due to higher energy purchases in
the spot market as a result of the stoppage of Petrobras,
Even though the Company does not own assets in Chile,
in order to comply with its contractual obligations with
its stocks are listed in the Chilean Stock Market, for which
Enel Distribución Ceará. This distribution company signed
Enel Américas is regulated under the laws of the Republic
a contract with Fortaleza for the acquisition of 100% of its
of Chile, as well as being placed in Chile. The Chilean stock
generation until 2023, year where the concession finishes.
markets are substantially smaller and less liquid that the
This situation might negatively affect not only the Brazilian
main stock markets in the United States or other devel-
business, operational results and financial situation, but also
oped countries. The low of liquidity in the Chilean market
may impact the company’s consolidated financial situation,
can damage the ADS holders to sell ordinary stocks in the
due to the risk of default of financial covenants and other
Chilean market of the ADS program, in quantity, price, and
contracts of most of the Brazilian subsidiaries.
moment in which they would like to. At the same time,
liquidity and the stock market or ADSs can be affected by a
Any stoppage, failure or lack of transmission infrastructure
series of factors that include variations in exchange and in-
may disrupt our business or affect market prices, which may
terest rates, and deterioration and volatility of the markets
adversely affect operating results and our financial condition.
and any liquidity change, financial condition, results, and
the company’s profitability.
96
Annual Report Enel Américas 2018 Lawsuits filed against Enel Américas in the other
on IT systems to manage information and communication
countries of South America or the claims against the
between these parties has greatly increased since the de-
Company that are based on foreign legal concepts
ployment of smart meters and smart grids, such as in Brazil
may not be successful.
and Colombia, where the company has installed a significant
amount of smart meters.
All of the company’s assets are located outside of the
United States. All the directors and all senior executives
Generation, transmission and distribution facilities, It sys-
are domiciled outside the United States and most of their
tems and other infrastructure, as well as the information
assets are also located outside the United States. If any
processed in the IT systems of the company (such as cli-
investor were to file a lawsuit in the United States against
ents’ information, employees, operations, infrastructure and
the company directors, senior executives or experts, it may
assets) might be affected by cyber attacks, including those
be difficult for them to pursue a legal process within the
caused by human errors. The industry and the company
United States against such persons and may be difficult
have started to see an increase on the amount and sophis-
for them to enforce, in the courts of the United States or
tication of cyber attacks from international activist organiza-
Chile, a judgment rendered in the United States based on
tions, nations and individuals, and are among the emerging
the civil liability provisions of the United States federal se-
risks identified by the company in its planning process.
curities laws. In addition, there are doubts as to whether a
successful action could be waived in Chile with regard to
Cyber security incidents may damage Enel Américas’ sub-
the liability based solely under the guidance of the United
sidiaries limiting their generation, transmission and distribu-
States federal securities laws.
tion capacity, delay the development and construction of
new facilities or projects for capital improvement of existing
Interruption or failure of the information technology
facilities, interrupt their clients’ operations or be exposed to
systems and communications systems or external
liabilities. Generation, transmission and distribution systems
attacks or breaches of these systems could have an
are part of an interconnected system. Therefore, a disruption
adverse effect on operations and results.
caused by a cyber security incident in the electricity trans-
mission grid, the network infrastructure, fuel sources or the
Enel América operates in an industry that requires the con-
operations of third party suppliers, may also negatively af-
tinued operation of sophisticated information, control and
fect the company’s business.
communications technology systems (“IT” systems) and
network infrastructure. Also, the firm uses its IT systems
Moreover, the business requires the collection and stor-
and infrastructure to create, collect, use, disclose, storage,
age of personal identification information from customers,
delete and process confidential information, including the
employees and shareholders, who expects to be properly
company’s and clients’ data, and personal information of
protected. Cyber security breaches may expose the com-
clients, employees and their dependents, contractors and
pany to a risk or loss or misuse of confidential information.
shareholders, among others. In the generation business,
An important theft, the loss or fraudulent use of information
IT systems can monitor the operations of power plants,
regarding personal identification may lead to high costs to
maintain power generation and network performance, ad-
inform and protect the affected people and/or may result on
equately generate customer invoices, achieve operational
lawsuits, costs, responsibilities, fines or important penalties
efficiency, and meet service goals and standards. Distribu-
for Enel Américas, which may have a material and adverse
tion subsidiaries could also be adversely affected as they
impact in the results and operations of the company, and
rely heavily on IT systems to monitor smart grids, billing
also in the reputation of the group with clients, shareholders
processes for millions of customers, and customer service
and regulators, among others. Also, it is possible that the
platforms. The operation of generation, transmission and
company may be required to incur in significant costs related
distribution systems, not only depends on the physical in-
to governmental actions, as a response to those intrusions
terconnection of the facilities with the electricity grid infra-
or to strengthen the information and the electronic control
structure, but also communications between the different
systems.
components of the grid are extremely important. Reliance
97
Risk Factors Most of the internal processes depend on IT systems. If
Enel Américas has designed security measures to protect its
the company’s IT systems or the ones of its suppliers of
IT systems, network infrastructure and other assets. Never-
external services, were interrupted, failed or breached, it’s
theless, these assets and the information they process may
possible that critical functions of the business may not be
be vulnerable to cyber security incidents, such as the assets
completed, including the effective maintenance of certain
failure or the non-authorized access to assets or information.
internal controls related to financial reports and other com-
There is a large exposure to cyber attacks whose objective
pliance functions. In this case, compliance policies and pro-
is to damage assets through computer networks, cyber es-
cedures of the company may not be sufficient to prevent or
pionage in the pursuit of strategic information that may be
detect every inappropriate practice, frauds o breach of law
beneficial to third parties, and cyber theft of private and con-
from affiliates, collaborators, directors, employees, partners,
fidential information, including information of the company’s
agents and service suppliers of the company. Any breach of
customers. There has been great exposure to cyber attacks
law of anticorruption sanctions, bribery, money laundering
in the past, including attacks of service rejection that might
and antitrust may have an important adverse effect in the
affect the access to the service from users and attacks that
business, reputation, operational results and financial condi-
could affect the domain name systems, restraining the use
tion of the company.
of certain web pages and useful applications.
98
Annual Report Enel Américas 2018 99
Risk Factors 100
Annual Report Enel Américas 2018 15
Regulatory
framework of
the electricity
industry
101
Letter From the Chairman Description
of the
industry
sector
Enel Américas and its subsidiaries and jointly controlled
companies participate in the generation, transportation,
distribution and sale of electricity in four countries. Each of
them has a regulatory framework, energy matrixes, partic-
ipating companies, and different growth and consumption
patterns. The following is a brief summary of the main legal
bodies that regulate the activity, the market structure and
the most relevant aspects regarding the agents of each of
the countries where the company operates.
Argentina
The Argentine electricity sector is governed by, among
other regulations, by Law N°15,336 of 1960 and Law
N°24,065 of 1992. The Wholesale Electricity Market
(MEM) there are four local agent categories (generators,
transmission companies, distributors and large clients) and
foreign agents (generation trading companies and demand
trading companies), companies that are authorized to buy
and sell electricity and its related products.
Originally the generation sector was organized on a com-
petitive base (marginalism), with independent generators
that sold their energy in the MEM spot market or through
private contracts, to clients in the MEM contracts mar-
ket, or to the “Administrative Companies in the Whole-
sale Electricity Market S.A.” (CAMMESA) through special
transactions such as contracts under the Resolution S.E.
Nº220/2007 and Resolution S.E. Nº724/2008. Neverthe-
less, this regimen changed substantially in March 2013,
when the Energy Secretary approved Resolution S.E Nº
95/2013, which established a remuneration system for the
generation based on average costs, forcing the delivery all
the energy generated to CAMMESA. This new compen-
sation scheme became valid in February of 2013 and was
updated through the Resolution SE N° 529, N° 482, N°
22 in 2014, 2015, and 2016 respectively. On February 2,
2017 the Energy Secretary published the Resolution SEE
102
Annual Report Enel Américas 2018 N°19/2017 replacing Resolution SEE N° 22/2016 and es-
electricity. The distribution companies are not allowed to
tablishes new guidelines for the remuneration of existing
own generation units.
generation power plants, focusing on the power availability
of the units.
Regulated clients are supplied by distribution companies
with regards to regulated fees, unless they have a mini-
The transmission industry operates in conditions of mo-
mum demand capacity of 30kW. In this case, they are
nopoly, and is composed by several companies to which
considered as “large clients” and can freely negotiate their
the Federal Government grants concessions.
prices with generation companies.
The distribution sector operates under monopoly con-
On December 16, 2015, through Decree 134/2015 a na-
ditions and is served by companies that have also been
tional energy emergency was declared until December
granted concessions. Distribution companies have the ex-
31, 2017, where the Ministry of Energy was instructed to
clusive responsibility that electricity has to be available for
elaborate and apply actions to the Generation, Distribution
final clients within a specific concession area, and does not
and Transmission industries with the objective of adapting
consider if the client has a contract neither with the distrib-
the service quality and supply security; and teaching the
utor nor with a generator.
National Public Administration how to carry out consumer
rationalization programs in the respective public bodies.
Due to the economic slow down that affected the coun-
try in 2002, Law Nº25,561 was enacted with emergency.
The Law disrupted the American dollar parity and pushed
the conversion from Argentine pesos from obligations and
rights assumed by the American currency. This forced
nominal conversion from dollars to pesos and had a strong
impact in the whole Argentinian electricity industry. Ad-
ditionally, the Government approved several regulatory
measures that slowly intervened in the development of the
industry. The Emergency Law has been subject to succes-
sive extensions and with regards to the last one, approved
through Law N°26,896, will be valid until December 31,
2015. The pesification and devaluation of the economy
forced the renegotiation of all of the concession contracts.
In particular, the distribution sector and the company par-
ticipated in the “Energy Distributing Companies from the
South, S.A.” (Edesur), and in 2006 with the Government
when an Act Agreement of Contractual Renegotiation was
signed, that subsequently was ratified through Decree
PEN N° 1959/2006, which gradually has allowed the adap-
tation of tariff revenues as a way to guarantee the business
sustainability. The implementation of this agreement was
paralyzed since 2008 and until this exercise, as explained
below.
No generator, distributor, large user, nor any other compa-
ny controlled by any of the latter or under its own control,
can be the owner or controlling shareholder of a transpor-
tation company or its controlling companies. At the same
time, transmission companies are forbidden to enter into
generation activities, distributing, buying, and/or selling
Regulation of generation
companies
The regulation of generation companies has suffered im-
portant variations since the enactment of Law N°24,065
until Resolution S.E.E Nº 22/2017. In accordance with the
aforementioned Law, every generation agents from MEM
must be connected with SIN (National Interconnected Sys-
tem) and are obligated to comply with the dispatch order to
generate and deliver electricity, in order to sell in the spot
market and in the forward market (MAT). The distribution
companies, trading companies and large clients subscribed
the private supply contracts with generating companies,
paying the contractual price directly to the generator, and
in addition paying a fee to the transmission and distribution
company for the use of their systems.
With the objective of stabilizing generation prices facing
tariffs for clients, the market defined a seasonal price be-
ing the price of the energy that distributors pay for their
energy purchases traded in the spot market. This price is
determined every six months by the Energy Secretary, af-
ter CAMMESA had carried out their spot price projections
in a determined period. In order to adjust to the differences
between this price and the real cost of the original generat-
ing, the establishing fund was created. If the seasonal price
is lower than the cost of generating it, it has to be removed
from the fund to compensate the generation; otherwise it
103
Regulatory framework of the electricity industry contributes to the fund. Since 2002, the Energy Secretary
In 2012, the framework of the agreement achieved with
in practice has maintained the average stationary price,
the Government to enable the development of our subsid-
without important variations. This has created an important
iaries in Argentina, on October 12, Costanera subscribed
deficit in the stabilization fund, which has been covered by
an agreement for the implementation of an investment
the Argentine state through subsidies increasingly larger.
plan for the generation units in Costanera power plant,
whose purpose was to optimize reliability and availability
The resolutions approved and created from the emergency
of the equipment, for a total amount of US$304 million,
Law had a significant impact in energy prices. Between the
in a 7-year term. The agreement also contemplates the
measures carried out it mainly highlights the Resolution SE
payment of contract maintenance obligations (Long Term
240/2003, which modified the way to fix spot prices when
Service Agreement -LTSA-) of the combined cycle power
separating the calculation of marginal operating costs. The
plants.
main objective of Resolution SE Nº 240/2003 is to avoid
the price indexation linked to the dollar, and despite that the
Subsequently, Resolution S.E. N° 95/2013 abandoned the
generation study is still based on the real fuels used, the
marginalizing pricing system, thus entering into a recogni-
spot price calculation is based on absolute gas availability
tion mechanism of average costs. The Resolution recogniz-
to satisfy demand, even in circumstances in which many
es fixed costs remuneration, variable costs and additional
generators generate with alternative fuels, such as diesel,
remuneration. Fixed costs are remunerated (in ARS$/MW-
due to the difficulty of supplying natural gas. The value of
hrp) in function to technology, scale, and available power.
water is not considered if its opportunity cost is higher than
It’s also subject to the achievement of goals related to the
the generation cost using natural gas. The Resolution also
availability established. In terms of variable costs, the oper-
establishes the spot price limit is Ar$120/MWh, which is
ational costs are remunerated and maintenance in function
still valid. The real variable costs of thermal units that burn
to the energy generated (in ARS$/MWh), according to the
liquid fuels are paid by CAMMESA through the mechanism
fuel utilized, and its technology (generators do not have fuel
denominated Transitory Dispatch Cost Over-run (TDO).
costs since this is provided by CAMMESA). Lastly, the ad-
ditional remunerations are calculated in function of the total
Also, based on the dispositions included in the Emergency
energy generated (in ARS$/MWh), considering the tech-
Law, the payment for capacities is reduced from US$10 to
nology and generator scale. Part of these remunerations
AR$10/ MW-hrp (hrp: remunerated capacity hours). Subse-
is accumulated in the fund that will be used to finance the
quently, the capacity warranty is slightly raised to AR$ 12,
new investments in infrastructure in the electricity sector.
approximately ⅓ of the value paid before the 2002 crisis.
The Resolution rules generators, cogenerators and auto
In December 2004, the Energy Secretary approved the Ad-
generators, except the power plants that started opera-
herence Act through the Resolution 1427/2004, for the Re-
tions as of 2005, the nuclear power plants, and the gener-
habilitation of Wholesale Electricity Market. The majority
ation of hydroelectric national power plants; reserves and
of the generators signed the Act, including the generation
centralizes in CAMMESA the commercial management
companies owned by Enel Américas (former Enersis). With
and the dispatch of fuel and suspends the celebration of
regards to this Resolution, the Secretary created a fiducia-
bilateral energy contracts between generators and MEM
ry fund, named FONINVEMEM, where private generators
agents, and the latter should acquire electricity energy de-
provided part of the energy sold during 2004 to 2007 for
mand with CAMMESA. Resolution SE N° 529/2014 mainly
the construction of two new combined cycles. Also in this
performs the value actualization for Resolution SE N°95
new capacity, in 2010 the generation companies owned
and incorporates the non-recurring maintenance remuner-
by Enel Américas (former Enersis), along with other com-
ations for thermal power plants.
panies, participated in the creation of another trust for the
construction of another combined cycle, expecting the
Resolution SE N°482 of 2015 updated the remunerations of
closing of a combined cycle for October 2016. There was
generation companies in force since February 2014. Pursu-
part of the energy credits for to the energy sold in the peri-
ant to Resolution 529/2014, thus creating a new position,
od 20018 to 2011 allocated to this new project.
with the objective of financing investments that have not
been used and excludes hydroelectric power plant from the
104
Annual Report Enel Américas 2018 variable payments for energy transport and determined the
CAPACITY REMUNERATION FOR THERMAL POWER PLANTS
remunerations for wind energy power plants, photovoltaic
Minimum Price (since February 2017)
solar energy, biomass/ biogas and internal engine combus-
Large Cycles
tion. On March 30, 2016, the Secretary of Electric Energy,
Large TV
depending on the Ministry of Energy and Mining, through
Large TG
the Resolution N°22/2016, updated all of the remuneration
Engines:
values of Resolution SE N°482/2015, replaced Annexes I,
3,050 US$/MW-month
4,350 US$/MW- month
3,550 US$/MW- month
5,700 US$/MW- month
II, III, IV. V, VI, and VII of the aforementioned Resolution.
Base Price for Committed Remunerations
Resolution SEE N°19/2017, was enacted on February 1,
2017, defines a minimum remuneration for capacity and
scale, additionally for the thermal units establishes the pos-
sibility of offering the availability of with a same differential
remuneration for every thermal technologies. The thermal
generator may declare every summer the value of the firm
capacity to commit for each unit during a 3-year period,
being able to discriminate between summer and winter
periods (adjusts can be made in the same period). As the
exception and for the year 2017, the declaration of Commit-
ment of Guaranteed Availability is habilitated, along with
May 17-Oct 17
Nov 17 onwards
6,000 US$/MW-month
7,000 US$/MW-month
Additional Price for Committed Remuneration (Maximum)
May 17-Oct 17
Nov 17 onwards
1,000 US$/MW-month
2,000 US$/MW- month
The maximum price given the offers that should be award-
ed by CAMMESA, with regards to the needs defined for
the system to face critical situations.
CAPACITY REMUNERATIONS FOR HYDROELECTRIC POWER
PLANTS
the information required by the Seasonal Winter Program,
Minimum Price (since February 2017)
Chocón
Arroyito
Additional Price
May 17-Oct 17
Nov 17 onwards
2,000 US$/MW-month
3,000 US$/MW-month
500 US$/MW- month
1,000 US$/MW- month
Since November 2017, 50% of the additional remuneration
will be subject to the disposal of large events insurance
(turbines, etc.) and the progressive modernization of con-
in force from May 1 to October 31, 2017.
The thermal generator will sign a Commitment of Guar-
anteed Availability contract with CAMMESA, but will give
to the corresponding demand as determined by Secretary
of Electric Energy. The remunerations that the unit will re-
ceive with the capacity commitment will be proportional to
its performance, and the minimum value will be calculated
in relation to the minimum price.
With respect to the hydroelectric power plants, a new
scheme to evaluate capacity was defined, based on the
real capacity available (implying a greater value of capaci-
ty with respect to the previous regulation). Likewise, they
introduce a base capacity value, and another additional
discriminated from May to October 2017, and starting in
November 2017.
The Resolution establishes the following remuneration val-
ues, which are defined in dollars (conversion considers the
trol systems.
REMUNERATION BY ENERGY
Energy Generated
Cycles and TV
Gas
Liquid
Engines
Gas
Liquid
exchange rate published by the Central Bank of the Repub-
Hydroelectric
lic of Argentina of the last business day) and the maturity
dates are established by CAMMESA’s Procedures:
Energy Operated (associated to Rotant Capacity)
Thermal
Hydroelectric
5 US$/MWh
8 US$/MWh
7 US$/MWh
10 US$/MWh
3.5 US$/MWh
2 US$/MWh
1.4 US$/MWh
105
Regulatory framework of the electricity industry
Energy values are defined at the Node.
Later CAMMESA performed a second call for the acqui-
For the cases in which generators have requested a loan
2019 through MEGSA. Maximum prices were determined
for maintenance, US$1/MWh will be discounted for energy
for summer and winter periods. The result was prices 15%
sition of natural gas interruptible for generators supply for
generated by the power plant until paying the balance for
lower than the maximum prices.
financing. Later the SEE established that the conversion to
pesos would be carried out the day previous to the maturi-
After the enactment of Resolution SGE N° 70 of November
ty date since November 2017.
2018, commercial management of fuels was no longer an
The Resolution SEE N° 1085/17 modifies as of December
This resolution also enables Generation, Cogeneration and
1, 2017, the agents’ payment method for the transportation
Self generation agents of the MEM, to purchase fuel sup-
issue determined by the Office Responsible for Dispatch.
system (the remuneration for the transport agent doesn’t
ply for electricity generation.
change because it was determined in its respective RTI). It
established the following:
Initially, the norm will operate for the purchase of natu-
ral gas and allows generators to obtain additional margin
•
Costs associated to transportation remuneration will
when purchasing fuel, only if the purchase price of gas y
be distributed proportionately in relation to demand.
lower than the price recognized by CAMMESA.
•
Generation Agents will pay direct connection costs
only.
With this resolution, generators charge Production Variable
• Mandates CAMMESA to propose the modifications
Cost (CVP by its Spanish acronym) in relation to the price
required for the proceedings within 90 days (regula-
recognized, and CAMMESA is responsible for the supply
tion of the MEM).
of fuel of those generators that decide not to purchase fuel
on their own account. Out of a total of 60 companies au-
Resolution N° 97/18 of the Energy Sub Secretary, article
thorized to declare, 22 of them registered a declaration, 6
5, determined the Maximum Spot Price at 480 $/MWh for
of which correspond with Generation under 100% of Res-
the penalty imposed to market prices of the Wholesale En-
olution 19.
ergy Market.
On Wednesday August 1, 2018, Resolution ME N° 46 was
published, which informed of the decision to reduce from
5.20 to 4.20 dollars per MMBTU (in average) the price of
gas for electricity generation. Likewise, the SSEE is man-
dated to enforce a competitive mechanism, for the provi-
sion of gas for generation at a maximum defined price. The
SSEE instructed CAMMESA to perform the acquisitions of
natural gas under firm and interruptible conditions through
the Electronic Gas Market (MEGSA for the Spanish abbre-
viation) for thermal generation supply.
Finally, the tender offer determined interruptible contracts
Regulation of distribution
companies
Companies that obtain concessions carry out the distri-
bution activity. Distribution companies must supply all of
the electricity demands in their concession areas exclusive
to prices (tariffs) and conditions established in the regu-
lation. The concession agreements include penalties for
the failure to provide electricity service. The concessions
were given for distribution sales and retail sales. The con-
cession periods are divided in “management periods” that
allow concessions abandon the concession every certain
mode for the period September-December this year. Av-
erage price of the offers was US$ 3.69 per MMBTU, 13%
amount of time.
lower than the price established in Resolution ME N° 46.
106
Annual Report Enel Américas 2018
Since 2011, there are two electricity distribution areas
On January 28, 2016, after the seasonal price changes,
subject to federal concessions. These concessionaires are
the Emergency Resolution No. 7/2016 was issued by the
Edesur and Edenor, both located in the city of Buenos Aires
Ministry of Energy and Mining. The resolution introduced
and Gran Buenos Aires. Until 2011 Edelap was also under
by the ENRE to adjust Edenor and Edesur fees through a
federal jurisdiction.
transitory tariff until the RTI is applied, expected for De-
cember 31, 2016. Also, Resolution No. 7/2016 suspended
Most of the distribution companies renegotiated their con-
the PUREE and required the application of a subsidy rate
tracts during 2005 and 2006, although fees were partially
for the more vulnerable clients.
and temporarily increased, the Integral Tariff Review (RTI)
were distribution companies pending under national juris-
On January 29, 2016, the ENRE issued Resolution No.
diction. This tariff revision process wasn’t accomplished,
1/2016 with a new transitory tariff valid from February 1,
and the term for contracts renegotiation was postponed
2016. Its application is included in Resolution MEM No.
several times through laws enacted by Congress, thus
7/2016, which changed the supply procedures and defined
postponed the duration of the Economic Emergency.
a monthly billing.
The new National Administration made a change of par-
Also, ENRE issued Resolution No 2/2016, which ended the
adigm on December 16, 2015, when the National Execu-
FOCEDE and established a new procedure for funds from
tive Power issued the Decree N° 134/2015 declaring the
Resolution ENRE 347/12, in substitution for Edesur and
emergency for the National Electricity Sector until Decem-
Edenor confidence for a commercial account.
ber 31, 2017. Also mandated the recently created Ministry
of Energy and Mining to develop, release and implement
On April 5, 2016, the National Electricity Regulating Entity
the national program of activities needed for the energy
enacted Resolutions N° 54 and 55. The first resolution ap-
generation, transport and distribution sectors. The purpose
proves the Bases and Conditions for Private Companies,
of these measures was to adjust the quality and safety of
for the hiring of a Consultant for the RTI of EDESUR and
electricity supply and ensure the energy utilities services in
EDENOR, and the second resolution approves the time-
suitable technical and economic conditions.
table and issues guidelines for the same, indicating that
ENRE defines the Parameters of Quality and Rate.
107
Regulatory framework of the electricity industry Continuing with the tariff renegotiation process, on August
Regarding the application of new structures and tariff
8 ENRE issued Resolution 463/16, which provide details of
charges, the Ministry of Energy and Mining considered as
the parameters of the technical service and quality, and the
timely and convenient to instruct ENRE to limit the VAD
cost and values of unsupplied energy required for the mod-
increases that emerged as an RTI process results to be ap-
ification of the RTI. Similarly, on August 29 through Resolu-
plied starting February 1, 2017, to a maximum of 42% with
tion ENRE 492/16, the Quality of Commercial Service and
respect to the valid VAD at that date, having to complete
Technical Product Parameters were defined. This resolu-
the resulting value application of the new VAD, in two stag-
tion contains economic signals towards the fulfillment of
es: the first in November 2017, and the second in February
deadlines and times of supply replenishment reductions.
2018.
On the other hand, on August 30, the regulation entity pro-
Also, it mandates that ENRE must recognize Edenor S.A.
ceeded to inform the value of the Rate of Profitability. This
and Edesur S.A. the VAD difference that is produced by
was established on Resolution ENRE 494/16 at 12.46%
the application of gradual fee increases recognized by RTI,
before taxes and 8.1% after taxes.
in 48 (forty-eight) installments starting from February 1°,
2018, which added to the VAD value as of that date.
On September 1, Edesur proceeded to the final presenta-
tion of the investment plan requested by Resolution ENRE
The regulation also sets revenues updates mechanism for
55/16 and then receiving from the Secretary of Electric
the distribution companies as a result of price variations in
Energy the note NO-2016-01193698-APN-EDESUR RTI
the economy and all of the other issued related with the
which established that credit and debit from the disregard
quality of the service delivered and supply regulation.
of the Agreement Act would be treated separately from the
income required from the RTI and proceeded to complete
Once this regulatory framework is established with regards
on September 6, the related reports with Fundamentals
to the distribution tariffs regime including the instructions
and the criteria of the proposal: exploitation costs, reve-
enacted by Ministry of Energy and Mining, and the resolu-
nues requires and calculation of fees, tariff structure and
tions contained in Resolution SEE N° 20/2017 on seasonal
wholesale transfer costs, and the updating mechanisms
prices valid from the corresponding invoice of February 1,
of the Company’s distribution costs, results and economic
2017, it was declared that the transition tariff phase of Ede-
financial model. This method concluded with the delivery
sur was met, and the Agreement Act that the company
of formal final reports required for the aforementioned res-
adheres as established in its concession contract.
olution.
On September 28, through Resolution ENRE 0522/2016,
of Resolution ENRE N° 64/17 (Physical monitoring of the
the regulating organism decided to call for a Public Hear-
works plan) on March 20 Edesur sent a note ratifying the
ing with the objective of acknowledging and listening to
Investments Plan duly informed for the RTI (in physical
In accordance with the request made by Article N° 29
opinions with regards to Tariff Proposals presented by the
terms).
distributing companies for the next five-year period; this is
part of the Integral Tariff Revision Process (RTI) and with
In accordance with Law of Administrative Procedures, on
previous character to define the tariffs to apply by the re-
March 20, 2017 Edesur S.A. formally filed an appeal to the
ferred Subsidiaries in said five year period. On Wednesday
ENRE questioning resolution ENRE N° 64/17 which basi-
February 1, 2017, the ENRE published Resolution N° 0064
cally focuses on the treatment of easements, some opti-
which closed the RTI process and as a result, establish-
mization criteria in the definition of the capital base, the
es the annual remuneration recognized by Edesur S.A.
treatment for the recognition of certain taxes and objec-
amounting to ARS$14,539,836,941.
tions to the quality regime. We highlight the fact that the
observations and the explanatory orders presented, either
accepted or rejected by the regulator, will not significantly
affect the result of the RTI.
108
Annual Report Enel Américas 2018 On July 26, 2017 ENRE issued Resolution N° 329/2017,
In an unprecedented fact performed on October 27, 2017,
defining the procedure for the billing of deferred revenue
the ENRE, complying with resolution N° 403 of October
established by Resolution ENRE N° 64/2017 (Article 4°)
26, 2017, the Ministry of Energy and Mining, through res-
states that “…receivables corresponding to each tariff cat-
olutions 526 and 527 convened a Public Hearing for No-
egory, will be the sum of the monthly accrued revenues,
vember 17, 2017 in the Palace of Waters. The topics to be
recognized by tariff category …”; establishing the certainty
discussed are in the first place the new reference prices
of payment by recalculating each year the revenues not re-
for capacity and energy, and the reference prices for ca-
covered deducting the payments from initial credits, and
pacity and stabilized for energy reference for distribution
recalculating the remaining installments to cover the bal-
companies at node, equivalent to each of them and for the
ance; and the mechanism to update the latter “…These
seasonal period of summer 2017-2018; the energy savings
charges will be adjusted, being components of the CPD,
stimulus plan; social tariff and the distribution methodology
according to the “trigger clause” and in the “Adjustment
between the demand of MEM and the cost of remunera-
Mechanism” …”.
tion of energy transport in extra high tension and between
the demand of a region and the corresponding demand
On May 17, 2017 Law 27,351 of Electro dependents was
for transport for mainline distribution. And in the second
enacted, establishing the gratuity and continuity of elec-
place, informs the impact that would have the measures to
tricity supply, together with the priority of service to those
be carried out by the Ministry of Energy and Mining in the
clients that for health reasons require constant electricity
bills of users of distribution companies, as a result of the
supply and with adequate tension levels in order to feed the
Public Hearing that this Ministry has convened for Resolu-
equipment prescribed by a licensed physician and needed
tion MEyM 403/2017. This is in relation to the Wholesale
to avoid health or life risks. In this context, on July 26, 2017
Electricity Market, the withdrawal of subsidies for energy
through Resolution ENRE 292, this entity established the
transport and the criteria of distribution among users of
gratuity of service and the connection cost for this users
transport of the transporters remuneration that this entity
category of the companies Edenor y Edesur. In this line, On
solved with the Integral Tariff Review of Transport of Elec-
September 25, the Ministry of Health through Resolution
trical Energy.
1538-E created the “Registry of Electro dependents due
to Health Reasons”. To this date, are still pending the rules
As a result of this, on December 1 through Resolution 602,
for operational issues to ensure the continuity of supply, for
ENRE approved the new values of Distribution Own Cost
the compensation of distribution companies (Law 27,351
of Edesur, through the application of the mechanisms con-
Article 11). The Executive Authority will appoint the author-
sidered in the RTI. Concurrently, issued the tariff scheme
ity to enact this law and will assign the budget allocations
that reflects seasonal prices (generation and transport) in-
needed to fulfill their objectives) and the limits of responsi-
cluded in the resolution of the Secretary of Electric Energy
bility of each of the parties involved.
1091 of 2017. It also approved the new schemes for subsi-
dy for Social Tariff and the bonus system for consumption
On November 1, 2017, ENRE enacted Resolution 525
savings for residential users.
partially establishing the Reconsideration Resource inter-
posed by EDESUR against Resolution ENRE 64/2017, ac-
Finally, the return to normal conditions in relation to eco-
cepting its measures regarding easements treatments and
nomic emergency situations and energy emergency, was
requesting the company that within 60 days should submit
materialized through the decision of the Argentine Nation-
an annual plan for the regularization of easements to be
al Government of not to extend the effect of the Electric
developed in the period 2017/2021. Also requested the
Emergency Law (in effect until December 31, 2017) and
recognition of expenses of CAMMESA, rates and others
the Economic Emergency Law (in effect until January 6,
that should be available in future adjustments and minor
2018).
modifications to the quality regime and other recognitions.
109
Regulatory framework of the electricity industry As a result of the above, on December 1, through Resolu-
2018-February 2019). Both resolutions meant an increase
tion 602 the ENRE approved the new values for the Own
of quality requirements, and taken into account in the Inte-
Distribution Cost of Edesur, considering the application
gral Tariff Review.
of the mechanisms included in RTI. Jointly, new Tariff
Schemes were issued, which capture the new Seasonal
On July 30, 2018, in the context of the intention of the
Prices for generation and transport, and were included in
Ministry of Energy to provide greater gradualness to tariff
the Resolution 1091, 2017 of the Secretary of Electric En-
increases, an agreement was signed between MINE and
ergy. As such, new subsidy schemes for Social Tariffs and
Edesur through which Edesur will receive 50% of the in-
allowances for consumption savings for residential cus-
crease of the adjustment mechanism of the tariff from Au-
tomers are also considered.
gust 1, and will receive the remaining 50% in 6 installments
from February 1, 2018 while maintaining the Investment
At the same time, on January 31 2018, ENRE approved the
Plan agreed in the RTI. Edenor signed the same commit-
new values effective from February 1, 2018. These charts
ment simultaneously.
include a new reduction of subsidies of wholesale prices,
down to 90% of the seasonal price operated in 2017. More-
As agreed, on August 1, 2018 the 50% growth (7.925%)
over, subsidies of social tariffs remained unchanged and an
of the corresponding increase to the enforcement of MMC
allowance of the stimulus plans for electricity consumption
of August 2018 the Value Added in Distribution. Together
reduction.
with this increase, the subsidies to wholesale energy pric-
es removal were restarted. This was postponed due to the
Regarding the Distribution Added Value, it was also incor-
devaluation of the Argentine peso, of nearly 50%.
porated in this tariff chart, the third installment of the Own
Distribution Cost corresponding to the RTI, the proportion-
In turn, MINE also have the chance to modify the CAPS
al share of deferred revenue generated by the tranches,
of the Social Tariffs (maximum % of billing in relation to a
the Cost Monitoring Mechanism of the period and the ap-
regular residential client), therefore decreasing the subsi-
plication of the Efficiency Factor. The latter shows the ful-
dies to this tariff and the distortions caused by this item to
fillment from Edesur of the Investment Plan committed in
those distribution companies that are still pending a solu-
the RTI, while reaching the scheduled value.
tion and analysis from ENRE. Apart from that, the resolu-
tion was enacted on August 13.
In this way, the tariff of Edesur reaches 2.2828 $/kWh
without taxes as of February 1, 2018.
On November 1, the National Executive Power enacted
the Decree 986/2018, aiming to build capacity for a total
On May 31, 2018, the supervisory agency issued Resolu-
of 1,000 MW within a 12-year period. In order to obtain
tion ENRE 0170, approving the sanctioning regime for the
the authorization for the connection, the user must comply
separation of the Investment Plan presented by distribution
with sever requirements established by the Authority of
companies in the RTI.
Application, which also will determine the standards for the
technical and safety assessment for the distribution com-
On July 19, 2018 the supervisory agency issued Resolution
pany.
ENRE 0199, increasing the quality control of the current
Commune/Party to the MT Feeder. Also penalizes devia-
On December 10, ENRE enacted Resolution 318/2018
tions of 2, 3 or more times above the theorical indicators
approving the methodology and updated the remuner-
that every feeder should have to comply with the target
ation values for the sub-transmission service (PAFTT by
quality level of the RTI. This applies when affects more
its Spanish acronym) between the distribution companies
than 100 clients, and values are 300 kWh and 600 kWh per
Edesur, Edenor and Edelap, effective on March 6, 2017.
user, and become effective from semester 45 (September
The latter has been left pending in the Integral Tariff Re-
110
Annual Report Enel Américas 2018 view. This mechanism enables the remuneration of oper-
ational and maintenance costs, as well as the recognition
of losses due to the transfer of the tariff, from the costs
accrued by Edesur for this issue.
On December 4, 2018, Budget Law 27,467 for 2019 was
approved. In the article N° 124, as part of the negotiations
for its approval, included the administrative transfer of the
control and regulations regarding subsidies of Social Tariff
from the National State to the City of Buenos Aires, effec-
tive on January 1, 2019. This transfer is part of the commit-
ment taken by the Argentine Republic to reach a balanced
budget before debt interests in 2019.
To that effect, several meetings took place during Decem-
ber to transfer the jurisdiction, and all the interested parties
participated: Secretary of Energy, Edenor, Edesur, CABA
and the Province of Buenos Aires. Likewise, the company
received from the authorities a first draft for the transfer.
The final document needs to have the approval of all the
parties, being a condition for making the transfer effective.
In this sense, from January 1, 2019, the authorities of the
Province of Buenos Aires and of Ciudad Autónoma de Bue-
nos Aires, accepted to maintain the current conditions for
the allowances related with the Social Tariff.
Regulation of Transmission
Transmission was designed on the basis of general concep-
tion and the principles established by Law 24,065, adapt-
ing the activities to the general criteria contained in the
concession given by Transener S.A., in Decree 2,473/92.
For technological reasons the transmission business is re-
lated to economies of scale that do not allow competition,
therefore it is a monopoly and is subject to considerable
regulation.
Similarly as the distribution industry, during 2016 ENRE
carried out Integral Tariff Review for national transport
companies (Transener S.A., Distrocuyo S.A., Transco S.A.,
el Ente Provincial de Energía de Neuquén, Transba S.A.,
Transnea S.A., Transnoa S.A., Transpa S.A.) for the period
between 2017 and December 31, 2021. They came into
force during the year 2017.
During 2018, ENRE performed the following tariff revi-
sions:
Remuneration of independent
transporter:
The Resolution of the Secretary of Energy N° 366, enacted
• On July 3, 2018 ENRE requested YACYLEC to provide
on December 27, 2018, informed a new supply cost. The
future Seasonal Prices will be transferred to tariffs of final
the information related with its facilities, in order to
perform the Integral Tariff Review (RTI). Later, an ex-
users, which is part of the changes promoted by the au-
tension was granted until mid October.
thorities to be carried out to reduce subsidies, decreasing
•
In line with the last tariff revision carried out for the
from 30% of subsidy in February to 15% in August 2019.
Transport sector
Nevertheless, these prices when converted to local cur-
>
The technical bodies of the regulator will develop
rency mean an initial increase of 26% in February and 6%
the tasks
growths in May and August 2019.
As of the date of the current financial statements, and as
a consequence of the changes contained in Law 27,467
> Cash flow will be the methodology to be used.
>
>
>
The real profitability rate after taxes is 7.7%.
Tariff period is from 02/01/2017 to 01/31/2021.
The monetary values proposal as of 12/31/2016.
(administrative transfer of jurisdiction) and the Energy Sec-
•
The presentation has to be introduced with the opin-
retary of the Government, the resolution of Regulatory As-
ion of National Transporter.
sets and Liabilities and the definition of the new regulator
are still pending.
111
Regulatory framework of the electricity industry Remuneration of international
transporter:
establish the non application of specific tributes, national
royalties, regional and municipal until December 31, 2025.
The clients categorized as Large Users (>300 Kw) should
•
Through NOTA of August 24, 2018, the Subsecretary
individually fulfill the participation of the renewables, estab-
of Electric Energy instructed CAMMESA to acknowl-
lishing that the price of these contracts cannot be superi-
edge the concept of Capacity of Transport of its facili-
or to 113 US$/ MWh, and setting penalties to those who
ties (Operation and Maintenance), considering the Eco-
do not fulfill these objectives. The law regulations are still
nomic Transactions of August TRANSITIONAL of 70%
pending.
of the corresponding TRANSENER,
•
Beginning of RTI – Procedure for the Definition of the
Remuneration of International Transporter. Through
NOTA of August 22, 2018, ENRE requested the infor-
mation needed to determine the remuneration, starting
Brazil
from January 1, 2019.
Industry Structure
Environmental Regulation
The electricity installations are subject to environmen-
tal laws and regulations, federal and local, including Law
Nº24,051, or Dangerous Waste Law, and its annexed reg-
ulations.
The Brazilian electricity industry is organized in a large in-
terconnected system, the SIN (National Interconnected
System), which comprises most of the regions of Brazil,
and several other smaller isolated systems. The genera-
tion, transmission, distribution and commercialization are
legally separated activities in Brazil.
In the electricity sector, certain obligations to inform and
monitor impose on emission standards. The non-compli-
ance of these requirements forces the government to es-
tablish penalties, such as suspension of operations that, in
the case of public service, can result in the cancellation of
concessions.
Law Nº26,190, enacted in 2007, defined the use of renew-
able sources for the generation of electricity as national in-
terest and set as a goal 8% of the market participation for
renewable energy in 10-year term.
On October 21, 2015, the Official Bulletin published the
new Law 27,191, of Renewable Energy in Argentina, mod-
ifying the Law N°26,190. The new regulation postpones
to December 31, 2017, with the objective of reaching 8%
participation in the national demand with the generation
of renewable sources and establishing as a second stage
objective to reach 20% of participation by the year 2025,
and setting mid goals of 12%, 16%, and 18% for the end of
the years 2019, 2021, and 2023. The sanctioned Law cre-
ates a Fiduciary Fund (FODER) that could finance projects,
give tax benefits to the renewable energy projects, and
The industry is regulated by the Federal Government
through the Ministry of Mines and Energy (MME) and also
by the National Electric Energy Agency (ANEEL).
The regulated price is based on the average bid prices,
with independent bidding processes for existing energy
and "new" energy. The latter include long-term contracts in
which the new generation projects must cover the growth
of demand foreseen by the distributors. The "old" energy
tenders consider shorter contracting periods and seek to
meet the contracting needs of the distributors that arise
from the expiration of previous contracts. Each bidding pro-
cess is centrally coordinated, the authority defines maxi-
mum prices and, as a result, contracts are signed where
all distributors participating in the process buy at fair ap-
pointment from each of the generator providers. The price
at which spot market transactions are settled is called the
Settlement Price of Differences (PLD), which takes into ac-
count the risk aversion curve of the agents.
Transmission works under monopoly conditions. The
Brazilian government sets tariffs for transmission for the
companies. The charge for transmission is fixed and the
transmission revenue does not depend on the amount of
electricity transmitted.
112
Annual Report Enel Américas 2018 Distribution is a public service that also works under mo-
in Law 9,427/96, unregulated consumers in Brazil are those
nopoly conditions and is provided by companies that in turn
that: (i) demand a capacity of at least 3,000 kW and choose
have received concessions. Distribution companies in the
to contract the supply of energy directly with generators or
Brazilian system are not entitled to: (i) develop activities
energy traders; or (ii) demand a capacity of at least 500 kW
related to the generation or transmission of electricity; (ii)
and choose to contract the power supply directly with gen-
sell electricity to unregulated customers, except to those
erators or renewable sources of up to 50MW of installed
within its concession area and under the same conditions
capacity.
and tariffs applicable to its captive clients of the Regulated
Market; (iii) maintain, directly or indirectly, equity interest
Portaría nº514/2018 enacted by the Ministry of Mines and
in any other company, corporation or partnership; or (iv)
Energy, the limit for energy purchases from conventional
develop activities that are not related to their respective
sources will change to 2,500 kW as of July 1, 2019, and
concessions, except those permitted by law or in the rele-
2,000 kW as of January 1, 2020.
vant concession agreement. Generation companies are not
authorized to have equity interest in distribution companies
The Brazilian system is coordinated by the Brazilian Elec-
in surplus of 10 percent.
trical System Operator (ONS) and is divided into four
sub-systems: Southeast/Center-West, South, Northeast
The unregulated market includes the sale of electricity be-
and North. In addition to the Brazilian system there are also
tween generation concessionaires, independent produc-
some isolated systems; in other words, those systems that
ers, self-producers, electricity traders, electricity import-
are not part of the Brazilian system and are generally locat-
ers, unregulated consumers and special customers. It also
ed in the northern and northeastern regions of Brazil, and
includes contracts between generators and distributors ex-
have coal or oil fired thermal power plants as their unique
isting under the old regulatory framework, until its expira-
source of energy.
tion. New contracts must be adjusted to the new regulato-
ry framework. According to the specifications established
113
Regulatory framework of the electricity industry Regulation in Generation
Companies
prices, being independent tender processes for “new” and
“existing” energy, and are carried out wit the purpose of
supplying demand of distribution companies. There are
also specific tender offers for “reserve energy”, which
Generation Agents, who can be public generation con-
don’t consider the average energy price in the ACR, be-
cessionaires, IPPs or auto producers, as well as Market-
cause their purpose is to increase reliability of energy sup-
ing Agents, can sell electricity in two contracting envi-
ply in the SIN, and their costs are transferred to every con-
ronments. First, the Regulated Contracting Environment
sumer, from ACR and ACL.
(ACR), where distribution companies operate, in which the
purchase of energy must be done within the framework of
Additionally, in 2015 and 2017, new tender offers for the
the bidding process coordinated by ANEEL; and the other
hydroelectric power plants that have not increased their
denominated as the Free Contracting Environment (ACL)
concession contracts took place, according to Law nº
in which energy purchases are made directly between sup-
12,783/2013. These tenders allow part of sell energy
pliers and their customers. Regardless of the ACR or ACL,
through the installments regime (with a minimum percent-
the sales contracts of the generators are registered in the
age of 70%) and the other in the market. In the 2015 tender
Câmara de Comercialização de Energia Elétrica (CCEE) and
offer, the winner was the company that offered the lowest
form part of the basis for quantifying and determining ad-
remuneration tariff for the operation of the power plant,
justments for differences in the short-term market. In this
meanwhile in the 2017 tender offer, the winner was the
manner, generation companies are allowed to sell energy
company that paid the highest allowance for the conces-
through regulated contracts or in the free market and trade
sion.
their surpluses/ deficits in the spot market, values at the
Liquidation Price of Differences (PLD for the Spanish ab-
“New” energy tender offers consider long-term contracts
breviation).
(20-25 years for thermal power plants, 30 years for hydro-
electric power plants and 20 years for solar and wind), the
ANEEL annually validates, by resolution, the minimum and
new generation projects are required to cover the growth
maximum values of the PLD, so that the maximum and
of demand expected by distribution companies. “Existing”
minimum PLD for 2019 are set at BRL$513.89/ MWh and
energy tender offers consider the lowest terms for con-
BRL$42.35/ MWh, respectively. The calculation of the
tracts and are defined to cover the contracts requirements
maximum PLD considers the variable costs of operation of
of distribution companies that come up at the maturity of
the thermoelectric plants. For the minimum PLD is consid-
previous contracts, therefore energy may have lower pric-
ered the costs of operation and maintenance of hydroelec-
es, depending on market conditions. Each tender offer pro-
tric power plants.
cess in coordinated centrally, the MME define maximum
prices and as a result, contracts are signed with all the par-
In relation to market regulation, 100% of the energy de-
ticipating distribution companies, which purchase energy
manded by distribution companies should be covered
on a pro-rata basis to each offeror generation company.
through regulated contracts. This coverage may be con-
stituted by physical guarantees of their own generation
Regarding regulated energy tender offers, in order to re-
power plants or any other, through an energy or capacity
compose the energy supply, in 2018 three tender offers
purchase contract. Among other issues, current regulation
were carried out in Brazil with the energy assigned:
specifies when this limits are not met, agents are subject
to financial penalties.
•
01 bidding A-4: 356.19 MW-medium, assigned to Hy-
droelectric (6.6%), Biomass (9.7%), Wind (16.2%) and
The definition of tariffs to final users consider regulated
Solar (67.5%) at an average price of R$124.75 MWh.
purchase prices, but in turn, is based on tenders average
114
Annual Report Enel Américas 2018 •
01 bidding A-6: 1.228,59 MW- medium, assigned to
The previous government designed an agreement (includ-
Gas (26.6%), Hydroelectric (18.9%), Biomass (0.9%)
ing a draft bill which currently is in the House of Represen-
and Wind (53.6%) at an average price of R$140.87
tatives), according to which generators would recognize in
MWh.
their balance sheets a Regulatory Asset through the extent
•
01 bidding A-1 and A-2, on 12/07/2018, the A-1 ten-
of their current concession contracts. The Regulatory As-
der offered 4 MW of average energy commercialized
set should equal the effects related to the risks transferred
at an average price of R $142.99/ MWh, and the A-2
to the MRE from 2013 to 2018. As a counterpart, the res-
were 359 MW of energy at an average price of R $
ignation to legal proceedings and debt payment in the mar-
161.35/ MWh.
ket in the short-term.
Its worth mentioning that the previous Government pre-
This agreement is fundamental for the development of the
sented in 2017 a plan for the reform and modernization
Brazilian energy sector, mainly because liquidity would re-
of the sector, through the liberalization of the market, and
turn to the spot market. Also, it will be important to discuss
a proposal for the reduction of limits to access the free
structural solutions for the “MRE” in 2019, thus ensuring
market, in the Public Consultation 33 (“CP 33” by its Por-
its sustainability in the future. To this end, its crucial to en-
tuguese acronym), which is currently in draft legislation
sure that the risks that the mechanism includes are strictly
stage. The other proposals are: (i) finish the subsidies to
related with hydrology, preserving its initial target.
consumers of renewable energies and development of
the carbon market; (ii) improvement of short-term prices
mechanism, instead of a simple mathematical model; (iii)
costs allocation for the expansion of the system to every
consumer, free and captive; other. The new government,
in turn, is analyzing each measure of the CP 33, with the
purpose of verifying the amendments and supplements
to be done. Depending on the results of this analysis, its
strategy will be to continue with the Project in Congress,
with due amendments, or otherwise develop a new Law
on the subject.
Its worth to highlight that for the success of the reform of
the sector, it’s essential to recover the liquidity of the spot
market, which has been damaged due to legal disputes,
and engaging the hydrological risk.
Over the years, an important mechanism for managing
hydrological risk (“MRE”) was distorted due to several
governmental measures, which carried inadequate risks to
generation companies. Due to the lack of a regulatory solu-
tion, generators were forced to judicialise this issue, thus
avoiding large payments in the market in the short-term. In
2015, ANEEL designed a solution to generators with con-
tracts in the captive market. Nevertheless, the proposed
solution wasn’t viable for generators with contracts in the
free market, so the dispute continued in court, which dam-
aged the liquidity of the spot market, in approximately R$
7 billion.
Regulation in Distribution
Companies
In the regulated market, distribution companies buy elec-
tricity through biddings that are regulated by ANEEL and
organized by CCEE. Distributors must purchase electricity
in public biddings. The Government also has the right to
call for special biddings for renewable electricity (biomass,
mini hydro, solar and wind power plants). ANEEL and CCEE
hold annual bids. The recruitment system is multilateral,
with generating companies that sign contracts with all the
distributors that convene the biddings.
The Concessions Law establishes three types of tariff re-
views or adjustments to final consumers: The Tariff Repo-
sitioning Index (IRT), which implies an annual adjustment
of the rate for inflation; The Ordinary Tariff Review (RTO)
to be carried out every four or five years according to each
concession contract, and the Extraordinary Tariff Review
(RTE), which are carried out when a relevant event occurs
in the sector that significantly affects the value of the tariff.
In this way, the Law guarantees an economic and financial
balance for a company in case that there is a substantial
change in its operating costs. In the event that the cost
of components for Parcel A, such as energy purchases or
115
Regulatory framework of the electricity industry
taxes, increase significantly within the period of two annual
ed by tariff adjustments based on the necessary rates to
tariff adjustments, the concessionaire may submit a formal
compensate for the deficits from the previous year.
request to ANEEL for these costs to be Transferred to the
final clients.
In December 2014 the distributors in Brazil, including the
Enel Group, signed an addendum to the concession con-
Every tariff revisions and repositioning are approved by
tract that allows these regulatory assets (CVA's and others)
ANEEL.
to be part of the indemnifying assets at the end of the con-
cession, in the event that it is not be possible to compen-
In tariff revisions (RTO and RTE), ANEEL reviews the rates
sate through tariffs at that time. Thus, in accordance with
in response to changes in energy costs and market condi-
the IFRS rules, the accounting of these regulatory assets/
tions. When adjusting distribution rates, ANEEL divides the
liabilities is allowed.
Annual Reference Value, that is, the costs of the distribu-
tion companies in: (i) costs unmanageable by the distribu-
To cover the energy surcharge caused by the drought
tor, also called "Parcel A", and (ii) manageable costs by the
in 2014, the Government has created the ACR account
distributor or "Parcel B", the latter corresponding to what
through bank loans to be paid within two years for the tar-
we know as Value Added Distribution (VAD).
iff. In 2014 the distributors used an approximate amount of
BRL$ 18 billion of the ACR account, however, it was not
The ordinary tariff review takes into account the entire tar-
enough to cover the entire deficit. A new loan to the ACR
iff setting structure of the company, including the costs of
account was approved in March 2015 to cover the deficits
providing services, the costs of buying energy as well as
of November and December of 2014. An extension of the
the return for the investor. Under its concession contracts,
repayment term for all loans was approved, which should
Enel Distribución Ceará and Enel Distribución Río are sub-
now be paid in 54 months starting from November 2015.
ject to tariff revisions every four and five years, respective-
ly. The basis of the assets to calculate the return allowed to
Due to the mismatches between the costs recognized in
the investor is the replacement market value, depreciated
tariff and the real costs outside the management of the
over its useful life from an accounting standpoint, and the
distributor, and intensified by the implicit costs of the
rate of return on the distribution asset is based on the Av-
drought, ANEEL, in January 2015, began to implement a
erage Capital Cost Weighted, or WACC for a model compa-
system (known as Tariff Flags) of additional monthly charge
ny. The WACC is reviewed in each rate cycle. The value of
on the consumer rate provided that the marginal cost of
the WACC for distribution is currently in effect at 12.26%
the system reaches levels above the regulatory standard.
real pre-tax rate.
The objective of the regulator is to give the consumer an
economic signal of the cost of the generation already in the
The regulatory mechanisms ensure the creation of regula-
subsequent month, moving forward an amount (of right)
tory assets or liabilities, whose tariff rebuilding occurs in
that the Distributor would only collect it in next tariff event.
subsequent tariff adjustments (March 15 for Enel Distri-
bución Río and April 22 for Enel Distribución Ceará). This
This mechanism, as described below, consists of four lev-
mechanism has existed since 2001, and is called the Parcel
els of flags: green, yellow, red level 1 and red level 2.
A Securities Compensation Account (CVA). Its objective is
to keep constant operating margins for the concessionaire
Values Applied for Tariff in 2018.
in order not to allow tariff gains/losses due to the variation
of Parcel A costs.
Since November 2017, the value of the banners is:
The Securities Compensation Account ("CVA” for the Bra-
> Green tariff (Favorable conditions for energy genera-
zilian abbreviation) helps to maintain market stability and
tion): Without tariff surcharge.
allows the creation of deferred costs, which is compensat-
>
Yellow tariff (Less favorable generation conditions):
BRL$1.00 per 100 (kWh)
116
Annual Report Enel Américas 2018 > Red Tariff - level 1 (More expensive generation condi-
tions): BRL$3.00 per 100 (kWh)
> Red Tariff - level 2 (More expensive generation condi-
tions): BRL$5.00 per100 (kWh)
In summary, with this mechanism the cost of generation
that is currently transferred to the customer only once a
year (when the annual rate adjustment is made) will have
a monthly variation, therefore the customer will be able to
have a better management of the electricity consumption.
In other words, consumers will be aware of a lower tariff
readjustment, since they are already paying a higher value
during the month.
On December 27, 2018 the Decree 9,642 was enacted,
which defines the discounts granted to consumers from
rural areas, as well as the subclasses Cooperativa de Elec-
trificación Rural, Servicio Público de Agua Saneamiento
and Servicio Público de Riego, to be reduced from January
2019, at an annual rate of 20% over the initial value, un-
til the installment is zero. Additionally, the Decree forbids
the cumulative application of the discounts included by the
CDE, and prevails the one that offers the greater benefit
for the consumer.
For the Enel Group the impact of Decree 9,642/18 tends
to be neutral. Therefore, the elimination of the aforemen-
tioned discounts granted to consumers, will compensate
the perception of higher tariffs each year until the end of
the discount periods.
Additionally, the CDE, will be collected and transferred to
final consumers, and also will be reduced each year due
to the reduction of subsidies. This is a positive issue for
the sector, because the weight of tariffs in final consum-
ers will fall. Worth is mentioning that the enactment of the
decree will not impact the subsidies granted to renewable
sources.
Finally, in December 2018 ANEEL opened a public audi-
ence to discuss the application of the binomial tariff for ev-
ery low voltage client. This is a disruptive regulatory deci-
sion, because it may change the Brazilian tariff framework
for low voltage clients. This tariff modality would impact
the generation of distribution businesses, but protects the
revenues of the distribution business. The public audience
will be open until March 18, 2019.
Regulation in Transmission
Any electricity market agent that produces or consumes
energy is authorized to use the Basic Network. Free mar-
ket consumers also have this right, subject to compliance
with certain technical and legal requirements. Free access
is guaranteed by law and supervised by ANEEL.
The operation and administration of the Basic Network is
the responsibility of the ONS, which also has the responsi-
bility of managing the dispatch of energy from the plants in
optimum conditions, involving the use of the interconnect-
ed system, reservoirs and thermal plants.
As of April 5, 2011, it was published in the Official Ga-
zette, the Ministerial Docks 210/2011 and 211/2011, which
equate the two interconnection lines of the Energy Inter-
connection Company, S.A. to concessions of public ser-
vice, with payment according to a regulated toll. The Annu-
al Permitted Remuneration (hereinafter "RAP") is adjusted
annually in June, by the National Broad Consumer Price
Index ("IPCA") with tariff revisions every four years. It was
defined a Gross Remuneration Base of BRL$ $1,760 mil-
lion (US $885 million) and a Net Base of BRL$ 1,160 million
(US$ 585 million). In 2012 ANEEL authorized the imple-
mentation of reinforcements in the transmission facilities,
recognizing an additional investment of BRL$47 million
(US$ 23 million), in the Remuneration Base. The applicable
remuneration rate was defined in agreement with the cur-
rent regulation at 7.24% (real after tax). The authorization
period is until June 2020, for Line 1, and until July 2022,
for Line 2, with a welfare compensation for unamortized
investments.
2018 Adjustments
Enel Distribución Río
On March 13, 2018, ANEEL standardized the provisional
result of the Fourth Regular Tariff Revision for Enel Distri-
bución Río, from March 15, 2018, consolidated after the
assessment of the contributions brought in the Public Au-
dience nº 078/2017.
117
Regulatory framework of the electricity industry The result led to a medium effect perceived by consumers
The result led to a medium effect perceived by consumers
of 21.04%, 19.94% for consumers connected with High
of 15.84 %, 17.67% for consumers connected with High
Voltage - AT and 21.46% for those connected with Low
Voltage - AT and 15.14% for those connected with Low
Voltage– BT. The component T of the Factor X was fixed
Voltage– BT.
in 0,00% and technical losses in 9.1%. In the process, the
base of remuneration had its provisional result and will be
finally approved in the tariff readjustment process of 2019.
Enel Distribución Ceará
On April 17, 2018, ANEEL standardized the tariff adjust-
Enel Distribución Goiás
On October 16, 2018, ANEEL standardized the result of the
Fourth Regular Tariff Revision for Enel Distribución Goiás,
valid from October 22, 2018.
ment of Enel Distribución Ceará, valid from April 22, 2018.
The result led to a medium effect perceived by consumers
The result led to a medium effect perceived by consum-
Voltage - AT and 15.31% for those connected with Low
of 18.54%, 26.52% for consumers connected with High
ers of 4.96%, 7.96% for consumers connected with High
Voltage– BT.
Voltage - AT and 3.8% for those connected with Low Volt-
age– BT.
Enel CIEN
Enel Distribución São Paulo (ex
Eletropaulo)
The Resolution nº 2408 enacted on June 26, 2018, estab-
lished that annual revenues allowed (RAP) for public ser-
vice concessionaires of electricity transmission, in relation
to the availability of transmission facilities under their re-
On July 4, ANEEL standardized the result of the tariff ad-
sponsibility.
justment of Enel Distribución São Paulo, in place from the
same date.
118
The values of Cien are: Garabi I (RAP: 172,667,795.35 and
PA adjusted: R$ - 6,579,727.76) and Garabi II (RAP: R$
179,367,079.58 y PA adjusted: R$ - 6,834,803.35).
Annual Report Enel Américas 2018 Colombia
Structure of the Industry
Mining Planning Unit (UPME), which is responsible for the
planning and expansion of the network and the Superinten-
dence of Industry and Commerce (SIC) which is the nation-
al authority for competition protection issues.
The CREG is empowered to issue regulations governing
Law 142 of the Home Public Services, and the 143, Elec-
technical and commercial operations as well as tariffs for
tricity Law, structurally reformed the Colombian electric-
regulated activities. The main functions of CREG are to
ity sector both enacted in 1994. According to Law 143
establish the conditions for the progressive liberalization
of 1994, the different economic agents, private, public or
of the electricity sector towards an open and competitive
mixed, can participate in the activities of the sector, and
market, to approve charges for networks and transmission
have the liberty to develop their functions in the context
and distribution costs for the supply of regulated custom-
of free competition in the market. To operate or start proj-
ers, to establish the methodology to calculate and set
ects, it must be obtained, from the competent authorities,
maximum tariffs for the supply of the regulated market,
the authorization for the different environmental, sanitary
establish standards for the planning and coordination of the
and water rights, and those where municipal sanction is
operations of the System, establish technical requirements
required.
for quality, reliability and security of supply, and protect the
The Ministry of Mines and Energy (MME) defines the Gov-
rights of customers.
ernment’s policies for the energy sector. Other govern-
The Wholesale Energy Market in Colombia is based on a
ment entities that play an important role in the electricity
competitive market model and operates under open ac-
industry include: Superintendence of Home Public Ser-
cess principles. The operation and administration of the
vices (SSPD), entity that monitors and audits all the public
MEM is centralized in a Market Operator made up of the
service companies; the Energy and Gas Regulation Com-
Administrator of the Trade Exchange System (ASIC) and
mission (CREG), which regulates electricity, natural gas,
the National Dispatch Center (CND).
liquefied petroleum gas (LPG), and liquid fuels; the Energy
119
Regulatory framework of the electricity industry The generation sector is organized on a competitive basis.
The electricity transactions in the WEM are carried out un-
der the modalities of the spot market of energy (Short term
or daily market); Bilateral Contracts (Long Term Market)
Regulation in Generation
Companies
and Reliability Charge. Generation companies must par-
The Colombian State can participate in the execution and
ticipate in the central office in a mandatory manner, with
exploitation of the generation projects as well as the pri-
all of their generation plants or units connected to the Co-
vate sector. The Law 142 of 1994, established that the
lombian system whose capacities are equal to 20 MW or
legal regime of public services and the Law 143 of 1994
higher (plants with capacities between 10 and 20 MW can
focused, particularly, in the service of electric power ser-
optionally participate). The generation companies that par-
vice, determined the types of entities authorized to provide
ticipate in the central office must declare the commercial
residential public service, in this sense it was created the
availability of their generation resources and offer the price
“Public Service Company” as the fundamental for this pro-
at which they wish to sell it. The National Dispatch Center
vision.
(CND) with economic optimization criteria and respecting
the electrical and operational restrictions of the system
In the short-term energy market, the CND receives, each
centrally dispatches this energy.
day, the offers of prices and the declaration of commer-
cial availability for each hour of the following day, of all the
Commercialization consists on the intermediation between
generators participating in the wholesale market. Based
the actors that provide electricity generation, transmission
on this information, the CND performs an economic dis-
and distribution services, and the users of these services.
patch through an optimized procedure for the next 24-hour
The commercialization can be carried out along with or
period of the following day, taking into account the elec-
without other activities of the electricity sector.
trical and operation restrictions of the system, as well as
Transmission operates under monopoly conditions with a
gy demand for the next day in safe, reliable and economic
guaranteed annual fixed income, which is determined by
manner from the cost point of view. Unlike the rest of the
the new replacement value of networks and equipment
countries where the office is centralized based on variable
and by the value resulting from the bidding processes that
costs of production, in Colombia, the office is based on
other conditions necessary to satisfy the expected ener-
add new projects for the expansion of the National Trans-
prices offered by agents.
mission System (STN). This value is distributed among all
the retailers in the market in proportion to their energy de-
The energy market is a market of adjustments, where the
mands. The National Interconnected System (SIN) supplies
excess energy is sold or bought against the real energy
98% of the national demand. Non-interconnected systems
demand of generators and retailers. The power exchange
serve isolated areas of the country.
the determined spot price is established by the ASIC af-
ter the day of operation is established by means of an op-
Distribution is defined as the operation of local distribution
timized procedure for the 24-hour period called the ideal
networks and regional transmission. Any customer can
dispatch, which implies an infinite transmission capacity in
have access to a distribution network in which he pays a
the network and takes into account the initial conditions
connection fee. Distribution companies, or network oper-
of operation, thus establishing which generators had to be
ators, are responsible for the planning, investment, oper-
dispatched to satisfy the actual demand. The price paid to
ation and maintenance of electricity grids with voltages
all generators that are dispatched for merit of price is the
below 220 KV.
price of the most expensive generator dispatched every
hour under the ideal dispatch.
120
Annual Report Enel Américas 2018 Cost differences between the 'planned dispatch' and the
If market parameters for monitoring capture any alert and
'optimal dispatch' are called 'restriction costs'. The cost of
risk conditions, we proceed to declare a risk of shortage
each restriction is allocated to start with to the agent re-
period, basically consisting of a scheme of sale and em-
sponsible for the restriction and when it is not possible to
balming of energy, which guarantees that the system will
identify an agent it is distributed proportionally to all Colom-
have the necessary reserves to fulfill the demand. If water
bian system traders according to their demanded energy,
containment is achieved through the intervention of supply
and these costs are transferred to final customers.
prices of hydraulic agents with capacity in their reservoirs,
thus allowing the use of the thermal resources necessary
Generators connected to the Colombian system can also
to ensure the reliability of the system.
participate in the "Reliability payment", which is a mecha-
nism that aims to encourage investment in the generating
In 2018, regulatory management related to the electrici-
park to ensure that the country's demand is met in the long
ty market was affected by some institutional and market
term. The Charge consists of the assignment of Firm Ener-
facts, such as the delay of the start of operations of Hi-
gy Obligations (OEF) through a descending auction for new
droituango project, the evolution of Electricaribe process,
agents interested in developing generation projects, who
the legislative agenda and even the change of Government,
must guarantee the System that amount of energy for a
all of which made the regulator, the Ministry of Mines and
given period. The allocation for existing generators is made
Energy and other institutions, developing the measures in
annually and for new projects for up to 20 years. The OEF
order to address these issues, and in general to move for-
is a commitment on the part of the generating company,
ward with the agendas proposed in early 2018, therefore
backed by its physical resources, which provide support
below we highlight the progresses made in the following
to that firm in the production of energy. The generator that
topics. In this respect, worth is highlighting the advances
acquires an OEF will receive fixed compensation during the
made in the following topics.
commitment period, whether or not the fulfillment of its
obligation is required.
With the enactment of resolutions CREG 083 and 084 in
July 2018, the Commission for the Regulation of Energy
The price for each KWh hour of OEF corresponds to the
and Gas established the opportunity to assign the Obliga-
closing value in the auction for the firm energy or Reliability
tions for Firm Energy of Reliability Charge for the periods
charge. When this firm energy is required, what happens
2019-2020, 2020-2021 and 2021-2022, and convened a bid
when the spot price overpasses the shortage prices, an
for the reconfiguration of energy sales for the period 2018-
agent fulfillment balance, where they verify the ideal dis-
2019. These regulatory measures are aimed at ensuring
patch if the agent covered its OEF with their own resourc-
the availability of an efficient energy offer for the country in
es and delivered surplus or another agent covered the OEF,
the medium to long-term, whose need was revealed after
in which case the differences valued at the spot price are
the analysis of the system’s Firm Energy, with the impact
balanced.
of the delay of Hidroituango project in the reliability of the
In 2014, the CREG issued the Statute of Risk of Shortage,
system.
which is a mechanism of last resort that acts when un-
Similarly, through Resolutions CREG 103, 104 and 142 of
der conditions of critical hydrology, the market fundamen-
2018, the Commission amended some aspects of the Reli-
tals do not behave as expected. In general, the scheme
ability Charge scheme and defined the conditions for a call
consists in the implementation of market monitoring indi-
for tender offers for the expansion of Reliability Charge for
cators, which helps to identify if the price signals (energy
the allocation of energy generation projects, to be commis-
market) is coherent with future energy estimates and cur-
sioned as early as December 1, 2022.
rent hydrological conditions of the system.
121
Regulatory framework of the electricity industry Regarding the incorporation of Non-Conventional Renew-
By year-end 2018, in coordination with CREG, several advi-
able Energy Sources (FRNCE for its Spanish acronym),
sors presented studies contracted by the regulator, orient-
during 2018 the Ministry of Mines and Energy through De-
ed to modify the market architecture, taking into account
cree 0570 of March, 2018, defined the public policy guide-
the imminent entry of FRNCE to the generation matrix. In
lines for contracting Long-Term Energy. The objectives of
particular, the following topics were analyzed: i) the imple-
the decree are: strengthen the resilience of the generation
mentation of a binding dispatch and intraday markets, ii)
matrix through risk diversification, promote competition
the implementation of complementary services and the
and efficiency in price formation through new and exist-
introduction of new technologies (storage systems) and iii)
ing products, mitigate the effects of variability and climate
updating the Networks Code. These studies are still under
change, by using available renewable resources, reinforce
analysis from the Commission and more concrete propos-
the national power security and reduce GEI emissions, as
als are expected for 2019.
agreed in the commitments undertaken in COP 21 .
Aiming to provide continuity to the aforementioned De-
cree, the Ministry of Mines and Energy enacted Resolu-
tions 40791 and 40795 in August 2018, upon completion of
the construction cycle of public policy that will enable the
fulfillment of the goals related to reinforce, complement
and diversify the energy matrix of the country and marking
an historic milestone such as the call for the first long-term
energy tender offer in the country. A key issue of these
resolutions is the creation of long-term energy bid, thus
enabling the greater incorporation of renewable energies
to national energy system.
Through resolutions 41307 and 41314 of December 2018,
the Ministry of Mines and Energy defined all the details of
the adjudication mechanism and officially called the first
long-term energy tender offer, which will take place on
February 26, 2019. This process will award contracts of
1,183,000 MWh/ year, through long-term annual medium
energy contracts, with a maturity of 12 years. The starting
date of the obligations of awarded generation projects is
December 1, 2021.
Regarding other supplementary regulatory aspects, rules
were defined for energy generation of users in the country
and its sale to the National Interconnected System. This is
Resolution CREG 030 of 2018 of small-scale self genera-
tion (up to one megawatt) and distributed energy, defin-
ing an easy and simple mechanism for residential users of
every strata, and also for small commercial and industrial
users, to produce energy mainly to satisfy their own needs
and sell their surpluses to the interconnected system.
Regulation in Distribution
Companies
In Colombia, distribution companies are free to purchase
their supplies, being able to define the conditions of the
public bidding processes to acquire the energy required for
the regulated market and may also go to the spot market
to buy energy. The price paid by the end user reflects an
average of the purchase price.
The Ministry of Mining and Energy enacted Resolutions
41307 and 41314, which established a mechanism that
promoted long-term contracts for energy generation proj-
ects, complementary to the existing mechanisms already
existing in the MEM. Correspondingly, Resolution 40795
was enacted, which called the first tender for long-term
contracts. The fist tender offer will take place on February
26, 2019 and its purpose y to diversify, complement and
boost the competitiveness of the energy matrix, making it
more resilient to climate fluctuations, and contributing with
carbon emissions reduction and providing energy security
to the country.
Distribution charges are set by the CREG based on the
new replacement value of existing distribution assets, cost
of capital, non-electric assets; as well as operational and
maintenance costs for each company. These are defined
for four different voltage levels, as follows: level 1, less
than 1 kV; level 2, greater than or equal to 1 kV and less
than 30kV; level 3, greater than or equal to 30 kV and less
than 57.5 kV and level 4, greater than or equal to 57.5 kV
122
Annual Report Enel Américas 2018 and less than 220 kV. Voltage levels 1, 2 and 3 are called
Finally, after four resolutions subject to consultation, on
Local Distribution Systems (SDL) and Level 4 is called the
February 2, 2018 the final resolution CREG 015 was issued.
Regional Transmission System (STR in its Spanish acro-
This norm defines the beginning of a new regulatory peri-
nym).
od where the regulator introduced replacement incentives,
including depreciation as part of the tariff formula, incen-
In 2009, after auditing the information reported by the
tives to the quality of service that should improve at least
companies, CREG determined the applicable distribution
8% per year and defined the management of regulatory
charges, which are set for a period of five years, and up-
adjustments to remunerate through tariffs the investments
dated monthly according to the producer price index. The
and the operations related to Infrastructure of advanced
methodology for calculating distribution charges includes
measurement.
an incentive scheme for administration, operation and
maintenance costs based on the quality of service. For en-
Furthermore, on February 5, 2018 the Regulation Com-
ergy losses, the regulation establishes a path of recognized
mission enacted resolution 016 of 2018, which defines the
loss indexes to be included in the tariff.
return rate (WACC) for the electricity distribution activity
in the national interconnected system and the scheme of
The review of distribution charges began in 2013 with the
maximum revenue for the new tariff process. The rate val-
publication of the remuneration methodology proposed by
ue is the result of the application of the methodology ap-
resolution CREG no. 043/2013. The review of distribution
proved in Resolution CREG 095 of 2015.
charges began in 2013 with the publication of the remu-
neration methodology proposed by resolution CREG no.
The value of the WACC for 2019 onwards was defined in
043/2013. These articles were complemented by CREG
11.8% real before taxes.
Resolution No. 079/ 2014, which contains the purposes
and guidelines for remuneration of distribution and Resolu-
Its expected that in 2019 the process will conclude with
tion CREG No. 179 of 2014, 024 and 176 of 2016 and 019 of
the approval of new charges regulated from the CREG and
2017, which contain the methodology proposals.
will be determined for a five year period.
123
Regulatory framework of the electricity industry Regulation in
Transmission
trical supply directly from generator or distributor acting as
traders, or from a pure trader. The market for non-regu-
lated customers consists of customers with a maximum
demand of more than 0.1 MW or a minimum monthly con-
Transmission networks operating at 220 kV or above con-
sumption of 55 MWh.
stitute the National Transmission System (STN). The trans-
mission fee includes a charge that covers the operating
Generators, distributors or independent agents that meet
costs of the facilities, and a charge for use that applies only
certain requirements can perform the commercialization or
to the merchants who transfer it directly to the final users.
trading. The parties freely agree on transaction prices for
unregulated customers.
The CREG guarantees transmission companies a fixed an-
nual income. This income is determined by the reposition
The trader of energy is responsible for billing electricity
value of the network and equipment, and by the resulting
costs to final consumers and transferring payments to dif-
value of the bidding process that have awarded new proj-
ferent agents in the industry. Regulated customers trading
ects for the expansion of STN. This value is attributed the
is subject to the "Regulated Freedom Regime" in which tar-
retailers the STN in proportion to the energy demanded.
iffs are set by each seller using a combination of the gener-
al cost formulas determined by the CREG and the individu-
The construction, operation and maintenance of the new
al trading costs approved by the CREG for each seller. The
projects is assigned to the company that offers the lowest
rates include, but are not limited to, costs of energy supply,
present value of cash flows necessary to carry it out.
transmission charges, distribution charges and a margin of
commercialization. In addition, the final costs of the service
The revision of regulated transmission charges began in
are affected by subsidies or contributions that are applied
2013 with the publication of the pay rate methodology pro-
according to the socioeconomic level of each user.
posed by resolution CREG no. 042/2013. These pay rate is
complemented by the development of the purposes and
Trading charges for regulated customers are established in
guidelines for the remuneration of transmission for the pe-
accordance with CREG Resolution no. 180/2014. The main
riod 2015-2019, which was presented in resolution CREG
changes in this formula were the creation of a monthly
No. 078/2014 and draft resolutions that have been sub-
fixed charge that covers operating expenses plus a variable
mitted for consultation, Resolution CREG No. 178/2014,
of income for traders covering credit risk, working capital
Resolution CREG Nº 023/2016 and Resolution CREG Nº
subsidies and other selling costs.
177/2016 that define a proposal of remuneration methodol-
ogy. This resolution was defined by the MME and aims to
In January 2017, the Regulation Commission -CREG ap-
guarantee adequate assets and timely extensions. It’s ex-
proved the merger of Codensa and EEC markets. This is
pected that the new methodology of remuneration of the
why a unique regulated tariff is applied from that date for
transmission and the new charges of transmission will be
users of the market currently served by Codensa.
published during 2019.
Regulation in
Commercialization
The commercialization market is divided into regulated
customers and unregulated customers. Customers in the
free or unregulated market can freely contract their elec-
Environmental Regulation
The regulatory framework for environmental regulation in
Colombia was established in Law 99/1993, which also cre-
ated the Ministry of Environment as the authority for the
definition of environmental policies. The Ministry defines,
issues and executes policies and regulations focused on
the recovery, conservation, protection, organization, ad-
ministration and use of renewable resources.
124
Annual Report Enel Américas 2018
Any entity contemplating the development of projects or
tal Licensing Authority as the entity responsible for grant-
activities related to the generation, interconnection, trans-
ing and monitoring environmental licenses, permits and
mission or distribution of electricity, which may cause an
procedures of the Ministry of Environment and Sustainable
impact, deterioration and/or introduce significant or notori-
Development.
ous changes to the environmental landscape, must apply
for an environmental license prior to the start of activities.
In 2015, due to a recommendation of the OCDE, the en-
vironmental sector regulation was consolidated in the De-
Law No. 99 established that generation power plants al-
cree 1076 of 2015.
ready operating, that have a total installed capacity of more
than 10 MW, should contribute to the conservation of the
During the COP21 in Paris in 2015, Colombia committed to
environment, transferring to municipalities and environ-
reduce 20% emissions as of 2030 with respect the refer-
mental corporations in the area where the power plants
ence baseline. In 2018, Law 1931 was enacted, which es-
are located, a percentage associated with the generation
tablishes the guidelines for Climate Change management
of energy (transfers of the electricity sector). Hydroelectric
in Colombia.
power plants and thermal power plants should pay 6% and
In general and as of today, the environmental regulation
4 % respectively, of their gross energy sales by their own
for the electricity sector has been focused on regulating
generation, and according to tariffs set for blocks of energy
aspects related to: i) emissions from thermal plants; (ii) for-
sales and determined by the Energy Regulation Commis-
mulation, issuance and implementation of the National Pol-
sion.
icy for Integral Management of Water Resources, updat-
ing the regulations associated with landfills, regulation the
In 2011, Decree 3,570 established the new structure of
methodology for the calculation of the environmental flow,
the environmental sector thus creating the Ministry of En-
and structuring and management of watersheds); (iii) en-
vironment and Sustainable Development (previously, the
vironmental licensing and compensations, for subtraction
functions of the Ministry of Environment were established
of forest reserves and exploitation, for loss of biodiversity
along with the functions of the Ministry of Housing). In the
for projects bound to environmental licensing; (iv) updating
same year, Decree 3,573 created the National Environmen-
the regulatory framework for environmental licensing and
regulating the environmental sanctioning regime.
125
Regulatory framework of the electricity industry Peru
Industry Structure
The general regulatory framework applicable to the Peruvi-
an electricity industry is primarily comprised by the Electric
Concessions Law (Decree Law Nº 25,844 from 1992) and
its regulatory norms.
The Ministry of Energy and Mining (MINEM) defines en-
ergy politics applicable on a national level, jointly regulates
with the Ministry of the Environment, the environmental
aspects applicable to the energy sector and is the com-
petent authority for the granting and expiration of autho-
rizations and concessions for the activities related to the
generation, transmission and distribution of energy.
The Supervising Organism of the investment in Energy
and Mining (Osinergmin) is the regulatory entity that con-
trols and oversees the enforcement of legal and technical
norms related to the electricity, hydrocarbon, and mining
activities, and enforces the obligations established in con-
cession contracts. On its part, the Regulating Osinergmin
Tariffs Agency (GRT) is the competent authority for the de-
termination of regulated tariffs. Osinergmin also controls
and supervises the bidding processes required by distribut-
ing companies for the purchase of energy from generation
companies.
Meanwhile, the Environmental Evaluation and Enforce-
ment Organism (OEFA), which depends on the Ministry
of the Environment, is responsible for the supervision and
enforcement of the environmental obligations contained in
the approved environmental instruments.
The Economic Operation System Committee (COES) is the
National Electric Interconnected System Operator (SEIN),
coordinates the dispatch of generation units in function of
the minimum cost, and prepares diverse studies that serve
as a base to annually calculate the bar prices, manages the
short term market, and elaborates the Guaranteed System
Transmission Plan. In the COES generating, transmitting,
and distributing companies are represented, as are Big Us-
ers (free clients whose consumption is higher than 10MW).
In rural areas there are small isolated electric systems that
supply electricity in specific areas, which represent approx-
imately 6% of the total national production.
The main characteristics of the electric industry in Peru are:
(i) the separation of the three activities: generation, trans-
126
Annual Report Enel Américas 2018 mission, and distribution; (ii) open market for the supply of
With regards to the transactions in the wholesale market,
energy to unregulated clients; (iii) a regulated price system,
the Regulation of the Electricity Wholesale Market (Regu-
primarily based on a long and short term bidding regimen.
lation MME) was approved through Supreme Decree Nº
Regulation in Generation
Companies
Generation companies that own or operate a generation
plant with an installed capacity larger that 500 KW require
a definitive concessions given by the MINEM.
The dispatch coordination of electricity operations, the
determination of the spot prices and the management of
economic transactions that occur in the SEIN are managed
by the COES.
Generation companies can sell their energy directly to dis-
tribution companies and free clients and liquidate their dif-
ferences in the spot market at marginal costs. The sales
to non-regulated clients are carried out in prices and con-
ditions mutually agreed, which includes fees and compen-
sations by the use of transmission systems, and if it is the
case, fees for the use of the distribution networks.
The Electric Concessions Law allows the subscription of
bilateral contracts of a price no greater than the Bar Rates,
in the case of regulated clients, or at a price agreed by all
parts in the case of unregulated clients. As well as this
bilateral method, Law 28,832 from 2006, denominated
the Law to Ensure Efficient Development of Electric Gen-
erating, also established the possibility that distributors
can satisfy regulated and unregulated client demands by
concluded agreements after a power bidding process and
energy supervised by Osinergmin. The approval of this
mechanism is important for the generators because it al-
lows them to dispose of a stable price during the contract
life, which is not set by the regulator and can have duration
of up to 20 years.
Due to the introduction of bidding mechanisms, a large
portion of the contracts to sell energy to distributing com-
panies to get the client's attention, comes from these bids.
Just a small portion of the electricity bought by distribu-
tion companies, is maintained under the bilateral contract
scheme.
026-2016-EM. The main aspects are the following: The
“MME” is comprised by the short-term market (“MCP”
by its Spanish acronym) and the allocation mechanisms
of complementary services, operational inflexibilities and
the allocation of congestion revenues. The authorized par-
ticipants to buy in the MCP are: generators to serve their
supply contracts, distribution companies to serve free cus-
tomers for up to 10% of its maximum demand; and large
users to serve up to 10% of its maximum demand. COES
will calculate the energy marginal costs and the congestion
marginal costs. Participants will need payment guarantees
of their obligations in the MME. In addition, action from
COES are incorporated in the event of a payment default
of a participant.
Legislative Decree 1,002 and its norm (Supreme Decree
050-2008-EM) creates a scheme to promote non-conven-
tional renewable energy sources (ERNC by its Spanish ac-
ronym), trough tender offers for specific technologies with
a mechanisms of guaranteed income paid by the demand
through a tariff charge included in the connection toll. This
decree establishes a target of 5% of electricity demand of
the Interconnected System to be supplied with NCRE to be
awarded through this scheme. The corresponding author-
ities regarding the National Plan for Renewable Energies
may review this 5% target. Technologies considered as
renewable sources are the following: biomass, wind, tid-
al, geothermal, solar and mini-hydro (hydroelectric power
plants with capacity below 20 MW are not considered in
the 5%).
In 2017, the percentage of NCRE was 2.8% of the demand
at the SEIN. The result of the fourth bidding of 2016, the
percentage increased to 4.7% in 2018.
In Peru, capacity payment is defined by the amount that
remunerates the development of a gas turbine, being the
marginal unit that contributes to the demand of the sys-
tem. Similar to Chile, capacity payment is independent
from its dispatch and pays for the availability among the
efficient target margin, which has been defined by the cor-
responding authorities.
127
Regulatory framework of the electricity industry Regulation in Distribution
Companies
The electricity tariff for regulated clients includes charges
for energy and power, for the generation and transmission,
and the Distribution Added Value (VAD) that considers a
regulated return for investments, fixed operating charges
and maintenance, and a standard percentage for energy
losses in distribution.
In September 2015 the Decree N° 1,221 was published,
through which the fixed VAD (Distribution Added Value)
establishes that it will be carried out every four years and
will be calculated for each company (before this decree the
VAD was calculated for a company that was representative
of the group and typical sector, and this VAD is applied to
all of the companies that made up the respective group).
Also, an additional charge for fees in technologically in-
novative projects and efficient energy projects previously
approved by the Osinergmin. Incentives were offered to
improve the quality of service and the possibility to expand
the concession areas for distribution companies in rural ar-
eas next to their concession zones.
The real return on the investment of a distribution company
depends on its performance with respect to the standards
set by Osinergmin for a theoretical model company. The
tariff system allows a greater return to the distribution com-
panies that are more efficient than the model company.
The preliminary tariffs are determined by taking as a base
the results of a study hired the company, corrected accord-
ing to the Osinergmin. Preliminary tariffs are checked to
ensure that the internal return rates are 12% with a +/- 4%
variation. Also, the tariffs are indexed to the exchange rate,
the price index to the greatest (IPM), and the commodities
price as is copper and aluminum, with which Peru has no
exchange risks.
During 2018 the process of setting process of Value Added
for Distribution was carried out for the period 2018-2022
for Enel Distribución. This process ended on December 28,
2018.
Regulation in Transmission
Transmission activities are defined under different re-
gimes. The facilities built before 2006 are divided in the
Main System, that is for common used and allows the flow
of energy through the national net, and the Secondary Sys-
128
Annual Report Enel Américas 2018 tem is mostly unidirectional and are useful for evacuating
energy from one generation power plant or to take energy
to the final consumer.
For its part, the facilities built after 2006 are divided in:
Guaranteed System formed by lines for common use,
part of the Transmission Plan developed by the COES and
whose toll y paid by the whole demand of the network, and
the Complementary System whose lines are connected to
a power plant or to a user of the system and are paid by
the beneficiary.
The Transmission Plan, elaborated by the COES and ap-
proved by the MINEM, determines the development of the
Guaranteed System lines, which are bid through a BOOT
framework with a maximum duration of 30 years. The
transmission concessions of the Guaranteed System re-
ceive an annual fixed income from said bids.
The Complementary System lines are developed through
investment plans presented by the agents and approved
by the Osinergmin, an entity that calculates the average
annual cost to remunerate for each installation, consider-
ing the standard investment, operating, and maintenance
costs, with an updated rate of 12% before tax and a useful
life of 30 years.
Environmental Regulation
The environmental legal framework applicable to the ac-
tivities related to energy in Peru is established in the En-
vironmental General Law (Law N° 28,611) and in the Envi-
ronmental Protection Rules for Electric Activities (Supreme
Decree 029-94-EM).
Following the aforementioned principles and regulations
and the ones contained in Law 28,245, Framework Law for
the National System of Environmental Administration, the
National Policy of the Environment and the United Nations
Framework Convention on Climate Change, in April 2018
Law N° 30754 was enacted, being the Framework Law
on Climate Change, which will enable the State through
transversal and jointed regulation to issue regulations re-
lated with the development of the RER generation, electric
vehicles and sustainable investments consisted with Paris
Memorandum of Understanding.
129
130
Annual Report Enel Américas 2018 16
Description of
the electricity
business by
country
131
Letter From the Chairman Electricity
Generation
Electricity
Distribution
In this segment, Enel Américas owns operating subsidiaries
The distribution business is conducted through Edesur in
in Argentina, Brazil, Colombia and Peru.
Argentina, Enel Distribución Río, Enel Distribución Ceará,
As a whole, the gross installed capacity of Enel Américas
tribución São Paulo (former Eletropaulo) owned by Enel
Group reached 11,174 MW in December 2018 and the con-
Brasil in Brazil, Codensa in Colombia and Enel Distribución
solidated electricity generation amounted to 39,869 GWh,
Perú in Peru. During 2018, our main distribution subsidiar-
while energy sales totaled 65,332 GWh.
ies sold 100,927 GWh.
Enel Distribución Goiás and the recently acquired Enel Dis-
In the electricity industry, business segmentation between
Currently, Edesur, Enel Distribución Río, Enel Distribución
hydro and thermal generation is natural, since the variable
Ceará, Enel Distribución Goiás, Codensa and Enel Distribu-
costs of generation are different for each method of electric-
ción Perú serve the main cities in Latin America, providing
ity production. Thermal generation requires the purchase of
electricity service to more than 24.5 million clients.
fossil fuels and hydroelectric generation requires the water
that comes from dams and rivers.
Additionally, during 2018 the company launched a new
business line: Enel X, a global business that leads the
56% of Enel Américas’ consolidated generation capacity
transformation of power sector. Enel X seeks to change
comes from hydroelectric sources and 44% from thermal
paradigms, helping clients to use technology to transform
sources.
energy in new opportunities, to thrive and lead progress
worldwide. Enel X is a global company with strong roots in
Hence, the definition of the generation company’s commer-
the energy field and an open strategy oriented towards dig-
cial policy is relevant for the proper management of the busi-
itization, sustainability and innovation. Enel X uses smart
ness. The Group carries out its generation business through
technologies, simple and fast to help clients to discover
Enel Generación Costanera, Enel Generación el Chocón
new ways to use energy globally.
and Central Docksud in Argentina, EGP Cachoeira Dourada,
Enel Generación Fortaleza and EGP Volta Grande en Brasil,
The mission of Enel X is to provide innovative technology
Emgesa in Colombia and Enel Generación Perú and Enel
solutions and provide value added services, to create New
Generación Piura.
Value for residential clients (B2C), companies (B2B) and cit-
ies (B2G).
Electricity
Transmission
The electricity transmission business for Enel Américas
is mainly performed through the interconnection line be-
tween Argentina and Brazil, Enel Cien, subsidiary of Enel
Brasil, whose transport capacity is 2,100 MW.
132
Annual Report Enel Américas 2018 Generation
Transmission
Distribution
Córdoba
Costanera
Buenos Aires
Dock Sud
Arroyito
Mendoza
Edesur
El Chocón
Neuquén
Motogeneradores
*Non-billable consumptions are not included in distribution business.
133
Description of the electricity business by country TypeHydroNet Installed Capacity 128 MWTypeHydroNet Installed Capacity 1,200 MWTypeThermoNet Installed Capacity 2,210 MWEnergy sales17,548 GWhEnergy losses14.2%Clients2,529,953TypeThermoNet Installed Capacity 34 MWTypeThermoNet Installed Capacity 847 MW Participations in installed capacity and in business Groups
for 2018 are distributed as follows:
Participation in installed capacity and in Business Groups in 2018
Enel
SADESA
AES
Regional Governments
Pampa Energía
Foninvemem
National Government
Others
11.8%
10.3%
8.9%
6.7%
10.1%
8.3%
17.5%
26.4%
Among the most relevant news of the year, worth is men-
tioning the biddings carried out by the new Government for
the creation of new generation offer. In November 2018, a
new tender offer was released of 400 MW of mini renew-
ables (round 3) for medium voltage and to be adjudicated
during 2019.
It should be remembered that during 2017, 1,810 MW of
new thermal generation were awarded, the technology
involved was: a) closing of combined cycle or b) cogenera-
tion, with the commitment to be available to satisfy the de-
mand in the MEM, and the biddings performed under the
Program RenovAr Round 2, in order to create new gener-
ation capacity from Renewable Energies. In this program,
the total capacity awarded is: through Round 2 of Program
RenovAr 88 projects for 2,043 MW in 18 provinces. The
Program RenovAr is included in Law 27,191, which estab-
lishes a route of participation in these types of energies in
the market, which in 2025 are expected to reach 25%.
Enel Generación Costanera S.A.
Costanera is located in the city of Buenos Aires and has six
steam turbine units totaling 1,131 MW, which are enabled
to generate either with natural gas or fuel oil. Costanera
also operates two combined cycles of 851 MW and 322
MW respectively. Its gross installed capacity is 2,304 MW.
During 2018, CAMMESA performed the dispatch of the
Interconnected Argentine System (SADI for the Spanish
abbreviation), according to the resolutions established by
Secretary of Energy. In this context, the dispatch priori-
tized natural gas, taking into account the performance of
Argentina
Electricity Generation
Enel Américas S.A. participates indirectly in electricity
generation through Enel Argentina S.A.’s subsidiaries Enel
Generación Costanera S.A. (Costanera), Enel Generación
El Chocón S.A. (Chocón) and Central Dock Sud S.A. (CDS).
Costanera, Chocón and CDS own together 4,537 MW
gross installed capacity. This capacity represented by the
end of 2018, 11.8% of the total capacity in the Argentine
SIN (National Interconnected System). Electricity genera-
tion of these companies reached 13,949 GWh on Decem-
ber 31, 2018, equivalent to 10.1% of the total generation of
Argentina.
Worth is to mention that some of the most important busi-
ness groups that participates in the Argentine Electricity
Market in generation are: AES, SADESA and Pampa En-
ergía - company that in 2016 acquired Petrobras Argenti-
na. Other companies with participation in the generation
business are YPF Energía, CAPEX and Pluspetrol Energía,
acquired by YPF.
134
Annual Report Enel Américas 2018 the units and the use of liquid fuels (gas oil and fuel oil) in
accordance to the restrictions imposed for power plants
during the season of greater residential demand.
As a result of the performed operations, net generation of
Costanera’s Convectional Units reached 1,155 GWh, and
net generation of Combined Cycles reached 5,946 GWh.
In January 2017, the Secretary of Electric Energy depend-
ing on the Ministry of Energy and Mining updated through
Resolution N° 19/2017 the remuneration values of Reso-
lution SE N° 22/2016 to be applied from February 2017.
During 2018 this regulation remain in force.
The implementation of Resolution SEE N° 19/2017 trig-
gered an increase of remuneration of around 50% in re-
lation to the previous regulation. Basically the remunera-
tion concepts were simplified. There is a capacity charge,
which varies in relation to technology and size of the unit,
and a variable charge. Values are defined in dollars.
Since the sanction of Resolution SEE N°19/2017, it was giv-
en for thermal units the possibility to offer commitments of
guaranteed availability, and additional guaranteed availabili-
ty (DIGO and DIGO Additional respectively) with the same
differential remuneration for every technology.
In this sense, in 2018 Costanera participated in the Sum-
mer Seasonal Programming (from November 1 to April 30),
in the Winter Seasonal Programming (form May 1 through
October 31) and the 2019 Summer Seasonal Programming
(from November 1 to April 30) of the commitments of guar-
anteed availability.
In November 2018, Resolution 2018-70-APN-SGE was
published, through which Generation Agents, Cogen-
Enel Generación El Chocón S.A.
Hidroeléctrica El Chocón SA is an hydroelectric generation
company, operating El Chocón and Arroyito power plants,
located on River Limay. It’s located in the provinces of
Neuquén and Río Negro. The total gross installed capacity
of this hydroelectric complex is 1,328 MW and includes El
Chocón plant, with 1,200MW installed capacity (artificial
reservoir's hydroelectric power plant) and Arroyito plant,
with 128 MW installed capacity, both plants use the waters
of Rivers Limay and Collón Curá for generation.
The gross hydro installed capacity of the Company is 1,328
MW; thermal gross capacity is 35.6 MW and corresponds
to motogenerators. Its participation in the SADI is 3.6% in
relation to the total installed capacity.
El Chocón is located in the Comahue region, consisting of
the Argentinean provinces Río Negro, Neuquén and the
southern areas of Buenos Aires provinces, over the Limay
River, 80 km upstream from the confluence with Neuquén
River. Arroyito is the compensator dam of El Chocón and is
located in the same river, 25 km downstream.
The hydrological year starts on April 1, and 2018 has been
characterized as dry accordingly the contribution of the hy-
drological basins of the Rivers Limay and Collón Cura. Net
generation recorded for these power plants during the year
was 2,898 GWh. This generation comes from 2,282 GWh
in Chocón (79%), 577 GWh in Arroyito (20%) and 39 GWh
by motogenerators (1%).
The company started 2018 with a level of the reservoir of
377.71 m.s.n.m. The reserve El Chocón dam was 2,159
GWh and in the Comahue was 5,919 GWh. Both amounts
were measured in relation the minimum height condition
erators and Self-generators of the MEM are allowed to
of FOE.
supply their own fuel for energy generation. Following the
enactment of this Resolution, CAMMESA has authorized
the declaration of Variable Production Costs (CVP by its
Spanish acronym). The declared CVP will enable Costanera
to carry out a commercial strategy, in order to optimize its
costs and the declared CVP.
At the end of year 2018, the level of the reservoir reached
377.55 m.s.n.m. The energy reserves of the Comahue
dams were 6,083 GWh, 2,168 GWh of which were re-
serves of El Chocón.
135
Description of the electricity business by country In January 2017, the Secretary of Electric Energy, which is
In January 2017, the Secretary of Electric Energy, which is
subordinated to the Ministry of Energy and Mining, through
subordinated to the Ministry of Energy and Mining, through
Resolution N° 19/2017 updated the remuneration values
Resolution N° 19E/2017 updated the remuneration values of
of Resolution SE N° 22/2016 to be applied from February
Resolution SE N° 22/2016 to be applied from February 2017.
2017. During 2018 this regulation remained in force.
The implementation of Resolution SEE N°19/2017 prompted
The implementation of Resolution SEE N°19/2017 prompt-
a change in the remuneration of thermal and hydro gener-
ed a change in the remuneration of thermal and hydro gen-
ators in relation to the previous regulation. The remunera-
erators in relation to the previous regulation. The remuner-
tion concepts were simplified, thus considering a capacity
ation concepts were simplified, thus considering a capacity
charge, which varies in relation to technology and size of the
charge, which varies in relation to technology and size of
unit, and a variable charge. The values are defined in dollars.
the unit, and a variable charge. The values are defined in
dollars.
Since Resolution SEE N°19/2017, it was established for ther-
mal units the possibility to offer commitments of guaran-
Additionally, since the enactment of Resolution SEE
teed availability, and additional guaranteed availability (DIGO
N°19/2017, it was established for thermal units the possi-
and DIGO Additional respectively) with the same differential
bility to offer commitments of guaranteed availability, and
remuneration for every technology.
additional guaranteed availability (DIGO and DIGO Addi-
tional respectively) with the same differential remuneration
Later, through resolution N°70/2018, from the second half of
for every technology.
November, generation agents were allowed to se to supply
Starting from motogenerators, in 2018 Chocón participated
their own fuel for energy generation. Generation costs will
in the Summer Seasonal Programming (from November 1
be valorized according to the mechanism of recognition of
to April 30), the Winter Seasonal Programming (from May
Production Variable costs recognized by CAMMESA. Cen-
1 to October 31) and the Summer Seasonal Programming
tral Dock Sud was part of this scheme since the first half of
(from November 1 to April 30), of the commitments of
December, 2018.
guaranteed availability.
Central Dock Sud
Dock Sud power plants located in Avellaneda district, Bue-
nos Aires. Dock Sud owns and operates a single generation
power plant with two units, with a total capacity of 870 MW.
Dock Sud power plant (CDS in Spanish acronym) has four
gas turbines and one steam turbine. Two of the gas turbines
and the steam turbine comprises once combined cycle pow-
er plant.
The energy generated by Dock Sud in 2018 reached 3,950
GWh, participating in 4.5% of thermal generation and cover-
ing 2.9% of the SADI demand.
On December 31, 2018, installed capacity of Central Dock
Sud S.A. represented 2.3% of the total installed capacity of
the SIN.
Since 2015, there is a loan obtained from CAMMESA,
whose purpose was to finance the costs related to the com-
bined cycle major maintenance. Pursuant to Article N°7 of
Annex 2 of Resolution SEE 19/2017, in December 2017 the
Company singed and Addenda to the existing mutual con-
tract, where the payment method of the aforementioned
loan was adjusted in relation to the remuneration estab-
lished in the previous regulation and the use of credits of the
Additional Remuneration of Trust (RAF in Spanish acronym).
In this sense, the compensation between the updated debt
and the RAF credits was performed, thus the new capital
balance was ARS$224.9 million to be paid in 24 installments
plus interests (at CAMMESA interest rates). The first install-
ment was paid in December 2017. The company estimates
to pay the debt with the transaction of November 2019, and
maturity is in January 2020.
136
Annual Report Enel Américas 2018
Activities and projects in
generation
Aires’ area and twelve districts of Buenos Aires province,
covering 3,309 km2, for a period of 95 years starting from
August 31, 1992.
Expression of interest for the
development of infrastructure
projects
This period includes an initial term of 15 years and eight
additional periods of 10 years each. On February 5, 2007,
the National Electricity Regulatory Entity (ENRE) resolved
to extend the initial period for five additional years, from
In the context of the changes in regulation that the Argen-
the completion of the Integral Tariff Review (RTI) process.
tine government has been performing and the variety of
biddings that have been done, and the new ones that the
Later, on January 27, 2016, the Resolution MINEM N°
government plans to carry out new investments in energy,
7/2016 was enacted, which instructed ENRE, among other
the company is analyzing the potential installation of a new
things, to: perform an adjustment to the VAD in the tariff
combined cycle in Costanera.
charts of the Company, on behalf of the RTI (Integral Fees
Renegotiation) and the framework of the Transitory Tariff
The intention is to compete for electricity energy contracts
Regime established in the Agreement Act and to carry our
in those biddings that the Ministry of Energy and Mining
every act needed to proceed the RTI, which should come
offers.
into force before December 31, 2016. The process and
schedule for the RTI was established through Resolution
The project consists on the installation of a combined cy-
ENRE 55 as of April 5, 2016.
cle unit, with an installed capacity of 450 MW, connected
to the voltage bars of 220 kV and 132 kV of the existing
Within the framework of the RTI process, on October 28,
Costanera substation. The operation would work with two
2016 the public hearing was held to inform and hear the
types of fuel (natural gas or diesel). Both the environmental
opinions with regards to the tariffs proposals that the dis-
permit and the prior authorization for connection (Stage 1)
tribution companies Edesur and Edenor presented to the
were granted in 2017.
ENRE according to Resolution ENRE N° 55/2016.
The construction period is estimated in 30 months, de-
On December 30, 2016, the ENRE enacted Resolution N°
pending on technical specifications.
626, approving the document denominated Final Public
Land Reserved for Future
Projects
In Argentina, Enel Américas doesn’t have any land reserved
for future projects.
Electricity Distribution
Edesur
The main objective of Edesur is the distribution and com-
mercialization of electricity in the southern area of Buenos
Aires. This includes two-thirds parts of the city of Buenos
Hearing Resolution with the purpose to inform and answer
the opinions made in relation to the Tariffs Proposal pre-
sented previously by the companies with regards to the
definition of tariffs to be applied, and to transfer the consid-
erations of the Subsecretary of Tariffs Policy Coordination
of the Ministry of Energy and Mining of the Nation, those
subjects planned that are not under the responsibility of
such entity.
On February 1, 2017 the Integral Tariff Review came into
force, thus ending the process of renegotiation of the con-
cession contract, and reestablishing the full validity of the
Concession Contract, the Tariff Regime and the Quality of
Service, which were renegotiated base don the principles
established by Law 24,065.
137
Description of the electricity business by country This milestone is critical for the company, because it means
On December 4, 2018 Law 27,469 was enacted, which
the complete restoration of conditions of certainty and sus-
approves the Fiscal Consensus signed on September 13,
tainability of the business, and also defines conditions and
2018 between the Nation and the majority of the Provinc-
basic criteria (formation of capital base and calculation of
es. This agreement mandates “electricity distribution com-
WACC) for future tariff revisions throughout the conces-
panies Empresa Distribuidora Norte SA (Edenor) and Em-
sion period.
presa Distribuidora Sur SA (Edesur) to become part of the
jurisdiction of the Province of Buenos Aires and the Ciudad
Its worth mentioning that along the tariff cycle of the RTI
Autónoma de Buenos Aires (CABA), in line with the elec-
term, established between February 1, 2017 and January
tricity distribution companies in the other jurisdictions”.
31, 2022, the quality of service regime will increase its re-
quirements according to the expectation of the develop-
In the same vein, Law 27,467 of General Budget for Ex-
ment of investments and operational improvements that
penses and Resources of National Administration for 2019,
EDESUR proposed in the context of RTI. Therefore, the
published also on December 4, 2018, established on article
quality guidelines will be more demanding and the cost of
124, to instruct the National Executive Power to “foster
energy not delivered will increase throughout the period,
those acts needed for the transfer of jurisdiction of energy
reaching the values established recently in the last semes-
distribution companies Empresa Distribuidora Norte S.A.
ter of the cycle.
(Edenor) and Empresa Distribuidora Sur S.A. (Edesur) from
Province of Buenos Aires to Ciudad Autónoma de Buenos
It should be noted that SAIDI (one of the indexes of service
Aires” from January 1, 2019, and “once this becomes ef-
quality) has improved in 2018 in relation to 2017, with a
fective, the National Entity for Electricity Regulation (ENRE
reduction of 4.5 hours, reaching 25.18 hours –according to
in its Spanish acronym) created through article 54 of Law
Enel criteria-.
24,065 will keep its functions and faculties in all matters
not related to energy distribution public service”.
The concession contract establishes for Edesur the obli-
gation to supply energy according to the demand of the
At the time of this report, the transfer of jurisdiction (which
owners or inhabitants of the properties within its conces-
requires the approval of both companies) has not yet ma-
sion area, it also demands the company to comply with
terialized. According to the conversations held with the au-
certain quality standards related to the electricity supplied,
thorities in the three jurisdictions, this transfer would be
to comply with operational requirements concerning the
made without any changes in the Concession Contract,
maintenance of distribution assets and to bill clients on the
and after solving important pending topics for both com-
basis of effective measurements.
panies (regulatory assets and liabilities, Framework Agree-
ment and social tariff cap).
In December 2017 the Ministry of Energy and Mining (MI-
NEM) presented its proposal and criteria for the treatment
In 2018, Edesur delivered energy service to 2,529,953
of regulatory liabilities. The first measure was, through the
clients. Of the total, 88% are residential customers, 11%
Note issued on December 30, 2017, that the Ministry in-
commercial, 1% industrial and others 0.04%. Energy sales
formed that CAMMESA took possession of the debt reg-
reached to 17,548 GWh, including distribution services
istered by EDESUR with this company for the purchase of
(tolls) to large users, at similar levels than the previous year.
energy, for a period of 90 days pending to formalize the
Sales distribution was: 48% for the residential sector, 8%
aforementioned agreement. EDESUR is working on the
for the commercial sector, 24% for the industrial sector and
latter to comply with the agreed deadlines. During 2018,
20% others.
the company continued working in the agreement, and the
final resolution regarding these matters was subject to the
During 2018, the annual mobile loss rate (technical and
change of jurisdiction.
138
non technical) reached 14.25%, meaning deterioration in
relation to 2017 (12.04%). This result was achieved in a
scenario of stable demand (+0.2% 2018 vs. 2017) and an
important growth of thefts related to higher tariffs.
Annual Report Enel Américas 2018 Activities and projects in
distribution
Replacement of T.111/112/113
Puerto Nuevo-Azopardo
With regards to the Investment Plan for 2018, worth is
mentioning that the investment amount in the year reached
ARS$ 5,405 million. The most important projects devel-
oped in 2018 are described bellow:
Commissioning of SE Padre
Novak and expansion of its MT
network
SE Padre Novak is a new substation, comprises 1x40 MVA
with 8 cells of 13.2 KV. It’s located in Av. Padre Novak 2115,
Florencio Varela. It’s feed in 132KV through lines 553/554.
This work consisted in the installation of four new feeders
from the SE Padre Novak. Also 13 km of medium tension
network new wiring was installed, benefitting users main-
ly from the villages of San Juan, Villa Vatteone, Goberna-
dor Costa and Santa Rosa (Florencio Varela). The costs of
This is a 5.3 km underground power line of 132 KV, 1200
mm² with XLPE insulation between Puerto Nuevo and SE
Azopardo. This work improved the operation of the system
and solved charging transfer between north and south Bue-
nos Aires and was commissioned on December 31, 2018.
Cámaras Pozo
This project consists on the installation of underground
Transformation Centers MT/BT in areas with critical points
and where the use of conventional equipment is difficult. In
2018, 40 new cameras were installed in Ciudad Autónoma
de Buenos Aires (CABA for its Spanish acronym) in the fol-
lowing neighborhoods: Caballito, Villa Santa Rita, Villa Gral
Mitre, Villa Crespo, Villa Devoto, Flores, Floresta, Matader-
os, Villa Luro, Barracas, La Boca, Nueva Pompeya, Parque
Avellaneda and Villa Soldati.
Paseo del Bajo
these works were around ARS$ 25 million.
Paseo del Bajo project consists on the construction of un-
derground trails for heavy transit, connecting north and
Even though other works were completed in December
south Buenos Aires. Its construction interferes longitudinal
2017, ENRE has considered them "in service" during 2018,
and cross-sectional with Medium and High voltage net-
in the point of providing energy to the MT network.
works of Edesur.
Expansion of SE Santa Rita
from 2x40 MVA to 2x80 MVA
Consists on the adjustment and expansion of the current
Substation Santa Rita, from 2x40MVA to 2x80 MVA, and
16 cells of 13.2 KV were added. Finally 32 MT exits be-
came available.
The main activities are:
1- Execution of new MT lines for the transitory charging
transfer to the adjacent SSEE.
2- Withdrawal of the affected facilities.
3- Reversal of current facilities of the 27.5KV network.
4- Conversion of SE Balcarce and Tres Sargentos a
132KV/13.2.
During 2018, ENRE considered finished the expansion
works, with the installation of the bank of capacitors that
5- The MT networks are connected again to SSEE Bal-
carce and Tres Sargentos, with capacity for new feed-
completed the project.
ers.
New connection 132 KV SSEE
Dock Sud – Escalada
This is a 10 km underground power line of 132 KV, 1.200
mm² with XLPE insulation, from SE Dock Sud to SE Esca-
lada. This connection improved the service quality in south
Buenos Aires.
Even though in 2017 the medium tension underground net-
work reached 16.4 km, and according to the plan to comply
with items 1, 2 and 3; the installation of additional new MT
lines of 7.5 km during 2018 almost completes the plan.
139
Description of the electricity business by country Infrastructure improvement of
MT network
With the objective of improving service quality, in 2018
Edesur has expanded and renewed its network. In terms
of quantity, it means 412.3 km medium voltage and 341
km low voltage networks. Likewise, considering the trans-
formation centers, these grew in 311 CT intervened, repre-
senting 1,437 transformers (new and/or renewed).
In order to improve the situation to face severe climate
events, during 2018 the "mitigation" plan in transformers
Digitization of the network
In order to improve the quality of service, during 2018 Ede-
sur completed the installation of the first smart meters
to digitize its network. The pilot project consisted on the
installation of 20,000 equipments in the concession area.
The new smart meters include technology that Enel is us-
ing worldwide, which has many advantages: the consump-
tion reading is done remotely and more precisely; network
failures are identified in real time, therefore repair times
would be much shorter; and allows the user to read con-
sumption data constantly, while leading to a more efficient
and distribution chambers continued, with the purpose of
energy consumption.
prevent water entry, and completing the improvements in
31 underground chambers.
Regarding MT and BT networks, changes of PIMT net-
works were made and the system STM was incorporated,
Likewise, the distribution company continues working in
for a centralized operation.
mechanical reinforcements in the medium voltage trans-
mission grid in the province of Buenos Aires, in order to
prevent the fall of pylons during severe storms, and re-
placed 299 wooden pylons for concrete pylons.
Land for future substations
In the context of the investment plan for 2017-2021, the
company needs to install 3 AT/MT Substations, 2 in Bue-
nos Aires and 1 in Quilmes (Solano). During 2018 advances
were made in finding slots for these substations, working
with municipalities for this purpose.
Currently, there are some proposals under technical analy-
sis and negotiations are under way.
New clients for high voltage
supply
During 2018, the company started projects for new AT cli-
ents according to their requests. Examples of these are:
“growth of demand at Ezeiza Airport” (the AT energy sup-
ply requirement will start towards 2021) and "Parque de la
Ciudad" project (for which there are negotiations regarding
the use of land with the government of Buenos Aires).
Additionally, the supply project with the company AySA
Bernal continues.
The integration point to point of the SCADA-STM-SCADA
systems has finished, which will enable a better operation
of the network and the actualization of CERTA system, for
claims management and the incorporation of new manage-
ment tools for the BT network, which is guided by service
quality indicators.
The company started the implementation of the e-order
system of Enel Group, and the new work programming
system (PDL by its Spanish acronym), which manages BT
claims service and maintenance orders, thus improving
employees management and records of the works.
Network maintenance
management
During 2018 started a project for the comprehensive main-
tenance management of AT/MT and BT through actions
intertwined, which enables the reduction of failures in the
network. The most outstanding actions are the failure
analysis, the implementation of operational risk analysis,
improvement of IT system CERTA, monitoring and analysis
of maintenance plans. A very important tool implement-
ed is relieving AT/MT aerial networks with an helicopter
equipped with state-of-the-art technology that takes pic-
tures/ videos, thermographs and images detection with
laser (LIDAR), and in BT networks it makes a Mobile Map-
ping (gets data such as thermography’s and photos/ vid-
eos).
140
Annual Report Enel Américas 2018 In the High Voltage system, worth is mentioning that
during 2018 started a new comprehensive preventive
maintenance plan of the facilities (SSEE) and High Voltage
Electricity-dependent users
support
transmission lines, thus increasing 74% the maintenance
During 2018, the new regulatory framework demanded dis-
works in relation to the previous year. It’s important to
tribution companies to provide alternative energy sources
recognize families of equipment that widely exceed 100%
(FAE by its Spanish acronym) for every electricity-depen-
growth of their maintenance (AT and MT Switches, power
dent user, so in the case of lack of supply, power service
and instrument transformers, Bars in AT).
will not be interrupted for this type of users. With this pur-
pose, the company developed a prototype for alternative
The implementation of this preventive maintenance pro-
energy source and the implementation of technical require-
gram in the High Voltage system is very important, be-
ments. The initial acquisition was 150 units. Additionally, in
cause any failure of the system produces power outages
order to expand this energy source for a larger number of
electricity-dependent users, the firm started a bidding pro-
cess for the acquisition of up to 1,500 units FAE, including
their supply, installation and maintenance.
to more than 100,000 clients.
Technological improvements to
the network
During 2018, the company continued working in the im-
provement of SAIDI, with the installation of 555 additional
remote control equipment in different points of the medi-
um voltage network, reaching 900 operational points, with
the purpose of improving the efficiency of the MT network.
The firm also installed 1,210 mini UTR (remote supervision
units) and 150 line supervisors that allow access to infor-
mation in real time of relevant variables of the network.
Additionally, other works carried out during the year were
the modernization of the design of MT/BT and AT networks
and the implementation of new technologies in relation to
best practices of different distribution companies and the
standards defined by Enel Group.
141
Description of the electricity business by country Generation
Transmission
Distribution
Enel Distribución Ceará
Fortaleza
Cachoeira Dourada
Volta Grande
ENEL CIEN
*Non-billable consumptions are not included in distribution business.
1. Energy sales since June 2018, date of consolidation of the company.
142
Enel Distribución Goiás
Enel Distribución Rio
Enel Distribución São Paulo
Annual Report Enel Américas 2018Río de JaneiroBelénManausSao PauloGoianaBrasiliaTypeHydroNet Installed Capacity 655 MWTypeHydroNet Installed Capacity 380 MWTransmission lines2,100 MWEnergy sales11,843 GWhClientsEnergy losses3,933,28113.9%TypeThermoNet Installed Capacity 319 MWEnergy sales11,019 GWhClientsEnergy losses2,959,22021.0%Energy sales13,755 GWhClientsEnergy losses3,026,99111.6%Energy sales124,693 GWhClientsEnergy losses7,224,4879.5% Brazil
Electricity Generation
Enel Américas participates in electricity generation through
Enel Brasil and its subsidiaries Cachoeira Dourada, Volta
Grande and Enel Generación Fortaleza.
These three power plants, two hydroelectric and the other
thermal, add up 1,365 MW total net capacity, and repre-
sent 0.8% of the capacity of Brazilian SIN.
The electricity generation of the Group in Brazil reached
3,755 GWh, reaching 0.8% of the total generation in the
country (thermal and hydro), where hydroelectric produc-
tion represented 86% of the total generation of the Enel
Américas group in Brazil.
of the asset began on November 11, 2017. The acquisition
of this concession was financed 60% with debt and 40%
with equity. Initially a two-year bridge loan (2018-2019)
was considered, under the guarantee of Enel. During the
bridge loan term, a long-term financing would structure.
For further details regarding this operation, see Note 10 of
the Consolidated Financial Statements of Enel Américas as
of December 2018.
Net generation in 2018 was 1,148 GWh and sales reached
1,376 GWh.
With this acquisition, Enel Brasil increased in 40% its hy-
droelectric capacity in Brazil, adding 380 MW to its port-
folio.
Enel Generación Fortaleza
Fortaleza is located in Caucaia municipality, 50 km from the
capital of Ceará state. Fortaleza is a 327 MW gross com-
Other generators connected to the Brazilian SIN are:
bined cycle thermal power plant that uses natural gas; and
CHESF, Furnas, Cemig, Electronorte, Cesp, Copel and
is able generate one third of the electricity needs of Ceará,
Eletrobras.
state that has a population of nearly 9 million inhabitants.
Cachoeira Dourada
Cachoeira is located in the State of Goias, 240 km south
of Goiânia. The power plant owns ten units with 658 MW
of net installed capacity. It’s a run-of-the-river power plant
and uses the waters of River Paranaiba.
Net generation in 2018 reached 2018 reached 2,071 GWh
and sales amounted to 18,098 GWh.
Fortaleza was built in a 70 thousand square meters area,
and is part of the infrastructure of the Industrial and Port
Complex of Pecém, in Caucaia municipality, and is part of
the Thermoelectricity Priority Program (PPT) of the Federal
Government. Fortaleza has a strategic location to boost re-
gional growth and to facilitate the setup of other industries.
Its main customer is the distribution company Enel Distri-
bución Ceará and its most important supplier is Petrobras.
Volta Grande
Electricity generation in 2018 was 537 GWh, while sales
reached 2,763 GWh.
Enel Américas through its subsidiary Enel Brasil acquired
the rights to operate for a 30-year period Volta Grande hy-
droelectric power plant, which is located in the Rio Grande,
between the Brazilian states São Paulo and Minas Gerais.
The total cost of the concession was BRL$1,420 million
(approximately US$436 million). Enel Brasil won the auc-
tion for hydroelectric concessions performed by the Brazil-
Land reserved for future
projects
Enel Brasil owns an area of 75 hectares in the city of Ma-
caé, State of Rio de Janeiro, reserved for a new thermo-
ian government on September 27, 2017, in an open public
electric project.
session at the São Paulo Stock Exchange. The operation
143
Description of the electricity business by country Electricity Transmission
Enel Américas Group also participates in the transmission
and sale of electricity in Brazil through the interconnection
line between Argentina and Brazil, through the Enel Cien,
holding 99.3% ownership.
Enel Cien
Enel Cien is an energy transmission company in Brazil.
The complex consists of two frequency conversion sta-
tions, Garabi I and II Garabi II, converting both ways the
frequencies of Brazil (60 Hertz) and Argentina (50 Hertz)
and transmission lines. On the Argentinean side, they are
managed by two subsidiaries: Compañía de Transmission
del Mercosur S.A. (CTM) and Transportadora de Energía
S.A. (TESA). Enel Cien has control of 100.0% of the capital
in both companies.
The interconnection system consists of two transmission
lines with a total length of 1,006 km, and the Garabi Con-
version Station, SE STA (Santo Angelo/RS) and SE YTA
(Itá/SC).
1 and 2 lines) to concessionaires of public service trans-
mission. Total annual RAP is adjusted annually and the tar-
iff review processes will be conducted every four years.
Starting from April 2011, therefore, Enel Cien was officially
authorized to receive payments under this new business
approach.
Electricity Distribution in Brazil
Enel Américas participates in distribution through Enel Bra-
sil and its subsidiaries Enel Distribución Río, Enel Distribu-
ción Ceará, Enel Distribución Goiás and Enel Distribución
São Paulo.
Enel Américas owns directly and indirectly economic own-
ership of 99.7%, 74.1%, 99.9% and 95.88% of these com-
panies ownership, respectively.
In Brazil, the main distribution companies in the electricity
system are: CPFL, Cemig, Light, Coelba y Copel.
Enel Distribución Río
Enel Distribución Río (former Ampla) is an energy distribu-
tion company with operations in 73% of the territory of the
On April 5, 2011 the decrees were published in the Official
State of Río de Janeiro, which is equivalent to a 32,188-
Gazette defining the annual value of the Allowed Annual
km2 area. The population is approximately 8 million inhabi-
Remuneration (RAP) for Enel Cien. With this, the regulator
tants, distributed in 66 municipalities, and the following are
equates Enel Cien (the assets of which consist of Garabi
the most important ones: Niteroi, São Gonçalo, Petrópolis,
Campos and Cabo Frío.
144
Annual Report Enel Américas 2018 During 2018, Enel Distribución Río Enel Distribución Río
supplied electricity to 2,959,220-billed customers. Out of
the total, 92% are residential clients, 5% are commercial
clients and 3% other users.
Energy sales in 2018 reached 11,019 GWh, representing a
slight decrease in relation to 2017. In this figure its import-
ant to acknowledge the participation of residential clients,
representing 43% of physical sales, followed by commer-
cial clients with 18% of sales, industrial clients with 4%
and other clients and tolls representing 36% of sales. Enel
Distribución Río greatly emphasizes energy theft fight,
developing projects for the use of technology and social
activities.
Nevertheless, currently energy losses still represent one
of the main challenges of Enel Distribución Río. The year
2018 ended with 20.99% of energy losses, and compared
with 2017, means a growth of 0.60%, mainly due to the
increase of risky areas and the economic downturn in the
State of Río de Janeiro.
Enel Distribución Goiás
Enel Américas, through its subsidiary Enel Brasil, acquired
94.8% of Enel Distribución Goiás (former Celg) share cap-
ital, a distribution company that operates in the Brazilian
State of Goiás. The investment reached BRL$ 2,187 million
(approximately US$ 640 million).
Enel Brasil was awarded with the public tender for the
privatization of Celg, which carried out by the Brazilian
government in November 2016 through Banco Nacional
de Desarrollo BNDES, and started operating the asset on
February 14, 2017. In May 2017, Enel Brasil acquired an
additional 5% of Celg capital (currently Enel Distribución
Goiás) for BRL$ 81.7 million. Additionally, Enel Brasil per-
formed a capital increase in Enel Distribución Goiás for a
total amount of BRL$1,600 million. By the end of 2017, the
participation of Enel Brasil in the share capital of Enel Distri-
bución Goiás reached 99.93%. For further information of
this operation, see Note 7.1. of the Consolidated Financial
Statements Enel Américas as of December 2018.
Additionally, in 2018 Enel Distribución Río also took actions
to improve quality indicators, reducing the SAIDI (period
of time without energy supply) in 23% in relation to 2017
The acquisition of Enel Distribución Goiás was complete-
ly financed with funds from the capital increase of Enel
Américas, which was approved by the end of 2012.
(14.10h vs. 18.21h).
Enel Distribución Ceará
Enel Distribución Ceará is the electricity distribution com-
pany that operates the State of Ceará, in northeastern
Brazil, which covers a 148,921-km2 concession area. The
company serves a population of over 9 million inhabitants.
The company is located in the central-west area of Bra-
zil, its concession area amounts to 337 thousand km2 and
serves a population of more than 6 million inhabitants.
Energy sales were 13,755 GWh in 2018, increasing 12.2%
over 2017 (taking into account the consolidation of this dis-
tribution company since February 2017). The distribution
is the following: 34% residential clients, 18% commercial
clients and, 26% of industrial clients and 22% tolls and oth-
During 2018, Enel Distribución Ceará (former Coelce) sup-
ers.
plied energy to 3,933,281-billed customers. Of of the total,
81% are residential clients, 4% commercial customers and
15% other users.
During 2018, Enel Distribución Goiás supplied energy ser-
vice to 3,026,991-billed customers. The classification by
type of clients shows that 86% are residential, 7% are
Energy sales in 2018 were 11,843 GWh, increasing 2.8%
commercial, and other clients represent el 10%.
over 2017. Out of these sales, residential clients represent-
ed 37%, commercial clients were 19%, industrial clients
12%, followed by tolls and other clients with 32%.
Additionally, Enel Distribución Goiás also took actions
to improve quality indicators and in 2018 reduced SAIDI
(period of time without energy supply) in 19% over 2017
(26.19h vs. 32.29h).
145
Description of the electricity business by country
Enel Distribución São Paulo
Enel Américas through its subsidiary Enel Brasil Investi-
mentos Sudeste acquired 73.4% of Enel Distribución São
Paulo (former Eletropaulo) share capital, a distribution com-
pany that operates in the Brazilian State of São Paulo. The
amount of the investment was BRL$ 5,553 million (approx-
imately US$ 1,445 million), through a public tender offer
Activities and projects in
distribution
Energy Efficiency
held on June 4, and on June 7, 2018 the financial liquidation
Energy efficiency projects comprise actions to promote the
and transfer of shares were completed. In July 2018, Enel
conscious energy consumption and changes of equipment
Sudeste acquired more than 19,9% of Enel Distribución
(refrigerators, freezers, lamps) and electrical wiring, with
São Paulo share capital for de BRL$ 1,516 million (approxi-
an important impact on energy consumption and home
mately US$ 395 million).
energy efficiency improvement. In 2018, 81,793 people
in Enel Distribución Río, Enel Distribución Ceará, Enel Dis-
Additionally, Enel Sudeste performed a capital increase for
tribución Goiás, and recently, Enel Distribución São Paulo,
a total of BRL$ 1,500 million (approximately US$395 mil-
benefited with the change of equipment initiatives. Also,
lion). Therefore the ownership of Enel Brasil in Enel Distri-
164,115 consumers were benefited from the educational
bución São Paulo reached 94.4%. For further information
projects for conscious consumption (125,615 in confer-
of this operation see Note 7.2. of the Consolidated Finan-
ences and workshops, 11,020 by community agents and
cial Statements Enel Américas of December 2018.
27,480 by the school program). Projects are supported by
touring trucks equipped with explanatory model of energy
Enel Distribución São Paulo is the largest energy distribu-
generation, transmission and distribution processes, simu-
tion company in Brazil, in terms of energy sales, it operates
lators of consumption and interactive totems with fun units
in 24 cities in the Metropolitan Region of São Paulo includ-
for all ages. The displacement of the project guarantees
ing the capital, the main economic and financial center in
the access to information for residents and students in
Brazil.
zones far from metropolitan areas.
Its concession area amounts to 4,526km2, concentrates
In 2018 the energy efficiency program of Enel Brasil
the largest domestic GDP and the highest demographic
concentrated its initiatives in the regions with greater
density of the country, 1,596 consumer units per km2 with
impact in commercial losses (electricity theft), thus
18 million people, equivalent to 32.6% of the total energy
promoting responsible energy consumption initiatives in
consumed in the State of São Paulo and 9.1% of the coun-
the population, especially among low-income consumers.
try.
The resources invested by distribution companies are
regulated and are equivalent to 0.4% of the companies’ net
During 2018, Enel Distribución São Paulo supplied energy
operational revenues.
service to 7,224,487-billed customers. Out of the total,
94% are residential clients, 6% are commercial clients, and
1% other users. Considering that this distribution compa-
ny was consolidated since June 2018, sales amounted to
24,693 GWh.
146
Annual Report Enel Américas 2018
Generation
Transmission
Distribution
Codensa
Barranquilla
Medellín
Bogotá
Cali
Neiva
Laguneta
Termozipa
Cartagena
El Paraíso
Limonar
Tequendama
El Salto II
Darío Valencia
Charquito
La Guaca
Betania
El Quimbo
El Guavio
*Non-billable consumptions are not included in distribution business.
147
Description of the electricity business by country TypeThermoNet Installed Capacity 224 MWTypeHydroNet Installed Capacity 18 MWTypeThermoNet Installed Capacity 184 MWTypeHydroNet Installed Capacity 276 MWTypeHydroNet Installed Capacity 150 MWTypeHydroNet Installed Capacity18 MWTypeHydroNet Installed Capacity 55 MWTypeHydroPotencia Instalada neta35 MWTypeHydroNet Installed Capacity 19 MWTypeHydroNet Installed Capacity 324 MWTypeHydroNet Installed Capacity 540 MWTypeHydroNet Installed Capacity 1,260 MWEnergy sales14,024 GWhClientsEnergy losses3,438,6207.7%TypeHydroNet Installed Capacity 396 MW Colombia
Electricity Generation
Enel Américas participates in electricity generation through
its subsidiary Emgesa, where it controls, directly and in-
directly, 48.5% of its property (economic participation)
and 56.7% of political participation. Electricity generation
of Enel Américas in Colombia reached 22% of the total
generation in this market in 2017. Other generators con-
nected to the Colombian electricity system are: Empresa
Pública de Medellín, Isagen, Gecelca, Celsia and Chivor.
Emgesa
On September 1st, 2007, the Colombian companies Emge-
sa S.A. E.S.P. and Central Hidroeléctrica de Betania S.A.
E.S.P. completed a merger process, leaving the latter as
the absorbing company, which changed its name to Emge-
sa S.A. E.S.P.
Emgesa is the largest electricity generation company in
Colombia, and is located near the city of Bogotá. The com-
pany is comprised by 17 power plants with 3,499 MW of
total installed capacity, among which El Guavio is signifi-
cant, with 1,250 MW of installed capacity, being the larg-
est hydroelectric power plant in the country. Out of the
17 existing plants, 15 are hydroelectric and 2 are thermal.
Net generation was 14,052 GWh in 2018. Hydro genera-
tion reached 13,763 GWh and thermal generation was 289
GWh. Sales through the energy exchange reached 2,827
GWh.
Hydrologic Context for Emgesa in
2018
During the first three quarters of 2018 at a national lev-
el (SIN) the contribution meant surpluses and in the last
quarter turned to deficit, and even below historical aver-
age. The deficit was consequence of the rainfalls during
the second rain season in the country, due to the impact
of atmospheric phenomena, which inhibits rainfalls such
as the subsident phase of the intra-seasonal wave MJO
(Oscillation Madden Julian, by its English acronym) and the
slow displacement of the Intertropical Convergence Zone
(ZCIT by its Spanish acronym) that regulates rainfalls.
Hydrological contributions accumulated during 2018 in the
basins of Bogotá and Guavio rivers were above historical
average, Quimbo basin was normal and Betania river basin
shown deficit in hydro contribution.
Effective maintenance
management of generation
power plants and production
management milestones in 2018
In 2018 net energy generation of Emgesa reached 14,052
GWh, showing a 4.8% decrease over 2017, mainly due to
a lower hydro generation considering the lower hydrologic
contribution in relation to historical average and also due to
differences in the context of the market.
The availability of Emgesa’s generation park in 2018 was
91.2%, meaning 1.3% fall in relation to 2017, due to the
maintenance of unit 3 of Cartagena and Termozipa power
plants required by the Life Extension project and the envi-
ronmental improvement.
A total of 185,451 hours of service of generation units
were accounted in 2018, 6,482 additional hours in relation
to 2017.
The offer of electric energy in Colombia in 2018, present-
A major overhaul of El Guavio power plant took place
ed ENSO conditions (Oscillation of El Niño South, for its
during the year; the last one was carried out in 2007. This
English abbreviation) relatively neutral, without any inci-
maintenance was scheduled 18 months in advance, and
dence in the hydrologic contributions of the main rivers
consisted on the works related to the overhaul of the ball
in Colombia. Then again, by the end of 2018, there was
valves of the five units, civil works inspection activities, the
an alert of a probability for the presentation of ENSO/EL
maintenance of charging and discharging tunnels and the
Niño conditions for 2018-2019, according to the releases of
annual maintenance of the associated systems. This main-
the Institute of Hydrology, Meteorology and Environmental
tenance was completed according to plan.
Studies – (IDEAM by its Spanish acronym) and internation-
al agencies, which means a rainfall shortage in Colombia.
148
Annual Report Enel Américas 2018 Gas commercialization
In 2018 the company continued its process of consolidation
of the natural gas market in Colombia, with the achieve-
ment of 23% margin growth over 2017 (COP$ 3,421 mil-
lion), due to the 312% increase of SPOT sales from COP$
470 million to COP$ 1,937 million. The company supplied
gas to 14 industrials non-regulates clients located in Bo-
gotá, Manizales and Cartagena and 3 clients at the well
head (secondary market). New sale contracts were signed
with final customers for 2019, whose duration are 1, 3 and
5 years.
Activities and projects in
generation
Improvements in Termozipa
Thermal Power Plant
Termozipa is a thermal power plant owned by Emgesa lo-
cated 40 km from Bogotá. This power plant has four units
and its total installed capacity amounts to 236 MW and the
coal supply comes from coalmines located in the nearby ar-
eas. Among other things, the improvements project com-
generators and water outlets. This will allow the increase
of the useful life in additional 15 years or 100,000 hours
of operations. In addition, the specific heat rates will im-
prove (a measure of the energy power plant efficiency) and
will reduce the unavailability of energy. These improve-
ments seeks to achieve high environmental standards with
regards to gas emissions of thermal coal power plants in
Latin America, mainly focused on: Nitrogen Oxide (NOx)
emissions below 330 mg/Nm3; Sulfur Dioxide (SO2) below
400 mg/Nm3 and particulate matter emissions below 35
mg/Nm3. The interventions began by the end of 2016 and
are expected to be completed in 2022, including the en-
vironmental improvements whose objective is to reach a
new emissions regime in every generation unit.
Batteries energy storage system
in Termozipa
The project consists in the installation of batteries ener-
gy storage system (BESS, for its English acronym ingles),
with 14 MW of installed capacity and 7 MWh of energy
storage connected to the 13,8 kV bars of the four turbines
of the power plant, whose purpose is to bring primary ser-
vices of frequency regulation, through units located in the
power plant. As such, the processes of this power plant are
optimized, and it can sell additional 7 MW, thus improving
prises, among others, interventions in boilers, turbines,
the general income of the plant.
149
Description of the electricity business by country Land reserved for future
projects
The results described above, show the vision of Codensa
for the network administration in order to achieve world-
class standards in terms of quality of service, under sce-
narios of higher investments and operations, also imple-
Enel Américas doesn’t own any land reserved for future
menting Telecontrol to our network thus reaching very
projects in Colombia,
satisfactory quality of service indicators for our clients.
Electricity Distribution
Codensa
Codensa is the electricity distribution and commercializa-
tion company of Enel Américas in Colombia, serving the
complete market of Bogotá and Cundinamarca, as well as
the thirteen districts of the neighboring departments of
Meta, Tolima and Boyacá.
By the end of 2018, the Company served more than 3.4
million clients, and obtained important achievements and
developments in activities addressed to improve the qual-
ity of service, whose result was the improvement in the
average frequency of interruptions of our clients’ service
(9.0 times of SAIFI -System Average Interruption Frequen-
cy Index-) and in the duration of interruptions (710 Min of
SAIDI -System Average Interruption Duration Index-).
Activities and projects in
distribution
The work fronts were focused on:
•
•
•
Projects for the improvement of service quality.
Telecontrol Project of the Network
Reposition and Normalization of high and medium
voltage infrastructure (substations and lines)
•
Expansion of installed capacity in substations regard-
ing capacity and MT networks
•
•
Expansion of coverage for rural areas
Improvement of energy losses control
• Massive connection of clients and generators
•
•
Smart measurement
Digitization of the network
Additionally, and continuing with the program of market
discipline, worth is mentioning the implementation of plans
focused on the control of electricity theft, thus achieving
energy losses index of 7.74% in 2018.
Energy demand in the area that Codensa serves showed
a TAM growth of 1.17%. During 2018 energy sales were
14,024 GWh, 36% of which are residential clients, 18%
are commercial clients, 35% tolls and 12% are industrial
clients and others.
As of December 31, 2018 Codensa has installed 73,013
smart meters and 1,652 macro meters in the framework of
the Smart Measure Project.
Likewise, in relation to public lighting, the modernization
project for the Public Lighting of Bogotá continued, which
until 2018 included the installation of more than 50,000
lights using LED technology over a total of 70,000 LED
lights in the city, out of the total 350,187 lights of the public
lighting system in Bogotá. Moreover, by the end of 2018,
the Company modernized 164,295 lights using Electronic
Ballast technology (Sodium and Metal Halide) in different
areas of the city.
Worth is mentioning that during 2018, Codensa continued
with the implementation of the Smart City Project regard-
ing the infrastructure AMI and Telecontrol equipments.
Likewise, Codensa as a public utilities company, continued
supporting the District in the development of the first Elec-
tric Subway in Bogotá, with the definition of the electric
networks transfers through the layout and the connection
points where energy supply with be made. The company
contributed with this project to the development of Bogotá.
150
Annual Report Enel Américas 2018 Generation
Transmission
Distribution
Malacas
Moyopampa
Callahuanca
Huinco
Matucana
Huampani
Santa Rosa
Ventanilla
Yanango
Chimay
Chiclayo
Trujillo
Lima
Enel Distribución Perú
Edelnor
Cuzco
Arequipa
*Non-billable consumptions are not included in distribution business.
151
Description of the electricity business by country Energy sales8,045 GWhClientsEnergy losses1,422,6088.1%TypeHydroPotencia Instalada neta69 MWTypeThermoPotencia Instalada neta337 MWTypeHydroPotencia Instalada neta83 MWTypeHydroPotencia Instalada neta276 MWTypeHydroPotencia Instalada neta133 MWTypeHydroPotencia Instalada neta32 MWTypeThermoPotencia Instalada neta389 MWTypeThermoPotencia Instalada neta467 MWTypeHydroPotencia Instalada neta42 MWTypeHydroPotencia Instalada neta157 MW Peru
Electricity Generation
Enel Generación Perú S.A.A.
Enel Generación Perú commercializes capacity and electric
energy in the Peruvian market, complying with all the spec-
ifications of the Technical Norm for the Quality of Electric
Services, being tension levels, frequency and the periods
Enel Américas S.A., through Enel Perú S.A.C. controls two
of unavailability of the service the most important ones.
generation companies in Peru: 83.60% of Enel Generación
Perú share capital and 96.50% of Enel Generación Piura.
The gross installed capacity of the company is 1,590 MW,
The company is the sole shareholder of Enel Perú.
(of the total capacity of the National Electric Interconnected
System– henceforth “SEIN”), where 44% was hydro gen-
In Peru, the others generators connected to the electrici-
eration and 56% thermal generation, considering Yanango
ty system are: Electroperú, Engie Energía Perú and Kallpa
(43 MW) and Chimay (155 MW) power plants, which since
Generación.
Enel Perú S.A.C.
Enel Perú S.A.C. is a company constituted in Peru. Its so-
cial purpose is to perform investments in other companies,
mainly in those dedicated to the exploitation of natural
resources, and specially those related to generation, op-
eration and commercialization of electric energy; develop
engineering for the construction of energy power plants;
carry out activities for the supply, assembly and commis-
sioning of equipment, facilities and/ or services for the gen-
eration of electrical energy. Additionally, the company may
perform any other activity related to the energy sector and
May 31, 2009 split off and became part of Chinango S.A.C.
Enel Generación Perú equity participation as on December
31, 2018 was the following: 83.6% is owned by to Enel
Perú S.A.C. (of which Enel Américas owns 100% share-
holding), Prima AFP S.A. holds 5.96% shareholding and
other shareholders the remaining 10.44%.
The company owns seven hydroelectric power plants; five
are located in Lima and two in Junín. Worth is mentioning
that Callahuanca hydro power plant is under reconstruction
and out of commercial operation since June 15, 2017, due
to the damages caused by the flooding that happened in
March caused by “El Niño Costero” phenomena.
waters.
152
Annual Report Enel Américas 2018 The hydroelectric power plants in Lima are located in the
sales totaled 9,997 GWh as of December 2018, represent-
Rímac River basin. Huinco Power Plant is located in Santa
ing 1.8% increase over 2017.
Eulalia River basin, a tributary of Rímac River. Its installed
capacity amounts to 278 MW and Matucana Power Plant
is located in Rímac River basin, whose installed capacity
is 137 MW. These rivers are diverted through tunnels and
channels to the town of Barba Blanca, where Callahuanca
Power Plant is located, whose installed capacity is 84 MW.
The power plants Moyopampa (69 MW) and Huampaní (31
MW) are located downstream. The total capacity of these
five power plants is 515 MW (without considering Calla-
huanca).
The company also owns 21 lagoons with installed capacity
of 282,35 hm3, which allows the regulation of the flow for
energy generation and for the water supply to the city of
Lima.
The two hydroelectric Yanango power plants are located in
the department of Junín. Installed capacity of Yanango is
43 MW, which uses the flows of Tarma River; and Chimay,
with 158 MW installed capacity, which uses the flows of
Tulumayo River. Their total installed capacity amounts to
201 MW. These two power plants became part of the sub-
sidiary Chinango, as a consequence or a simple corporate
reorganization process.
Likewise, Enel Generación Perú owns two thermal power
plants, Santa Rosa and Ventanilla, whose installed capacity
is 403 MW and 472 MW, respectively. The first is located
in the Cercado de Lima, and is comprised by UTI units with
94MW, TG7 of 122 MW and TG8 of 187 MW. The second
power plant is located in the Callao province, and compris-
es three generation units: two gas turbines and one steam
turbine that constitute a combined cycle. Ventanilla Ther-
mal power plant was the first combined cycle installed in
the SEIN and currently is one of the four combined cycles
of the system.
Thermal power plants use natural gas from Camisea as
their main fuel, and the alternative fuel is diesel 2.
Total generation of Enel Generación Perú reached 7,510
GWh in 2018, 9,1% higher than the previous year. Energy
Enel Generación Piura S.A.
The main objective of Enel Generación Piura is to perform
activities related to generation and commercialization of
electrical energy and to have presence in the natural gas
business.
The power plant is located in the city of Talara, in the
northeast of Peru, and the administrative area operates in
Lima. Its operations are carried out within the concession
area, and according to the current legislation that allows
the development of every civil, industrial, commercial and
any other and operations related or unrelated to the main
purpose.
As of December 31, 2018, the equity participation of Enel
Generación Piura is the following: 96.50% is controlled by
Enel Perú S.A.C. (company wholly owned by Enel Améri-
cas) and other shareholders own the remaining 3.5%
shareholding.
Generation plants are:
> Malacas 1 Power Plant: Comprises one Siemens unit,
model SGT-800, named TG6, its gross installed ca-
pacity is 51 MW and operates with natural gas. This
unit began commercial operations on February 25,
2017.
> Malacas 2 Power Plant: Comprises one ABB unit,
named TGN-4, its gross installed capacity is 106 MW
and operates with natural gas.
> Malacas 3 Power Plant: Comprises one singe Sie-
mens unit, named TG-5, operates with diesel B5 fuel
in open cycle in condition of Cold Reserve. On July
4, 2018 a gross new installed capacity of 187 MW
in diesel mode was approved. Worth is mentioning
that, since August 6, 2017, the Coes Sinac approved
its gross commercial operation with 128 MW “natu-
ral gas mode” additionally to its operation with diesel
fuel.
153
Description of the electricity business by country Production Centers
Power Plant
Unit
Manufacturer
Declared Fuel
Malacas 1
Malacas 2
TG-6
TGN4
SIEMENS
Natural Gas
ABB
Natural Gas
Malacas 3
TG-5 RF
SIEMENS
Diesel B5
Total
Effective Installed
Capacity (MW)
51*
106 **
187***
344
* Effective from May 7, 2017.
** Effective from July 20, 2017. Since 10.07.2017 operates in water
injection mode to reduce NOx emissions.
*** Since 10.07.2017 operates in water injection mode to reduce
NOx emissions.
The generation of Enel Generación Piura reached 603 GWh
in 2018, representing a 10.1% growth over 2017. Energy
sales totaled 603 GWh in December 2018, a 5.8% reduc-
tion in relation to the same period in the previous year.
Activities and projects in
generation
Activities and projects in
hydroelectric power plants
Rehabilitation of hydroelectric
power plants after the “El Niño
Costero” phenomenon in March,
2017
Project for the expansion of
Huampani power plant
Huampani hydroelectric power plant is located in Lurigan-
cho Chosica, district of Lima, Peru. The Huampani project
consists on the recovery of hydroelectric energy through
the expansion of installed (currently 31 MW) and the in-
stallation of two new turbines (a total of 0.7 MW) inside
the discharge chute of the existing Huampani power plant,
using a generator and ancillary equipment. It will connect
with Huampani SE through a 10kV, 140 meters long line.
The arqueological and environmental authorizations for the
project, or Certificate of Absence of Archaeological Re-
mains (CIRA for the Spanish acronym) and Pre-Operability
Study (EPO for the Spanish acronym) respectively, were
granted in 2016. The construction started in August 2017,
and as of December 31, 2018, the project was substan-
tially completed; nevertheless as of the date of this report,
works are being carried out to improve its efficiency.
Capacity increase of C.H. Huinco in
10 MW
In November 2017, the changes of the 4 new Pelton were
completed, which have a more efficient design. Invest-
ment was US$3.2 million and its main advantage is the
increase of installed capacity in 10MW. On January 3, 2018
Coes approved the trial of effective capacity
In 2018, rehabilitation works of the power plants affected
by the “El Niño Costero” phenomenon continued, and the
hydro power plants Callahuanca and Huinco registered im-
portant damages in their electromececanical equipments
Huinco and Matucana participate
in the electricity secondary
frequency regulation market
and infrastructure. Scheduled rehabilitation works were
The hydro power plants Huinco and Matucana started par-
completed, where security and safety measures were
ticipating in the Secondary Frequency Regulation market (
taken during the rainy season. The Operation and Main-
“RSF” by its Spanish acronym) since late 2017 and Febru-
tenance unit completed more than 70 activities in the ren-
ary 2018, respectively. For this purpose the communica-
ovation timeline of the power plants, such as repairs and
tion and control equipments of these power plants were
inspections to channels and minor civil works, and finally
adapted according to the Procedure N°22 of COES. It’s
the rehabilitation of Callahuanca power plant, whose main
estimated that Chimay hydro power plant will participate in
contractor is Andriz. In February, a fire occurred in the
this market during 2019.
Load Chamber of Callahuanca power plant, cleaning and
rehabilitation works started soon with the purpose of not
affecting the rest of the schedule for the recovery of the
power plant. This work finished in November.
154
Annual Report Enel Américas 2018 Major maintenance of Group 2 of
Huinco
Activities and projects in
thermal power plants
In the period August to December the works carried out
in generator G2 of Huinco was the rewinding of the stator,
maintenance of the rotor and changes of half shafts, with
the purpose of increasing the reliability and efficiency of
Repair of generation in TG7 –
Thermal power plant (C.T.) Santa
Rosa
the unit in order to comply with the new quality standards.
In the beginning of the second semester, the emergency
Investment reached US$2.7 million and was performed by
repair of the strator of the generator of TG7 was performed.
Andriz. Rehabilitation took 18 weeks.
It was produced by a ground fault in the derivation of the
Civil works: roofing of Huampaní
Channel and Marcapomacocha
elbow ring of phase R. Following a thorough analysis, to-
gether with E&C global, the company decided to repair the
failure removing the rotor from the generator. This emer-
gency work that restored the operability of the generator
was completed on July 4.
In the period May to June, 59 meters of Huampaní Chan-
nel were roofed (investment was approximately US$ 600
thousand). The purpose of these works was to prevent the
risks for people living in houses located in adjacent areas
Rewinding of Generator TG4
Strator Project
of the channel of falling, and in the gorges area in order
In June 2017, due to a bad maneuver of the company
to avoid blockage of the channel in the case of possible
General Electric during the major overhaul of unit TG4,
landslides. Estimations are to finish these works in 2021.
when introducing the rotor inside the generator, the later
fell causing damages in the generator’s strator. A prompt
Between October and December, 450 meters of Mar-
emergency repair was carried out immediately. Engineer-
capomacocha Channel were roofed. This is a very import-
ing and management works of major supplies have been
ant work, because the roofing prevents the access and/ or
carried our during 2017, with the purpose of performing a
falling stones, thus avoiding obstructions of waters run-
complete repair of the strator, and together with the com-
off. Investment was approximately US$ 180 thousand.
pany General Electric, it was agreed to carry out the com-
plete rewinding of the generator’s strator. The project con-
155
Description of the electricity business by country cluded successfully in July, 2018, achieving the objective
is to provide primary frequency regulation required by the
of extending its useful life, ensuring capacity and efficiency
power plant, in order to optimize its operations and reduce
of the generator of unit TG4.
potential sanctions related to primary frequency regulation
Batteries energy storage system in
Termozipa
The project consists in the installation of batteries energy
storage system (BESS, for its English acronym), with 14
MW of installed capacity and 7 MWh of energy storage
connected to the 13,8 kV bars of the four turbines of the
power plant, whose purpose is to bring primary services
of frequency regulation, through units located in the power
plant. As such, the processes of this power plant are opti-
mized, and it can sell additional 7 MW, thus improving the
general income of the plant.
Batteries energy storage system in
Ventanilla
Ventanilla is a 479 MW thermal power plant located in the
province of Callao. It comprises three units, two gas tur-
bines and one steam turbine, and generates in combined
cycle. The project involves the installation of a batteries en-
ergy storage system (BESS, by its English acronym) in Ven-
tanilla power plant, with 14 MW of installed capacity and 7
MWh of energy storage, connected to a 16 kV bar of one
of the existing turbines of the power plant, whose purpose
156
costs and secondary frequency regulation.
The environmental authorization was granted in 2017,
meanwhile the previous authorization for the connection
of the system operator was issued during the first quarter
of 2018. The construction period is estimated in nearly 12
months and it’s expected to be completed in 2019.
Land reserved for future
projects
Enel Generación Perú owns two lots with the purpose of
being used for thermal generation projects, the first is lo-
cated in the south coast of Peru and its total area is 203
hectares and the second is located in the central coast with
a total area of 10 hectares.
Electricity Distribution
Enel Américas S.A., through Enel Perú S.A.C., owns
83.18% of Enel Distribución Perú share capital.
In Peru, other distribution companies that participate in the
electricity system are: Luz del Sur, Electrosur and Grupo
Distriluz.
Annual Report Enel Américas 2018
Enel Distribución Perú S.A.A.
Enel Distribución Perú is the concessionary company for
electric utility that covers the north area of Metropolitan
Lima, in the Callao province and in Huaura, Huaral, Barran-
ca and Oyón provinces.
The concession area covers a total of 1,550 km2, serves
exclusively 52 districts and shares five additional districts
with the distribution company in the south area of Lima.
The distribution company distributes energy to 1,422,608
clients, and benefits more than half of the inhabitants of
Metropolitan Lima.
Currently, Enel Distribución Perú is the holder of two defin-
itive concessions of electricity distribution, two definitive
concessions of electricity transmission and one authoriza-
tion to develop generation activities, granted by the Peruvi-
an State, all of them for an indefinite period.
During 2018, our clients’ base grew 1.84% over 2017. The
energy distributed for consumption, including tolls, was
8,045 GWh, representing 1.4% growth in relation to the
previous year. In monetary terms, sales reached PEN$
2,874 million; representing 6.07%, increase during the year.
Activities and projects in
distribution
In 2018, the company made investments for a total of
PEN$ 468.8 million. Main investments were:
•
Capacity expansion of the transformation substations
(SET) and transmission lines including works for the SET
Comas, Medio Mundo and Bayobar (PEN$ 118.7 million).
•
Expansion and reinforcement of medium and low volt-
age networks (PEN$ 56.4 million).
•
Capacity expansion of medium and low-tension feed-
ers (PEN$ 11.7 million).
•
Attention/ electrification of new projects for the ex-
pansion of the grid in human settlements (PEN$ 8.6
million).
•
•
•
Provision of greater safety in the facilities (PEN$ 28.1 million).
Improvements in public lighting facilities (PEN$ 8.6 million).
Investments in commercial losses reduction. (PEN$
25.3 million).
157
158
Annual Report Enel Américas 2018 17
Sustainability
159
Letter From the Chairman Sustainable
Business
Model
The energy industry is a very dynamic market, which is
going through a transition process influenced also by pro-
found social and demographic changes and the digital age.
In this context, there are new opportunities which are be-
ing incorporated in the business model of Enel Américas,
with the integration of the environmental, social and gover-
nance objectives of the company with the goals set in the
industrial plan with the in such a way to generate long-term
value.
The sustainability plan of Enel Américas for 2018 is fo-
cused on five pillars that represent the cornerstones of
sustainable integrated development: occupational health
and safety, solid corporate governance, environmental sus-
tainability, sustainable suppliers chain and the generation
of economic and financial value. These pillars support the
strategic priorities of the company: the optimization of as-
sets and innovation, growth through services and low-car-
bon technologies, develop strong relationships with the
community and involvement with the people they work
with. These pillars as well as strategic priorities have as
enabling tools the focus on the client and the digitization.
With regards to its strategic plan, Enel Américas has identi-
fied the following most important emerging risks:
Cyber attacks ("cyber risk "): the digitization and tech-
nological innovation age, means an increasing exposure to
cyber attacks, which are becoming ever more numerous
and sophisticated, also in relation to the changes in their
frame of reference. Currently, the Group is performing an
important digitization process, which is expected to boost
in the following years, therefore the company would be
even more exposed to these risks. The complex organi-
zational structure of the Group and its different contexts
(data, people and the industrial world) creates an environ-
ment of greater exposure of its assets to the risk of attacks,
representing severe threats not only for data, but also for
the continuity of Service and for automatic systems of gen-
eration power plants and distribution networks. The Enel
Group has adopted a risk management model based on a
“systemic” view for the traditional information technology
sector as well as the industrial sector (operational technol-
ogy), taking into account the network connection of smart
“objects”.
Extreme climate events and natural disasters: the
frequency and intensity of these events are expected to
strongly increase, according to the analysis and forecasts
of the scientific community. This means an increase of this
risk in the medium to long-term for the Group. The increas-
ing trend towards renewable technologies also means a
greater impact for generation power plants, whose level of
vulnerability would also rise. The impact of these risks in
the business is related to the risk of damage to assets and
facilities, and the resulting unavailability of these assets
for an extended period of time. In order to mitigate these
risks, the Group uses the best prevention and protection
strategies, which is done also with the purpose of reducing
the potential impacts in the communities and surrounding
areas to the assets, performing constant monitoring and
prediction in those areas where the assets are more ex-
posed. In addition, the Group carries out several actions
to increase the resilience of these assets, which are more
exposed to extreme climate or natural disasters. Every area
of the Group is subject to the ISO 14,001 certification and
through the application of the Environmental Administra-
tion Systems (SGA in the Spanish abbreviation), both rec-
ognized worldwide, the potential sources of risk are moni-
tored in order to promptly identify any critical situation.
160
Annual Report Enel Américas 2018 Optimization
of assets
and
innovation
During 2018, the strategic priority was focused on the
digitization of its assets. In the generation business, the
company carried out important investments in digitization
its processes and activities related to operations and main-
tenance. This is especially important in the implementation
of systems for predictive maintenance through artificial
intelligence algorithms, in line with the principle of being
a “data-driven company”. Apart from that, understanding
the main phenomena of energy transition, the Group has
worked in increasing the efficiency of its thermal plants
and environmental improvements. Meanwhile, in the dis-
tribution business, the company worked to improve ser-
vice quality and response times in distribution, progressing
in the installation of smart meters, totaling 107 thousand
units installed, and also moving forward in the omnichannel
in order to enable the customer approach and improve the
coverage and opportunity of our services.
Without a doubt, an important milestone to move forward
in our consolidation in the energy distribution industry, was
the incorporation of Enel Distribución São Paulo, with the
incorporation of more than 7 million clients with a market
share of 19% in terms of energy sales.
Growth
through
services and
low-carbon
technologies
During 2018 the Group launched a new line of business,
Enel X, with the objective of introducing new products,
services and solutions with value added and to face the
challenges of the new cities, where electrical energy satis-
fies more functions of daily life. Enel X offers four portfolios
of solutions; e-industries, e-city, e-home and e-mobility, all
of which address different needs with innovative technol-
ogies. Through e-industries, the company offers energy
efficiency solutions, advisory and energy distribution ser-
vices for commercial and industrial clients, all leveraged
through digital platforms. Enel X has installed 1.1 MWp of
photovoltaic systems in the year. Through e-home, Enel X
seeks to offer products and services that empower clients
and allow energy efficiency and clean solutions. The e-city
portfolio is comprised by solutions for the development
of infrastructure and energy for cities and communities,
totaling 421 thousand smart lighting points by the end of
2018. E-mobility is the line focused on the development
transport electrification through the expansion of public
and private infrastructure, in addition to provide a fleet of
electric vehicles. Enel X has positioned as the main refer-
ent in electric mobility, through the incorporation of taxis
and electric buses to the public transportation system, thus
contributing with more than 66 charging points in the coun-
tries where the company operates.
161
Sustainability
Involving local
communities
Open Power
Vision
In the social context in Latin America, in some economies
Enel Américas established the “Openness” concept in the
poverty has been reduced, with the rising of a middle class
center of its business, being the cornerstone of its strategic
and more stable economies. This dynamics have improved
and operational approach: open energy to a larger number
social and economic structures, but there is still the need
of people; open energy to new technologies; provide new
of greater social inclusion, support a growing middle class
energy management methods for the consumer; open de
and generate developments in low productivity sectors.
possibility of new uses of energy; and open to a greater
These changes have challenged sustainable development,
number of collaborators.
and provided guidelines for sustainability administration,
where inclusion, transparent cooperation and the creation
of shared value with stakeholders are fundamental.
Enel Américas works incorporating the criteria and princi-
ples for fair relationships, where stakeholders are involved
in from the design of the project, thus ensuring symmetry
when dialogue takes place and enabling access to the in-
formation required for the decision-making process. This is
carried out through the identification of the most important
stakeholders involved in each operation and assessing the
possible areas of impact and possible opportunities work-
ing together.
Local needs are directly related with the goals of the com-
pany through the development of materiality matrices spe-
cific for each territory, with the objective of creating ade-
quate projects and initiatives to meet the goals and shared
priorities.
The strong geographical presence enables us to have a
constant view of stakeholders’ instances, in order to align
solutions on a consensual basis, thus generating value for
both parties.
Some of the most important projects are related with ac-
cess to energy, promotion of entrepreneurship for the eco-
nomic development and education.
The business culture of Enel Américas is focused on the
Open Power vision, on its commitment with the fulfillment
of the United Nations Sustainable Development Objec-
tives, the Creation of Shared Value and compliance with its
Human Rights Policy.
162
Objectives
of
sustainable
development
As of 2015 the United Nations adopted the new Sustain-
able Development Goals (ODS), through them these orga-
nization called companies to promote the use of creativity
and innovation to address the 17 great challenges of sus-
tainable development, such as poverty, gender equality,
access to water and clean energies and climatic change,
among others.
In this occasion, Enel SpA (“Enel”) announced the Group’s
commitment to contribute the achievement of four out of
the seventeen objectives. Particularly, Enel and its com-
panies worldwide have been focused on the following ob-
jectives:
1. Quality Education (ODS 4): support educational ac-
tivities for 800,000 people by 2020, through similar
projects to the ones in execution, such as the schol-
arship programs in Latin America. During 2018, Enel
Américas reached 66 thousand beneficiaries.
2. Affordable Energy (ODS 7): commit to the promotion
of affordable, sustainable and modern energy. During
Annual Report Enel Américas 2018 2018, Enel Américas reached 1.4 million beneficiaries.
3. Decent work and economic growth (ODS 8): foster
job creation and sustained economic growth, inclu-
sive and sustainable. During 2018, Enel Américas
covered 29 thousand people.
4. Action for Climate (ODS 13): Take initiatives to combat
climate change, with the objective of achieving car-
Human
Rights Policy
bon neutrality in 2050. During 2018, Enel Américas
Enel Américas has developed a Human Rights Policy as a
registered specific emissions of CO2 of 170-grams/
demonstration of its commitment and responsibility in this
kWhe.
key area for social and corporate sustainability. The docu-
ment gathers the commitment and responsibilities of the
By the end 2018, the Group committed to advance on new
Company in relation to every human right, and especially to
ODS: Industry, innovation and infrastructure (ODS 9) and
the ones that impact the business activity and operations
sustainable cities and communities (ODS 11), being a way
developed by the company’s employees in the countries
to underline the contribution of Enel X to the goals of sus-
where it operates
tainable growth.
During 2018, Enel Américas worked to solve the identified
gaps of the due diligence process that started in 2017, em-
phasizing the actions defined to move forward in the issues
related with diversity, relationships with suppliers, among
others, which will continue in 2019. Likewise, its important
to highlight the greater promotion and communicational
campaigns addressed to spread the Human rights Policy.
163
Sustainability 164
Annual Report Enel Américas 2018 18
Direct and
Indirect
Economic
Participations
165
Letter From the Chairman 166
Annual Report Enel Américas 2018 Direct and Indirect
Economic Participations
Argentina
Enel Generación Costanera S.A.
Enel Generación El Chocón S.A
Central Dock Sud, S.A.
Edesur S.A.
Compañía de Transmisión del Mercosur S.A.
Transportadora de Energía S.A.
Enel Trading Argentina S.R.L.
Yacylec
Termoeléctrica José de San Martin
Termoeléctrica Manuel Belgrano
Central de Vuelta Obligado S.A.
Brazil
Enel Brasil S.A.
Enel Generación Fortaleza S.A.
EGP Cachoeira Dourada S.A.
Enel Distribución Río S.A.
Enel Distribución Ceará S.A.
Enel Distribución Goiás S.A.
Enel Distribución São Paulo S.A.
Enel Cien S.A.
EGP Volta Grande
Colombia
Emgesa S.A. E.S.P.
Codensa S.A.
Peru
Enel Generación Perú
Enel Distribución Perú S.A
Compañía Energética Veracruz
Enel Generación Piura
Chinango S.A.C
Gx: Generation
Dx: Distribution
Tx: Transmission / Commercialization
Ox: Gas pipelines, others
Business
Ownership
Gx
Gx
Gx
Dx
Tx
Tx
Tx
Tx
Gx
Gx
Gx
Business
Gx, Dx, Tx
Gx
Gx
Dx
Dx
Dx
Dx
Tx
Gx
75.62%
65.35%
40.25%
72.09%
100.00%
100.00%
99.96%
22.22%
16.92%
16.92%
25.26%
Ownership
100.00%
100.00%
99.75%
99.73%
74.05%
99.93%
95.88%
100.00%
100.00%
Business
Ownership
Gx
Dx
48.48%
48.30%
Business
Ownership
Gx
Dx
Gx
Gx
Gx
83.60%
83.15%
100.00%
96.50%
66.88%
167
Direct and Indirect Economic Participations
Perimeter of Enel Américas’
Corporate Shareholdings
ENEL
AMÉRICAS S.A.
48.481619%
Emgesa S.A
94.95%
Sociedad Portuaria
Central
Cartagena S.A.
4.90%
Inversora
Codensa S.A.S.
100%
48.3026%
Codensa S.A.
ENEL X
Colombia S.A.S.
100%
Central
Dock Sud S.A.
0.2509%
69.9925%
ENEL
Generación
Costanera S.A.
75.6813%
57.1417%
Inversora
Dock Sud S.A.
22.22%
Yacilec S.A.
1.42%
Termoeléctrica
Manuel
Belgrano S.A.
5.326%
1.42%
Termoeléctrica
José de
San Martín S.A.
6.40%
Central Vuelta de
Obligado S.A.
5.326%
1.3%
18.85%
18.85%
33.2%
8.6741%
ENEL
Generación El
Chocón S.A.
59.00%
41.9411%
Hidroinvest S.A
54.7571%
Chile
Argentina
Brazil
Peru
Colombia
Uruguay
168
GasAtacama
Chile S.A.
0.079318%
ENEL
Argentina S.A.
99.920682%
45%
ENEL Trading
55%
Argentina S.R.L.
Distrilec
Inversora S.A.
51.50%
0.001%
TESA S.A.
99.999%
CTM S.A.
99.999993%
100%
ENEL Perú
S.A.C.
ENEL
Generación
Perú S.A.
80%
Chinango
S.A.C.
2.32856%
ENEL
Brasil S.A.
ENEL
Distribución
Ceará S.A.
83.151796%
83.59701%
96.50%
ENEL
Distribución
Perú S.A.
ENEL
Generación
Piura S.A.
100%
Compañía
Energética
Veracruz S.A.C.
99.9265%
Enel Distribución
Goiás S.A.
ENEL
Distribución
Río S.A.
ENEL
Generación
Fortaleza S.A.
0.0001%
ENEL X
Brasil S.A.
100%
Central Geradora
Fotovoltaica
Sao Francisco Ltda.
ENEL Brasil
Investimentos
Sudeste S.A.
100%
95.880948%
ENEL Distribución
Sao Paulo S.A.
99.9999%
ENEL CIEN
S.A.
100%
100%
EGP Projetos I
(Volta Grande)
Nuxer
Trading S.A.
100%
56.3577%
99.999998%
74.051061%
99.734188%
43.0971%
Edesur S.A.
1.00%
INGENDESA DO
BRASIL LTDA.
EGP Cachoeira
Dourada S.A.
99.754055%
100%
50%
SACME S.A.
Annual Report Enel Américas 2018
Perimeter of Enel Américas’
Corporate Shareholdings
ENEL
AMÉRICAS S.A.
GasAtacama
Chile S.A.
0.079318%
ENEL
Argentina S.A.
99.920682%
45%
ENEL Trading
Argentina S.R.L.
55%
Distrilec
Inversora S.A.
51.50%
56.3577%
99.999998%
43.0971%
Edesur S.A.
1.00%
100%
ENEL Perú
S.A.C.
ENEL
Generación
Perú S.A.
80%
Chinango
S.A.C.
2.32856%
ENEL
Brasil S.A.
ENEL
Distribución
Ceará S.A.
48.481619%
Emgesa S.A
94.95%
Sociedad Portuaria
4.90%
Central
Cartagena S.A.
Inversora
Codensa S.A.S.
100%
48.3026%
Codensa S.A.
ENEL X
Colombia S.A.S.
100%
Central
Dock Sud S.A.
0.2509%
69.9925%
ENEL
Generación
Costanera S.A.
75.6813%
57.1417%
Inversora
Dock Sud S.A.
22.22%
Yacilec S.A.
1.42%
Termoeléctrica
Manuel
Belgrano S.A.
5.326%
1.42%
Termoeléctrica
José de
San Martín S.A.
5.326%
1.3%
6.40%
Central Vuelta de
Obligado S.A.
18.85%
18.85%
33.2%
ENEL
8.6741%
Generación El
Chocón S.A.
59.00%
41.9411%
Hidroinvest S.A
54.7571%
Chile
Argentina
Brazil
Peru
Colombia
Uruguay
INGENDESA DO
BRASIL LTDA.
EGP Cachoeira
Dourada S.A.
99.754055%
100%
50%
SACME S.A.
0.001%
TESA S.A.
99.999%
CTM S.A.
99.999993%
ENEL Brasil
Investimentos
Sudeste S.A.
100%
95.880948%
ENEL Distribución
Sao Paulo S.A.
99.9999%
74.051061%
99.734188%
83.151796%
83.59701%
96.50%
ENEL
Distribución
Perú S.A.
ENEL
Generación
Piura S.A.
100%
Compañía
Energética
Veracruz S.A.C.
99.9265%
Enel Distribución
Goiás S.A.
ENEL
Distribución
Río S.A.
ENEL
Generación
Fortaleza S.A.
0.0001%
ENEL X
Brasil S.A.
100%
Central Geradora
Fotovoltaica
Sao Francisco Ltda.
ENEL CIEN
S.A.
100%
100%
EGP Projetos I
(Volta Grande)
Nuxer
Trading S.A.
100%
169
Direct and Indirect Economic Participations
170
Annual Report Enel Américas 2018 19
Significant
Events of the
Company
171
Letter From the Chairman 2018
Significant Events
In accordance with articles 9 and 10, paragraph 2, under
Securities Market Law N°18,045, and as established under
General Norm No. 30 of the Superintendence of Securities
and Insurance (“SVS” by its Spanish acronym), currently
the Financial Market Commission (“CMF” by its Spanish
acronym), the following significant events were informed:
• On February 15, 2018 the following significant event
was informed:
On February 14, 2018, the company signed commit-
ted credit facility contract with a group of Banks for
USD 500 million. This is a general-purpose funding.
• On March 23, 2018 the following significant event
was informed:
Enel Américas’ subsidiary, Enel Brasil S.A., has sent
a proposal to Eletropaulo Metropolitana Eletricidade
de São Paulo S.A., (Eletropaulo), related to a poten-
tial participation in an eventual capital increase that is
being analyzed by Eletropaulo. As of this date, the ne-
gotiations are preliminary and we will provide relevant
information to the market according to its progress.
Paulo S.A. (Eletropaulo), subject to the acquisition of
more than 50% of such shares, in order to be the con-
troller of this company. The price per share that Enel
Sudeste has agreed to pay is BRL 28. The total value
of the Public Tender Offer amounts to approximately
BRL 4,700 million, equivalent of approximately US$
1,400 million. Enel Américas will support the funding
of this operation.
The exercise of voting rights over the shares acquired
by Enel Sudeste as a result of this Public Tender
Offer is subject to the approval of the Brazilian anti-
trust authority (“Conselho Administrativo de Defesa
Econômica”); moreover, the exercise of control of
Enel Sudeste over Eletropaulo is subject to the ap-
proval of the Brazilian government Agency for electric
energy (ANEEL).
• On April 19, 2018 the following significant event was
informed:
Enel Sudeste modified the terms of the Tender Offer
reinforcing its commitment by supporting and promot-
ing a capital increase in Eletropaulo of at least BRL 1.5
billion, equivalent to approximately US$ 440 million, at
the current exchange rate, which will be subject to the
success of the Tender Offer. Therefore, Enel Sudeste
is offering both the certainty of financial support for
Eletropaulo as well as the most attractive conditions
to the shareholders who wish to participate in the
Tender Offer.
This Significant Event is being issued in relation to the
“Fato Relevante” that Eletropaulo sent yesterday to the
market in Brazil.
• On April 23, 2018 the following significant event was
informed:
• On April 17, 2018 the following significant event was
informed:
The company’s subsidiary Enel Brasil S.A., through
its investment vehicle and wholly-owned subsidiary
Enel Investimentos Sudeste S.A. (Enel Sudeste), has
launched today a voluntary Public Tender Offer for
all shares issued by the Brazilian electricity distribu-
tor Eletropaulo Metropolitana de Eletricidade de São
Enel Sudeste modified the terms of the Tender Offer
reinforcing its commitment by supporting and promot-
ing a capital increase in Eletropaulo of at least BRL 1.5
billion), equivalent to approximately US$ 440 million,
at the current exchange rate, which will be subject to
the success of the Tender Offer. Therefore, Enel Sud-
este is offering both the certainty of financial support
for Eletropaulo as well as the most attractive condi-
tions to the shareholders who wish to participate in
the Tender Offer.
172
Annual Report Enel Américas 2018
This terms modification is complementary to the total
crease in Eletropaulo of at least the same amount as
amount of the Tender Offer carried out on April 17,
the current capital increase, should the Public Tender
2018 (see the paragraph described above).
Offer be successful or should neither the referred to
Public Tender Offer nor any of the other competitive
Worth is mentioning that the price per share offered
offers be successful, as was already informed in the
by Enel Sudeste in the Public Tender Offer is BRL 28.
Significant Events dated April 19 and 23, 2018.
The Tender Offer is aimed at acquiring Eletropaulo’s
total equity and subject to the acquisition of a suffi-
On April 25, 2018, Eletropaulo announced that its
cient number of shares that would represent more
Board of Directors had decided to cancel the capital
than 50% of Eletropaulo’s share capital, and to the
increase in progress. This decision fulfills one of the
postponement of Eletropaulo’s capital increase.
conditions that Enel Sudeste’s Tender Offer was sub-
ject to and permits it to continue in the competition for
• On April 25, 2018 the following significant event was
Eletropaulo’s control along with the current bidders.
informed:
• On April 26, the following significant event was in-
Enel Sudeste has announced today that it has im-
formed:
proved the terms of the referred Tender Offer for the
acquisition of all the capital of Eletropaulo, launched
Enel Sudeste has once again improved the terms of
on April 17, 2018, increasing the share price from 28
its Tender Offer, increasing the share price from BRL
to BRL 32.
32 to BRL 32.2, which does not vary significantly, un-
der the terms of this improved Tender Offer, the total
The Tender Offer remains subject, among others, to
estimated investment of BRL 5,400 million, equiva-
the acquisition of a total number of shares that would
lent to approximately US$1,500 million at the current
represent more than 50% of Eletropaulo’s share capi-
exchange rate.
tal and to leave without effect the capital increase cur-
rently in progress by Eletropaulo, of at least BRL 1.5
• On April 26, 2018 the following significant event was
billion.
informed:
The price increase confirms the Enel Sudeste’s will-
The Ordinary Shareholders’ Meeting of Enel Américas
ingness to continue participating in a competitive,
S.A. held on April 26, 2018, has agreed to distribute
transparent and fair public tender offer process, to
the minimum mandatory dividend (from which the
acquire the control of Eletropaulo. However, Enel
interim dividend paid in January 2018 has been de-
Sudeste estimates that, in the current context of the
ducted) as well an additional dividend that amounts
competitive offers, the capital increase currently in
to US$ 354,521,675 equivalent to US$ 0.00617 per
progress distorts the competition, provides an un-
share.
fair advantage to one of all bidders and goes against
the best interest of Eletropaulo and its shareholders.
Given that the above-mentioned interim dividend has
Therefore, Enel Sudeste has also stated that it will not
already been paid, the distribution and payment of the
continue with the process unless the referred capital
remnant of the final dividend No. 97 shall be for a total
increase is nullified.
of US$ 296,939,208, or US$ 0.00517 per share.
To facilitate Eletropaulo’s decision on this issue and
The aforementioned dividend will be paid in Chilean
considering its preoccupation with the ability of Elet-
pesos, the legal currency, converted according to the
ropaulo to raise funding in a later stage, Enel Sudeste
Observed Dollar exchange rate published in the Offi-
committed to subscribe, subsequently, a capital in-
cial Gazette on May 18, 2018.
173
Significant Events of the Company
• On May 30, 2018 the following significant event was
As a result of the Offer, Enel Sudeste’s investment
informed:
reaches at least to approximately BRL 5,553 million,
equivalent to approximately US$ 1,484 million, at the
Enel Sudeste has improved the terms of the referred
current exchange rate. To this amount, the investment
to Public Tender Offer launched on April 17, 2018, for
required to acquire the corresponding shares issued
the acquisition of all the share capital of Eletropaulo,
by Eletropaulo must be added, until July 4, 2018, as
increasing the share price from BRL 32.20 to BRL
described in the preceding paragraph.
45.22.
This price is the highest among those presented in
short-term bank financing managed and guaranteed
the competitive offer process for Eletropaulo.
by its controlling shareholder, Enel Américas S.A.
Enel Sudeste will finance the acquisition through
According to Brazilian regulations that regulate the Of-
Enel Sudeste has received the approval from the Bra-
fer, this price is the final price at which Enel Sudeste
zilian Antitrust Authority or “Conselho Administrativo
will acquire the shares offered in this process, at an
de Defesa Econômica” ("CADE"), while the approval
auction in which will participate Eletropaulo’s share-
from the Brazilian National Electric Agency or “Agên-
holders who decide to do so. The auction will take
cia Nacional de Energia Elétrica” ("ANEEL") is expect-
place on June 4, 2018, in São Paulo, Brazil.
ed to be granted within the next few days.
The Offer is still subject, amongst other matters, to
In relation with the above, Enel Américas S.A. is in-
the acquisition by Enel Sudeste of a total number of
viting all interested parties to a conference call that
shares that would represent more than 50% of Eletro-
will take place tomorrow, June 5, 2018, at 10:00 a.m.
paulo’s share capital.
São Paulo, time corresponding to 9:00 a.m. Santiago,
• On June 4, 2018 the following significant event was
Chile time.
informed:
• On June 26, 2018 the following significant event was
Enel Sudeste has received the confirmation of the
informed:
successful conclusion of its Public Tender Offer for all
As of this date, June 26, 2018, the Brazilian National
the shareholding capital issued by Eletropaulo, given
Electric Energy (Agência Nacional de Energia Eléc-
that the holders of 122,799,289 shares, equivalent to
trica - ANEEL) approved the takeover of Eletropaulo,
73.4% of Electropaulo’s shareholding capital, have ac-
through the acquisition of 122,799,289 shares issued
cepted the referred Offer. According to Brazilian reg-
by the above-mentioned company, all of the same
ulations on the subject, the acquisition will be carried
class and corresponding to 73.4% of the share capital
out through the payment of the price and the transfer
of said company. Given that Eletropaulo shareholders
of the shares to Enel Sudeste, which will take place
can sell the remaining shares to Enel Sudeste until
on June 7, 2018.
July 4, 2018, at the same price offered in the Pub-
lic Tender Offer (BRL 45.22 per share), the number
Eletropaulo’s shareholders will have until July 4, 2018
of shares and the percentage shareholding might in-
to sell the remaining shares to Enel Sudeste, at the
crease.
same price offered in the Public Tender Offer (BRL
45.22 per share).
174
Annual Report Enel Américas 2018
Consequently, Eletropaulo becomes, as of that date,
Consequently, once the above-mentioned period was
an indirect subsidiary of Enel Américas S.A and, there-
finalized, Enel Sudeste has increased its shareholding
fore, shall be consolidated by the latter.
in Eletropaulo from 122,799,289 shares issued by the
above-mentioned company, all of the same class and
• On July 6, 2018 the following significant event was
corresponding to 73.4% of the share capital of said
informed:
company, to 156,158,581 shares issued by Eletropau-
lo, corresponding to 93.3% of its share capital.
On July 5, 2018 the Chief Executive Officer of the
Company, Mr. Luca D’Agnese, has submitted his res-
Therefore, the total investment of Enel Sudeste at the end
ignation. He will remain in his position until July 31,
of the acquisition period aforementioned, as a conse-
2018.
quence of the Tender Offer, reached a total of BRL
7,069 million, equivalent to approximately US$ 1,829
In addition, it is reported that in the next session of Enel
million at the exchange rate as of July 13.
Américas’ Board of Directors, the new Chief Execu-
tive Officer of the Company will be appointed.
According to the above, Enel Sudeste will subscribe a
new capital increase of Eletropaulo for the minimum
• On July 10, 2018 the following significant event was
amount of BRL 1,500 million, equivalent to approxi-
informed:
mately US$ 388 million at the current exchange rate,
of which BRL 900 million, equivalent to approximately
In the extraordinary session of the Board of Directors
US$ 233 million at the current exchange rate, were
held on July 9, 2018, Mr. Maurizio Bezzeccheri was
already deposited in Eletropaulo’s cash corporate ac-
appointed as Chief Executive Officer of the Company.
count with a charge to the aforementioned capital in-
He will assume mentioned position as of August 1,
crease.
2018.
• On October 16, 2018 the following significant event
• On July 13, 2018 the following significant event was
was informed:
informed:
Our parent company Enel SpA. issued “Comunicato
The 30-day period established for Eletropaulo’s share-
Stampa”, that it has signed two agreements with a
holders to sell the remaining shares issued by said
financial institution, aiming to increase its current
company to Enel Sudeste concluded on July 4, 2018,
shareholding in Enel Américas S.A. by up to a max-
after an auction dated June 4, 2018, at the same price
imum of 5%. Further details can be found in the at-
as the one offered in said auction as part of the Public
tached “Comunicato Stampa”.
Tender Offer, BRL 45.22 per share, pursuant to Brazil-
ian regulation.
175
Significant Events of the Company
176
Annual Report Enel Américas 2018 • On November 26, 2018 the following significant event
was informed:
In its ordinary session held on November 26, 2018,
the Board of Directors of the company has approved
the Strategic Plan of Enel Américas S.A. for the period
of 2019-2021.
A copy of the aforementioned Strategic Plan of Enel
Américas S.A. for the period of 2019-2021 can be ob-
tained from the company’s website at the following
link www.enelamericas.com.
Taking into consideration that the contents of the re-
ferred to Strategic Plan follow and are based on pro-
jections and hypotheses that might or might not come
true in the future, its effects cannot be established at
this date.
• On November 26, 2018 the following significant event
was informed:
In its session held on November 26, 2018, the
Board of Directors of Enel Américas, unanimous-
ly agreed to distribute an interim dividend of US$
0.00133849910936791 per share on January 25,
2019, attributable to the 2018 fiscal period, corre-
sponding to 15% of net income as of September 30,
2018, determined based on the Financial Statements
of the company as of said date.
The aforementioned dividend will be paid in Chilean
pesos, the legal currency, converted according to the
Observed Dollar exchange rate published in the Offi-
cial Gazette on January 18, 2019.
177
178
Annual Report Enel Américas 2018 20
Identification
of subsidiaries
and associate
companies
179
Letter From the Chairman CENTRAL DOCK SUD S.A.
Company Name
Central Dock Sud S.A.
Type of Company
Limited Liability Company
Address
Avenida Debenedetti 1636
Dock Sud Avellaneda
Phone
4229-1000
Subscribed and paid-in capital (US$
thousand)
356,221
Corporate purpose
The corporate purpose of the company is the
generation of electricity and its block sale. The
company may carry out any supplementary
and subsidiary activities linked to its corporate
purpose, having to that effect full legal capacity
to acquire rights and commit obligations and
execute all acts not forbidden by law, by these
By-laws, the Document of the International
Public Tender for the Sale of Central Dock Sud
S.A's Shares, or by any applicable regulation.
Core business
Electricity generation
Regular Directors
Héctor Martin Mandarano
Chairman
Santiago Matías Sajaroff
Vice chairman
Juan Carlos Blanco
Paolo Pescarmona
Michele Siciliano
Jorge Esteban Ravlich
Alejandro Aníbal Avayu
Rodolfo Eduardo Berisso
Paula María Garcia Kedinger
Deputy Directors
Andrea Biasotto
Mónica Diskin
Nicola Melchiotti
Patricio Javier Cipollone
Sebastián Torres
Gabriel Eduardo Abalos
Julio Omar Francisco Temen
Rodolfo Heriberto Freyre
María Elizabeth Tchouldjian
Senior Management
Juan José Marcet
General Manager
Alejandro Serantes
Finance Manager
Leonardo Limoli
Commercial Manager
Fabian Mario Cabana
Operations Manager
Graciela Babini
Planning and Control Manager
Sebastián Ortiz
Acquisitions and Stores Manager
180
Business Relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
70.24%
CHINANGO S.A.C.
Company Name
Chinango S.A.C.
Type of Company
Limited Liability Company
CENTRAL VUELTA OBLIGADO S.A.
Company Name
Central Vuelta Obligado S.A.
Type of Company
Limited Liability Company
Address
Av. Thomas Edison 2701
Buenos Aires, Argentina
Phone
(5411) 5533 0200
Subscribed and paid-in capital (Thousand
USD)
13
Corporate purpose
G e n e r a t i o n o f e l e c t r i c i t y a n d i t s
commercialization by blocks and particularly,
e q u i p m e n t p u r c h a s i n g m a n a g e m e n t ,
construction, operation and maintenance of a
thermal power plant named Vuelta Obligado
complying with "Management and Operation
of Projects, Increase of Thermal Generation
Availability and Generation Compensation
Adaptation 2008-2011 Agreement” agreed
upon November 25, 2010 by the National State
and the signing generation companies.
Core business
Construction of a thermal power plant called
Central Vuelta de Obligado.
Regular Directors
Leonardo Pablo Katz
Chairman
Adrián Gustavo Salvatore
Vice Chairman
Michele Siciliano
Mónica Diskin
Deputy Directors
Leonardo Marinaro
Ignacio Villamil
Andrea Biasotto
Juan Carlos Blanco
Senior management
Leonardo Pablo Katz
General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
40.90%
Address
Calle César López Rojas N° 201, Urb. Maranga,
San Miguel
Lima, Peru
Subscribed and paid-in capital (Thousand
USD)
78,833
Corporate purpose
Electricity generation, trading and transmission,
being able to perform all acts and also engage
all contracts that the Peruvian law allows for
such purposes.
Core business
Electricity generation.
Senior Executives
Marco Raco (representative of Enel Generación
Perú S.A.A.)
General Manager
Business relations
The company has no commercial relation with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
80.00%
CODENSA S.A. E.S.P.
Company Name
CODENSA S.A. E.S.P.
NIT: 830.037.248-0
Type of Company
Limited Liability Company– Public residential
utility company.
Address
Carrera 13 A No. 93-66
Bogotá D.C, Colombia
Phone
(57 1) 601 6060
Subscribed and paid-in capital (Thousand
USD)
4,153
Corporate purpose
T h e c o m p a n y ' s m a i n p u r p o s e i s t h e
distribution and sale of electricity, as well as
all similar, connected, complementary and
related activities with respect to electricity
distribution and sale; the execution of electrical
engineering works, design and consultancy,
and sale of products for the benefit of its
customers. The society may also perform
other activities related to the provision of public
Annual Report Enel Américas 2018 services in general, manage and operate other
utility companies, sign and execute special
management agreements with other utility
companies and sell or loan goods or services
to other economic agents related with utilities,
in or out of the country. The society may also
participate as partner or shareholder in other
utility companies, directly, or joining into
partnerships with other persons, or in joint
venture with them.
Core business
Energy distribution and commercialization.
Regular Directors
David Felipe Acosta Correa
José Antonio Vargas Lleras
Lucio Rubio Diaz
Gloria Astrid Álvarez Hernández
Felipe Castilla Canales
Open position since may 2018
Andrés López Valderrama
Deputy Directors
Carlos Mario Restrepo
Leonardo López Vergara
Juan Manuel Pardo Gómez
Ernesto Moreno Restrepo
Alejandro Botero Valencia
Daniel Ríos Rodríguez
Mario Cajiao Pedraza
Senior Management
David Felipe Acosta Correa
General Manager
David Felipe Acosta
Infrastructure & Networks Manager
Andrés Caldas Rico
Legal and Corporate Affairs Manager
Carlos Mario Restrepo
Market Manager
Michele Di Murro
Administration, Finance and Control Manager
María Celina Restrepo Santamaría
Communications Manager
Rafael Carbonell Blanco
Human Resources and Organization Manager
Diana Marcela Jiménez
Regulation and Institutional Relations Manager
Eugenio Belinchon
Audit Manager
Raúl Fernando Vacca Ramírez
Procurement Manager
Ana Patricia Delgado Meza
Digital Solutions Manager
Ana Lucia Moreno Moreno
General Services and Safety Manager
Carlo Ferrara
Sustainability Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
48.30%
Share of the investment in Enel Américas’
assets.
5.14%
COMPAÑÍA ENERGÉTICA VERACRUZ
S.A.C.
Company Name
Compañía Energética Veracruz S.A.C.
Type of Company
Limited Liability Company
Address
Calle César López Rojas N° 201, Urb. Maranga,
San Miguel
Lima, Peru
Subscribed and paid-in capital (Thousand
USD)
854
Corporate purpose
Develop and operate hydroelectric projects
located in any river basin in Peru.
Core business
Owner of Veracruz hydroelectric project.
General Manager
Jean Philippe Salvatore Bellavia
Business relations
The company has no commercial relations with
Enel Américas S.A.
Paolo Giovanni Pescarmona
Vice Chairman
Mónica Diskin
Deputy Directors
Jorge Lemos
Gaetano Salierno
Roberto de Antoni
Senior Management
Sandro Ariel Rollan
General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
99.99%
DISTRILEC INVERSORA S.A.
Company Name
Distrilec Inversora S.A.
Type of Company
Limited Liability Company
Address
San José 140
Buenos Aires, Argentina
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
Phone
(54 11) 4370 3700
CTM Compañía de Transmisión del
Mercosur S.A.
Company Name
Compañía de Transmisión del Mercosur S.A.
Type of Company
Publicly traded company constituted in Buenos
Aires, Argentina
Address
Bartolomé Mitre 797, 11th floor, Buenos Aires,
Argentina
Subscribed and paid-in capital (Thousand
USD)
1,425
Corporate purpose
The provision of high tension electricity
transmission services, in the case of linking
both national and international electrical
systems, according to current laws, to the
purpose of which it may participate in national
or international tenders, become a high tension
electricity transmission concessionaire, locally
or abroad, and perform those activities deemed
necessary to carry out its purposes.
Core business
International interconnected electricity
transmission.
Regular Directors
Juan Carlos Blanco
Chairman
Subscribed and paid-in-capital (Thousand
USD)
322,819
Corporate purpose
Exclusively to invest in companies constituted
or to be constituted whose main activity is
the distribution of electricity or that directly or
indirectly participate in companies with that
principal business through all kind of financial
and investment activities, except those in the
laws of financial entities, the purchase and
sale of public and private debt paper, bonds,
shares, negotiable instruments and the granting
of loans, and the placement of its funds in bank
deposits of any kind.
Core business
Investment Company.
Regular Directors
Guillermo Pablo Reca
Chairman
Paolo Giovanni Pescarmona
Vice Chairman
Gaetano Salierno
Mónica Diskin
Juan Carlos Blanco
Jorge Lemos
Andrés L. Vittone
Rubén Vázquez
Víctor J. Díaz Bobillo
Rubén López
Deputy Directors
María Inés Justo
Alain Rosolino
181
Identification of subsidiaries and associate companies Nicola Melchiotti
Roberto de Antoni
M. Victoria Ramírez
Gonzalo Peres Moore
Pablo Javier Viboud
José Manuel Pazos
Patricio J. Richards
Enrique Terraneo
Senior Management
Guiseppe Fanizzi
General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Business Relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
99.45%
Shareholding of Enel Américas S.A. (direct
and indirect)
51.50%
Share of the investment in Enel Américas’
assets.
2.30%
Share of the investment in Enel Américas’
assets.
0.09%
EDESUR Empresa Distribuidora Sur
S.A.
Emgesa S.A. E.S.P.
Company Name
Emgesa S.A. E.S.P.
NIT 860.063.875-8
Company Name
Empresa Distribuidora Sur S.A.
Type of Company
Private Commercial Corporation. Public Utility
Company
Type of Company
Publicly Traded Company
Address
San José 140 (1076)
Capital Federal, Argentina
Phone
(54 11) 4370 3700
Subscribed and paid-in capital (Thousand
USD)
563,803
Corporate purpose
Distribution and commercialization of electricity
and related activities.
Core business
Electricity distribution.
Regular Directors
Juan Carlos Blanco
Chairman
Paolo Giovanni Pescarmona
Vice Chairman
Monica Hodor
Gonzalo Peres Moore
Víctor José Díaz Bobillo
Alain Rosolino
Ernesto Pablo Badaraco
Gerardo Marcelo Silva Iribarne
Mónica Diskin
Deputy Directors
Gaetano Salierno
María Victoria Ramirez
Jorge Lemos
Andrés L. Vittone
Ruben Omar López
Roberto Alfredo De Antoni
María Alejandra Martinez
Nicola Melchiotti
María Inés Justo
182
Address
Carrera 11 N°82-76, piso 4
Bogotá, D.C. Colombia
Subscribed and paid-in capital (Thousand
USD)
201,762
Corporate purpose
The corporate purpose of the company is
generation and sale of electricity and sale of fuel
gas, as well as all activities similar, connected,
supplementary and related to its main purpose,
including oil derivatives liquid fuels for energy
generation, and also de import of natural gas for
energy generation and/or its commercialization
and (ii) the participation in financial derivatives
markets of energy commodities.
Core business
Electricity and fuel gas generation and
commercialization.
Regular Directors
Andrés Caldas
Lucio Rubio Díaz
José Antonio Vargas Lleras
Gloria Astrid Álvarez Hernández
Remained vacant since December 2018
Luis Fernando Alarcón Mantilla
Luisa Fernanda Lafaurie Rivera
Deputy Directors
Diana Marcela Jiménez Rodríguez
Fernando Javier Gutiérrez Medina
Michele Di Murro
Álvaro Villasante
Camila Merizalde Arico
Rodrigo Hernán Galarza Naranjo
Maria Paula Camacho
Senior Management
Bruno Riga
General Manager and Renewables Energies
Manager
Marcelo Falcucci
Thermal Generation Manager
Andrés Caldas Rico
Legal and Corporate Affairs Manager
Fernando Javier Gutiérrez Medina
Energy Trading Manager
Michele Di Murro
Administration, Finance and Control Manager
María Celina Restrepo Santamaría
Communications Manager
Rafael Carbonell Blanco
Human Resources and Organization Manager
Diana Marcela Jiménez Rodríguez
Regulation and Institutional Relations Manager
Eugenio Belinchon
Audit Manager
Raúl Fernando Vacca Ramírez
Procurement Manager
Ana Patricia Delgado Meza
General Services and Safety Manager
Ana Lucia Moreno Moreno
General Services and Safety Manager
Carlo Ferrara
Sustainability Manager
Commercial Relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
48.48%
Share of the investment in Enel Américas’
assets.
7.93%
ENEL ARGENTINA S.A.
Company Name
Enel Argentina S.A.
Type of Company
Publicly Traded Company
Address
Av. España 3301
Buenos Aires, Argentina
Phone
(5411) 4307 3040
Subscribed and paid-in capital (Thousand
USD)
60,999
Corporate purpose
Carry out investments in companies dedicated
to the production, transmission and distribution
of electricity and its commercialization, as well
as financial activities except those limited by
the law to banks.
Core business
Investment Company.
Regular Directors
Juan Carlos Blanco
Annual Report Enel Américas 2018 Chairman
Paolo Giovanni Pescarmona
Vice Chairman
Mónica Diskin
ENEL BRASIL S.A.
ENEL CIEN S.A.
Company Name
Enel Brasil S.A.
Company Name
ENEL CIEN S.A.
Deputy Directors
Nicola Melchiotti
Jorge Lemos
María Victoria Ramírez
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
99.92%
Share of the investment in Enel Américas’
assets.
9.67%
ENEL BRASIL INVESTIMENTOS
SUDESTE S.A.
Company Name
Enel Brasil Investimentos Sudeste S.A.
Type of Company
Limited Liability Company
Address
Praça Leoni Ramos, nº 1, 7º andar, bloco 2, São
Domingos.
Niterói, Rio de Janeiro.
Phone
(21) 2716-1138
Subscribed and paid-in capital (Thousand
USD)
1,030,354
Company purpose
Its purpose is the planning, development
and execution of generation, distribution,
transmission and/ or commercialization activities
of electric energy. Likewise, the participation
in the equity capital of other companies and
entities that operate or constitute to act in the
generation, distribution, transmission and/ or
commercialization of electric energy segments
as partners, consortia or shareholder.
Core business
Electricity generation.
T h e c o m p a n y t h a t d o e s n ’ t h a v e a
management board (Board of Directors)
Senior management
Antonio Basilio Pires de Carvalho e Albuquerque
Raffaele Grandi
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
Type of Company
Limited Liability Company
Type of Company
Limited Liability Company
Address
Praça Leoni Ramos, N°1, 7° andar, bloco 2
Parte, Niterói, Río de Janeiro, Brazil
Address
Praça Leoni Ramos, N° 1, piso 6, Bloco 2, São
Domingos, Niterói
Río de Janeiro, Brazil
Phone
(5521) 3607 9500
Subscribed and paid-in capital (Thousand
USD)
1,750,617
Company purpose
Participate in the capital of other companies in
any segment of the electricity sector, including
companies that provide services to companies
in that sector, in Brazil or abroad; transmission,
distribution, generation or commercialization of
electricity and related activities and participation,
individually or through joint ventures, consortia
or other similar forms of association, in tenders,
projects and enterprises for the supply of
services and activities previously mentioned.
Core business
Investment Company.
Board of Directors
Mario Fernando de Melo Santos
Chairman
Maurizio Bezzeccheri
Vice Chairman
Antonio Basilio Pires de Carvalho e Albuquerque
Senior Management
Raffaele Grandi
Antonio Basilio Pires de Carvalho e Albuquerque
Carlos Ewandro Naegele Moreira
Anna Paula Hiotte Pacheco
José Nunes de Almeida Neto
Janaina Savino Vilella Carro
Flávia da Silva Baraúna
Margot Frota Cohn Pires
Márcia Massotti de Carvalho
Luis Alonso Campos Rivas
Guilherme Gomes Lencastre
Matteo de Zan
Cristine de Magalhães Marcondes
Carlos Omar Arriagada Retamal
Roberto Zanchi
André Osvaldo dos Santos
Bruno Cecchetti
Giovanni de Vita
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
99.99%
Share of the investment in Enel Américas’
assets.
45.14%
Phone:
(55 21) 3607 9500
Subscribed and paid-in capital (Thousand
USD)
73,545
Corporate purpose
T h e p u r p o s e o f t h e c o m p a n y i s t h e
production, industrialization, distribution and
commercialization of electricity, including
the import and export activities. In view of
achieving the purposes mentioned above, the
company will promote the study, planning and
construction of facilities for production systems,
transmission, conversion and distribution of
electricity by capturing the necessary investment
to develop the activities and by providing
services. Beyond the purposes referred to, the
company may promote the implementation
of associated products, as well as inherent,
ancillary or complementary activities to services
and jobs that come to provide. To carry out the
activities necessary to achieve its goals, the
company may participate in other societies.
Core business
Electricity transmission.
Board of Directors
Antonio Basilio Pires de Carvalho e Albuquerque
Chairman
Julia Freitas de Alcantara Nunes
Vice Chairman
Victor Hugo Balbontin Artus
Senior Management
Guilherme Lencastre
General Manager
Raffaele Grandi
Anna Paula Hiotte Pacheco
Déborah Meirelles Rosa Brasil
Carlos Ewandro Naegele Moreira
José Nunes de Almeida Neto
Janaina Savino Vilella Carro
Margot Frota Cohn Pires
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
183
Identification of subsidiaries and associate companies ENEL DISTRIBUCIÓN CEARÁ S.A.
COELCE (Companhia Energética do
Ceará S.A.)
Nelson Ribas Visconti
Dilma Maria Toledo
Company Name
Companhia Energética do Ceará S.A.
Type of Company
Publicly Traded Company
Address
Rua Padre Valdevino, 150 - Centro
Fortaleza, Ceará, Brasil
Phone
(55 85) 3453-4082
Senior Management
Roberto Zanchi
General Manager
José Távora Batista
Raffaele Grandi
Carlos Ewandro Naegele Moreira
José Nunes de Almeida Neto
Janaina Savino Vilella Carro
Luiz Gazulha
Margot Frota Cohn Pires
Déborah Meirelles Rosa Brasil
Fernando Andrade
Márcia Sandra Roque Vieira Silva
Subscribed and paid-in capital (Thousand
USD)
191,199
Business Relations
The company has no commercial relations with
Enel Américas S.A.
Corporate purpose
Generation, transmission, distribution and
commercialization of electricity, performing
awarded or authorized correlated services,
and the development of activities associated
with the services, as well as celebrating trading
acts related to those activities. Likewise, the
company may carry out studies, planning,
projects, construction and operation of
production, transformation, transportation
and storage, distribution and sale of energy
systems, of any origin, in the form of
concessions, authorizations or permits it may
be awarded, with jurisdiction in the territory
of the State of Ceará, and others defined in
the Grantor. The Society may also carry out
studies, projects and planning and research
and development programs of new energy
sources, especially renewable, and the study,
making and execution, in the energy sector, of
plans and programs for economic and social
development, in places of interest for the
community and for the company.
Core business
Distribution and sale of electricity and related
services in the State of Ceará, Brazil.
Regular Directors
Mario Fernando de Melo Santos
Chairman
José Nunes de Almeida Neto
Vice Chairman
Monica Hodor
Ramón Francisco Castañeda Ponce
Francesco Amadei
Cristine de Magalhães Marcondes
Francisco Honório Pinheiro Alves
Fernando Antonio de Moura Avelino
Fernando Augusto Macedo de Melo
Aurelio Ricardo Bustilho de Oliveira
Deputy Directors
Márcia Sandra Roque Vieira Silva
Maria Eduarda Fischer Alcure
Deborah Meirelles Rosa Brasil
Teobaldo José Cavalcante Leal
José Tavora Batista
Carlos Ewandro Naegle Moreira
Marcia Massotti de Carvalho
Cesario Macedo de Melo Neto
184
Shareholding of Enel Américas S.A. (direct
and indirect)
74.05%
ENEL DISTRIBUCIÓN GOIÁS S.A.
CELG DISTRIBUIÇÃO S.A. - CELG-D
Company Name
CELG DISTRIBUIÇÃO S.A. - CELG-D
Type of Company
Limited Liability Company
Address
Rua 2, Quadra A-37, nº 505, Jardim Goiás,
Goiânia, Goiás.
Phone
(62) 3243 1771
Subscribed and paid-in capital (Thousand
USD)
1,309,589
Corporate purpose
The corporate purpose is the technical
and commercial exploration of electricity
distribution.
Core business
Electricity Distribution
Board of Directors
Mario Fernando de Melo Santos
Chairman
Antonio Basilio Pires de Carvalho e Albuquerque
Francesco Bertoli
Maria Eduarda Fischer Alcure
Senior Management
Abel Alves Rochinha
General Manager
Marcia Sandra
Raffaele Grandi
Déborah Meirelles Rosa Brasil
Carlos Ewandro Naegele Moreira
Flavia Baraúna
Angela Magalhães
Margot Cohn
Carlos Omar Arriagada Retamal
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
99.93%
ENEL DISTRIBUCIÓN PERÚ S.A.A.
Company Name
Enel Distribución Perú S.A.A.
Type of Company
Publicly Traded Company
Address
Calle César López Rojas 201 Urb, Maranga,
San Miguel
Lima, Peru
Phone
(51 1) 561 2001
Subscribed and paid-in capital (Thousand
USD)
157,383
Corporate purpose
E n g a g e t h e a c t i v i t i e s o f d i s t r i b u t i o n ,
transmission and generation of electricity
in accordance with the provisions of current
legislation. Additionally, the company may
engage in the sale of goods in any form, as well
as providing consulting and financial services,
among others, except those services, which
require specific authorization in accordance with
current law.
Core business
Distribution of electricity
Board of Directors
José Manuel Revuelta Mediavilla
Chairman
Guillermo Lozada Pozo
Vice Chairman
Riccardo Lama
Carlos Solis Pino
Francesco Bertoli
Patricia Teullet Pipoli
Martín Pérez Monteverde
Rafael Llosa Barrios
Senior Management
Ricardo Lama
General Manager
Guillermo Martin Lozada Pozo
Administration, Finance & Control Manager
Carlos Alberto Solis Pino
Commercial Manager
Soraya Ahomed
Legal Counsel
Milagritos Tatiana Lozada Gobea
Regulation Manager
Rocío Pachas Soto
Organization and Human Resources Manager
María Alicia Martínez Venero
Communications Manager
Business relations
The company has no commercial relations with
Annual Report Enel Américas 2018 Enel Américas S.A.
Fernando Andrade
Marcia Sandra Roque Vieira Silva
Shareholding of Enel Américas S.A. (direct
and indirect)
83.15%
Business Relations
The company has no commercial relations with
Enel Américas S.A.
ENEL DISTRIBUCIÓN RÍO S.A.
AMPLA ENERGÍA (Ampla Energía e
Serviços S.A.)
Shareholding of Enel Américas S.A. (direct
and indirect)
99.73%
Nicola Cotugno
Vice Chairman
Ana Marta Horta Veloso
Antonio Basilio Pires de Carvalho e Albuquerque
Aurelio Ricardo Bustilho de Oliveira
Bernardino Jesus de Brito
Guilherme Gomes Lencastre
Helio Lima Magalhães
Marcia Sandra Roque Vieira Silva
Company Name
Ampla Energia e Serviços S.A.
Type of Company
Publicly Traded Company
Address
Praça Leoni Ramos, N° 01, São Domingos,
Niteroi
Río de Janeiro, Brazil
Phone
(55 21) 2613 7000
Subscribed and paid-in capital (Thousand
USD)
644,575
Corporate purpose
Study, plan, project, build and explore electricity
production, transmission, transformation,
distribution and sale systems, and provide
related services that have been or may be
conceded; carry out research in the energy
sector, participate in regional, national or
international organizations dedicated to the
planning, operation, technical Exchange and
business development related to the electricity
industry and participate as a shareholder in
other companies in the energy sector, even
within the framework of Brazil´s privatization
program.
Core business
Electricity distribution.
Regular Directors
Mario Fernando de Melo Santos
Monica Hodor
Roberto Zanchi
Deborah Meirelles Rosa Brasil
Luiz Carlos Franco Campos
Otacilio de Souza Junior
Alternate Directors
Flávia da Silva Baraúna
Márcia Massoti de Carvalho
Gabriel Maluly
Claudio César Weyne da Cunha
Carlos Ewandro Naegele Moreira
Senior Management
Artur Manuel Tavares Resende
Raffaele Grandi
Carlos Ewandro Naegele Moreira
José Nunes de Almeida Neto
Janaina Savino Vilella Carro
Anna Paula Hiotte Pacheco
Déborah Meirelles Rosa Brasil
Margot Frota Cohn Pires
Artur Manuel Tavares Resende
ENEL DISTRIBUCIÓN
SÃO PAULO S.A.
ELETROPAULO METROPOLITANA
ELETRICIDADE DE SÃO PAULO S.A.
Company Name
Eletropaulo Metropolitana Eletricidade de São
Paulo S.A.
Type of Company
Publicly Traded Company
Address
Avenida Dr. Marcos Penteado de Ulhôa
Rodrigues, nº 939, lojas 1 e 2 (térreo) e 1º
ao 7º andar, Bairro Sítio Tamboré, Torre II
do Condomínio Castelo Branco Office Park,
Barueri, São Paulo
Phone
(21) 2716-1113
Subscribed and paid-in capital (Thousand
USD)
728,495
Corporate purpose
Exploit energy services, mainly electricity, in
the areas defined in the Concession Contract
and in others that, according to the existing
regulation, it is authorized to act, study,
design, execute, explore o transfer research
and development plans and programs to
analyze any type of form of energy; participate
in those endeavors whose purpose is the
distribution and commercialization of energy;
provision of technical services for the operation,
maintenance and planning of electricity
facilities of third- parties; provision of services
for the optimization of energy processes and
electricity facilities of consumers; transfer of
rights of slots of lines and areas of exploitable
land of plants and deposits; IV) provide
other public or private services, including
IT services through the exploitation of its
infrastructure, with the purpose of generating
supplementary alternative revenues; contribute
with the preservation of the environment, and
participate in social programs for the interest
of the community; participate in endeavors that
foster a better use of its real-estate assets; and
participate in other societies as partner, quota
holder or shareholder.
Core business
Distribution of electricity.
Board of Directors
Britaldo Pedrosa Soares
Chairman
Senior Management
Max Xavier Lins
Monica Hodor
Deborah Meirelles Rosa Brasil
Carlos Ewandro Naegele Moreira
Sidney Simonaggio
Rosario Zaccaria
Business Relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
95.88%
ENEL GENERACIÓN
COSTANERA S.A.
Company Name
Enel Generación Costanera S.A.
Type of Company
Publicly Traded Company
Address
Av. España 3301, Buenos Aires, Argentina
Phone
(5411) 4307 3040
Subscribed and paid-in capital (Thousand
USD)
131,230
Corporate purpose
Electricity generation and trading in blocks of
energy.
Core business
Electricity generation
Regular Directors
Juan Carlos Blanco (Chairman)
Paolo Pescarmona (Vice Chairman)
Michele Siciliano
Alain Rosolino
Antonino Asione
Mónica Diskin
César Fernando Amuchástegui
Matías Maria Brea
Marcelo Luis Diez
Alternate Directors
Gaetano Salierno
Jorge Lemos
Fernando Boggini
Rodrigo Quesada
Mariano Pessagno
Nicola Melchiotti
María Victoria Ramirez
185
Identification of subsidiaries and associate companies María Alejandra Martinez
María Laura Posadas
Senior Management
Andrea Biasotto
General Manager
ENEL GENERACIÓN FORTALEZA S.A.
C G T F - C E N T R A L G E R A D O R A
TERMELÉCTRICA FORTALEZA S.A.
ENEL GENERACIÓN PERÚ S.A.A.
Company Name
Enel Generación Perú S.A.A.
Company Name
CGTF - Central Geradora Termeléctrica
Fortaleza S.A.
Type of Company
Publicly Traded Company
Business relations
The company has no commercial relations with
Enel Américas S.A.
Type of Company
Limited Liability Company
Shareholding of Enel Américas S.A. (direct
and indirect)
75.68%
Address
Rodovia 422, Km 1 s/n,
Complexo Industrial e Portuário de Pecém
Caucaia, Ceará, Brazil
ENEL GENERACIÓN EL CHOCÓN S.A
Phone
(55 85) 3464-4100
Subscribed and paid-in capital (Thousand
USD)
39,201
Corporate purpose
Study, project, construct and explore electricity
production, transmission, distribution and
trading systems, awarded, permitted or
authorized by any rights title, as well as any
other activity related to the aforementioned
activities; acquisition, obtaining and exploration
of any right, concession or privilege related
to the aforementioned activities, as well as
the practice of all other acts and businesses
necessary to reach its purpose; and participation
in other companies or societies corporate
capital, as shareholder, partner or on account
of participation, whichever its purposes are.
Core business
Electricity generation.
Board of Directors
Marcelo Falcucci
Chairman
Anna Paula Pacheco
Senior Management
Raimundo Câmara
Interim General Manager
Raffaele Grandi
Pedro Werbest Alves Silva
Claudia Maria Suanno
Janaina Savino Vilella Carro
Ana Claudia Gonçalves Rebello
José Nunes de Almeida Neto
Anna Paula Hiotte Pacheco
Margot Frota Cohn Pires
Commercial relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
Company Name
Enel Generación El Chocón S.A.
Type of Company
Publicly Traded Company
Address
Av. España 3301
Ciudad Autónoma de Buenos Aires, Argentina
Subscribed and paid-in capital (Thousand
USD)
227,243
Corporate purpose
E l e c t r i c i t y G e n e r a t i o n a n d i t s b l o c k
commercialization
Core business
Electricity generation.
Regular Directors
Juan Carlos Blanco
Chairman
Paolo Giovanni Pescarmona
Vice Chairman
Mónica Diskin
María Victoria Ramírez
Daniel Garrido
Alex Daniel Horacio Valdez
Néstor Hugo Martín
Alberto Eduardo Mousist
Alternate Directors
Jorge Lemos
Alain Rosolino Fernando Boggini
Rodrigo Quesada
Nicola Melchiotti
Sebastián Eduardo Guasco
Oscar Horacio Carvalho
Senior Management
Daniel Garrido
General Manager
Business Relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
67.67%
186
Address
Calle César Lopez Rojas N° 201, Urb. Maranga,
San Miguel
Lima, Peru (address change according to memo
2015)
Subscribed and paid-in capital (Thousand
USD)
809,478
Corporate purpose
In general, electricity generation activities, also
the civil, industrial, commercial and any other
act or operation related or leading to its main
corporate purpose.
Core business
Electricity generation.
Regular Directors
José Manuel Revuelta Mediavilla
Chairman
Marco Raco
Eugenio Calderón López
Guillermo Martín Lozada Pozo
Rocío Pachas Soto
Francisco García Calderón Portugal
Carlos Rojas Perla
Alternate Directors
Claudio Helfmann Soto
Rigoberto Novoa Velásquez
Daniel Abramovich Ackerman
Carlos Sedano Tarancón
Úrsula De La Mata Torres
Milagritos Tatiana Lozada Gobea
Bartolomé Enrique Ríos Hamann
Senior Management
Marco Raco
General Manager
Pedro Cruz Vine
Energy Management and Trading Manager
Daniel Abramovich Ackerman
Legal Counsel
Guillermo Marín Lozada Pozo
Administration, Finance and Control Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
83.60%
Annual Report Enel Américas 2018 ENEL GREEN POWER CACHOEIRA
DOURADA S.A.
E N E L G R E E N P O W E R V O L T A
GRANDE S.A (former ENEL GREEN
POWER PROJETOS I S.A)
Company Name
ENEL GREEN POWER CACHOEIRA DOURADA
S.A.
Company Name
Enel Green Power Volta Grande S.A
Type of Company
Limited Liability Company
Type of Company
Limited Liability Company
Address
Rodovia GO 206, Km 0, Cachoeira Dourada
Goiânia
Goiás, Brazil
Address
Praça Leoni Ramos, nº 1, 5º andar - parte, bloco
1, São Domingos.
Niterói, Rio de Janeiro.
Phone
(55 62) 3434 9000
Phone
(21) 2716-1100
Subscribed and paid-in capital (Thousand
USD)
16,600
Subscribed and paid-in-capital (Thousand
USD)
145,972
ENEL GENERACIÓN PIURA S.A.
Company Name
Enel Generación Piura S.A.
Type of Company
Publicly traded company
Address
Calle César López Rojas 201, Urb. Maranga,
San Miguel
Lima, Peru
Subscribed and paid-in capital (Thousand
USD)
24,131
Corporate purpose
The main purpose of the company is the
generation, sale and transmission of electricity,
performing all acts and signing all agreements
allowed by current legislation.
Core business
Electricity generation and sale of natural gas.
Directors
José Manuel Revuelta (Chairman)
Marco Raco (Vice Chairman)
Guillermo Martin Lozada Pozo
Corporate purpose
The corporate purpose of the Company is the
carrying out of studies, planning, construction,
installation, operation and exploitation of
electricity generation plants, and the trade
related to these activities. Likewise, the
company may foster or participate in other
societies formed for the production of
electricity, in or out of the Sate of Goiás.
Senior Management
Marco Raco (representing Enel Generación
Perú S.A.A.)
General Manager
Core business
Electricity Generation
Commercial relations
The company has no commercial relations with
Enel Américas S.A.
Directors (regular)
Antonio Basilio Pires de Carvalho e Albuquerque
Andre Bruno Santos Brandão Gordon Afonso
Anna Paula Pacheco
Shareholding of Enel Américas S.A. (direct
and indirect)
96.50%
Senior Management
Matteo Francucci
Deputy Manager
Raffaele Grandi
Matteo de Zan
Janaína Savino Villela Carro
Carlos Ewandro Naegele Moreira
Ana Claudia Gonçalves Rebello
José Nunes de Almeida Neto
Anna Paula Hiotte Pacheco
Margot Frota Cohn Pires
Commercial relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
99.75%
Corporate purpose
Its main activity is the generation of electricity,
pursuant to the current regulation. Likewise, the
company is enabled to commercialize energy
by any means and in any market.
Core business
Electricity generation.
The company does not have a Board of
Directors.
Senior Management
Matteo Francucci
Carlos Ewandro Naegele Moreira
Raffaele Grandi
Commercial relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
187
Identification of subsidiaries and associate companies ENEL PERÚ S.A.C.
Company Name
Enel Perú S.A.C.
Type of Company
Limited Liability Company
Address
Calle César López Rojas 201, Urb. Maranga,
San Miguel
Lima, Perú
Subscribed and paid-in capital (Thousand
USD)
1.587.916
Corporate purpose
Perform investments in other companies, most
preferably in those involved in the exploitation
of natural resources, and especially those
related to the distribution, transmission and
generation of electricity. Develop engineering
services for the construction of power plants;
perform activities related to the supply,
assembly and commissioning of equipment
and/ or services for electricity generation.
Additionally, the company may carry out any
other activity related to the electricity and
water sectors. The company may also make
equity investments in any kind of property
including stocks, bonds and any other class
of transferable securities, as well as the
administration of such investments within
the limits set by the board and ordinary
shareholders meeting. The activities that are
considered within the purpose of the company
may be carried out in Peru and abroad.
Core business
Investment Company
Senior Management
José Manuel Revuelta Soldevilla
General Manager
ENEL X BRASIL S.A (former ENEL
SOLUÇÕES S.A.)
ENEL TRADING ARGENTINA S.R.L.
Company Name
ENEL X BRASIL S.A.
Type of society
Limited Liability Company constituted pursuant
to the Brazilian law.
Address
Praça Leoni Ramos nº 01
Parte, São Domingos, Niterói, Rio de Janeiro,
Brazil.
Company Name
Enel Trading Argentina S.R.L.
Type of Company
Limited Liability Company
Address
San José 140, piso 6, CABA
Buenos Aires, Argentina
Phone
(5411) 4124-1600
Phone
(55 21) 2613 7000
Subscribed and paid-in capital (Thousand
USD)
23,302
Corporate purpose
The company’ objective is to participate in the
capital of other companies in Brazil or abroad,
trade in general, even imports and exports,
through retail or wholesale transactions of
various products, and to provide general services
for the energy electricity sector and others.
Core business
Provision of services in general to the electricity
industry and others.
T h e c o m p a n y d o e s n o t h a v e a n
administration council (Board of Directors)
Senior Executives
Nestor Jesus Benito Saenz
General Manager
Tennessee Williams Pearce Maia
Rafael Felipe Coelho da Silva
Commercial relations
The company has no commercial relations with
Enel Américas S.A.
Subscribed and paid-in capital (Thousand
USD)
2,483
Corporate purpose
The purpose of the company is the wholesale
purchase and sale of electricity capacity and
energy produced and/or consumed by third
parties, including the import and export of
electricity power and energy and the marketing
of royalties, and the supply and/or performing
of services related to the above activity, both
in the country as well as abroad of information
technology services and/or of control of the
operation and/or of telecommunications.
Likewise, the Company shall be entitled to
execute buy/sell operations or to purchase
and sell natural gas, and/or its transportation,
including the importation and/or exportation
of natural gas and/or the marketing of regalia/
privileges, as well as to provide and/or execute
services related to the abovementioned activity.
Also, the Company shall be entitled to execute
buy/sell operations or to purchase and sell crude
petroleum, and/or lubricants and/or to transport
such elements, including the importation and/or
exportation of liquid fuels and the marketing of
regalia/privileges, as well as to provide and/or
execute services related to the aforementioned
activity.
Commercial relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
Core business
Trading of electricity, gas and derivatives.
IT services and/or operation control and/or
telecommunications.
Shareholding of Enel Américas S.A. (direct
and indirect)
20.33%
188
Regular Managers
Livio Filipo Colasanto
Paolo Giovanni Pescarmona
Alternate Managers
Mónica Diskin
Fernando Boggini
Commercial relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
Proportion of Enel Américas S.A. assets
0.02%
Annual Report Enel Américas 2018 HIDROINVEST S.A.
Company Name
Hidroinvest S.A.
Type of Company
Publicly Traded Company
Address
Av. España 3301
Buenos Aires, Argentina
Phone
(5411) 4307 3040
Subscribed and paid-in capital (Thousand
USD)
1,468
Corporate purpose
Acquire and maintain a majority shareholding in
Hidroeléctrica Alicura S.A. and/or Hidroeléctrica
El Chocón S.A. and/or Hidroeléctrica Cerros
Colorados S.A. ("the concessionaire companies")
created by National Executive Power decree
287/93 and manage such investments.
Core business
Investment Company
Regular Directors
Juan Carlos Blanco
Chairman
Paolo Giovanni Pescarmona
Vice Chairman
Mónica Diskin
Alternate Directors
Jorge Lemos
María Victoria Ramírez
INGENDESA DO BRASIL Ltda.
(company under liquidation)
INVERSORA CODENSA S.A.S.
Company Name
Ingendesa do Brasil Ltda.
Type of Company
Limited Liability Company
Address
Praça Leoni Ramos, Nº 1
Parte, São Domingos
Niterói - RJ, Brazil
Company Name
Inversora Codensa S.A.S.
NIT 900.351.013-6
Type of Company
Simplified joint stock company
Address
Carrera 13 No. 93-66
Bogotá, Colombia
Subscribed and paid-in capital (Thousand
USD)
129,006
Phone
(571) 601 6060
Corporate purpose
Offer services in engineering, studies, projects,
technical consulting, management, inspection
and supervision of works supply, inspection
and reception of materials and equipment
for laboratories, appraisals, commercial
representation of local and foreign engineering
companies, as well as other services that
the legal powers permit in the practice of
the professions of engineering, architecture,
agronomy, geology and meteorology in all their
specialties.
Subscribed and paid-in capital (Thousand
USD)
2.0
Corporate purpose
Investment in residential public electric utility
services, especially the acquisition of shares
in any public electric utility or in any other
company that also invests in utilities whose
main purpose is residential electricity service
according to the definition in Law 142 of 1994,
or in any other company that also invests in
utilities whose main purpose is residential
public electric utility services.
Core business
Engineering services.
Representative
Bruno César Vasconcelos
Business relations
The company has no commercial relations with
Enel Américas S.A.
Commercial relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
1.00%
Shareholding of Enel Américas S.A. (direct
and indirect)
96.70%
Core business
Investment Company
Senior Management
David Felipe Acosta Correa
Manager
Leonardo Lopez Vergara
First Deputy Manager
Juan Manuel Pardo Gómez
Second Deputy Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100,00%
189
Identification of subsidiaries and associate companies INVERSORA DOCK SUD S.A.
SACME S.A.
Company Name
Inversora Dock Sud S.A.
Type of Company
Limited Liability Company
Company Name
Sacme S.A.
Type of Company
Limited Liability Company
Address
A v e n i d a D e b e n e d e t t i 1 6 3 6 D o c k S u d
Avellaneda
Address
Av. España 3251
Ciudad Autónoma de Buenos Aires, Argentina
Phone
4229-1000
Phone
(5411) 4361 5107
SOCIEDAD PORTUARIA CENTRAL
CARTAGENA S.A.
Company Name
Sociedad Portuaria Central Cartagena S.A.
Type of Company
Publicly Traded Company
NIT 900.325.249-7
Address
Carrera 13 A No. 93-,66, piso 2
Bogotá, D.C. Colombia
Subscribed and paid-in capital (Thousand
USD)
21,215
Subscribed and paid-in capital (Argentinean
Pesos)
42
Subscribed and paid-in capital (Thousand
USD)
28
Corporate purpose
The company’s main purpose is the following:
investment, construction and maintenance
of docks and private and public ports,
their management and operations and the
development and operation of a multipurpose
port, in accordance with the law, among others.
Regular Directors
Marcelo Falcucci
Leonardo Lopez Vergara
Juan Manuel Pardo
Alternate Directors
Fernando Javier Gutierrez Medina
Alba Lucia Salcedo
Luis Fernando Salamanca
Senior Management
Fernando Gutierrez Medina
General Manager
Marcelo Falcucci
First Deputy General Manager
Oswaldo Rafael Novoa Arroyo
Second Deputy General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
Corporate purpose
The corporate purpose of the company is the
participation in companies of any nature, by
means of creating shareholding companies,
transitory company ventures, collaboration
groups, joint ventures, consortiums and any
other kind of association, and in general, the
purchase, sale and negotiation of titles, shares
and all other kind of securities and credit papers
in any of the systems or modes created or to
be created.
Core business
Investment Company
Regular Directors
Juan Carlos Blanco
Chairman
Paolo Giovanni Pescarmona
Vice Chairman
Michele Siciliano
Héctor Martín Mandarano
Santiago Matías Sajaroff
Jorge Esteban Ravlich
Alternate Directors
Andrea Biasotto
Nicola Melchiotti
Mónica Diskin
Patricio Javier Cipollone
Sebastián Torres
Gabriel Eduardo Abalos
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
57.14%
Proportion of Enel Américas S.A. assets
1.43%
Corporate purpose
Conduct, supervise and control the operation
of the electricity generation, transmission and
sub transmission system of Capital Federal and
Gran Buenos Aires, and the interconnections
with the Argentine Interconnection System
(SADI in its Spanish acronym). Represent
the companies Distribuidora Edenor S.A. and
Edesur S.A. in terms of operations, before the
wholesale market administrator, Compañía
Administradora del Mercado Mayorista Eléctrico
(CAMMESA in its Spanish acronym. In general,
adopt all actions necessary to allow it to carry
out the administration of the business correctly,
as being constituted for this purpose by the
concessionaire companies of the electricity
distribution and trading in Capital Federal and
Gran Buenos Aires, all in accordance with the
international public tender for the sale of Class
A shares in Edenor S.A. and Edesur S.A. and
applicable regulations.
Core business
Lead, supervise and control of operations from
the Argentine electricity system.
Regular Directors
Roberto De Antoni
Giuseppe Fanizzi
Daniel Flaks
Eduardo Maggi
Alternate Directors
Fabio Canosa
Vincenzo Ruotolo
Miguel Patricio Farrell
José Luis Marinelli
Senior Management
Francisco Cerar
General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
50.00%
190
Annual Report Enel Américas 2018 ENEL X COLOMBIA S.A.S.
Company Name
Enel X Colombia S.A.S.
Type of Company
Simplified stock company
NIT 901.176.579-6
Address
Carrera 13 A No. 93-,66, piso 2
Bogotá, D.C. Colombia
Subscribed and paid-in capital (Thousand
USD)
1,540
Corporate purpose
Develop any commercial or civil lawful
activity. In particular, it may: a) execute public
lighting projects for the development of
modernizations, administrations, operation
and maintenance, expansions, teleprocessing,
collection of inventories, photometric designs,
auditing, among others; under the different
contract modalities with the state such as
concessions, individually or jointly building
strategic alliances; b) develop electricity
engineering projects of low, medium and high
voltage, special lighting projects, architectural
illumination and Christmas lighting, energy
storage projects and renewable energies
through the participation in tender offers
of public and private biddings, celebrate
contracts with governmental entities or
companies, of mixed economies or private;
c) design, develop, maintain, build and all
types of electric installations in industrial
and/or commercial areas and/or free zones.
d) commercialize electric materials, provide
conceptual engineering services, basic and
detailed, such as advisories, studies, auditing
and projects’ supervision; develop and sale
of renewable energy projects, software of
energy intelligence, operation and maintenance
of public services systems; e) develop and
implement new products and services related
with the needs of the public and private sectors,
through the following: 1) use of existing
public lighting infrastructure for leveraging
innovation and technology projects (smart
cities); 2) urban development projects such
as the installation and maintenance of traffic
lights, traffic signals, bus stops, advertising
and parks among other urban spaces. 3)
implementation of Energy as a Service models,
response to the demand, increase reliability
of industrial users in the country; f) carry out
every legal acts and operations required for the
development of its social purpose; g) acquire
and development goods of any nature, either
movable or immovable properties, corporeal
or incorporeal, required for the development
of social businesses; h) sell, lease, tax and
manage social goods; i) issue, withdraw,
accept, endorse, insure, discount, and negotiate
in general, securities or any kind of individual or
collective loans; j) celebrate any kind of state
contracts and of private law; k) become part,
according to law and by-laws, of other societies,
with the purpose of easing or broadening
or supplement the social company, either
subscribing or acquiring quotas or shares with
the intention of permanence or merger with
them; l) celebrate contracts for the participation,
either actively or inactively, consortiums,
temporary companies’ joint ventures and any
other lawful way of business collaboration; m)
celebrate or execute, in general, every act or
contracts needed for the development of the
social purpose of the company.
TERMOELÉCTRICA JOSÉ DE SAN
MARTÍN S.A.
Company Name
Termoeléctrica José de San Martín S.A.
Type of Company
Publicly Traded Company
Address
Maipú 757, Piso 9° Ciudad Autónoma de
Buenos Aires, Argentina
Regular Directors
Lucio Rubio Díaz
Carlos Mario Restrepo Molina
Michele Di Murro
Alternate Directors
Andrés Caldas Rico
Juan Manuel Pardo Gómez
Alejandro Barragán Osorio
Senior Management
Carlos Mario Molina
General Manager
Alejandro Barragán Osorio
First Deputy Manager
Diego Rolando Valderrama Acevedo
Second Deputy Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
100.00%
Phone
(54 11) 4117-1011/1041
Subscribed and paid-in capital (Thousand
USD)
13
Corporate purpose
The generation of electricity and its block
trading, and particularly the management of
the equipment, construction, operation and
maintenance of a thermal plant in accordance
with the “Definitive agreement for the
management and operation of the projects for
the re-adaptation of the MEM in the terms of
Resolution SE N° 1427/2004”, approved by
Resolution SE N° 1193/2005.
Core business
Electricity generation. Management services
(acquisition of equipment, construction,
operation and maintenance of a thermal power
plant).
Regular Directors:
Ricardo Araraki
Chairman
Adrián Salvatore
Michele Siciliano
Mónica Diskin
Guillermo Giraudo
Julián Mc Loughlin
José Manuel Tierno
Gerardo Carlos Paz
Rubén Turienzo
Alternate Directors:
Leonardo Katz
Leonardo Marinaro
Juan Carlos Blanco
Andrea Biasotto
Luciano Palombella
Juan Castellanos Mon
Sergio Raúl Sánchez
Luis Agustín León Longombardo
Rodrigo Leonardo Garcia
Senior Management
Fernando Fabián Rabita
General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
25.60%
191
Identification of subsidiaries and associate companies T E R M O E L É C T R I C A M A N U E L
BELGRANO S.A.
TESA
Company Name
Transportadora de Energía S.A.
YACYLEC S.A.
Company Name
Yacylec S.A.
Company Name
Termoeléctrica Manuel Belgrano S.A.
Type of Company
Publicly Traded Company
Address
Azopardo 1487, Ciudad Autónoma de Buenos
Aires, Argentina
Phone
011 3221-7950
Subscribed and paid-in capital (Thousand
USD)
13.0
Corporate purpose
The company’s purpose is the generation
of electricity and its block trading, and
particularly the management of the equipment,
construction, operation and maintenance of a
thermal plant in accordance with the “Definitive
agreement for the management and operation
of the projects for the re-adaptation of the MEM
in the terms of Resolution SE N° 1427/2004”,
approved by Resolution SE N° 1193/2005.
Core business
Electricity generation. Management services
(acquisition of equipment, construction,
operation and maintenance of a thermal power
plant).
Regular Directors
Andrea Biasotto
Mónica Diskin
Julián Mc Loughlin
Guillermo Giraudo
Adrián Gustavo Salvatore
José Manuel Pazos
Gerardo Carlos Paz
Rubén Turienzo
José Manuel Tierno
Alternate Directors
Juan Carlos Blanco
Michele Sicialiano
Luciano Palombella
Juan I Castellanos Mon
Leonardo Marinaro
Leonardo Katz
Luis Agustín León Longombardo
Rodrigo Leonardo García
Sergio Raúl Sánchez
Senior Management
Francisco Monteleone
General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
25.60%
192
Type of Company
Publicly Traded Company
Type of Company
Limited Liability Company
Address
Bartolomé Mitre 797, piso 11
Buenos Aires, República de Argentina
Address
Bartolomé Mitre 797, piso 11º;
Ciudad Autónoma de Buenos Aires, Argentina
Phone
(5411) 4394 1161
Phone
(5411) 4587 4322/4585
Subscribed and paid-in capital (Thousand
USD)
11,715
Subscribed and paid-in capital (Thousand
USD)
531
Corporate purpose
High tension electricity transmission services'
provision, linked to both national and
international electrical systems, for which
purpose it may participate in national and
international tenders, become a high tension
electricity transmission utilities concessionaire,
locally or abroad, and carry out all activities
deemed necessary to fulfill its purpose.
Core business
Electricity transmission.
Regular Directors
Juan Carlos Blanco
Chairman
Paolo Giovanni Pescarmona
Vice Chairman
Mónica Diskin
Alternate Directors
Jorge Lemos
Gaetano Salierno
Roberto de Antoni
Senior Management
Sandro Ariel Rollan
General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
99.99%
Corporate purpose
Construction, operation and maintenance of the
first electrical link between Yacyretá Hydroelectric
Plant and the Resistance's Transformation
Station, and provision of electricity transmission
services, including the exploitation under
concession as independent transporter.
Core business
Electricity transmission.
Regular Directors
Guillermo Osvaldo Díaz
Eduardo Martín Albaracín
Open position
Juan M. Pereyra
Juan Carlos Blanco
Sandro Ariel Rollan
Raffaele Sardella
Luis Juan Bautista Piatti
Osvaldo Antenor Acosta
Mónica Diskin
Maurizio Bellomo
Gerardo Luis Ferreyra
Alternate Directors
Carlos Fernando Bergoglio
Juan José Arena
Paolo Giovanni Pescarmona
Jorge Alberto Lemos
Gianfranco Catrini
Massimo Villa
Roberto Leonardo Maffiolli
Dario Ballaré
Sergio Alejandro Vestfrid
Nicola Melchiotti
Robert Ortega
Alberto Esteban Verra
Senior Management
Sandro Ariel Rollan
General Manager
Business relations
The company has no commercial relations with
Enel Américas S.A.
Shareholding of Enel Américas S.A. (direct
and indirect)
22.22%
Proportion of Enel Américas S.A. assets
0.01%
Annual Report Enel Américas 2018 Notes:
1. There are no acts or agreements signed
by Enel Américas with its subsidiaries or
associated companies that could significantly
influence its operations and results.
2. Regarding business relations, future relations
planned with subsidiaries or associated
companies fall within the company's corporate
purpose, especially continuing to provide its
subsidiaries and associated companies with
the necessary financial resources for their
businesses' development and, additionally,
to provide its subsidiaries with management,
financial advisory, business, technical, legal,
audit services and, in general, services of
any kind deemed necessary for their best
performance, notwithstanding which, it is
not foreseen that any of these connections
would significantly influence the company’s
operations and results.
193
Identification of subsidiaries and associate companies 194
Annual Report Enel Américas 2018 23
Statement of
Responsibility
195
Letter From the Chairman 196
Annual Report Enel Américas 2018 Statement of
Responsibility
The Directors of Enel Américas S.A. and the Chief Executive Officer, signatories of this statement, are responsible under
oath of the veracity of the information provided in this Annual Report, in compliance with the General Norm N°30, issued
by the Financial Market Commission.
CHAIRMAN
Borja Acha Besga
DNI: 05263174-S
DIRECTOR
José Antonio Vargas Lleras
CI: 79.312.642
DIRECTOR
Hernán Somerville Senn
Rut: 4.132.185-7
DIRECTOR
Patricio Gómez Sabaini
Pasaporte: 16941675N
DIRECTOR
Livio Gallo
DNI: AV 0246369
DIRECTOR
Domingo Cruzat Amunátegui
Rut: 6.989.304-K
DIRECTOR
Enrico Viale
DNI: AU 2580379
CHIEF EXECUTIVE OFFICER
Maurizio Bezzeccheri
Rut: 26.490.357-2
Statement of Responsibility
197
198
Annual Report Enel Américas 2018 Management and Senior Executives
CHAIRMAN
Francisco de Borja Acha Besga
Phone (56) 2 2263 4631
DIRECTOR
José Antonio Vargas Lleras
Phone (56) 2 2353 4631
DIRECTOR
Enrico Viale
Phone (56) 2 2353 4631
DIRECTOR
Livio Gallo
Phone (56) 2 2353 4631
DIRECTOR
Hernán Somerville Senn
Phone (56) 2 2353 4631
DIRECTOR
Domingo Cruzat Amunátegui
Phone (56) 2 2353 4631
DIRECTOR
Patricio Gómez Sabaini
Phone (56) 2 2353 4631
CHIEF EXECUTIVE OFFICER
Maurizio Bezzeccheri
Phone (56) 2 2263 9130
COMUNICATIONS OFFICER
José Miranda Montecinos
Phone (56) 2 2675 2746
INTERNAL AUDIT OFFICER
Raffaele Cutrignelli
Phone (56) 2 2353 4647
CHIEF FINANCIAL OFFICER
Aurelio Bustilho de Oliveira
Phone (56) 2 22353 4510
PLANNING AND CONTROL OFFICER
Bruno Stella
Phone (56) 2 2353 4510
GENERAL COUNSEL AND CORPORATE GOVERNANCE
Domingo Valdés Prieto
Phone (56) 2 2630 9227
Investors and Shareholders Relations
INVESTORS RELATIONS MANAGER
Rafael De La Haza Casarrubio
Phone (56) 2 2353 4682
CITIBANK NY
Teresa Loureiro-Stein
Phone (1-212) 816 6814
www.leaders.cl
enelamericas.com