Annual Report 2013
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enel.com
Annual Report 2013
Contents
Report on operations
Consolidated financial statements
The Enel organizational model | 6
Consolidated Income Statement | 134
Corporate boards | 8
Statement of Consolidated Comprehensive Income | 135
Letter to shareholders and other stakeholders | 10
Consolidated Balance Sheet | 136
Summary of results | 18
Statement of Changes in Consolidated Shareholders’ Equity | 138
Overview of the Group’s operations, performance and financial
position | 28
Consolidated Statement of Cash Flows | 140
Notes to the financial statements | 141
Corporate governance
Report on corporate governance and ownership structure | 253
Declaration of the Chief Executive Officer
and the officer responsible for the preparation
of corporate financial reports | 254
Attachments
Subsidiaries, associates and other significant equity investments
of the Enel Group at December 31, 2013 | 258
Glossary | 288
Reports
Report of the independent auditors | 294
Results by business area | 39
> Sales | 40
> Generation and Energy Management | 42
> Infrastructure and Networks | 44
> Iberia and Latin America | 46
> International | 50
> Renewable Energy | 53
> Other, eliminations and adjustments | 56
Significant events in 2013 | 58
Reference scenario | 67
> Enel and the financial markets | 67
> Economic and energy conditions in 2013 | 70
> Electricity markets | 73
> Natural gas markets | 77
> Regulatory and rate issues | 78
Main risks and uncertainties | 99
Outlook | 104
Sustainability
> Sustainability in Enel | 107
> People | 114
- Human resources and organization | 114
- Customers | 121
- Society | 122
> Climate strategy and the environment | 124
> Research and development | 126
Related parties | 130
Reconciliation of shareholders’ equity and net income of Enel SpA
and the corresponding consolidated figures | 131
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EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Report
on operations
The Enel organizational model
As from February 2012, the Group has adopted an operating model designed to enhance operational
flexibility, making Enel one of the most financially robust and, at the same time, most nimble companies
in the energy industry. The model is based on the following organizational arrangements:
> Parent Company functions, which are responsible for directing and controlling strategic activities for
the entire Group;
> global service functions, which are responsible for providing services to the Group, maximizing syner-
gies and economies of scale;
> business lines, represented by six divisions, as well as the Upstream Gas Function (which pursues se-
lective vertical integration to increase the competitiveness, security and flexibility of strategic sourcing
to meet Enel’s gas requirements) and the Carbon Strategy Function (which operates in the world’s
CO2 certificate markets).
The activities of the individual divisions are set out below.
The Generation, Energy Management and Sales Italy Division is responsible for:
> the generation and sale of electricity:
- generation from thermal and schedulable hydroelectric power plants in Italy (through Enel Produzi-
one, Hydro Dolomiti Enel, SE Hydropower, SF Energy and ENergy Hydro Piave) and in Belgium with
the Marcinelle thermoelectric plant operated by Enel Trade under a tolling agreement
- trading on international and Italian markets, primarily through Enel Trade, Enel Trade Romania, Enel
Trade Croatia and Enel Trade Serbia;
> provisioning for all of the Group’s needs and the sale of energy products, including the sale of natural
gas to distributors, through Enel Trade;
> the development of natural gas regasification plants (Nuove Energie);
> commercial activities in Italy, with the objective of developing an integrated package of electricity
and gas products and services for end users. More specifically, it is responsible for the sale of electric-
ity on the regulated market (Enel Servizio Elettrico) and the sale of electricity on the free market and
the sale of natural gas to end users (Enel Energia). As from July 1, 2013, following the acquisition of
Enel.si from the Renewable Energy Division, these businesses were joined by Enel’s retail plant and
franchising activities in Italy.
The Infrastructure and Networks Division is primarily responsible for the distribution of electricity
(Enel Distribuzione) and public and artistic lighting (Enel Sole) in Italy.
The Iberia and Latin America Division focuses on developing Enel Group’s presence and coordinating
its operations in the electricity and gas markets of Spain, Portugal and Latin America. The geographical
areas in which it operates are as follows:
> Europe, with the generation, distribution and sale of electricity and the sale of natural gas in Spain
and Portugal;
> Latin America, with the generation, distribution and sale of electricity in Chile, Brazil, Peru, Argentina
and Colombia.
The International Division supports the Group’s strategies for international growth, managing and inte-
grating the foreign businesses outside the Iberian and Latin American markets, as well as monitoring and
developing business opportunities that should present themselves on the electricity and fuel markets.
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EnEl AnnuAl REpoRt 2013REpoRt on opERAtions The chief geographical areas of operation for this Division are:
> central Europe, where the Division is active in electricity sales in France (Enel France), power genera-
tion in Slovakia (Slovenské elektrárne) and Belgium (Marcinelle Energie);
> south-eastern Europe, with the development of generation capacity in Romania (Enel Productie), and
electricity distribution, sales and support activities in Romania (Enel Distributie Banat, Enel Distributie
Dobrogea, Enel Energie, Enel Distributie Muntenia, Enel Energie Muntenia, Enel Romania and Enel
Servicii Comune);
> Russia, with electricity sales and trading (RusEnergoSbyt), power generation and sales (Enel OGK-5),
and support services (Enel Rus) in the Russian Federation.
The Renewable Energy Division has the mission of developing and managing operations for the gen-
eration of electricity from renewable resources, ensuring their integration within the Group in line with
the Enel Group’s strategies. The geographical areas of operation for this Division are:
> Italy and the rest of Europe, with power generation from non-schedulable hydroelectric plants, as well
as geothermal, wind and solar plants in Italy (Enel Green Power and other minor companies), Greece
(Enel Green Power Hellas), France (Enel Green Power France), Romania (Enel Green Power Romania)
and Bulgaria (Enel Green Power Bulgaria);
> Iberia and Latin America, with power generation from renewable sources in Spain and Portugal (Enel
Green Power España) and in Latin America (various companies);
> North America, with power generation from renewable sources (Enel Green Power North America).
The mission of the Engineering and Research Division is to serve the Group by managing the engineer-
ing processes related to the development and construction of power plants (conventional and nuclear),
while meeting Enel’s quality standards, ensuring compliance with the deadlines and financial objectives set
for it. In addition, it is responsible for coordinating nuclear technology operations, providing independent
monitoring of the Group’s nuclear activities with regard to safety issues. Finally, it manages research activi-
ties identified in the process of managing innovation, with a focus on strategic research and technology
scouting.
In the Annual Report 2013, the results by operating segment are discussed on the basis of the organiza-
tional arrangements described above and taking account of the management approach as provided for
under IFRS 8. For that reason, the generation and energy management results of the Generation, Energy
Management and Sales Italy Division are shown separately from the results pertaining to electricity and gas
sales in Italy, consistent with the practice in previous periods and with the structure of internal reporting to
top management.
In addition, account was taken of the possibilities for the simplification of disclosures associated with the
materiality thresholds also established under IFRS 8 and, therefore, the item “Other, eliminations and ad-
justments” includes not only the effects from the elimination of intersegment transactions, but also the
figures for the Parent Company, Enel SpA, the “Services and other activities” area and the “Engineering and
Research” Division, as well as the Upstream Gas Function.
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Corporate boards
Board of Directors
Chairman
Chief Executive
Directors
Secretary
Paolo Andrea Colombo
Manager
Officer and General
Fulvio Conti
Claudio Sartorelli
Alessandro Banchi
Lorenzo Codogno
Mauro Miccio
Fernando Napolitano
Pedro Solbes Mira
Angelo Taraborrelli
Gianfranco Tosi
Board of Auditors
Chairman
Auditors
Alternate auditors
Sergio Duca
Lidia D’Alessio
Gennaro Mariconda
Giulia De Martino
Pierpaolo Singer
Franco Luciano Tutino
Independent auditors
Reconta
Ernst & Young SpA
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EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Powers
Board of Directors
The Board is vested by the bylaws with the broadest powers for the ordinary and extraordinary manage-
ment of the Company, and specifically has the power to carry out all the actions it deems advisable to
implement and attain the corporate purpose.
Chairman of the Board of Directors
The Chairman is vested by the bylaws with the powers to represent the Company and to sign on its
behalf, presides over shareholders’ meetings, convenes and presides over the Board of Directors, and
ascertains that the Board’s resolutions are carried out. Pursuant to a Board resolution of May 2, 2011
(as amended on December 18, 2012), the Chairman has been vested with a number of additional non-
executive powers.
Chief Executive Officer
The Chief Executive Officer is also vested by the bylaws with the powers to represent the Company and
to sign on its behalf, and in addition is vested by a Board resolution of May 2, 2011 (as amended on De-
cember 18, 2012) with all powers for managing the Company, with the exception of those that are oth-
erwise assigned by law or the bylaws or that the aforesaid resolution reserves for the Board of Directors.
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Letter to shareholders
and other stakeholders
Dear stakeholders,
The economic crisis that has reigned in recent years in many western countries appears to have passed
through its most acute phase. Some countries, like the United States, have started down the road to
recovery more decisively, while others, such as the euro-area countries, are individually regaining
economic stability but are also struggling to emerge from the crisis at the same speed. Then there
are the emerging economies where the Group is present, such as those in Latin America, which are
continuing to grow.
The trend in primary energy demand clearly reflects these dynamics. In the euro area, the fragile and
slow recovery has not yet triggered a rise in consumption, which remains at its level of nearly two
decades ago. Also weighing on the performance of the electricity industry in some countries, such
as Italy and Spain, which are of great importance for Enel, are regulatory policies that have often
looked to utilities as a source of funding for state budgets. The situation is different in eastern Europe
and in Latin America, where development and economic growth continue to sustain the demand for
electricity and gas, making new investment profitable. The growth of the renewable energy sector
remains stable at the global level.
The conditions I have described represent a cross-section of a complex reality that Enel has tackled by
exploiting its geographic diversification, a well-balanced mix of generation technologies, management
action to reduce costs and the optimization of investments and the generation of cash flow, all accom-
panied by the expansion of the Group, especially in emerging markets and in renewable energy.
The results of the past year have now reached and in some cases exceeded the targets announced to
investors and have permitted us to confirm the good returns offered by our stock.
The gross operating margin rose by 7.6% compared with 2012, reaching €17,011 million, despite
revenue falling from €84,949 million in 2012 to €80,535 million in 2013.
At the end of 2013, net financial debt had fallen to €39,862 million, a decrease of €3,086 million
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EnEl AnnuAl REpoRt 2013REpoRt on opERAtions from the €42,948 million registered at the end of 2012 and about €16 billion lower than its peak in
2007. The results of current operations and non-recurring transactions completed during the year,
including asset disposals, more than offset the cash requirements of investments and the payments
of dividends, interest and taxes, enabling us to maintain a strong balance sheet. Enel generated free
cash flow in the last few years, including 2013, of €3 billion.
For the future, we will face new market dynamics that are emerging under the pressure of four macro
trends: the spread of new technologies, the growing contribution of the emerging markets to the
world economy, the proactive role of customers and new approaches of institutions and governments
in their energy and environmental policies.
The priorities on which we will concentrate are:
> redefining our strategy in response to the new business model and focusing:
- on restructuring conventional generation in Italy and Spain and selective growth in that segment
in growth markets;
- on strengthening our leadership in renewable energy, with the creation of new capacity in
high-potential markets and the development of new technologies on the path towards grid
parity;
- on maintaining our leadership in efficiency, service quality and the smart technologies of our
distribution grid;
- on delivering high-value-added services for our customers;
> maximizing cash flows, in both mature and emerging markets, through continuous improvements
in operating efficiency, a selective investment plan and stringent control over working capital;
> completing the debt reduction plan, optimizing our asset portfolio and increasing the economic
interest of the Group through minority buyouts and corporate reorganization.
These priorities are marked by a constant drive towards innovation, the only way to maintain and
renew our leadership on a lasting basis, and by a strong focus on the sustainability of our operations,
as a prerequisite for adding value over time to the benefit of our stakeholders.
Buoyed by the results we have achieved and aware of the tools we have to meet the challenges that
lie ahead, we will continue to work to achieve these value targets in the markets of significance to
our shareholders.
The contribution of the operating divisions to Group performance is briefly described below.
Generation, Energy Management and Sales Italy
In 2013, macroeconomic conditions in Italy and the rest of Europe led to a further decline in electricity
demand, which amounted to 317.1 TWh (-3.4% on the previous year). This situation, together with
the increasing share of output generated from renewable sources, has tightened competition and
increased the demand for balancing services for the system.
Generation by the thermal power plants of the Division declined by 13.9% from 2012. Due to the
considerable water availability during the year, hydroelectric generation recorded a 27.4% increase.
Overall, the energy generated by the Division in Italy amounted to 59.6 TWh in 2013 (-5% on the
previous year).
The gross operating margin of the Generation and Energy Management area amounted to €1,176
million in 2013, an increase of 7.8% compared with 2012, with a significant contribution coming from
the services market, made possible by the availability and flexibility of our plant assets.
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In the gas segment, a revision of withdrawal commitments allowed us to rebalance volumes, thereby
permitting us to avoid extra costs for lower-than-agreed withdrawals. The continuation of actions to
improve the operating efficiency, reliability and safety of our plants also enabled significant cost sav-
ings compared with 2012.
The Sales area in 2013 continued to focus its attention on the most valuable segments of the mass
market. In a highly competitive retail market, characterized by increasingly knowledgeable custom-
ers, the strategy we have adopted seeks to innovate our product range through the development of
a wide range of turnkey solutions for more responsible and efficient energy use, the so-called “New
Downstream”, shifting consumption to the most efficient supplier of electricity.
Enel Energia was once again the leading Italian operator in the energy market, with about 5.1 million
electricity customers and 3.3 million natural gas customers at the end of 2013. Similarly, Enel Servizio
Elettrico remained the leading operator in the enhanced protection market, with 22.4 million custom-
ers at December 31, 2013 (down 1.2 million compared with 2012 due to the gradual liberalization of
the market).
The improvement in the quality of customer service perceived by customers enabled the two compa-
nies to hold first and second place in the ranking prepared by the Authority for Electricity and Gas (the
Authority) of the best contact centers in the industry for the third year in a row. This performance was
achieved through the rationalization of systems and integrated management of customers, without
neglecting a constant focus on internal efficiency.
Quality is a distinguishing factor in developing the New Downstream segment. The new product of-
fering, launched as a pilot project under the Enel Green Solution brand, has enabled Enel customers
to improve the efficiency of their homes.
Our strategy and the actions of management are reflected in a gross operating margin of €866 mil-
lion, an increase of 42.2% compared with 2012 and 54% compared with 2011.
Infrastructure and Networks Italy
The strong operational and financial performance of the Infrastructure and Networks Division in 2013
confirms Enel’s leadership in electricity distribution, with a total of 31.7 million customers served and
230 TWh of power distributed. Last year, the Division had revenues of €7,698 million and a gross op-
erating margin of €4,008 million, an increase of 10.6% compared with 2012.
The great commitment to operational excellence produced a further improvement in the service qual-
ity, easily outperforming the targets set by the Authority. The number of interruptions per customer
declined from 3.7 in 2012 to 3.3 in 2013, while the total duration of outages per customer improved
sharply, reaching an average of 41 minutes, compared with 46 in 2012.
In 2013, Enel connected about 105 thousand renewable generation plants to the grid (1,800 MW).
The total number of plants connected to our network has reached 540 thousand, with a capacity of
25,500 MW.
In Italy, the automated remote management system for electronic meters executed more than 7 mil-
lion contract transactions and more than 400 million remote readings. In Spain, the installation of
electronic meters continued with the installation of more than 4 million units, with a goal of serving
about 13 million customers in the coming years.
In the field of smart grids, Enel confirmed its European leadership, chairing the “European Distribu-
tion System Operators (EDSO) for Smart Grids” association, through which it develops the implemen-
tation plans for pilot projects. During 2013, several projects were initiated with financing under the
7th Framework Programme of the European Commission, seeking to introduce smart grid and smart
city technologies, including the evolvDSO, ADVANCED and Grid4EU projects.
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EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Innovative projects also continued in Italy, such as the smart grid project in Isernia – with support from
the Authority – and the projects of the Interregional Operational Plan for the southern regions funded
by the Ministry for Economic Development.
In the smart cities field, Enel has launched projects in Italy, in L’Aquila, and at the international level,
in Santiago, Chile, initiatives that join the other projects of the Enel Group around the world (Malaga,
Barcelona and Búzios in Latin America).
An important contribution to the development of electric mobility was the signing of a number
of agreements in 2013 with local and regional governments (Rome, Bari and the Region of Um-
bria) and private companies (BMW). Enel’s charging infrastructure for electric vehicles now exceeds
1,200 points.
The Public Lighting business area (Enel Sole) improved on the already positive results of the previous
year and, thanks to developments in the Archilede® project and the extension of the CONSIP tender,
has consolidated its leadership position in Italy and grew in Spain. In particular, thanks to the CONSIP
“Servizio Luce 2“ agreement, some 200 thousand lighting points were taken under management in
2013, with total revenues of over €265 million. Last year also saw the consolidation of Enel Sole’s
presence in Spain, as the company – together with Endesa Ingeniería – was awarded three long-term
integrated management contracts (in Abarán, Rincón de la Victoria and Móra d’Ebre, for a total of
more than 10 thousand lighting points).
Iberia and Latin America
In 2013, the Iberia and Latin America Division posted a gross operating margin of €6,746 million, a
decrease of 6.7% compared with 2012. The decline was attributable to a fall of 18.7% in the margin
achieved in Spain and Portugal, mainly as a result of regulatory and fiscal measures adopted in 2012
and 2013 by the Spanish government. However, the decline was partly offset by an improvement of
8.2% in the margin in Latin America and an increase in operating efficiency.
Investments in Spain and Portugal declined, to about €849 million, while they increased in Latin
America, reaching €1,332 million.
Net financial debt also improved, largely as a result of the capital increase by the minority sharehold-
ers of Enersis, who paid the increase with €1,796 million in cash. The operation, which was success-
fully completed in March 2013, will help expand operations in the region with new investments,
through both organic growth and the acquisition of non-controlling interests.
In Spain, the €396 million in costs from the application of regulatory measures approved in 2012
were joined by the effects of other fiscal and regulatory measures approved during 2013, with an
additional negative impact of €933 million on the gross operating margin.
Despite the adverse effect of the additional measures, the gross operating margin in the Iberian
peninsula only fell by €750 million compared with 2012, to €3,253 million. This was achieved thanks
to the implementation of a targeted commercial strategy, with the launch and the strengthening of
our value-added products and services, energy efficiency policies and the reduction of fixed costs.
Other positive factors include increased hydroelectric generation and better margins in energy trad-
ing operations.
Unlike Spain (where the electricity demand in the peninsular area fell by 2.2% between 2012 and
2013), the Latin American countries in which the Division operates are characterized by rapid growth
in electricity demand: Peru (+6.6%), Chile (+4.2% in the SIC, +3.8% in the SING), Argentina (+3.6%),
Brazil (+3.4%) and Colombia (+2.4%).
The distribution companies of the Division handled 61,512 GWh of power, with increases in Brazil
(+4.4%), Chile (+4.4%), Peru (+2.7%), Argentina (+1.3%) and Colombia (+1.0%).
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The gross operating margin of Latin American operations came to €3,493 million, an increase of
8.2% despite the adverse impact of drought in the region and the depreciation of local curren-
cies against the euro (which led to a reduction of €350 million). Excluding this effect, the gross
operating margin would have increased by 18%, confirming the region’s position as an important
platform for growth.
This rise in profitability was due, among other things, to the payment by the Argentine government
of a portion of costs not transferred to rates from 2007 to September 2013 (€381 million) and to an
improvement of the generation business in Chile.
International
In 2013, the International Division posted revenues of €7,737 million and a gross operating margin
of €1,405 million, reaching the targets set out in the business plan despite the deterioration in the
business environment. The past year was characterized by numerous critical issues in the countries in
which the Division operates, with a decline in demand and electricity prices, increased competition
in retail markets and increased regulatory pressure from governments. On the operational side, out-
put amounted to 63.2 TWh, a slight decrease compared with 2012. The effect of this decline on the
income statement was offset by the effective operational management of assets and the maximiza-
tion of institutional and regulatory factors. Finally, retail sales totaled 45.7 TWh, a decrease from the
previous year due to the combined effect of developments in sourcing in France and the decline in
demand in Romania and Russia.
In Slovakia, the Division achieved a gross operating margin of €708 million. The availability of nucle-
ar facilities increased further, with an average load factor of 92.3%, making Slovenské elektrárne the
world’s leading operator of VVER plants. Also in the nuclear field, work is continuing on construc-
tion of new units at the Mochovce plant. Once completed, and following the changes introduced to
ensure compliance with new safety requirements determined with stress tests, the plant will be one
of the most advanced systems among those currently in operation in Europe.
In Russia, Enel OGK-5 posted a gross operating margin of €399 million, an increase over the previous
year thanks to higher prices and the initiatives taken to streamline and rationalize the cost structure,
despite the decline in output attributable to the slowdown in demand and the concomitant entry
into the market of our competitors’ new, more efficient units. The sales company RusEnergoSbyt, in
which Enel holds a stake of 49.5%, has continued to diversify its commercial portfolio, achieving a
gross operating margin for 2013 (pro-rated for the interest held by Enel) of about €112 million.
In Romania, the three distribution companies continued their activities to modernize grids and im-
prove service quality, bringing their performance parameters close to the benchmarks typical of the
most advanced countries. This achievement was made possible by the implementation of infrastruc-
ture and management initiatives based on the best practices adopted within the Enel Group. Includ-
ing the performance of the electricity sales companies, the country posted a gross operating margin
of €289 million, an increase of 25% over the previous year.
In France, the termination of the agreement with EDF on the Flamanville 3 project, which gave Enel
anticipated capacity to sell on the market, prompted Enel France to focus on reorganizing its com-
mercial portfolio. The gradual reduction of that anticipated capacity to zero, to be completed by
2015, made it necessary to review the sourcing of power and reduce overhead costs in order to
protect margins in an environment of declining market prices and rising sourcing costs. This laid the
foundations for a more flexible structure, one able to exploit any opportunities that could arise in
the current process of market liberalization.
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EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Renewable Energy Division
In 2013, the Renewable Energy Division continued to pursue its strategy of rapid growth, focused on
emerging markets with abundant natural resources, strong growth in electricity demand and stable
social and economic systems. At the same time, the Division continued to consolidate its presence
in European markets.
Net installed capacity at the end of 2013 amounted to 8.9 GW, an increase of 0.9 GW compared with
2012 (+11.0 %). Net Group electricity generation amounted to 29.5 TWh in 2013, an increase of 4.3
TWh (up 17.3%) on 2012, due primarily to the increase in installed capacity.
The changes in capacity and output are reflected in an increase in the main financial aggregates.
Division revenues amounted in 2013 to €2,827 million, an increase of 4.9% compared with 2012. The
rise was mainly due to higher revenues from the sale of electricity, including incentives, thanks to
increased production. The gross operating margin totaled €1,788 million, up 9.0% from the €1,641
million posted in 2012.
The Division developed major projects during the year.
In the United States, an agreement was reached with GE Capital to raise the Division’s stake in the
Chisholm View (235 MW) and Prairie Rose (200 MW) wind farms to 75%. In the geothermal sector,
the Cove Fort plant in the state of Utah (25 MW) entered service, while the wind segment saw the
start of construction of the Origin facility (150 MW) in Oklahoma.
In Latin America, and in particular Brazil in the states of Bahia, Pernambuco and Rio Grande do
Norte, construction began on three new wind farms with a total installed capacity of 192 MW. In
Chile, the Division completed and connected its first two wind farms to the grid: the Talinay plant, in
the Coquimbo region (90 MW) and the Valle de los Vientos plant, in the region of Antofagasta (90
MW). In Mexico, construction began on two new wind farms totaling 202 MW.
The Division also consolidated its presence in Europe during the year.
In Romania and Greece, photovoltaic plants with 77 MW of capacity were built and connected to
the grid. In Greece, ESSE, an equally held joint venture with Sharp, placed 15 MW of photovoltaic
capacity into service.
The Division strengthened its presence in Italy, thanks to the entry into service of two new photovoltaic
plants at Serre Persano, in the province of Salerno, with a total installed capacity of 21 MW. In Sardinia, a
project to convert a former Eridania sugar refinery into a 50 MW power plant was begun: the initiative is
part of a broader plan to develop the locally sourced biomass generation industry in Italy.
Finally, in South Africa, as part of the renewable energy tender organized by the government, the
Division was awarded the right to enter into electricity supply contracts with the South African util-
ity Eskom for a total of 513 MW, including 314 MW of photovoltaic projects and 199 MW of wind
projects. The photovoltaic systems will use thin-film solar panels produced by the 3SUN factory in
Catania, the equally held joint venture between Enel Green Power, Sharp and STMicroelectronics.
The plant is expected to enter service in 2016. This important achievement places Enel Green Power
among the leading renewable energy players in South Africa and also opens the way to possible
future development opportunities for the Enel Group.
Upstream Gas
The year 2013 was marked by the sale of Enel’s stake in SeverEnergia, one of the largest gas fields in
Russia, to Itera (Rosneft Group) for a total of $1.8 billion. This sale, which produced a gain of about €1
billion, and the concomitant signing of a long-term contract for the supply of gas to the power plants
of Enel OGK-5 on particularly advantageous terms, confirmed the value and competitive advantage
that a selective, focused presence in the upstream gas segment brings to the Group as a whole.
15
Enel’s activities are continuing in Algeria, where the Isarene project is being developed, with the start
of production expected by the end of 2017. The field is estimated to have a plateau of about 3.5 bil-
lion cubic meters. In addition, the second exploration period of the South East Illizi project will follow
the two discoveries made in the first exploration period.
Excellent results have been obtained also in Italy, where Enel has completed a seismic survey and so
far identified a total of four exploration prospects that will be drilled over the next two years and ex-
panded its portfolio with the submission of new applications for exploration permits.
Engineering and Research
During 2013, the Engineering and Research Division was involved in the refurbishment of the conven-
tional and nuclear power plants of the Group and in supervision of the safety and performance of the
nuclear assets of Endesa and Slovenské elektrárne.
The Research unit, in particular, continued to pursue the Group’s strategic research programs.
In Italy, the renovation of the port facilities at the Brindisi power plant was completed. Construction
of a covered coal storage facility at the same site park is under way.
In Sicily, at Porto Empedocle, work began on the partial conversion of the existing power plant from fuel
oil to gas turbine systems. The construction of a regasification terminal within the port area also began.
In Russia, at the Reftinskaya power station, the largest plant in the world for the dry transportation
and storage of ash (DARS) was completed, as were environmental improvements and revamping of
the first 10 units of the power plant. The environmental upgrading of other units is also under way.
In Spain a feasibility study for the environmental upgrading and extension of the useful life of the
Litoral coal-fired plant was carried out. In South America, the Division partnered with Endesa on a
feasibility study for new coal-fired plants.
With regard to the Nuclear area, the monitoring activities of the Nuclear Safety Oversight unit were
strengthened through greater integration with the operating units of the Group’s nuclear facilities
and by sharing best practices with other leading nuclear operators.
At the nuclear power plants in Slovakia and Spain, engineering activities were begun to support the
implementation of improvement measures identified during the stress testing. Finally, the team en-
gaged in the engineering and construction of units 3 and 4 at the Mochovce nuclear power plant was
strengthened further.
In the field of renewables generation, the Research unit was involved in the study and experimen-
tation of new technologies and solutions to improve the integration into the grid of the electricity
produced by distributed generators. Supplementing this effort, work continued on developing new
generation storage systems, aimed at optimizing investment and electricity flows on the grid.
Finally, development work continued on creating energy efficiency solutions and value-added ser-
vices for remote users, industrial districts and residential customers.
Outlook
The Group’s strategic priorities in the period covered by the 2014-2018 Business Plan respond to the
expected structural evolution in the world’s macroeconomic conditions and in the energy industry.
More specifically, the former will continue to move ahead at two speeds: on the one hand the Euro-
pean countries, which are emerging slowly from the crisis; on the other, the emerging economies,
especially those in Latin America, where electricity demand is still expanding rapidly.
In this context, Enel expects the following main trends to drive the evolution of these scenarios: (i)
the emerging markets will continue to fuel global growth; (ii) technological innovation will be one
of the key factors driving trends in the energy sector; (iii) end users will be increasingly well-informed
16
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions about technology and environmental matters; and (iv) regulatory systems will sharpen their focus on
environmental issues and system costs.
In the business plan, the Group confirms the increasingly important role of the emerging markets,
with an investment policy targeted at consolidating its position and simplifying its corporate struc-
ture. Renewables will expand substantially, with careful selection of high-return investment opportu-
nities. Another area of action will be the retail market, energy efficiency and, more generally, value-
added services, a segment with robust growth potential. In this area, as in the smart grid field, Enel
intends to strengthen its leadership position, leveraging the key driver, technological innovation, and
a geographically and technologically well-diversified asset portfolio which forms the foundation of
the Group’s future development.
Reducing debt and generating cash flows will also remain a top priority for the Group. And maximiza-
tion of cash flows is precisely the goal of the plan for optimizing operating costs launched in 2013,
which has already led to the identification of major opportunities for efficiency gains, with results that
have easily exceeded expectations. These opportunities will continue to be pursued in the coming
years, with a special focus on businesses in the mature markets.
The Chief Executive Officer
Fulvio Conti
17
Summary of results
Sintesi dei risultati
TOTAL NET
GENERATION
(TWh)
Total 286.1
ELECTRICITY
SOLD
(TWh)
Total 295.5
ELECTRICITY
TRANSPORTED
(TWh)
Total 404.0
GAS SALES
(billions of m3)
Total 8.6
Abroad
213.2
Italy
72.9
Abroad
203.3
Italy
92.2
Abroad
230.0
Italy
174.0
Abroad
4.5
Italy
4.1
PERFORMANCE FIGURES
FOR 2013
(compared with 2012)
Revenues
€80,535 million
(-5.2%)
Gross
operating
margin
€17,011 million
(+7.6%)
Operating
income
€9,944 million
(+46.1%)
Net
income
€4,780 million
18
29%
Coal
NET
ELECTRICITY
GENERATION
BY SOURCE
286.1
TWh
10%
Oil and
gas turbine
14%
Nuclear
Cicli combinati
INVESTMENT
BY BUSINESS
SEGMENT
€5,959
million
International
€924 million
Iberia &
Latin America
€2,181 million
Sales
€99 million
Generation &
Energy Management
€318 million
Infrastructure & Networks
€1,046 million
Renewable Energy
€1,307 million
Other, eliminations
& adjustments
€84 million
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
Sintesi dei risultati
TOTAL NET
GENERATION
(TWh)
Total 286.1
ELECTRICITY
SOLD
(TWh)
Total 295.5
ELECTRICITY
TRANSPORTED
(TWh)
Total 404.0
GAS SALES
(billions of m3)
Total 8.6
Abroad
213.2
Italy
72.9
Abroad
203.3
Italy
92.2
Abroad
230.0
Italy
174.0
Abroad
4.5
Italy
4.1
PERFORMANCE FIGURES
FOR 2013
(compared with 2012)
Revenues
€80,535 million
(-5.2%)
Gross
operating
margin
€17,011 million
(+7.6%)
Operating
income
€9,944 million
(+46.1%)
Net
income
€4,780 million
29%
Coal
NET
ELECTRICITY
GENERATION
BY SOURCE
286.1
TWh
10%
Oil and
gas turbine
14%
Nuclear
14%
Cicli combinati
Gas combined
cycle
International
€924 million
Iberia &
Latin America
€2,181 million
Sales
€99 million
Generation &
Energy Management
€318 million
Infrastructure & Networks
€1,046 million
Renewable Energy
€1,307 million
Other, eliminations
& adjustments
€84 million
INVESTMENT
BY BUSINESS
SEGMENT
€5,959
million
EMPLOYEES BY
BUSINESS
SEGMENT
71,394
International
11,830
Iberia &
Latin America
22,994
Sales
3,687
Generation &
Energy Management
5,699
Infrastructure & Networks
17,689
Renewable Energy
3,599
Other, eliminations
& adjustments
5,896
80%
Hydroelectric
NET ELECTRICITY
GENERATION
RENEWABLES
93.1
TWh
(33%)
33%
Renewables
13%
Wind
INVESTMENT
IN RENEWABLE
ENERGY
€
1,307
million
6%
Geothermal
1%
Biomass &
cogeneration
48%
Italy
EMPLOYEES
IN RENEWABLE
ENERGY
3,599
EMPLOYEES BY
GEOGRAPHICAL
AREA
71,394
16%
Iberian
peninsula
18%
Latin
America
5%
Russia
19
13%
Other
countries
Performance data
Revenues
Revenues in 2013 amounted to €80,535 million, a decrease of €4,414 million
(-5.2%) compared with 2012. The decline is essentially attributable to the con-
traction in revenues from the sale of electricity, largely due to the decline in
volumes sold, only partly offset by an increase in revenues from the transport of
electricity and the sale of fuels. Revenues for 2013 also include the gain (€964
million) on the disposal of Artic Russia (and indirectly the stake held by the latter
in SeverEnergia, a hydrocarbon extraction company in Russia), in the 4th Quar-
millions of euro
-5.2%
80,535
84,949
2013
2012
ter of 2013.
Millions of euro
Sales
Generation and Energy Management
Infrastructure and Networks
Iberia and Latin America
International
Renewable Energy
Other, eliminations and adjustments
Total
20
2013
16,921
22,919
7,698
30,935
7,737
2,827
(8,502)
80,535
2012 restated
Change
18,351
25,244
8,117
34,169
8,703
2,696
(12,331)
84,949
(1,430)
(2,325)
(419)
(3,234)
(966)
131
3,829
(4,414)
-7.8%
-9.2%
-5.2%
-9.5%
-11.1%
4.9%
31.1%
-5.2%
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
millions of euro
+7.6%
17,011
Gross operating margin
The gross operating margin for 2013 totaled €17,011 million, up 7.6% com-
pared with 2012. The margin for 2013 includes the gain on the disposal of Artic
15,809
Russia, while that for 2012 reflects an adjustment (in the amount of €929 million)
2013
2012
made for comparative purposes only in compliance with the new version of IAS
19 upon first-time application. The adjustment mainly regards the recognition of
charges for the transition-to-retirement plan for certain employees in Italy at the
end of 2012. Excluding those items, the decline in the gross operating margin is
mainly attributable to the expected contraction in the results achieved in Spain
and conventional generation activities in Italy, only partly offset by the good per-
formance of the Sales Italy business area, the Renewable Energy Division and
Latin American operations, with the latter posting their result despite adverse
developments in the exchange rates of local currencies against the euro.
Millions of euro
Sales
Generation and Energy Management
Infrastructure and Networks
Iberia and Latin America
International
Renewable Energy
Other, eliminations and adjustments
Total
2013
866
1,176
4,008
6,746
1,405
1,788
1,022
2012 restated
Change
609
1,091
3,623
7,230
1,650
1,641
(35)
257
85
385
(484)
(245)
147
1,057
1,202
42.2%
7.8%
10.6%
-6.7%
-14.8%
9.0%
-
7.6%
17,011
15,809
millions of euro
Operating income
+46.1%
9,944
6,806
2013
2012
Operating income came to €9,944 million in 2013, an increase of 46.1% com-
pared with 2012 (€6,806 million), reflecting in part the adjustment associated
with the first-time application of IAS 19 Revised. The change in depreciation,
amortization and impairment losses reflects the effect of the difference in the
impairment recognized in 2013 and 2012 on the goodwill of a number of cash
generating units (€744 million in 2013 and €2,584 million in 2012). More spe-
cifically, the impairment recognized in 2013 was entirely accounted for by the
writedown of part of the goodwill of the “Enel OGK-5” cash generating unit
to reflect the expected contraction in estimated future cash flows, as a result
of the continuing slowdown in economic growth and the consequent decline
in the forecast growth in prices in the medium term in the Russian market. In
this regard, an impairment loss of €112 million had already been recognized
in 2012 following the emergence of the first signs of change in outlook and a
deterioration in the profitability of that CGU. In addition, the impairment losses
recognized in 2012 included impairment of €2,392 million on the goodwill of
the “Endesa-Iberia” CGU.
21
Millions of euro
Sales
Generation and Energy Management
Infrastructure and Networks
Iberia and Latin America
International
Renewable Energy
Other, eliminations and adjustments
Total
Net income
2013
362
554
3,028
3,836
85
1,171
908
9,944
2012 restated
Change
103
505
2,629
1,675
978
1,081
(165)
6,806
259
49
399
2,161
(893)
90
1,073
3,138
-
9.7%
15.2%
-
-91.3%
8.3%
-
46.1%
Net income pertaining to shareholders of the Parent Company amounted to
€3,235 million in 2013, compared with €238 million the previous year. The increase
is essentially attributable to the gain on the disposal of Artic Russia, the difference
in the impairment losses recognized in respect of goodwill in 2013 and 2012, the
adjustment booked on first-time application of IAS 19 Revised (equal to €627
millions of euro
6.000
5.000
4.000
3.000
2.000
1.000
0
4,780
1,545
3,235
1,442
1,204
238
million net of tax effects and non-controlling interests) and the improvement in
2013
2012
financial performance.
Earnings per share
€0.34
Earnings per share
€0.03
Group
Non-controlling
interests
Financial data
Net capital employed
Net capital employed, including net assets held for sale of €221 million, amounted
to €92,701 million at December 31, 2013 and was financed by equity pertaining
to shareholders of the Parent Company and non-controlling interests of €52,839
million and net financial debt of €39,862 million. At December 31, 2013, the debt/
equity ratio came to 0.75 (0.82 at December 31, 2012).
millions of euro
10.000
92,701
-2.5%
95,035
52,839
39,862
52,087
42,948
5.000
8.000
6.000
4.000
2.000
0
Net financial debt came to €39,862 million, a decrease of €3,086 million compared
with December 31, 2012. More specifically, cash flows from operations, the disposal
of a number of non-strategic assets and the capital increase carried out by the
Chilean subsidiary Enersis were only partially used for capital expenditure in the
period and the payment of dividends.
2013
2012
Group shareholders’
equity per share
€3.82
Group shareholders’
equity per share
€3.80
Net financial
debt
Shareholders’ equity
(including non-controlling
interests)
22
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
millions of euro
-30.5%
7,241
Cash flow from operations
10,415
Cash flow from operations amounted to €7,241 million in 2013, down €3,174 mil-
lion compared with the previous year.
2013
2012
millions of euro
Capital expenditure
-15.8%
5,959
7,075
2013
2012
Millions of euro
Sales
Generation and Energy Management
Infrastructure and Networks
Iberia and Latin America
International
Renewable Energy
Other, eliminations and adjustments
Total
Capital expenditure amounted to €5,959 million in 2013 (of which €5,346
million in respect of property, plant and equipment), a decrease of €1,116 million
compared with 2012.
2013
99
318
1,046
2,181
924
1,307 (2)
84
5,959
2012 restated
Change
97
403
1,497
2,497 (1)
1,161
1,257
163 (3)
7,075
2
(85)
(451)
(316)
(237)
50
(79)
(1,116)
2.1%
-21.1%
-30.1%
-12.7%
-20.4%
4.0%
-48.5%
-15.8%
(1) The figure for 2012 does not include €73 million regarding units classified as “held for sale”.
(2) The figure for 2013 does not include €1 million regarding units classified as “held for sale”.
(3) The figure for 2012 does not include €1 million regarding units classified as “held for sale”.
Operations
Net electricity generated by Enel (TWh)
Electricity transported on the Enel distribution network (TWh)
Electricity sold by Enel (TWh) (1)
Gas sold to end users (billions of m3)
Employees at year-end (no.) (2)
Italy
Abroad
Total
Italy
Abroad
Total
2013
213.2
174.0
203.3
4.5
72.9
230.0
92.2
4.1
286.1
404.0
295.5
8.6
2012
220.4
175.7
214.5
4.4
74.4
238.5
102.3
4.3
294.8
414.2
316.8
8.7
34,451
36,943
71,394
36,205
37,497
73,702
(1) Excluding sales to resellers.
(2) Includes 37 in units classified as “held for sale” at December 31, 2013 and at December 31, 2012.
23
Net electricity generation by source
(2013)
14%
14%
10%
33%
29%
Net electricity generated by Enel in 2013 fell by 8.7 TWh (-3.0%), with a con-
traction in output abroad (-7.2 TWh) and a decline in generation in Italy (-1.5
TWh). More specifically, an increase in hydroelectric generation (+6.2 TWh), at-
tributable to an increase in water availability, and in generation from other re-
newables (+3.3 TWh), thanks to the entry into service of new wind plants, were
more than offset by the contraction in conventional thermal generation (-17.4
TWh) and in nuclear generation (-0.8 TWh).
Renewables
Coal
Oil and gas turbine
Nuclear
Gas combined cycle
Electricity transported on the Enel distribution network came to 404 TWh,
a decrease of 10.2 TWh (-2.5%), largely due to the fall in electricity demand in
Italy and Spain.
Electricity sold by geographical area
(2013)
7%
31%
Electricity sold by Enel in 2013 decreased by 21.3 TWh (-6.7%), mainly attribut-
able to a decline in amounts sold in Italy (-10.1 TWh) and the Iberian peninsula
(-6.6 TWh), only partly offset by an increase in sales in Latin America (+1.8 TWh).
21%
8%
At December 31, 2013, Enel Group employees numbered 71,394 (73,702 at the
end of 2012). The Group’s workforce contracted by 2,308 employees in 2013,
attributable to the balance between new hirings and terminations (for a net
decrease of 2,336), partially offset by the change in the scope of consolidation,
33%
largely attributable to the acquisition of PowerCrop (an increase of 28).
Italy
Iberian peninsula
Russia
Latin America
Other countries
Employees by geographical area
(at December 31, 2013)
18%
5%
13%
16%
Italy
Iberian peninsula
Russia
Latin America
Other countries
Sales
Generation and Energy Management
Infrastructure and Networks
Iberia and Latin America
International
Renewable Energy
48%
Other, eliminations and adjustments
Total
Employees (no.)
2013
3,687
5,699
17,689
22,994
11,830 (1)
3,599
5,896
71,394
2012
3,674
6,043
18,632
22,807
12,652
3,512
6,382
73,702
(1) Of which 37 in units classified as “held for sale” at December 31, 2013 and at December 31, 2012.
24
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
Restatement of the balance sheet
and the income statement
The main impacts of the application, as from January 1, 2013 with retrospective effect, of the new ver-
sion of “IAS 19 - Employee benefits” on the balance sheet and income statement figures reported for
comparative purposes only in these consolidated financial statements are as follows:
> as the corridor approach may no longer be used, all actuarial gains and losses are recognized di-
rectly in equity. Accordingly, the amortization accruing in 2012 in respect of the excess gains and
losses outside the corridor, as quantified at December 31, 2012, was eliminated from the income
statement (€19 million). In addition, the actuarial gains and losses not recognized in application of
the previous method were recognized in equity, with a consequent adjustment of the respective
defined-benefit obligation and the net plan assets recognized in the balance sheet;
> as the recognition of past service cost in the income statement may no longer be deferred, the
portion not recognized at December 31, 2012 was recognized as an increase in the defined-benefit
obligation, posted to equity for the amount pertaining to previous years and to profit or loss for
the amount accruing for 2012. More specifically, the amount recognized in the income statement
involved €932 million in respect of charges for the transition-to-retirement plan established in 2012
for certain employees in Italy;
> in application of the new standard, interest income on plan assets is recognized in substitution of
the expected return on those assets. That interest is no longer reported under financial income but
rather is offset against the financial expense associated with the benefit plans.
In all cases, the theoretical tax effects were calculated and amounts pertaining to non-controlling
interests were allocated.
In addition, in 2013, the Group adopted a new accounting treatment as part of the project to har-
monize the treatment of the recognition and presentation of the various types of environmental cer-
tificates (CO2 allowance, green certificates, energy efficiency certificates, etc.). The new approach is
based on the business model of the companies involved in the incentive mechanisms for environmen-
tal certificates and led to a number of reclassifications in the consolidated income statement.
Finally, as a result of the definitive allocation of the purchase prices of the Kafireas pipeline, Stipa
Nayaá and Eólica Zopiloapan, companies operating in the Renewable Energy Division, which was com-
pleted after December 31, 2012, the balance-sheet accounts at that date have been restated to reflect
the measurement at fair value of the net assets acquired.
For more information, please see note 4 of these consolidated financial statements. The following
tables present the effects on the revenues, gross operating margin and operating income of the
Group’s divisions.
25
Revenues
Millions of euro
Sales
Generation and Energy Management
Infrastructure and Networks
Iberia and Latin America
International
Renewable Energy
Other, eliminations and adjustments
Total
Gross operating margin
Millions of euro
Sales
Generation and Energy Management
Infrastructure and Networks
Iberia and Latin America
International
Renewable Energy
Other, eliminations and adjustments
Total
Operating income
Millions of euro
Sales
Generation and Energy Management
Infrastructure and Networks
Iberia and Latin America
International
Renewable Energy
Other, eliminations and adjustments
Total
2012
18,351
25,237
8,117
34,169
8,703
2,696
(12,384)
84,889
2012
689
1,271
4,138
7,212
1,650
1,681
97
16,738
2012
183
685
3,144
1,657
978
1,121
(33)
7,735
New environmental
certificates policy
-
7
-
-
-
-
53
60
IAS 19/R effect
(80)
(180)
(515)
18
-
(40)
(132)
(929)
IAS 19/R effect
(80)
(180)
(515)
18
-
(40)
(132)
(929)
2012
restated
18,351
25,244
8,117
34,169
8,703
2,696
(12,331)
84,949
2012
restated
609
1,091
3,623
7,230
1,650
1,641
(35)
15,809
2012
restated
103
505
2,629
1,675
978
1,081
(165)
6,806
26
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Sustainability indicators
ISO 14001-certified net efficient capacity (% of total)
Average efficiency of thermal plants (%)
Total specific emissions of CO2
from net generation (gCO2/kWheq)
“Zero-emission” generation (% of total)
Injury frequency rate (1)
Serious injury rate (2)
Serious and fatal injuries at Enel
Serious and fatal injuries at contractors
Average hours of training per employee
Verified violations of the Code of Ethics
2013
94.0
39.8
391
46.7
1.42
0.07
13
27
39.8
27
2012
92.6
39.9
418
42.4
1.98
0.10
15
34
44.8
41
Change
1.4
(0.1)
(27)
4.3
(0.56)
(0.03)
(2)
(7)
(5.0)
(14)
1.5%
-0.3%
-6.5%
10.1%
-28.3%
-30.0%
-13.3%
-20.6%
-11.2%
-34.1%
(1) The indicator is calculated as the ratio between the total number of injuries and the number of hours worked, in millions (INAIL standard).
(2) The indicator is calculated as the ratio between the number of days lost for injuries and the number of hours worked, in thousands (INAIL
standard).
The proportion of ISO 14001-compliant capacity was equal
utable to constant and intensive information, training and
to 94.0% at December 31, 2013, an increase of 1.5% on
awareness-raising activities conducted in order to dissemi-
the previous year. The rise reflects new certifications of the
nate a culture of safety at all levels and to promote the adop-
combined-cycle plant at Pego, the diesel plant on Ibiza, the
tion of safe behavior, as well as the ongoing implementation
combined-cycle plant at Marcinelle and new wind farms of
of measures to enhance workplace health and safety stand-
Enel Green Power.
ards and management processes.
In 2013 the average efficiency of thermal plants was in line
Serious and fatal injuries involving Enel personnel decreased
with that of the previous year.
by 13.3% compared with 2012, even though there were 6
The decrease in specific emissions of CO2 is attributable to in-
creased renewables generation.
fatal accidents involving Enel employees. Serious and fatal
injuries involving the employees of contractors working for
In 2013, 46.7% of Enel’s generation came from zero emis-
Enel fell by 20.6% compared with 2012, thanks to ongoing
sions resources, an increase of 10.1% on 2012. The increase
implementation of measures to enhance workplace health
is due both to the contingent improvement in water condi-
and safety in all stages of the tendering process.
tions in 2013 compared with 2012, with availability above
The average hours of training per employee declined by
the average for the last five years, and to the structural fac-
11.2% owing to the greater focus on specific segments of the
tor of the increase in renewables capacity during the year.
workforce, although a number of large-scale projects were
The 940 MW of new renewables capacity installed in 2013
continued.
confirm our commitment to expanding carbon-free genera-
As regards the Code of Ethics, the number of reports received
tion, which will continue in the coming years.
in 2013 was broadly in line with 2012, while verified viola-
The injury frequency and severity rates declined by 28.3%
tions declined.
and 30.0% compared with 2012. The improvement is attrib-
27
Overview of the Group’s operations,
performance and financial position
Definition of performance indicators
In order to present the results of the Group and analyze its
Net current assets: calculated as the difference between “Cur-
financial structure, Enel has prepared separate reclassified
rent assets” and “Current liabilities” with the exception of:
schedules that differ from those envisaged under the IFRS-
> “Long-term financial receivables (short-term portion)”,
EU adopted by the Group and presented in the consolidated
“Receivables for factoring advances”, “Securities”, “Finan-
financial statements. These reclassified schedules contain
cial receivables and cash collateral” and “Other financial
different performance indicators from those obtained di-
receivables”;
rectly from the consolidated financial statements, which
> “Cash and cash equivalents”;
management feels are useful in monitoring Group perfor-
> “Short-term loans” and the “Current portion of long-
mance and representative of the financial performance of
term loans”.
the Group’s business. In accordance with Recommendation
CESR/05-178b, published on November 3, 2005, the criteria
Net assets held for sale: calculated as the algebraic sum of
used to calculate these indicators are described below.
“Assets held for sale” and “Liabilities held for sale”.
Gross operating margin: an operating performance indica-
Net capital employed: calculated as the algebraic sum of
tor, calculated as “Operating income” plus “Depreciation,
“Net non-current assets” and “Net current assets”, provi-
amortization and impairment losses”.
sions not previously considered, “Deferred tax liabilities”
and “Deferred tax assets”, as well as “Net assets held for
Group net ordinary income: this is Group net income pro-
sale”.
duced by ordinary operations.
Net financial debt: a financial structure indicator, deter-
Net non-current assets: calculated as the difference between
mined by “Long-term loans”, the current portion of such
“Non-current assets” and “Non-current liabilities” with the
loans and “Short-term loans” less “Cash and cash equiva-
exception of:
> “Deferred tax assets”;
lents”, “Current financial assets” and “Non-current finan-
cial assets” not previously considered in other balance-
> “Securities held to maturity”, “Financial investments in
sheet indicators. More generally, the net financial debt of
funds or portfolio management products at fair value
the Enel Group is calculated in conformity with paragraph
through profit or loss”, “Securities available for sale” and
127 of Recommendation CESR/05-054b implementing
“Other financial receivables”;
Regulation 809/2004/EC and in line with the CONSOB in-
> “Long-term loans”;
structions of July 26, 2007, net of financial receivables and
> “Post-employment and other employee benefits”;
long-term securities.
> “Provisions for risks and charges”;
> “Deferred tax liabilities”.
28
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Main changes in the scope
of consolidation
In the two periods under review, the scope of consolidation changed as a result of the following main transactions.
2012
2013
> acquisition, on January 13, 2012, of an additional 49% of
> acquisition, on March 22, 2013, of 100% of Parque Eólico
Rocky Ridge Wind Project, which was already a subsidiary
Talinay Oriente, a company operating in the wind genera-
(consolidated line-by-line) controlled through a 51% stake;
tion sector in Chile;
> acquisition, on February 14, 2012, of the remaining
> acquisition, on March 26, 2013, of 50% of PowerCrop, a
50% of Enel Stoccaggi, a company in which the Group
company operating in the biomass generation sector; in
already held a 50% interest. As from that date the com-
view of the joint control exercised over the company to-
pany has been consolidated on a line-by-line basis (pre-
gether with another operator, the company is consolidated
viously consolidated proportionately in view of the joint
on a proportionate basis;
control exercised);
> disposal, on April 8, 2013, of 51% of Buffalo Dunes Wind
> acquisition, on June 27, 2012, of an additional 50% of a
Project, a company operating in the wind generation sector
number of companies in the Kafireas wind power pipeline
in the United States;
in Greece, which had previously been included under “Elica
> acquisition, on May 22, 2013, of 26% of Chisholm View
2” and accounted for using the equity method in view of
Wind Project and Prairie Rose Wind Project, both operating
the 30% stake held; as from that date the companies have
in wind generation in the United States, in which the Group
therefore been consolidated on a line-by-line basis;
previously held an interest of 49%. Following the acquisi-
> acquisition, on June 28, 2012, of 100% of Stipa Nayaá,
tion, the two companies have been consolidated on a line-
a Mexican company operating in the wind generation
by-line basis rather than using equity method accounting;
sector;
> acquisition, on August 9, 2013, of 70% of Domus Energia
> disposal, on August 2, 2012, of the entire capital of Water
(now Enel Green Power Finale Emilia), a company operating
& Industrial Services Company (Wisco), which operates in
in the biomass generation sector;
the waste water treatment sector in Italy;
> acquisition, on October 31, 2013, of 100% of Compañía
> disposal, on October 9, 2012, of the entire share capital of
Energética Veracruz, a company operating in the develop-
Endesa Ireland, a company operating in the generation of
ment of hydroelectric plants in Peru;
electricity;
> disposal, on November 13, 2013, of the 40% stake in Artic
> acquisition, on October 12, 2012, of the additional 58%
Russia, with the consequent deconsolidation of the interest
of Trade Wind Energy, a company in which the Group had
held by the latter in SeverEnergia;
held a stake of 42%; as a result of the purchase, the com-
> acquisition, in November and December 2013, of nine
pany is no longer consolidated using the equity method
companies (representing three business combinations) op-
but is consolidated on a line-by-line basis;
erating in the development of wind power projects in the
> acquisition, on December 21, 2012, of 99.9% of Eólica Zo-
United States;
piloapan, a Mexican company operating in the wind gen-
> disposal, on December 20, 2013, of the remaining stake in
eration sector.
Enel Rete Gas, which had previously been accounted for us-
ing the equity method.
The balance-sheet figures at December 31, 2013 exclude
(unless otherwise indicated) assets and liabilities held for
sale, which essentially include Marcinelle Energie and other
smaller companies that, on the basis of the status of ne-
gotiations for their sale, fall within the scope of IFRS 5.
29
Group performance
Millions of euro
Total revenues
Total costs
Net income/(charges) from commodity risk management
2013
80,535
63,146
(378)
2012
restated
84,949
69,178
38
GROSS OPERATING MARGIN
17,011
15,809
Depreciation, amortization and impairment losses
OPERATING INCOME
Financial income
Financial expense
7,067
9,944
2,453
5,266
9,003
6,806
2,185
5,197
Total financial income/(expense)
(2,813)
(3,012)
Share of income/(expense) from investments
accounted for using the equity method
INCOME BEFORE TAXES
Income taxes
NET INCOME FROM CONTINUING OPERATIONS
NET INCOME FROM DISCONTINUED OPERATIONS
NET INCOME (Group and non-controlling interests)
Net income pertaining to shareholders of Parent Company
Net income pertaining to non-controlling interests
Revenues
Millions of euro
Electricity sales and transport and contributions from Electricity Equalization Fund
and similar bodies
Gas sold and transported to end users
Gains on the disposal of assets
Remeasurement at fair value after changes in control
Other services, sales and revenues
Total
86
7,217
2,437
4,780
-
4,780
3,235
1,545
2013
67,285
4,451
944
21
7,834
80,535
88
3,882
2,440
1,442
-
1,442
238
1,204
2012
restated
71,322
4,402
6
16
9,203
84,949
Change
(4,414)
(6,032)
(416)
1,202
(1,936)
3,138
268
69
199
(2)
3,335
(3)
3,338
-
3,338
2,997
341
-5.2%
-8.7%
-
7.6%
-21.5%
46.1%
12.3%
1.3%
6.6%
-2.3%
85.9%
-0.1%
-
-
-
-
28.3%
Change
(4,037)
49
938
5
(1,369)
(4,414)
-5.7%
1.1%
-
31.2%
-14.9%
-5.2%
Revenues from electricity sales and transport and contri-
an increase in revenues from sales on electricity exchanges,
butions from Electricity Equalization Fund and similar
which more than offset the decline in sales under bilateral
bodies in 2013 amounted to €67,285 million, down €4,037
contracts entered into by the generation company;
million compared with 2012 (-5.7%). The decrease is attribut-
> a decline of €1,243 million in revenues from electricity
able to the following factors:
trading, reflecting a decline in volumes handled;
> a decline of €3,621 million in revenues from the sale of
> a decrease of €401 million in revenues from contributions
electricity to end users, of which €2,111 million on regu-
from the Electricity Equalization Fund and similar bodies,
lated markets and €1,510 million on free markets. The
essentially attributable to the fall in revenues from extra-
decrease is essentially due to the decline in quantities of
peninsular generation in Spain, reflecting lower volumes
electricity sold as a result of weakening demand, partly
generated and the negative effects of the entry into force
offset by a rise in revenues from the wholesale electricity
of Royal Decree Law 20/2012 starting from the 2nd Half
business (€648 million); the latter is mainly attributable to
of 2012;
30
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
> an increase of €580 millions in revenues from the trans-
million in respect of Trade Wind Energy, €4 million in respect
port of electricity, due essentially to the increase in rev-
of Sociedad Eólica de los Lances and €1 million in respect
enues from the transport of electricity for other operators.
of Enel Stoccaggi. In all three of these cases, the gain re-
Revenues from gas sold and transported to end users
the Group prior to acquiring additional interests giving the
amounted to €4,451 million, up €49 million (1.1%) com-
Group full control of those companies.
fers to the remeasurement of the net assets already held by
pared with the previous year. This performance essentially
reflects both the increase in quantities sold and the increase
Income from other services, sales and revenues in 2013
in average sales prices in Spain and Portugal due to develop-
amounted to €7,834 million (€9,203 million in 2012), a de-
ments in the international energy market and the revision of
crease of €1,369 million (-14.9%) compared with the previ-
a number of rate components.
ous year. The fall is essentially attributable to the following
factors:
Gains on the disposal of assets amounted to €944 million
> a decrease of €1,651 million in revenues from the sale of
in 2013 and mainly regard the gain on the disposal of Artic
Russia and, indirectly, the stake held in SeverEnergia (€964
other goods, mainly due to lower sales of CO2 emissions
allowances and other environmental certificates;
million), and the sale of 51% of the Buffalo Dunes Wind Pro-
> the recognition in 2012 by the Authority for Electricity
ject (€20 million). These gains were partly offset by a partial
and Gas (Resolution 157/2012) of the right to be reim-
adjustment (€43 million) of the result of the disposal of cer-
bursed for charges incurred by the Group as a result of
tain renewable generation assets to Acciona in 2009, as part
the termination of the Electrical Worker Pension Fund
of Enel’s acquisition of an additional 25.01% of Endesa.
(FPE) as from January 1, 2000, in the amount of €615
million;
The gain from remeasurement at fair value after changes
> the payment of a government grant of €381 million to the
in control amounted to €21 million in 2013 (€16 million
Argentine distribution company Edesur under the provi-
in 2012). The gain is mainly attributable to the remeasure-
sions of Resolución 250/2013 concerning the Mecanismo
ment at fair value of the net assets attributable to the Group
de Monitoreo de Costos;
(totaling 49% of the company) following the loss of control
> an increase of €696 million in revenues from the sale of
of the Buffalo Dunes Wind Project, in accordance with the
fuels for trading, including revenues for shipping services,
provisions of IFRS 3 Revised. In 2012, the gains included €11
essentially due to an increase in volumes handled in Italy.
Costs
Millions of euro
Electricity purchases
Consumption of fuel for electricity generation
Fuel for trading and natural gas for sale to end users
Materials
Personnel
Services, leases and rentals
Other operating expenses
Capitalized costs
Total
2013
2012
restated
28,297
30,080
6,883
5,096
1,577
4,596
15,310
2,837
(1,450)
63,146
8,653
4,840
3,123
5,789
15,666
2,774
(1,747)
69,178
Change
(1,783)
(1,770)
256
(1,546)
(1,193)
(356)
63
297
(6,032)
-5.9%
-20.5%
5.3%
-49.5%
-20.6%
-2.3%
2.3%
-17.0%
-8.7%
31
Costs for electricity purchases in 2013 amounted to
million) of the termination of the transition-to-retirement
€28,297 million, a decrease of €1,783 million (-5.9%). The
plan after no employees opted to participate and the fact
decrease is essentially attributable to the combined effect
that a significant number of those entitled to participate in
of a decline in costs purchases of electricity through bilat-
that plan instead have opted to participate in the mecha-
eral contracts (€1,166 million) and lower costs for electric-
nism provided for under Article 4 of the Fornero Act, as the
ity purchases on domestic and foreign markets (€1,228
latter offers better financial and organizational conditions,
million), largely connected with the decrease in demand.
making the earlier plan unattractive.
These factors were partially offset by an increase in pur-
chases on electricity exchanges (€608 million).
The Enel Group’s workforce at December 31, 2013 num-
bered 71,394 employees (73,702 at December 31, 2012),
Costs for the consumption of fuel for electricity genera-
about 52% of whom were employed abroad.
tion in 2013 amounted to €6,883 million, a decrease of
The Group’s workforce decreased by 2,308 during the year,
€1,770 million on the previous year (-20.5%). The decrease
reflecting the balance between new hirings and termina-
reflects the decline in volumes of electricity from thermal
tions (a decrease of 2,336) and the change in the scope
generation and an improvement in the fuel mix, associated
of consolidation, essentially attributable to the acquisition
with a decrease in the unit prices of raw materials.
of PowerCrop (28 employees). At December 31, 2013, the
Costs for the purchase of fuel for trading and natural gas
sale, comprising the Belgian company Marcinelle Energie,
for sale to end users came to €5,096 million, an increase
was 37.
of €256 million (5.3%) compared with 2012. The rise is
The change, compared with December 31, 2012, breaks
largely attributable to natural gas and developments in its
down as follows:
number of employees in units classified as asset held for
average purchase price, which is correlated with changes
in the prices of petroleum products.
Costs for materials amounted to €1,577 million in 2013, a
decrease of €1,546 million compared with 2012, mainly as
a result of a decline in costs for provisioning CO2 emissions
allowances and environmental certificates.
Balance at December 31, 2012
Change in scope of consolidation
Hirings
Terminations
Balance at December 31, 2013 (1)
73,702
28
2,612
(4,948)
71,394
(1) Includes 37 in units classified as “held for sale” (37 at December 31, 2012).
Personnel costs in 2013 totaled €4,596 million, a decrease
of €1,193 million (-20.6%) compared with 2012.
Costs for services, leases and rentals in 2013 amounted
More specifically, the decline reflected the recognition in
to €15,310 million, a decrease of €356 million (-2.3%) com-
2012 – partly as a result of the restatement carried out for
pared with 2012. The change is essentially attributable to
comparative purposes only in the first-time application of
the decrease in electricity transport costs (€218 million), re-
IAS 19 Revised – of charges in the amount of €970 million
lated to the decline in consumption in the main markets in
in respect of the transition-to-retirement plan established
which the Group operates. Another factor was the decrease
for certain employees in Italy at the end of 2012, as well as
in operating costs of electrical systems (€93 million), includ-
lower personnel costs associated to the decline in the av-
ing fees for transport capacity use rights in respect of the
erage workforce for the year. In addition, the agreements
Energy Markets Operator (EMO).
signed on September 6, 2013 implementing the frame-
work agreement of May 9, 2013, laying out the approach
Other operating expenses in 2013 amounted to €2,837
to be taken in activating the measures provided for in Ar-
million, an increase of €63 million compared with the previ-
ticle 4, paragraphs 1-7-ter, of Law 92/2012 (the Fornero
ous year (2.3%). More specifically, the rise is mainly attribut-
Act) led to the recognition of a net expense of €858 million
able to an increase in taxes and duties, largely associated
(taking account of the partial reversal of certain liabilities
with taxes on emissions in Spain, following the entry into
in respect of other benefits previously awarded such em-
force of Law 15/2012 in that country, and greater charges
ployees in the amount of €38 million). These charges, how-
for emissions, mainly offset by the reduction in provisions
ever, were more than offset by the positive effect (€1,028
for risks and charges (€383 million).
32
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Capitalized costs amounted to €1,450 million in 2013
The share of income/(expense) from investments ac-
(€1,747 million in 2012), with the decrease mainly attribut-
counted for using the equity method showed net income
able to a decline in investments.
of €86 million in 2013, largely in line with the previous year.
Net income/(charges) from commodity risk manage-
Income taxes for 2013 amounted to €2,437 million (€2,440
ment showed net charges of €378 million in 2013 (net in-
million in 2012) equal to 33.8% of taxable income, com-
come of €38 million in the previous year). More specifically,
pared with 62.9% in 2012. More specifically, the change in
the net charges for 2013 include €264 million of net realized
the tax burden in 2013 reflects the recognition in 2012 of
charges for the period (€219 million of net income in 2012)
the impairment losses on goodwill with no corresponding
and net unrealized charges from the fair value measure-
tax benefit and the effect of greater essentially tax-exempt
ment of derivatives positions open at the end of the year in
capital gains in 2013.
the amount of €114 million (€181 million in 2012).
Depreciation, amortization and impairment losses to-
taled €7,067 million in 2013, a decrease of €1,936 million
(-21.5%). The decrease is attributable to a decrease in im-
pairment losses on assets, net of any writebacks, in the
amount of €1,817 million, a decline in depreciation and
amortization of €187 million, partially offset by an increase
of €68 million in net impairment losses on receivables. More
specifically, the decrease in impairment losses is essentially
attributable to the effect of the impairment recognized in
the two years examined here on goodwill. In 2012, impair-
ment losses, net of any writebacks, were recognized in the
total amount of €2,819 million, essentially in respect of the
impairment of goodwill of the cash generating units Ende-
sa-Iberia (€2,392 million), Enel OGK-5 (€112 million) and
Endesa Ireland (€67 million), as well as the adjustment to
estimated realizable value of the net assets of Marcinelle En-
ergie (€145 million). Impairment losses in 2013 amounted
to €1,002 million and include €744 million in respect of the
partial writedown of the goodwill of the Enel OGK-5 cash
generating unit.
Operating income in 2013 amounted to €9,944 million, an
increase of €3,138 million compared with the previous year
(46.1%), taking account of the decrease in depreciation,
amortization and impairment losses noted above.
Net financial expense in 2013 totaled €2,813 million, a
decrease of €199 million compared with the previous year
(€3,012 million). The fall is mainly attributable to a decrease in
financial expense in respect of the accretion of provisions for
employee benefits and the positive impact of exchange rate
differences. These factors were partly offset by a decrease in
income from equity investments, which in 2012 included the
gain on the disposal of the interest in Terna, as well as by an
increase in net charges on derivatives transactions.
33
Analysis of the Group’s financial position
Millions of euro
Net non-current assets:
- property, plant and equipment and intangible assets
- goodwill
- equity investments accounted for using the equity method
- other net non-current assets/(liabilities)
Total
Net current assets:
- trade receivables
- inventories
- net receivables due from Electricity Equalization Fund and similar bodies
- other net current assets/(liabilities)
- trade payables
Total net current assets
Gross capital employed
Sundry provisions:
- post-employment and other employee benefits
- provisions for risks and charges and net deferred taxes
Total provisions
Net assets held for sale
Net capital employed
Total shareholders’ equity
Net financial debt
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
99,445
15,015
647
(1,236)
113,871
11,533
3,586
(2,567)
(4,530)
(13,004)
(4,982)
108,889
(3,696)
(12,713)
(16,409)
221
92,701
52,839
39,862
103,399
(3,954)
15,910
1,115
(962)
(895)
(468)
(274)
119,462
(5,591)
11,719
3,338
(2,435)
(5,295)
(13,903)
(6,576)
(186)
248
(132)
765
899
1,594
112,886
(3,997)
(4,542)
(13,618)
(18,160)
309
95,035
52,087
42,948
846
905
1,751
(88)
(2,334)
752
(3,086)
-3.8%
-5.6%
-42.0%
28.5%
-4.7%
-1.6%
7.4%
5.4%
-14.4%
-6.5%
24.2%
-3.5%
-18.6%
-6.6%
9.6%
-28.5%
-2.5%
1.4%
-7.2%
Property, plant and equipment and intangible assets (in-
quisition of control of a number of minor companies of the
cluding investment property) came to €99,445 million at
Renewable Energy Division.
December 31, 2013, a decrease of €3,954 million. The de-
crease is essentially attributable to depreciation, amortiza-
Equity investments accounted for using the equity method
tion and impairment losses for the year (€5,632 million) and
amounted to €647 million, down €468 million compared
exchange rate losses (€3,970 million), partly offset by invest-
with December 31, 2012. The decrease reflects the disposal
ments (€5,959 million) and changes in the scope of consoli-
in the 4th Quarter of 2013 of the interests held in SeverEner-
dation (€593 million). The latter are largely accounted for by
gia and Enel Rete Gas (€395 million), following their reclas-
acquisitions of a number of companies operating in renewa-
sification under assets held for sale.
bles generation in the United States.
Other net non-current
liabilities at December 31, 2013
Goodwill amounted to €15,015 million, a decrease of €895
amounted to €1,236 million, an increase of €274 million com-
million compared with December 31, 2012. The reduction
pared with December 31, 2012 (net liabilities of €962 million).
mainly reflects impairment losses of the Enel OGK-5 cash
The change is attributable to the following factors:
generating unit (€744 million) and the net loss recognized
> an increase of €196 million in net non-current financial
from the translation at current exchange rates of goodwill
liabilities, mainly due to the adjustment of the fair value
expressed in currencies other than the euro, in particular that
of the investments in Echelon and Bayan Resources (-€54
on the CGUs associated with acquisitions in Russia. These ef-
million) and the fair value of financial derivatives (-€213
fects were only partly offset by the recognition (for some on
million). More specifically, the latter change reflects the
a provisional basis) of the goodwill associated with the ac-
increase in net assets in respect of cash flow hedge deriva-
34
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
tives on interests rates, which was more than offset by the
> a decrease of €899 million in trade payables.
decrease in the net fair value of analogous derivatives on
exchange rates. These negative factors were partly offset
Sundry provisions, totaling €16,409 million, fell by €1,751
by the increase in deferred financial charges (€70 million);
million compared with 2012. This change is connected with
> an increase of €78 million in net other non-current liabili-
the following factors:
ties, mainly due to the increase in sundry tax liabilities aris-
> a decrease of €846 million in provisions for post-employ-
ing in respect of higher taxes on emissions in Spain follow-
ment and other employee benefits, mainly due to the ter-
ing the entry into force of Law 15/2012.
mination of the transition-to-retirement plan after no em-
ployees opted to participate and the fact that a significant
Net current assets came to a negative €4,982 million at De-
number of those entitled to participate in that plan instead
cember 31, 2013, an increase of €1,594 million compared
have opted to participate in the mechanism provided for
with December 31, 2012. This change is due to the follow-
under Article 4, paragraphs 1-7-ter, of Law 92/2012 (the
ing factors:
Fornero Act), as the latter offers better financial and organi-
> a decrease of €186 million in trade receivables, essentially
zational conditions, making the earlier plan unattractive;
correlated with developments in sales;
> a decrease of €601 million in provisions for risks and
> an increase of €248 million in inventories, mainly asso-
charges. The decline is essentially attributable to the
ciated with greater quantities of green certificates and
net reduction in the provision for nuclear decommis-
other environmental certificates, which more than off-
sioning of plants in Slovakia and Spain. For the latter,
set the decline in stocks of gas and other fuels as a result
the reduction was connected with the remeasurement
of the decline in generation;
of the liabilities following recent regulatory changes in
> a decrease of €132 million in net receivables due from
Spain, partly offset by a rise in the provision for early re-
Electricity Equalization Fund and similar bodies reflecting
tirement incentives. The latter increase reflected the rec-
the application of equalization mechanisms to electric-
ognition of the liability in respect of the company-level
ity purchases;
union agreements signed in September 2013 in imple-
> an increase of €765 million in other current assets less
mentation of the framework agreement of May 9, 2013,
related liabilities. This change is due to the following fac-
governing the approach to be taken in implementing
tors:
the measures of Law 92/2012, partly offset by utiliza-
- an increase of €522 million in net income tax receiva-
tion of the provision, essentially for the early retirement
bles; the rise is essentially associated with income tax
plan at the Spanish companies;
payments in the amount of €2,606 million, partially off-
> a decrease of €304 million in net deferred tax liabilities,
set by the recognition of current taxes (net of adjust-
mainly due to the reversal of a portion to profit or loss
ments for previous years) totaling €2,280 million;
and exchange rate differences on the net deferred taxes
- an increase of €143 million in net current assets, attrib-
of companies that use a currency other than the euro.
utable to the rise in receivables for grants to be received
in respect of green certificates in the amount of €142
Net assets held for sale amounted to €221 million at De-
million and other receivables and payables totaling
cember 31, 2013 (€309 million at December 31, 2012), and
€395 million, mainly in respect of the receivable for the
comprise the net assets of Marcinelle Energie and other mi-
government grant received by the Argentine distribu-
nor companies that in view of the decisions taken by man-
tion company Edesur under the provisions of Resolución
agement meet the requirements of IFRS 5 for classification
250/2013 concerning the Mecanismo de Monitoreo de
as assets held for sale.
Costos. This factor was partly offset by a decline in net
tax receivables other than current income taxes in the
Net capital employed at December 31, 2013 came to
amount of €394 million, essentially in respect of VAT
€92,701 million and was funded by shareholders’ equity
in Italy and taxes and surtaxes on the consumption of
pertaining to the shareholders of the Parent Company and
electricity and gas;
non-controlling interests in the amount of €52,839 million
- an increase of €76 million in net current financial as-
and net financial debt of €39,862 million. At December 31,
sets, attributable to an increase of €60 million in the
2013, the debt/equity ratio was 0.75 (0.82 at December
fair value of derivatives;
31, 2012).
35
Analysis of the financial structure
Net financial debt
Net financial debt and changes in the period are detailed in the table below.
Millions of euro
Long-term debt:
- bank loans
- bonds and preference shares
- other loans
Long-term debt
Long-term financial receivables and securities
Net long-term debt
Short-term debt:
Bank loans:
- short-term portion of long-term bank debt
- other short-term bank debt
Short-term bank debt
Bonds and preference shares (short-term portion)
Other loans (short-term portion)
Commercial paper
Cash collateral and other financing on derivatives
Other short-term financial payables
Other short-term debt
Long-term financial receivables (short-term portion)
Factoring receivables
Financial receivables and cash collateral
Other short-term financial receivables
Cash and cash equivalents and short term securities
at Dec. 31,
2013
at Dec. 31,
2012 restated
Change
(4,995)
-37.6%
8,287
41,483
1,343
51,113
(4,951)
46,162
1,788
150
1,938
2,649
253
2,202
119
58
13,282
41,509
1,168
55,959
(3,576)
52,383
714
283
997
3,115
228
2,914
691
82
(2,977)
(263)
(1,720)
(512)
(8,047)
(5,318)
(288)
(1,402)
(521)
(9,933)
5,281
7,030
(1,749)
(26)
175
(4,846)
(1,375)
(6,221)
1,074
(133)
941
(466)
25
(712)
(572)
(24)
2,341
25
(318)
9
1,886
3,943
3,135
-0.1%
15.0%
-8.7%
-38.5%
-11.9%
-
-47.0%
94.4%
-15.0%
11.0%
-24.4%
-82.8%
-29.3%
-24.9%
44.0%
8.7%
-22.7%
1.7%
19.0%
22.6%
33.2%
-7.2%
-
Cash and cash equivalents and short-term financial receivables
(13,519)
(17,462)
Net short-term debt
NET FINANCIAL DEBT
Net financial debt of “assets held for sale
(6,300)
39,862
(10)
(9,435)
42,948
(3,086)
(10)
-
Net financial debt amounted to €39,862 million at Decem-
> the reclassification to current liabilities of €650 million by
ber 31, 2013, a decrease of €3,086 million compared with
Slovenské elektrárne;
December 31, 2012: the decrease of €6,221 million in net
> the early repayment of the 2009 credit facility in the
long-term debt was partly offset by an increase of €3,135
amount of €610 million (with a nominal value of €617
million in net short-term debt.
million), falling due in 2014, by Enel SpA and Enel Finance
More specifically, long-term bank loans totaled €8,287 mil-
International;
lion, a decrease of €4,995 million, mainly due to:
> the early repayment of credit lines in the amount of €345
> reduced borrowing on long-term revolving credit fa-
million (with a nominal value of €350 million), maturing
cilities (€341 million by Endesa and €100 million by Enel
in 2017, by Enel Finance International;
SpA);
36
> the early repayment of the 2012 credit facility in the
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
amount of €3,167 million (with a nominal value of €3,200
bles came to €13,519 million, a decrease of €3,943 million
million), maturing in 2017, by Enel Finance International.
on the end of 2012, mainly reflecting a decrease in liquidity
These factors were partially offset by drawings on lines
held with banks and short-term securities in the amount
of financing by Enel Green Power Latin America in the
of €1,886 million and a decrease in the current portion of
amount of €217 million, EIB loans to Enel Distribuzione to-
long-term financial receivables in the amount of €2,341
taling €270 million and to Enel Green Power International
million.
totaling €170 million.
The €10 billion five-year revolving credit line established
Among major transactions in 2013, on January 15, 2013,
in April 2010 by Enel SpA and Enel Finance International
Enel SpA renegotiated a bilateral revolving credit facility in
was undrawn at December 31, 2013. At the same date, the
the overall amount of €500 million falling due 2014, and
committed credit lines obtained by Enel SpA and Enel Fi-
on February 8, 2013 Enel SpA and Enel Finance Interna-
nance International were also undrawn.
tional obtained a forward starting revolving credit facility
totaling about €9.4 billion falling due in April 2018. This
Bonds and preference shares amounted to €41,483 million,
credit facility will replace the current revolving credit line
a decrease of €26 million on the end of 2012, mainly attrib-
of €10 billion, starting from the expiry date of that facility,
utable to private placements totaling €479 million by Enel
which is contractually scheduled for 2015. On July 18, 2013
Finance International and issues of the following hybrid fi-
Enel SpA repaid a bilateral revolving credit facility early in
nancial instruments by Enel SpA:
the amount of €500 million, maturing in 2014. The Com-
> €1,250 million fixed-rate 6.50%, maturing January 10,
pany also renegotiated a bilateral revolving credit facility
2074 with a call option exercisable at January 10, 2019;
in the overall amount of €800 million into the following
> £400 million fixed-rate 7.75%, maturing September 10,
tranches: €400 million maturing in 2015 and €400 million
2075 with a call option exercisable at September 10, 2020;
maturing in 2016.
> $1,250 million fixed-rate 8.75%, maturing September 24,
2073 with a call option exercisable at September 24, 2023.
These effects were partly offset by the reclassification to
short term of the current portion of a bond issued by Enel
SpA in 2007 in the amount of €1,000 million, a bond issued
by Enel Finance International in 2009 in the amount of
$1,250 million and bonds issued by Endesa in the amount
of €586 million.
Net short-term debt showed a net positive position of
€6,300 million at December 31, 2013, an increase of €3,135
million on the end of 2012, the result of an increase in
short-term bank debt of €941 million, essentially due to an
increase in the short-term portion of credit lines and bank
loans in the amount of about €1,074 million, a decrease of
€3,943 million in cash and cash equivalents and short-term
financial receivables and a decrease in other short-term
debt in the amount of 1,749 million.
Commercial paper includes issues by Enel Finance Interna-
tional, Endesa Latinoamérica and Endesa Capital in the to-
tal amount of €2,202 million. Finally, cash collateral paid to
counterparties in over-the-counter derivatives transactions
on interest rates, exchange rates and commodities totaled
€1,720 million, while cash collateral received from such
counterparties amounted to €119 million.
Cash and cash equivalents and short-term financial receiva-
37
Cash flows
Millions of euro
Cash and cash equivalents at the start of the period (1)
Cash flows from operating activities
Cash flows from investing/disinvesting activities
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period (2)
2013
9,933
7,241
(4,147)
(4,544)
(426)
8,057
2012
restated
7,072
10,415
(6,588)
(995)
29
9,933
Change
2,861
(3,174)
2,441
(3,549)
(455)
(1,876)
(1) Of which cash and cash equivalents equal to €9,891 million at January 1, 2013 (€7,015 million at January 1, 2012), short-term securities equal to €42 million at
January 1, 2013 (€52 million at January 1, 2012) and cash and cash equivalents pertaining to assets held for sale in the amount of zero at January 1, 2013 (€5
million at January 1, 2012).
(2) Of which cash and cash equivalents equal to €8,030 million at December 31, 2013 (€9,891 million at December 31, 2012), short-term securities equal to €17
million at December 31, 2013 (€42 million at December 31, 2012) and cash and cash equivalents pertaining to assets held for sale in the amount of €10 million
at December 31, 2013 (none at December 31, 2012).
Cash flows from operating activities in 2013 amounted to
lion (up €1,021 million on the previous year, reflecting the
€7,241 million, a decrease of €3,174 million with respect
previously announced disposal plan) and regarded the
to the previous year as a result of increased use of cash
disposal of the 40% stake in Artic Russia and of 51% of the
connected with the change in net current assets, which
Buffalo Dunes Wind Project.
was only partly offset by the improvement in operating
Cash flows generated by other investing/disinvesting ac-
income.
tivities amounted to €614 million. They were essentially
attributable to the proceeds from the sale of the non-stra-
Cash flows from investing/disinvesting activities absorbed
tegic investments in Medgaz, Enel Rete Gas, Endesa Gas
funds in the amount of €4,147 million in 2013, compared
T&D and other smaller interests.
with €6,588 million in 2012.
Cash requirements in respect of investments in property,
Cash flows from financing activities absorbed cash in the
plant and equipment and in intangible assets, totaling
amount of €4,544 million, compared with €995 million in
€5,960 million, fell by €1,189 million in reflection of the
2012. The change is essentially due to repayments of loans,
selective investment policy. Cash used in investments in
which offset the effects of the capital increase at the Chile-
entities or business units, net of cash and cash equivalents
an subsidiary Enersis paid in cash by non-controlling share-
acquired, amounted to €210 million, up €28 million. Invest-
holders and the issue of hybrid financial instruments.
ments in entities or business units in the period were largely
accounted for by the acquisition of 100% of Parque Eólico
In 2013, cash flows from operating activities in the amount
Talinay Oriente, a company operating in the wind genera-
of €7,241 million were used to cover the cash requirements
tion field in Chile, the acquisition of 50% di PowerCrop, a
of financing activities in the amount of €4,544 million and
company operating in the biomass generation sector, the
of investing activities in the amount of €4,147 million. The
acquisition of an additional 26% of Chisolm View Wind Pro-
difference is reflected in the decrease in cash and cash
ject and Prairie Rose Wind Project, both operating in wind
equivalents, which at December 31, 2013 came to €8,057
generation in the United States, in which the Group had
million compared with €9,933 million at the end of 2012
previously held 49%, and other smaller acquisitions.
(including the liquidity pertaining to net assets held for
The disposal of entities or business units, net of cash and
sale in the amount of €10 million). This decrease was also
cash equivalents sold, generated cash flows of €1,409 mil-
affected by exchange rate losses (€426 million).
38
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Results by business area
The representation of performance by business area pre-
ods under review, taking account of the operational model
sented here is based on the approach used by manage-
adopted by the Group as described above.
ment in monitoring Group performance for the two peri-
Results by business area for 2013 and 2012
Results for 2013 (1)
Millions of euro
Sales
GEM
Infra. &
Networks
Iberia
& Latin
America
Revenues from third parties
16,699
18,878
3,669
30,825
Revenues from other
segments
222
4,041
Total revenues
16,921
22,919
Net income/(charges) from
commodity risk management
Gross operating margin
Depreciation, amortization
and impairment losses
Operating income
Capital expenditure
(82)
866
504
362
99
(165)
1,176
622
554
318
4,029
7,698
-
4,008
980
3,028
1,046
110
30,935
(148)
6,746
2,910
3,836
2,181
Other,
eliminations
and
adjustments
Renewable
Energy
Total
2,337
1,024
80,535
490
2,827
21
1,788
617
1,171
1,307(2)
(9,526)
(8,502)
-
80,535
-
(378)
1,022
17,011
114
908
84
7,067
9,944
5,959
Int’l
7,103
634
7,737
(4)
1,405
1,320
85
924
(1) Segment revenues include both revenues from third parties and revenue flows between the segments. An analogous approach was taken for other income
and costs for the period.
(2) Does not include €1 million regarding units classified as “held for sale”.
Results for 2012 restated (1) (2)
Millions of euro
Sales
GEM
Infra. &
Networks
Iberia
& Latin
America
Revenues from third parties
18,170
18,869
3,820
33,708
Revenues from other
segments
181
6,375
Total revenues
18,351
25,244
Net income/(charges) from
commodity risk management
Gross operating margin
Depreciation, amortization
and impairment losses
Operating income
Capital expenditure
17
609
506
103
97
131
1,091
586
505
403
4,297
8,117
-
3,623
994
2,629
1,497
461
34,169
(161)
7,230
5,555
1,675
2,497 (3)
1,161
Other,
eliminations
and
adjustments
Renewable
Energy
Total
2,264
103
84,949
432
(12,434)
-
2,696
(12,331)
84,949
Int’l
8,015
688
8,703
57
(6)
1,650
1,641
672
978
560
1,081
1,257
-
(35)
130
(165)
163 (4)
38
15,809
9,003
6,806
7,075
(1) Segment revenues include both revenues from third parties and revenue flows between the segments. An analogous approach was taken for other income
and costs for the period.
(2) The figures have been restated as a result of the change, with retrospective effect, in the accounting treatment of employee benefits under IAS 19/R, and in
the accounting policy used for environmental certificates.
(3) Does not include €73 million regarding units classified as “held for sale”.
(4) Does not include €1 million regarding units classified as “held for sale”.
39
1 Sales
Operations
Electricity sales
Millions of kWh
Free market:
- mass-market customers
- business customers (1)
- safeguard market customers
Total free market
Regulated market - enhanced protection market customers
TOTAL
(1) Large customers and energy-intensive users (annual consumption greater than 1 GWh).
Average number of customers
2013
2012
Change
25,913
9,265
1,721
36,899
54,827
91,726
26,011
13,258
2,020
41,289
60,328
101,617
(98)
(3,993)
(299)
(4,390)
(5,501)
(9,891)
Free market:
- mass-market customers
- business customers (1)
- safeguard market customers
Total free market
2013
2012
Change
4,693,080
4,045,330
647,750
38,566
37,558
45,640
41,832
(7,074)
(4,274)
4,769,204
4,132,802
636,402
Regulated market - enhanced protection market customers
23,050,677
23,899,698
(849,021)
TOTAL
27,819,881
28,032,500
(212,619)
(1) Large customers and energy-intensive users (annual consumption greater than 1 GWh).
-0.4%
-30.1%
-14.8%
-10.6%
-9.1%
-9.7%
16.0%
-15.5%
-10.2%
15.4%
-3.6%
-0.8%
Electricity sold in 2013 amounted to 91,726 million kWh,
deterioration of macroeconomic conditions in Italy and the
down 9,891 million kWh on the previous year. More specifi-
ongoing shift of customers from the regulated system to the
cally, this decline in sales to all types of customer reflects the
free market.
Gas sales and customers
Gas sales (millions of m3)
- mass-market customers (1)
- business customers
Total sales
2013
2012
Change
3,394
707
4,101
3,440
902
4,342
(46)
(195)
(241)
Average number of customers
3,245,996
3,158,532
87,464
(1) Includes residential customers and microbusinesses.
-1.3%
-21.6%
-5.6%
2.8%
40
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Gas sales in 2013 amounted to 4,101 million cubic meters, a de-
affecting all categories of customer and mainly reflecting the ad-
crease of 241 million cubic meters (5.6%) on the previous year,
verse economic climate in Italy.
Performance
Millions of euro
Revenues
Gross operating margin
Operating income
Employees at year-end (no.)
Capital expenditure
2013
2012 restated
Change
16,921
18,351
(1,430)
866
362
3,687
99
609
103
3,674
97
257
259
13
2
-7.8%
42.2%
-
0.4%
2.1%
Revenues amounted to €16,921 million, a decrease of €1,430
million, an increase of €257 million compared with 2012
million compared with 2012 (-7.8%), as a result of the follow-
(42.2%). More specifically, the change is attributable to:
ing main factors:
> an increase of €167 million in the margin on the regu-
> a decrease of €1,098 million in revenues on the regulated
lated electricity market, essentially attributable to the
electricity market, mainly associated with the decline in
reduction in operating costs, including the effects of
quantities sold (-5.5 TWh), a reduction in revenues from
the recognition in 2012 of the charge for the transition-
the rate component covering generation costs and a de-
to-retirement plan (€73 million), which more than offset
crease in revenues for the sales service. Another factor
the impact of the decline in quantities sold, the reduction
was the decrease in revenues from services provided to
in revenues for the sales service and the decrease in rev-
the distributor and the related reimbursements for ser-
enues for services provided to the distributor under Au-
vice interruptions, pursuant to Resolution 333/2007 of
thority Resolution 333/2007;
the Authority for Electricity and Gas (€62 million). These
> an increase of €90 million in the margin on the free mar-
effects were only partially offset by the recognition of
ket for electricity and gas, due essentially to the rise in
prior-year items totaling €90 million connected with the
the unit margins on both commodities, which more than
equalization mechanism for purchases;
offset the decrease in amounts sold and greater costs es-
> a decrease of €195 million in revenues on the free elec-
sentially linked to customer acquisition. In addition, 2012
tricity market, essentially due to the decrease in quantities
included the charge for the transition-to-retirement plan
sold (-4.4 TWh);
in the amount of €12 million.
> a decrease of €76 million in revenues from sales to end us-
ers on the natural gas market, mainly due to the decrease
Operating income for 2013, after depreciation, amortiza-
in quantities sold.
tion and impairment losses of €504 million (€506 million in
2012), amounted to €362 million, an increase of €259 million
The gross operating margin for 2013 amounted to €866
compared with 2012.
Capital expenditure
Capital expenditure amounted to €99 million, broadly in line with 2012 (€97 million).
41
2 Generation and Energy Management
Operations
Net electricity generation
Millions of kWh
Thermal
Hydroelectric
Other resources
Total net generation
- of which Italy
- of which Belgium
2013
42,728
18,285
9
61,022
59,649
1,373
2012
49,623
14,348
9
63,980
62,797
1,183
Change
(6,895)
3,937
-
(2,958)
(3,148)
190
-13.9%
27.4%
-
-4.6%
-5.0%
16.1%
In 2013, net electricity generation by the Division amounted
ence in the contribution of the Marcinelle plant in Belgium,
to 61,022 million kWh, a decrease of 4.6% compared with
which is operated under a tolling agreement and entered
2012. The change was reflected in a sharp reduction in con-
service in the 2nd Quarter of 2012.
ventional thermal generation in Italy, which contracted by
In these conditions, the improvement in water availability
7,085 million kWh (-14.6%), attributable to the decline in
boosted hydroelectric generation, which expanded by 3,937
demand for electricity and the increasing weight of renewa-
million kWh.
bles in the national energy mix, partially offset by the differ-
Contribution to gross thermal generation
Millions of kWh
High-sulfur fuel oil
(S>0.25%)
Low-sulfur fuel oil
(S<0.25%)
Total fuel oil
Natural gas
Coal
Other fuels
TOTAL
2013
2012
Change
426
165
591
9,616
35,106
696
0.9%
849
1.6%
(423)
-49.8%
0.4%
1.3%
20.9%
76.3%
1.5%
455
1,304
13,913
37,379
553
0.9%
2.5%
26.2%
70.3%
1.0%
(290)
(713)
(4,297)
(2,273)
143
-63.7%
-54.7%
-30.9%
-6.1%
25.9%
46,009
100.0%
53,149
100.0%
(7,140)
-13.4%
Gross thermal generation in 2013 totaled 46,009 million kWh,
More specifically, the decline in gas generation was due
a decrease of 7,140 million kWh (-13.4%) compared with 2012.
to the reduction in the use of that fuel in combined-cycle
The decrease was seen across all the major fuel types and was
plants, while the decrease in generation from coal is at-
essentially connected with the decline in weight of conventional
tributable to the reduction in the use of certain units of
thermal generation in the Italian fuel mix, in an environment of
the Brindisi Sud plant and technical stoppages for mainte-
falling demand for electricity as a result of the recession in Italy.
nance at the Torrevaldaliga Nord plant.
42
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
Net efficient generation capacity
MW
Thermal plants (1)
Hydroelectric plants
Alternative resources
Total
at Dec. 31, 2013
at Dec. 31, 2012
Change
24,629
12,177
41
36,847
24,687
12,168
41
36,896
(58)
9
-
-0.2%
0.1%
-
(49)
-0.1%
(1) Of which 3,631 MW unavailable due to long-term technical issues (1,640 MW at December 31, 2012).
Performance
Millions of euro
Revenues
Gross operating margin
Operating income
Employees at year-end (no.)
Capital expenditure
2013
22,919
1,176
554
5,699
318
2012 restated
Change
25,244
(2,325)
1,091
505
6,043
403
85
49
(344)
(85)
-9.2%
7.8%
9.7%
-5.7%
-21.1%
Revenues for 2013 amounted to €22,919 million, a decrease
specifically, the reduction in personnel costs reflects the
of €2,325 million (-9.2%) compared with 2012. The decline is
impact of the recognition in 2012 of charges (€185 mil-
largely attributable to the following factors:
lion) in respect of the transition-to-retirement plan es-
> a decrease of €1,220 million in revenues from trading on in-
tablished at the end of 2012 (most for the past service
ternational electricity markets, essentially due to a decrease
cost recognized in retrospective application of IAS 19
in quantities handled (-9.1 TWh);
Revised) and the net positive impact in 2013 of the ter-
> a decrease of €1,326 million in revenues from the sale of CO2
mination of that plan and the recognition of charges for
emissions allowances and green certificates;
the obligations assumed in implementation of Article 4
> the impact of the recognition in 2012 of revenues for grants
of Law 92/2012;
due to new entrants in the emissions trading system for the
> a reduction of €21 million in the generation margin, es-
Torrevaldaliga Nord plant in the amount of €44 million;
sentially due to a decline in the amount of electricity
> an increase of €13 million in revenues from electricity sales,
generated and higher costs for compliance with envi-
mainly due to higher revenues from sales on the power ex-
ronmental restrictions, partially offset by the effects of
changes as a result of an increase in volumes traded, only
a more advantageous generation mix, characterized by
partially offset by a decline in revenues from the sale of
greater utilization of hydroelectric plants, as well as the
electricity within the Group as a result of a change in the
higher margin on dispatching services;
procedures for sourcing electricity adopted by the other di-
> a reduction of €179 million in the margin on natural gas
visions beginning in 2013;
sales and trading.
> an increase of €310 million in revenues from fuel trading,
essentially attributable to transactions in natural gas.
Operating income amounted to €554 million, an increase
of €49 million (9.7%) on the €505 million posted in 2012. The
The gross operating margin for 2013 amounted to €1,176
performance reflects:
million, an increase of €85 million (7.8%) on the €1,091 mil-
> a decrease of €110 million in depreciation, mainly attrib-
lion registered in 2012. The change is attributable to:
utable to the end of the useful life of certain generation
> a decrease of €285 million in operating expenses, es-
plants and the revision in 2012 of the useful lives of assets
sentially due to a reduction in personnel costs (€261 mil-
previously classified as to be relinquished free of charge
lion) and lower net provisions for risks and charges. More
following the enactment of Law 134/2012;
43
> an increase of €146 million in impairment losses, the com-
in 2013 for a number of generation plants and fuel storage
bined effect of the writeback recognized in 2012 on the
facilities in view of their expected future use by the Group.
Mercure biomass plant and the impairment losses posted
Capital expenditure
Millions of euro
Generation plants:
- thermal
- hydroelectric
- alternative resources
Total generation plants
Other investments in property, plant and equipment and intangible assets
TOTAL
2013
2012
Change
210
76
5
291
27
318
247
113
22
382
21
403
(37)
(37)
(17)
(91)
6
(85)
-15.0%
-32.7%
-77.3%
-23.8%
28.6%
-21.1%
Capital expenditure came to €318 million, of which €291 mil-
taling €71 million), the completion of the coal conversion of
lion in respect of generation plants. The main investments in
the Torrevaldaliga Nord plant and other work on the Termini
2013 included €210 million for the continuation of work at
Imerese and Porto Empedocle plants.
thermal plants, including sundry works at the Brindisi plant (to-
3 Infrastructure and Networks
Operations
Electricity distribution and transport networks
Medium-voltage lines at year-end (km)
Low-voltage lines at year-end (km)
2013
349,386
782,624
2012
347,927
777,039
Total electricity distribution network (km)
1,132,010
1,124,966
Change
1,459
5,585
7,044
Electricity transported on Enel’s distribution network (millions of kWh) (1)
230,032
238,505
(8,473)
0.4%
0.7%
0.6%
-3.6%
(1) The figure for 2012 reflects a more accurate determination of amounts transported.
The electricity distribution network expanded by 7,044 km,
Italy in 2013 amounted to 230,032 million kWh, a decrease
essentially due to the connection of self-generators to dis-
of 3.6% compared with the previous year.
tribution grids. Energy transported on the Enel network in
44
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Performance
Millions of euro
Revenues
Gross operating margin
Operating income
Employees at year-end (no.)
Capital expenditure
2013
7,698
4,008
3,028
17,689
1,046
2012 restated
Change
8,117
3,623
2,629
18,632
1,497
(419)
385
399
(943)
(451)
-5.2%
10.6%
15.2%
-5.1%
-30.1%
Revenues in 2013 amounted to €7,698 million, a decrease of
with Resolution 122/2013, noted above, and the positive
€419 million (-5.2%) on the previous year. The change was es-
impact of equalization mechanisms;
sentially attributable to:
> a decrease of €642 million in personnel costs, due es-
> the impact of the recognition in the 3rd Quarter of 2012 of
sentially to the recognition in 2012 of a charge of €523
the reimbursement entitlement for charges incurred follow-
million (mainly in retrospective application of IAS 19 Re-
ing the elimination of the Electrical Worker Pension Fund
vised) in respect of the transition-to-retirement plan es-
(FPE), as provided for in the Authority’s Resolution 157/2012,
tablished for certain employees at the end of 2012 and
in the amount of €615 million;
the net positive impact of the termination of that plan in
> a €260 million decrease in connection fees;
the 3rd Quarter of 2013 and the recognition of a charge
> a €38 million decrease in revenues from the sale of electronic
for the obligations assumed in implementation of Article
meters and associated services to the Iberia and Latin Amer-
4 of Law 92/2012;
ica Division;
> a reduction of €256 million in provisions for litigation as a
> an increase of €389 million in rate revenues. More specifi-
result of the redetermination of estimates of certain forms
cally, the increase is attributable to the rise in distribution and
of risk;
transmission rates following application of Authority Resolu-
> a €260 million decrease in connection fees;
tion 122/2013, as well as the positive impact of equalization
> an increase of €90 million in the margin on white certifi-
mechanisms in the amount of €190 million;
cates;
> an increase of €59 million in grants from the Electricity Equali-
> the impact of the Authority’s reimbursement of charges
zation Fund for the sale of white certificates.
for the elimination of the FPE.
The gross operating margin amounted to €4,008 million, an
Operating income, after depreciation, amortization and
increase of €385 million (10.6%), essentially the effect of:
impairment losses of €980 million (€994 million in 2012),
> an increase of €294 million in the margin on the transport of
amounted to €3,028 million, an increase of €399 million on
electricity, largely due to the increase in rates implemented
the previous year (15.2%).
Capital expenditure
Millions of euro
Electricity distribution networks
Other investments in property, plant and equipment and intangible assets
Total
2013
997
49
1,046
2012
1,447
50
1,497
Change
(450)
(1)
(451)
-31.1%
-2.0%
-30.1%
Capital expenditure in 2013 amounted to €1,046 million,
policy for work on the low- and medium-voltage grids for
a decrease of €451 million on the previous year. The decline
improvements in service quality, in line with the standards
is mainly due to a reduction in investment in connections
set by the Authority in Resolution 198/2011.
to customers and generation plants and a more selective
45
4
Iberia and Latin America
Operations
Net electricity generation
Millions of kWh
Thermal
Nuclear
Hydroelectric
Wind
Total net generation (1)
- of which Iberian peninsula
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
2013
65,936
25,967
40,379
145
2012
73,538
26,967
39,850
153
132,427
140,508
69,690
15,743
4,992
19,874
12,747
8,529
852
77,386
15,139
5,183
19,559
13,251
9,060
930
Change
(7,602)
(1,000)
529
(8)
(8,081)
(7,696)
604
(191)
315
(504)
(531)
(78)
-10.3%
-3.7%
1.3%
-5.2%
-5.8%
-9.9%
4.0%
-3.7%
1.6%
-3.8%
-5.9%
-8.4%
(1) The figure for 2012 reflects a more accurate determination of amounts.
Net electricity generation by the Division in 2013 amount-
sion’s hydroelectric plants operated. In Latin America, net
ed to 132,427 million kWh, a decrease of 8,081 million
electricity generation posted a net decrease of 307 million
kWh compared with 2012.
kWh, mainly as a result of lower hydroelectric generation
More specifically, in 2013, net electricity generation in
associated with drought conditions over the entire area,
the Iberian peninsula decreased by 7,696 million kWh
only partially offset by the increase in thermal output in
(-9.9%) as a result of the decline in conventional thermal
Brazil and Chile, the latter following the entry into service
generation (-23.8%), reflecting the fall in demand and the
of the Bocamina II plant.
improvement in the water conditions in which the Divi-
Contribution to gross thermal generation
Millions of kWh
High-sulfur fuel oil (S>0.25%)
Natural gas
Coal
Nuclear fuel
Other fuels
Total
2013
2012
Change
7,789
25,547
28,442
27,063
6,400
8.2%
26.8%
29.9%
28.4%
6.7%
8,541
28,471
35,167
28,166
5,667
8.1%
26.9%
33.2%
26.5%
5.3%
(752)
(2,924)
(6,725)
(1,103)
733
95,241
100.0%
106,012
100.0%
(10,771)
-8.8%
-10.3%
-19.1%
-3.9%
12.9%
-10.2%
Gross thermal generation by the Division in 2013 amounted
compared with the previous year (-10.2%). The decline was
to 95,241 million kWh, a decrease of 10,771 million kWh
attributable to lower coal and gas generation in Spain as a
46
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions result of the developments in net generation noted above. In
increased, and there was also an increase in coal generation
Latin America, natural gas generation by the Fortaleza plant
as a result of the entry into service of the Bocamina II plant.
Net efficient generation capacity
MW
Thermal
Nuclear
Hydroelectric
Wind
Total net efficient capacity
- of which Iberian peninsula
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which other countries
at Dec. 31, 2013
at Dec. 31, 2012
Change
21,306
3,556
13,334
78
38,274
22,160
4,403
977
5,912
2,878
1,821
123
21,166
3,535
13,305
78
38,084
22,067
4,403
972
5,905
2,866
1,748
123
140
21
29
-
190
93
-
5
7
12
73
-
0.7%
0.6%
0.2%
-
0.5%
0.4%
-
0.5%
0.1%
0.4%
4.2%
-
Net efficient generation capacity at December 31, 2013
with the end of 2012. The Edegel thermal plant in Peru was
amounted to 38,274 MW, an increase of 190 MW compared
one of the major new plants to enter service.
Electricity distribution and transport networks
High-voltage lines at year-end (km)
Medium-voltage lines at year-end (km)
Low-voltage lines at year-end (km)
Total electricity distribution network (km)
Electricity transported on Enel’s distribution network
(millions of kWh)
- of which Iberian peninsula
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
2013
31,463
274,161
334,984
640,608
159,968
98,456
14,953
18,799
13,030
8,274
6,456
2012
31,193
274,663
332,145
638,001
161,131
101,407
14,758
18,000
12,485
8,193
6,288
Change
270
(502)
2,839
2,607
(1,163)
(2,951)
195
799
545
81
168
0.9%
-0.2%
0.9%
0.4%
-0.7%
-2.9%
1.3%
4.4%
4.4%
1.0%
2.7%
At December 31, 2013, the size of the electricity distribution
kWh, a decrease of 1,163 million kWh, reflecting the de-
network of the Iberia and Latin America Division had in-
cline in demand in the Iberian Peninsula, which was only
creased by 2,607 km, with the change mainly concentrated
partially offset by the rise in demand in Latin America, no-
in the South American countries.
table in Brazil and Chile.
Energy transported in 2013 amounted to 159,968 million
47
Electricity sales
Millions of kWh
Free market
Regulated market
Total
- of which Iberian peninsula
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
2013
101,816
55,819
157,635
96,123
14,953
18,799
13,030
8,274
6,456
2012
108,586
53,904
162,490
102,765
14,758
18,000
12,485
8,193
6,289
Change
(6,770)
1,915
(4,855)
(6,642)
195
799
545
81
167
-6.2%
3.6%
-3.0%
-6.5%
1.3%
4.4%
4.4%
1.0%
2.7%
Electricity sales to end users in 2013 totaled 157,635 mil-
was only partly offset by an increase in sales in Latin America
lion kWh, a decrease of 4,855 million kWh compared with
(+1,787 million kWh) caused by the increase in electricity de-
2012. The reduction in amounts sold in the Iberian peninsula
mand in the area, especially in Brazil and Chile.
(-6,642 million kWh) as a result of the continuing recession
Performance
Millions of euro
Revenues
Gross operating margin
Operating income
Employees at year-end (no.)
Capital expenditure
2013
30,935
6,746
3,836
22,994
2,181
2012 restated
Change
34,169
7,230
1,675
22,807
2,497 (1)
(3,234)
(484)
2,161
187
(316)
-9.5%
-6.7%
129.0%
0.8%
-12.7%
(1) Does not include €73 million regarding units classified as “held for sale” at December 31, 2012.
The table below shows performance by geographical area.
Millions of euro
Revenues
Gross operating margin
Operating income
Europe
Latin America
Total
2013
21,225
9,710
2012
restated
23,367
10,802
Change
(2,142)
(1,092)
30,935
34,169
(3,234)
2013
3,253
3,493
6,746
2012
restated
4,003
3,227
7,230
Change
(750)
266
(484)
2013
1,415
2,421
3,836
2012
restated
(398)
2,073
1,675
Change
1,813
348
2,161
Revenues in 2013 decreased by €3,234 million, due to:
- a decline in revenues attributable to the change in the
> a decrease of €2,142 million in revenues in Europe, essen-
scope of consolidation with the sale of Endesa Ireland
tially the result of:
on October 1, 2012, and the shut-down in December
- the decline in demand for electricity, which had an ad-
2012 of the Garoña nuclear power plant;
verse impact of amounts generated and sold on the
- a net decrease in rate revenues from electricity distri-
end user market;
bution as result of the provisions of Royal Decree Law
- the decline in grants from extra-peninsular generation,
9/2013;
which in addition to the contraction in generation vol-
> a decrease of €1,092 million in revenues in Latin America,
umes also reflected the impact of the entry into force, as
essentially the result of:
from the 2nd Half of 2012, of Royal Decree Law 20/2012;
- a reduction in revenues in Brazil due to the entry into
48
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions force of the provisional Medida 579/2012 and the sub-
of Royal Decree Law 20/2012 as from the 2nd Half of
sequent Decree 7891/2013, which suspended the rebill-
2012 and Law 15/2012 as from January 1, 2013) and in
ing to end users of certain costs incurred by electricity
the margin on electricity distribution;
distributors (€164 million);
- a reduction of €147 million in the margin on unregu-
- a reduction of €514 million in revenues caused by the
lated businesses, due to the increase in taxes intro-
amendment of the Argentine regulatory framework
duced in Spain on generation and sales activities
concerning the fuel used in generation plants, which
(€473 million), partially offset by a more favorable
is procured by CAMMESA. The cost of fuel for these
generation mix due to improved water conditions and
plants was recognized as a direct reduction in revenues
the positive impact of the reduction in fixed costs;
from electricity sales;
> an increase of €266 million in the gross operating mar-
- adverse developments in the exchange rates of local
gin in Latin America (which reflects the negative impact
currencies against the euro.
of the appreciation of the euro against local currencies,
totaling €350 million), essentially attributable to:
These factors were only partially offset by the recognition of
- the effect of the government grant to the Argentine
a government grant of €381 million to the Argentine com-
distribution company Edesur;
pany Edesur under Resolución 250/13 relating to the Mecan-
- higher generation margins, notably in Chile, Argen-
ismo de Monitoreo de Costos.
tina and Colombia, mainly due to higher sales prices
and lower provisioning costs.
The gross operating margin amounted to €6,746 million,
a decrease of €484 million (-6.7%) compared with 2012, the
Operating income in 2013 amounted to €3,836 mil-
result of:
lion, an increase of €2,161 million compared with 2012.
> a decrease of €750 million in the gross operating mar-
The change reflects the impact of the impairment loss of
gin in Europe, essentially attributable to:
€2,392 million recognized in December 2012 on the good-
- a decrease of €645 million in the margin on regulated
will of the Endesa-Iberian peninsula cash generating unit
businesses, reflecting the reduction in the margin on
and the impairment of €67 million on the net assets held
extra-peninsular generation in Spain (which in addi-
for sale in respect of Endesa Ireland, which was recognized
tion to the decline in volumes of power generated
to align its value with the estimated sale price.
was also adversely impacted by the entry into force
Capital expenditure
Millions of euro
Generation plants:
- thermal
- hydroelectric
- nuclear
- alternative resources
Total generation plants
Electricity distribution networks
Other investments in property, plant and equipment and
intangible assets
TOTAL
2013
2012
Change
332
366
128
2
828
929
424
2,181
372
406
148
5
931
1,199
367
2,497 (1)
(40)
(40)
(20)
(3)
(103)
(270)
57
(316)
(1) Does not include €73 million regarding units classified as “held for sale” at December 31, 2012.
-10.8%
-9.9%
-13.5%
-60.0%
-11.1%
-22.5%
15.5%
-12.7%
49
Capital expenditure amounted to €2,181 million, a decrease
€427 million in Latin America, also including investments on
of €316 million compared with the previous year. In particular,
plants operated on a concession basis). Investment in genera-
capital expenditure in 2013 concerned work on the distribution
tion plants (€828 million) focused primarily on the construction
network (€929 million, of which €502 million in Europe and
of the El Quimbo hydroelectric plant in Colombia.
5
International
Operations
Net electricity generation
Millions of kWh
Thermal
Nuclear
Hydroelectric
Other resources
Total net generation
- of which Russia
- of which Slovakia
2013
43,802
14,624
4,759
59
63,244
41,901
21,343
2012
46,687
14,411
4,105
28
65,231
44,511
20,720
Change
(2,885)
213
654
31
(1,987)
(2,610)
623
-6.2%
1.5%
15.9%
110.7%
-3.0%
-5.9%
3.0%
Net generation in 2013 amounted to 63,244 million kWh, a
the use of conventional generation plants and a number of
decrease of 1,987 million kWh compared with 2012. The de-
planned stoppages at combined-cycle plants.
cline is mainly attributable to the decline in output for Enel
These effects were only partially offset by an increase in hy-
OGK-5 (-2,610 million kWh), which was affected by a drop
droelectric generation by Slovenské elektrárne thanks to the
in demand for electricity in Russia, a selective reduction in
more favorable water conditions during the year.
Contribution to gross thermal generation
Millions of kWh
High-sulfur fuel oil (S>0.25%)
Natural gas
Coal
Nuclear fuel
Total
2013
2012
Change
120
23,159
23,027
15,720
0.2%
37.3%
37.1%
25.4%
257
24,646
24,411
15,495
0.4%
38.0%
37.7%
23.9%
(137)
(1,487)
(1,384)
225
62,026
100.0%
64,809
100.0%
(2,783)
-53.3%
-6.0%
-5.7%
1.5%
-4.3%
Gross thermal generation in 2013 decreased by 2,783 million kWh, to 62,026 million kWh, compared with 64,809 million kWh in
2012. The decline is essentially due to lower natural-gas and coal-fired output in Russia for the reasons noted above.
50
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
Net efficient generation capacity
MW
Thermal plants (1)
Nuclear plants
Hydroelectric plants
Alternative resources
Total net efficient capacity (1)
- of which Russia
- of which Slovakia
- of which Belgium (1)
at Dec. 31, 2013
at Dec. 31, 2012
Change
10,742
1,814
2,329
27
14,912
9,107
5,399
406
10,706
1,816
2,329
7
14,858
9,052
5,400
406
36
(2)
-
20
54
55
(1)
-
0.3%
-0.1%
-
-
0.4%
0.6%
-
-
(1) Includes 406 MW in units classified as “held for sale” at December 31, 2013 and at December 31, 2012.
Net efficient generation capacity increased by 54 MW in 2013, virtually unchanged from the previous year.
Electricity distribution and transport networks
High-voltage lines at year-end (km)
Medium-voltage lines at year-end (km)
Low-voltage lines at year-end (km)
Total electricity distribution network (km)
Electricity transported on Enel’s distribution network (millions of kWh)
2013
6,586
34,923
49,397
90,906
13,996
2012
6,586
34,956
48,852
90,394
14,606
Change
-
(33)
545
512
(610)
-
-0.1%
1.1%
0.6%
-4.2%
At December 31, 2013, the size of the electricity distribu-
connections installed during the year.
tion network (located entirely in Romania) showed an in-
Electricity transported decreased by 4.2%, going from
crease of 512 km, essentially regarding new low-voltage
14,606 million kWh to 13,996 million kWh in 2013.
Electricity sales
Millions of kWh
Free market
Regulated market
Total
- of which Romania
- of which France
- of which Russia
- of which Slovakia
Change
2013
35,770
9,932
45,702
8,754
8,068
24,755
4,125
2012
41,109
10,914
52,023
9,158
13,077
25,562
4,226
(5,339)
(982)
(6,321)
(404)
(5,009)
(807)
(101)
-13.0%
-9.0%
-12.2%
-4.4%
-38.3%
-3.2%
-2.4%
Electricity sold by the International Division in 2013 amount-
sult of exiting the Flamanville 3 project at the end of
ed to 45,702 million kWh, a decrease of 6,321 million kWh
2012, and to a decrease in the availability of supplies
(-12.2%) compared with 2012. The decline is attributable to:
from EDF;
> a reduction of 807 million kWh in sales in the Russian
> a decrease of 101 million kWh in sales in Slovakia and
market, largely in the free market;
one of 404 million kWh in Romania, the latter due to
> a decrease of 5,009 million kWh in sales by Enel France,
improved weather conditions, which helped reduce
largely due to a reduction in volumes available as a re-
electricity consumption.
51
Performance
Millions of euro
Revenues
Gross operating margin
Operating income
Employees at year-end (no.)
Capital expenditure
2013
7,737
1,405
85
11,830 (1)
924
2012 restated
Change
8,703
1,650
978
12,652
1,161
(966)
(245)
(893)
(822)
(237)
-11.1%
-14.8%
-91.3%
-6.5%
-20.4%
(1) Includes 37 in units classified as “held for sale” at December 31, 2013 and at December 31, 2012.
The table below shows performance by geographical area.
Millions of euro
Central Europe
South-eastern Europe
Russia
Total
Revenues
2012
restated
4,551
1,029
3,123
8,703
2013
3,488
1,116
3,133
7,737
Gross operating margin
Operating income
Change
(1,063)
87
10
2013
605
289
511
2012
restated
900
231
519
Change
2013
(295)
58
(8)
360
154
(429)
85
2012
restated
530
203
245
978
Change
(170)
(49)
(674)
(893)
(966)
1,405
1,650
(245)
Revenues for 2013 amounted to €7,737 million, a decrease
> a decrease of €8 million in the gross operating margin in
of €966 million on the previous year (€8,703 million). This
Russia, where the impact of the depreciation of the ruble
performance reflected the following factors:
against the euro was only partially offset by higher aver-
> a decrease of €1,063 million in revenues in central Europe,
age sales prices for electricity;
largely attributable to the fall in revenues in Slovakia
> an increase of €58 million in the gross operating margin
(€722 million), as a result of a decline in volumes sold, and
in south-eastern Europe, mainly due to higher sales and
in France (€342 million), due to the decrease in available
distribution rates and lower sourcing costs in Romania.
capacity;
> an increase of €10 million in revenues in Russia, essentially
Operating income in 2013 amounted to €85 million, a de-
as a result of higher average sales prices for electricity;
crease of €893 million on the previous year, reflecting an
> a rise of €87 million in revenues in south-eastern Europe.
increase of €648 million in depreciation, amortization and
impairment losses. The latter change mainly regards im-
The gross operating margin amounted to €1,405 million,
pairment losses of €744 million recognized in 2013 on the
a decrease of €245 million compared with 2012 (€1,650 mil-
goodwill of the Enel OGK-5 CGU to reflect the expected con-
lion). The fall is associated with the following factors:
traction in estimated future cash flows as a result of the con-
> a decrease of €295 million in the gross operating mar-
tinuing slowdown in economic growth and the consequent
gin in central Europe, mainly attributable to generation
decline in the forecast growth in prices in the medium term.
in Slovakia (€128 million), essentially due to a decline in
An analogous impairment loss of €112 million had been
amounts of electricity generated;
posted in 2012.
52
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
Capital expenditure
Millions of euro
Generation plants:
- thermal
- hydroelectric
- nuclear
- alternative resources
Total generation plants
Electricity distribution networks
Other investments in property, plant and equipment and
intangible assets
TOTAL
2013
2012
Change
196
7
594
-
797
96
31
924
333
10
654
6
1,003
136
22
1,161
(137)
(3)
(60)
(6)
(206)
(40)
9
(237)
-41.1%
-30.0%
-9.2%
-100.0%
-20.5%
-29.4%
40.9%
-20.4%
Capital expenditure amounted to €924 million, a de-
tribution plant in Romania, on generation plants in Russia
crease of €237 million on the previous year, essentially at-
and nuclear plants in Slovakia.
tributable to lower capital expenditure on electricity dis-
6
Renewable Energy
Operations
Net electricity generation
Millions of kWh
Hydroelectric
Geothermal
Wind
Other resources
Total
- of which Italy
- of which Iberian peninsula
- of which France
- of which Greece
- of which Romania and Bulgaria
- of which United States and Canada
- of which Panama, Mexico, Guatemala and Costa Rica
- of which Brazil and Chile
2013
10,921
5,581
12,169
782
29,453
13,248
4,924
362
566
1,166
5,360
2,703
1,124
2012
9,836
5,492
8,985
801
25,114
11,639
4,341
364
476
671
3,899
2,801
923
Change
1,085
89
3,184
(19)
4,339
1,609
583
(2)
90
495
1,461
(98)
201
11.0%
1.6%
35.4%
-2.4%
17.3%
13.8%
13.4%
-0.5%
18.9%
73.8%
37.5%
-3.5%
21.8%
Net electricity generation by the Division totaled 29,453 mil-
(+17.3%). Of the total increase, 2,730 million kWh is attrib-
lion kWh, a rise of 4,339 million kWh on the previous year
utable to greater generation abroad, mainly due to greater
53
wind generation in the United States and Canada (+1,350 mil-
hydroelectric generation in Panama (-448 million kWh), which
lion kWh), the Iberian peninsula (+634 million kWh), Romania
was affected by poor water conditions in that country. Power
(+484 million kWh) and Mexico (+321 million kWh). The in-
generation in Italy in 2013 increased by 1,609 million kWh
crease is essentially due to the entry into service of new plants
compared with 2012, reflecting an increase in hydroelectric
and, for the Iberian peninsula, more favorable weather condi-
generation (+1,299 million kWh due to more favorable water
tions. These factors were only partially offset by a decline in
conditions) and wind power (+205 million kWh).
Net efficient generation capacity
MW
Hydroelectric plants
Geothermal plants
Wind plants
Other resources
Total
- of which Italy
- of which Iberian peninsula
- of which France
- of which Greece
- of which Romania and Bulgaria
- of which United States and Canada
- of which Panama, Mexico, Guatemala and Costa Rica
- of which Brazil and Chile
at Dec. 31, 2013
at Dec. 31, 2012
Change
2,623
795
5,122
343
8,883
3,076
1,908
186
290
576
1,683
715
449
2,634
769
4,316
282
8,001
3,044
1,864
166
248
540
1,239
715
185
(11)
26
806
61
882
32
44
20
42
36
444
-
264
-0.4%
3.4%
18.7%
21.6%
11.0%
1.1%
2.4%
12.0%
16.9%
6.7%
35.8%
-
142.7%
Total net efficient capacity showed an increase of 882
accounted for by a number of plants in North America (25
MW, of which 850 MW outside of Italy. More specifically,
MW). Finally, the expansion of net installed capacity in
the increase in installed wind capacity mainly regards new
plants powered by other resources reflects the entry into
plants in North America (434 MW), Chile (180 MW) and
service of a number of solar plants, mainly in Italy, Greece
Spain (84 MW); the rise in geothermal capacity is mainly
and Romania.
Performance
Millions of euro
Revenues
Gross operating margin
Operating income
Employees at year-end (no.)
Capital expenditure
2013
2,827
1,788
1,171
3,599
1,307 (1)
2012
restated
2,696
1,641
1,081
3,512
1,257
Change
131
147
90
87
50
4.9%
9.0%
8.3%
2.5%
4.0%
(1) The figure for 2013 does not include €1 million in investments regarding units classified as “held for sale”.
54
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
The table below shows performance by geographical area.
Millions of euro
Italy and the rest of Europe
Iberia and Latin America
North America
Total
Revenues
2012
restated
1,601
792
303
2013
1,599
864
364
Change
(2)
72
61
2013
1,045
497
246
2012
restated
947
497
197
Change
2013
2012
restated
Change
98
-
49
769
263
139
693
272
116
76
(9)
23
90
2,827
2,696
131
1,788
1,641
147
1,171
1,081
Gross operating margin
Operating income
Revenues increased by €131 million (4.9%), going from €2,696
an increase of €147 million (9.0%) compared with 2012. The
million to €2,827 million. The change is due to:
change reflects:
> an increase of €72 million in revenues in the Iberian penin-
> an increase of €98 million in the margin posted in Italy
sula and Latin America, due to the increase in output, main-
and the rest of Europe, mainly as a result of the increase
ly in Chile, Mexico and Guatemala;
in volumes generated thanks to improved water and wind
> an increase of €61 million in revenues in North America;
availability and the concomitant increase in the number of
excluding the gain on the disposal of 51% of the Buffalo
plants in service. These factors were joined by the effect of
Dunes Wind Project (€20 million) and the remeasurement
the recognition in 2012 of a charge of €40 million (mainly
at fair value of the remaining assets and liabilities of that
in retrospective application of IAS 19 Revised) in respect of
company pertaining to the Group following the sale (€20
the transition-to-retirement plan established for certain em-
million), the increase in revenues amounted to €21 million,
ployees at the end of 2012 and the net positive impact of
mainly due to the rise in output;
the termination of that plan in the 3rd Quarter of 2013 and
> a decrease of €2 million in revenues in Italy and the rest of
the recognition of a charge for the obligations assumed in
Europe, essentially attributable to:
implementation of Article 4 of Law 92/2012;
- a decline of €142 million in revenues from the sale of pho-
> a rise of €49 million for the North America area; excluding
tovoltaic panels, of which €83 million as a result of the exit
the non-recurring items discussed under revenues, the mar-
from the scope of consolidation of Enel.si, which was sold
gin increased by €9 million, mainly due to the rise in output.
to the Sales Italy business area;
- an increase of €78 million in revenues in Italy from the
Operating income amounted to €1,171 million, an increase
sale of green certificates;
of €90 million, after a rise in depreciation, amortization and
- an increase of €103 million in revenues in the rest of Eu-
impairment losses of €57 million owing to greater impairment
rope, essentially due to the sale of green certificates and
losses recognized on the photovoltaic manufacturing plants in
the expansion of installed wind capacity in Romania.
Italy, on a number of geothermal generation plants in Nicara-
gua and a number of specific projects in North America and
The gross operating margin amounted to €1,788 million,
the Iberian peninsula.
Capital expenditure
Millions of euro
Generation plants:
- hydroelectric
- geothermal
- alternative resources
Total generation plants
Other investments in property, plant and equipment and
intangible assets
TOTAL
2013
108
226
935
1,269
38
1,307 (1)
2012
127
214
878
1,219
38
1,257
Change
(19)
12
57
50
-
50
(1) The figure for 2013 does not include €1 million in investments regarding units classified as “held for sale”.
-15.0%
5.6%
6.5%
4.1%
-
4.0%
55
Capital expenditure in 2013 totaled €1,307 million, up €50
(€54 million) and Italy (€44 million); hydroelectric plants in
million compared with the previous year.
Italy, Brazil, Costa Rica, Guatemala and North America (€108
Investments mainly regarded wind farms in Iberia and Latin
million); and geothermal plants in Italy and North America
America (€590 million), North America (€132 million) and It-
(€226 million).
aly and Europe (€82 million); photovoltaic plants in Romania
7
Other, eliminations
and adjustments
Operations
Hydrocarbon reserves and annual output
Hydrocarbon reserves:
Proven reserves (1P) of hydrocarbons at the end of the year
(millions of barrels of oil equivalent)
- of which proven reserves (1P) of natural gas at the end of the year (billions of m3)
Proven and probable reserves (2P) of hydrocarbons at the end of the year
(millions of barrels of oil equivalent)
- of which proven and probable reserves (2P) of natural gas at the end of the year
(billions of m3)
Annual output:
Hydrocarbon output (millions of barrels of oil equivalent)
- of which natural gas (billions of m3)
2013
2012
Change
18
2
46
6
29
3.9
917
117
(899)
(115)
1,490
(1,444)
187
12
1.7
(181)
17
2.2
In 2012, the Upstream Gas Function initiated the process of
nership with Repsol (as the operator) and GDF Suez;
certifying the reserves of the assets it had under develop-
> in Egypt, where the Group has a 10% share, in partner-
ment, for which the Function used an independent certifier,
ship with Total (as the operator) and BG, in exploration
DeGolyer & McNaughton. On the basis of the assessment
activities in an offshore field off the Nile Delta;
performed in 2012 and taking account of the disposal of the
> in Italy, through Enel Longanesi Development, where the
stake held in SeverEnergia in 2013, Enel’s share is equal to
Group has 12 exploration applications, 5 permits and 1
18 million barrels of oil equivalent of proven reserves and
concession application. In 2013, continuing its studies,
46 million barrels of oil equivalent of proven and probable
the Group entered a joint venture with Mac Oil, acquir-
reserves. Projects under development at the end of 2013 are
ing 70% of the exploration permit for Montottone, in the
located:
Marche region, and submitted two new applications for
> in Algeria, where the Group is participating in hydrocarbon
offshore exploration permits in the Gulf of Taranto and
exploration and production licenses with a stake of 18.4%
the Adriatic Sea. The authorization procedure for the ap-
of the “Isarene” permit in partnership with Petroceltic In-
plication for the hydrocarbon extraction concession at
ternational and Sonatrach (a Algerian state-owned com-
Bagnacavallo is pending, with production expected to
pany) and 13.5% of the “South-East Illizi” permit in part-
begin at the end of 2016.
56
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Performance
Millions of euro
Revenues (net of eliminations)
Gross operating margin
Operating income
Employees at year-end (no.)
Capital expenditure
2013
2,885
1,022
908
5,896
84
2012
restated
2,017
(35)
(165)
6,382
163 (1)
Change
868
1,057
1,073
(486)
(79)
43.0%
-
-
-7.6%
-48.5%
(1) The figure does not include €1 million regarding units classified as “held for sale” at December 31, 2012.
Revenues, net of eliminations, in 2013 amounted to
the gain on the sale of Artic Russia, the factors impacting
€2,855 million, an increase of €868 million on the previ-
operating expenses in the two years being reviewed and a
ous year (+43.0%). Excluding the gain recognized by the
reduction of €16 million in depreciation, amortization and
Upstream Gas Function on the disposal of Artic Russia, and
impairment losses.
indirectly the interest held by the latter in SeverEnergia,
equal to €964 million, revenues declined by €96 million.
The performance is essentially attributable to:
Capital expenditure
> a decrease of €107 million in revenues in the Services
Capital expenditure in 2013 amounted to €84 million, a
and other activities area, mainly associated with ICT ser-
decrease of €79 million compared with the previous year.
vices and other support and staff services provided by
Investments in 2012 mainly regarded the acquisition of min-
the Parent Company to other Group companies;
eral interests by the Upstream Gas Function.
> an increase of €34 million in revenues from engineering
activities, largely attributable to engineering activities
for the construction of the conventional island of the
Mochovce nuclear power plant in Slovakia and activities
for the Porto Empedocle regasification terminal for liq-
uefied natural gas.
The gross operating margin for 2013 amounted €1,022
million, an increase of €1,057 million compared with 2012,
essentially due to the capital gain discussed above. Ex-
cluding that gain, the gross operating margin rose by €93
million. More specifically, the contraction in the margin
on certain services provided to other Group divisions was
more than offset by the effect of the recognition in 2012
of a charge of €136 million (mainly in retrospective appli-
cation of IAS 19 Revised) in respect of the transition-to-re-
tirement plan established for certain employees at the end
of 2012 and the net positive impact of the termination of
that plan in the 3rd Quarter of 2013 and the recognition of
a charge for the obligations assumed in implementation of
Article 4 of Law 92/2012.
Operating income for 2013 totaled €908 million, a rise of
€1,073 million compared with 2012, taking due account of
57
Significant events in 2013
8
January
LaGeo: Paris Court of Appeal
upholds ruling of International
Court of Arbitration
11
February
Forward starting revolving
credit facility
On January 8, 2013, the Court of Appeal of Paris upheld
On February 11, 2013, Enel SpA signed a 5-year revolving
the ruling of the International Court of Arbitration (Inter-
credit facility amounting to about €9.4 billion, which will
national Chamber of Commerce) concerning the interna-
replace the €10 billion revolving credit facility (currently not
tional arbitration proceeding brought by Enel Green Power
drawn) scheduled to expire in April 2015.
against Inversiones Energéticas (INE), its partner in LaGeo,
The new forward starting revolving credit facility, which may
a joint venture for the development of geothermal energy
be used by Enel and/or its Dutch subsidiary Enel Finance In-
in El Salvador. The judges rejected the appeal lodged by INE
ternational (with a Parent Company guarantee), is intended
asking for the ruling in favor of Enel Green Power to be void-
to give the Group’s treasury operations a highly flexible in-
ed, confirming that the ruling had been issued at the end
strument to manage working capital. Accordingly, the credit
of a fair trial. The decision of the Court of Appeal reaffirms
facility is not part of Enel’s debt refinancing program. A large
Enel Green Power’s right to allocate investments in LaGeo
group of national and international banks participated in
to share capital through the subscription of newly issued
the transaction, including Mediobanca in the role of Docu-
shares in the joint venture.
mentation Agent. The cost of the new credit facility will vary
in relation to Enel’s credit rating. At the current rating level,
58
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions it is equal to a spread of 170 basis points over Euribor, with
for those Eni stations that have installed renewable energy
commitment fees of 40% of the applicable spread.
generation systems (e.g. photovoltaic panels).
26
March
Acquisition of PowerCrop
29
March
Enersis capital increase
On March 26, 2013, Enel Green Power and SECI Energia
On March 29, 2013, the capital increase of Enel’s Chilean
signed the final agreement for the purchase of 50% of Pow-
subsidiary, Enersis, was successfully completed with the
erCrop, the Maccaferri Group company dedicated to con-
subscription of all of the 16,441,606,297 new shares is-
verting former Eridania sugar refineries to the production
sued, corresponding to a total of about $6 billion, of which
of energy from biomass.
around $2.4 billion in cash. As a result of the full subscrip-
With the acquisition, Enel Green Power has entered into a
tion of the Enersis capital increase and the completion of
broad partnership with SECI Energia to develop the genera-
the transaction, the subsidiary Endesa will continue to hold
tion of energy from locally-sourced biomass with the con-
(directly and through the wholly-owned subsidiary Endesa
struction of five high-efficiency plants (Russi, Macchiareddu,
Latinoamérica) around 60.6% of the share capital of Enersis.
Castiglion Fiorentino, Fermo and Avezzano) with a total in-
Following the operation, Enersis represents the Enel Group’s
stalled capacity of 150 MW. Once built, these plants will be
sole investment vehicle in Latin America for the generation,
capable of generating up to 1 billion kWh. These will provide
distribution and sale of electricity (with the exception of the
employment for the former sugar refinery workers, restoring
assets currently held by Enel Green Power or any future as-
growth opportunities to some of the most important agri-
sets the latter may develop in the renewable energy sector
cultural districts in Italy, which will have a significant eco-
in that geographical area). Thanks to the successful capital
nomic impact on these areas.
increase, Enersis now has the resources necessary to pursue
a major development plan, strengthening its presence in
the markets in which it already operates.
27
March
Agreement with Eni
on e-mobility
On March 27, 2013, Eni and Enel signed a letter of intent to
collaborate on strategic, technological, logistical and com-
8
April
Disposal of Buffalo
Dunes Wind Project
mercial opportunities for e-mobility.
On April 8, 2013, Enel Green Power North America (EGP-NA)
Through this agreement, Eni and Enel will develop a pro-
signed an equity partnership agreement with EFS Buffalo
gram for testing electric vehicle charging options, specifi-
Dunes, a subsidiary of GE Capital, to finance the develop-
cally the installation of charging stations using Enel technol-
ment of the Buffalo Dunes wind farm, in Kansas (United
ogy at Eni service stations and locations.
States).
The working group will have six months to find the best so-
The project, which will involve a total investment of about
lutions for charging electric vehicles at service stations, with
$370 million, of which EGP-NA will contribute about $180
testing to begin in selected areas by the end of 2013.
million, is scheduled to be completed by the end of 2013.
The experiment will involve installing “fast charge” stations
The plant will have a total installed capacity of 250 MW and
at certain Eni service stations. Fast charge stations are capa-
the project is supported by a long-term power purchase
ble of recharging a vehicle using direct current and alternat-
agreement.
ing current in 20-30 minutes. The agreement also provides
Under the provisions of the accord, EFS Buffalo Dunes sub-
for the study of possible applications of Enel technology
sequently acquired 51% of the project from EGP-NA, which
used in smart grids to maximize the use of renewable energy
retains the remaining 49% stake. EGP-NA, which will also
59
be the project manager for Buffalo Dunes, has an option to
The protocol devotes particular attention to the use of
increase its holding by 26%, which can be exercised on spe-
geothermal heat, to support the creation of value in the
cific dates by 2014.
heating sector, with opportunities for the establishment
The exercise of that option would not necessarily involve
of new business zones in geothermal areas. The agree-
the acquisition of control, which is also linked to possible
ment also provides for the creation of a geothermal en-
changes in the absolute value of share capital and dilutive
ergy hub that, drawing on the experience of local authori-
effects.
18
April
Agreement with UNCEM
for the development
of energy efficiency
ties in geothermal areas and existing resources such as
the Geothermal Area Development Consortium (COSVIG),
the Enel Research Center, universities, the Tuscan Regional
Economic Planning Institute (IRPET) and the regional re-
newable energy technology district, can transfer know
how and pursue research projects and advanced special-
ized initiatives aimed at creating competence centers in
both the geothermal areas and the Enel experimental area
On April 18, 2013, Enel Sole and the National Union of
in Livorno.
Mountain Communities (UNCEM) signed a protocol of un-
derstanding in Rome for the development of energy ef-
ficiency practices. The agreement provides for direct co-
operation between Enel Sole and UNCEM to identify and
implement activities connected with energy savings and
efficiency in the participating mountain communities, in-
cluding projects for the refurbishment and enhancement
9
May
Framework agreement
regulating the provisions
of Article 4, paragraphs 1-7-ter,
of Law 92/2012 in the Enel Group
of public lighting with a view to reducing energy consump-
On May 9, 2013, Enel SpA and the representatives of the
tion and CO2 emissions, such as the installation of smart
lighting systems using innovative technologies and energy
FILCTEM, FLAEI and UILTEC trade unions signed an agree-
ment governing the implementation of the provisions of
audits. The cooperation initiative will also involve artistic
Article 4, paragraphs 1-7-ter, of Law 92/2012 (the “Fornero
lighting and design projects to enhance the historical and
Act”) within the Enel Group. The agreement, taking account
artistic heritage of mountain communities using sustain-
of the role that the Company plays in the Italian economy
able systems.
2
May
Protocol of understanding
with the Region of Tuscany
for the development
of geothermal energy
and the cost reduction targets set out in the business plan,
provides for the activation of the measures envisaged in Ar-
ticle 4 in order to reduce personnel to an appropriate level
without undue disruption.
In application of the agreement, the Group has begun to
seek expressions of interest among its personnel whose
seniority and contribution history potentially qualify them
for the mechanism envisaged under Article 4, with the
On May 2, 2013, the Region of Tuscany and Enel signed a
survey completed by August 31, 2013. At the completion
new protocol of understanding to further develop geother-
of that phase, each Group company conducted an assess-
mal energy in Tuscany, with a view to addressing issues con-
ment of the appropriateness of the expressions of interest
cerning the green economy and reducing energy costs. The
in terms of their number and geographical and organiza-
agreement, which follows up on the framework agreement
tional distribution.
on geothermal energy of December 20, 2007, and the imple-
Following these assessments, on September 6, 2013, the
menting agreement of April 20, 2009, is a major step forward
main Italian companies of the Group signed an agreement
in fostering the social and economic growth of the areas with
with the unions FILCTEM, FLAEI and UILTEC implementing
geothermal resources, including both the traditional area of
the framework agreement of May 9, 2013, in which Enel
Larderello and the Amiata area, where the new Bagnore 4
and the unions set out the procedures for implementing the
plant will complete the plans for the addition of 112 MW of
measures provided for in Article 4, paragraphs 1-7-ter, of the
new capacity provided for in the 2007 agreement.
Fornero Act. The company-level implementing agreements
60
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions specify, for each company, the number of employees po-
The option to acquire the additional interests was envis-
tentially eligible for early retirement, which for the Group
aged in the original agreements between EGP-NA and the
as a whole came to 5,328. Meanwhile the Group is complet-
GE Capital subsidiaries. After closing, which came follow-
ing the formal checks, with the competent social security
ing approval by the Federal Energy Regulatory Commission,
entities, to ascertain eligibility for the benefit scheme. At
EGP-NA owns 75% of the Class A interest in both of the
December 31, 2013, the plan saw the exit from employment
companies that operate the wind farms, while GE Capital
of 1,911 employees.
retains a 25% stake.
9
May
Launch of Enel Lab project
3
June
Accord for the implementation of
smart grids in Saudi Arabia
On May 9, 2013, six young Italian companies and one
On June 3, 2013, Advanced Electronics Company (AEC), ICT
Spanish company were selected to join the first clean
Europe and Enel signed a memorandum of understanding
technology business incubator established by Enel. The
for smart grid implementation in the Kingdom of Saudi
seven companies selected proposed projects involving
Arabia and the Gulf Cooperation Countries, namely Saudi
renewable energy, smart grids, energy storage, automa-
Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain
tion, digitalization and communication system and en-
and Oman. With decades of experience in Advanced Meter
ergy efficiency. The winning start-ups were chosen from
Infrastructures (AMI) and excellent working relationships
a list of 13 Italian and Spanish finalists after a selection
with local utility companies, AEC has joined forces with ICT
process that started in July 2012, with the participation
Europe and Enel (which has field-proven technology and
of 215 companies.
international expertise in smart metering and smart grids)
The winning companies, in addition to receiving financial
to support this evolving technology with local capabilities.
assistance of up to €650,000 to help develop their pro-
The memorandum has been signed with a prime focus on
jects, will be able to grow within the Enel Group, which
delivering world class performance in smart grids and pow-
will support them with the engineering, technological,
er distribution capabilities.
legal and market skills that only a leading industry multi-
national can offer. After an initial stage of development,
the most promising companies can bring their projects to
full maturity and possibly become part of the Enel world.
22
May
Acquisition of a controlling
interest in Chisholm View
and Prairie Rose
19
June
Agreement for the development
of marine power generation
On June 19, 2013, Enel Green Power and 40South Energy,
a group of highly innovative companies operating in the
field of marine energy at the international level, began
the installation and commissioning of an initial R115 gen-
On May 22, 2013, Enel Green Power North America (EGP-
erator, with a nominal capacity of 150 kW and installed
NA) signed an agreement to purchase an additional 26%
capacity of about 100 kW, generating electricity from the
of the Class A shares of the Chisholm View Wind Project, a
energy produced by the waves of the sea around Punta
company that operates the 235 MW Chisholm View wind
Righini (Livorno). The new generator – designed and built
farm, from the GE Capital Group for about $47 million. EGP-
by 40South Energy – ensures full integration into the ma-
NA also signed an agreement to purchase an additional
rine environment and ease of maintenance, and accord-
26% of the Class A shares of the Prairie Rose Wind Project, a
ing to initial estimates will enable the generation of about
company that operates the 200 MW Prairie Rose wind farm,
220 MWh per year.
from the same group for $34 million.
After testing and assessment by the partners of the perfor-
61
mance of the system in the marine environment, Enel Green
The Ministry of Defense and Cassa Depositi e Prestiti will be
Power plans to strengthen collaboration with 40South En-
responsible for the financial aspects of the accord, for the
ergy on the international stage. In fact, in addition to the
subsequent definition of the mechanisms for financing the
sale of the first R115 generator to the Enel renewables com-
projects developed, including through the involvement of
pany and technological cooperation on testing, the agree-
the subsidiaries of Cassa Depositi e Prestiti.
ment envisages the possibility of installing more genera-
tors in different marine environments.
21
June
Letter of intent for disposal
of Marcinelle Energie
1
July
Sale of Enel.si by Enel Green
Power to Enel Energia
Following an agreement signed on June 17, 2013, be-
tween Enel Green Power and Enel Energia, on July 1, 2013
On June 21, 2013, Enel and Gazprom signed a non-bind-
the sale to the latter of the entire share capital of Enel.si
ing letter of intent for the sale to the Russian company
took effect. Enel.si operates in Italy, offering products and
of 100% of Marcinelle Energie, which owns a 420 MW
integrated solutions in the retail market for the installation
combined-cycle gas turbine power plant in Belgium, for
of distributed renewable generation systems and for en-
€227 million, with the price to be adjusted for net finan-
ergy savings and efficiency for end users, working through
cial debt at closing. The letter of intent paves the way for
a network of franchises, composed of more than 700 spe-
a binding final agreement, whose final terms and condi-
cialized installers.
tions were to be agreed by the end of September 2013.
The price paid by Enel Energia for the entire share capital of
The agreement was subsequently extended for a further
Enel.si amounted to about €81 million and was set, subject
six months in order to settle a number of details in the
to a price adjustment mechanism, on the basis of the enter-
negotiations. As with similar transactions, the execution
prise value as of December 31, 2012 and the net financial
of the transaction is subject to the approval of the compe-
position of the company at the same date.
tent corporate bodies of the parties involved, as well as to
The sale of the business forms part of the medium/long-
the authorization of the competition and other authori-
term strategy of the Renewable Energy Division, which is in-
ties provided for by law.
creasingly focused on expanding its business of developing,
27
June
Joint agreement for the security
of the electrical infrastructure
of the Ministry of Defense
On June 27, 2013, Enel, the Ministry of Defense and Cassa
Depositi e Prestiti reached an agreement for the establish-
ment of a working group tasked with conducting an analysis
over the next 12 months of the security of the electrical infra-
structure of a number of sites selected by the Ministry.
The aim of the agreement is to begin a collaborative effort
at the strategic and operational level among the parties to
building and operating renewable generation plants. For
the Sales Italy sector, which has a leading position in the sale
of electricity and gas to households and businesses in the
free and regulated markets in Italy, the acquisition is part of
its strategy of broadening its commercial product range to
the energy efficiency sector, covering the entire spectrum of
retail and business customers’ energy use needs.
9
July
Capital contribution agreement
between Enel Green Power
and EFS Buffalo Dunes
with a syndicate headed
by JP Morgan
conduct research and analysis to minimize risks, reduce vul-
On July 9, 2013, Enel Green Power North America Devel-
nerabilities and enhance the reliability of the electrical in-
opment (EGPD), a US subsidiary of Enel Green Power, and
frastructure present at the selected sites. Subsequently, the
EFS Buffalo Dunes, a GE Capital subsidiary, signed a capital
parties will assess the possibility of extending the initiative
contribution agreement with a syndicate led by JP Morgan.
to other sites of strategic interest.
Under the agreement, the syndicate will provide about
62
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions $260 million in financing for the Buffalo Dunes wind pro-
early redemption clauses directly linked to the level of
ject in Kansas, which will have an installed capacity of 250
the rating.
MW. The syndicate also includes Wells Fargo Wind Hold-
ings, Metropolitan Life Insurance Company and State Street
Bank and Trust Company.
When the syndicate disbursed the financing – subject to
compliance with the specific requirements in the capital con-
tribution agreement – the parties entered into a tax equity
agreement for the Buffalo Dunes wind plant. The project is
9
August
Conversion of Finale Emilia sugar
beet refinery
supported by a long-term power purchase agreement.
On August 9, 2013, Enel Green Power and COPROB, the
EFS Buffalo Dunes holds 51% of the wind project and EGPD
leading sugar beet producer in the country, assisted by the
holds the remaining 49%, as well as an option to acquire an
financial advisor Valore e Capitale Srl, an investment bank-
additional 26% on specified dates by the end of 2014.
ing firm specializing in the renewable energy sector, signed
11
July
Standard & Poor’s revises
long-term rating to “BBB”
and confirms short-term
rating at “A-2”
an agreement for the construction at Finale Emilia (Mod-
ena) of a 12.5 MW power plant that will be fuelled by agri-
cultural biomass. The project will be implemented through
Enel Green Power’s acquisition of 70% of Domus Energia
(now Enel Green Power Finale Emilia), formerly a COPROB
Group company.
The accord represents a further step in Enel Green Power’s
On July 11, 2013, Standard & Poor’s announced that it had
strategy for expansion in Italy’s biomass sector, as well as
revised its long-term rating for Enel to “BBB” (from “BBB+”).
enabling the COPROB Group to complete the complex
The agency also maintained its short-term rating of “A-2”
process of reorganizing and converting sugar refineries
for the Company. The outlook is stable.
closed in 2006, following the EU’s reform of the sugar
The downgrade follows the similar action recently taken by
market. Enel Green Power’s expertise in the renewable
Standard & Poor’s for Italy’s sovereign debt rating, which
energy sector, coupled with COPROB’s proven ability to
reflected, among the other factors, the deterioration in
supply the agricultural raw material, provide further as-
macroeconomic conditions in the country.
surances of the plant’s efficiency and productivity, all to
The stable outlook reflects the agency’s expectations that
the benefit of the development of the Modena area and
Enel will achieve and maintain performance and financial
in full compliance with the national targets for renewable
targets commensurate with its current rating, as a result of
resources.
its continued deleveraging efforts, the large contribution
of regulated activities and its good geographical and tech-
nological diversification outside Europe.
The downgrade did not have a significant impact on either
the cost of outstanding debt or of new borrowing, partly
due to the low volatility of spreads in the secondary market
for bonds issued by Enel, whose prices already reflect the
29
August
Enel Green Power awarded
contracts for the supply
of renewable energy in Brazil
rating issued by Moody’s (“Baa2”), which is now in line with
On August 29, 2013, following the 2013 Brazilian Reserve
that of Standard & Poor’s (“BBB”).
Auction, Enel Green Power was awarded the right to enter
With regard to loans granted by the EIB, only some of them
into three 20-year electricity supply contracts with the Bra-
(in the total amount of about €2 billion) contain covenants
zilian Camara de Comercialização da Energia Elétrica (CCEE)
requiring the beneficiary companies of the Group to rene-
to deliver power produced by three wind projects with a to-
gotiate the agreements or, alternatively, provide specific
tal capacity of 88 MW. The plants are located in the state of
bank guarantees. The parties opted for the former solution,
Bahia, where the company already has more than 146 MW
which did not have a major impact on the cost of borrowing
of capacity under construction. These new contracts repre-
or result in the early repayment of the debt.
sent an extension of the projects the company was already
With regard to other major loan agreements, none have
awarded in 2010 and 2012 public auctions in the same re-
63
gion. Once completed, the three new wind projects, requir-
a price of 98.698 with an annual fixed coupon of 7.75%
ing a total investment of about $163 million, will be able to
(hedged with a euro swap at a rate of around 7%) until
generate more than 400 GWh per year.
the first early redemption date scheduled for September
On September 4, 2013, Enel Green Power was awarded en-
10, 2020. As from that date and until maturity, the rate
ergy supply contracts with three hydro projects with a total
will be equal to the 5-year GBP swap rate plus a spread
capacity of 102 MW in Brazil’s first “New Energy Auction” in
of 566.2 basis points and interest rate step-up of 25 ba-
2013 for “A-5” power. The three plants, denominated Salto
sis points from September 10, 2025 and an additional 75
Apiacás, Cabeza de Boi and Fazenda, are located close to-
basis points from September 10, 2040.
gether in the state of Mato Grosso in mid-western Brazil.
The offering is being led by a syndicate of banks compris-
Once operational, the hydro projects, whose completion will
ing, for the euro tranche, Banca Imi, Banco Bilbao Vizcaya
require a total investment of about $248 million, will be able
Argentaria SA, BNP Paribas, Crédit Agricole-CIB Deutsche
to generate around 490 GWh per year. Enel Green Power
Bank, ING, JP Morgan, Mediobanca, Natixis, Société Géné-
was awarded 30-year energy supply contracts providing for
rale Corporate & Investment Banking, UniCredit Bank; and,
the sale of a specified amount of power generated by the
for the sterling tranche, Barclays, BNP Paribas, Deutsche
three hydro plants to a pool of distribution companies op-
Bank, HSBC, JP Morgan, The Royal Bank of Scotland, San-
erating in the Brazilian regulated market. Enel Green Power
tander Global Banking & Markets, and UBS Investment
will adopt a highly innovative and sustainable approach to
Bank.
the construction of the new plants, supplying the worksites
with renewable energy from the very start of the works. The
On September 17, 2013, the Company launched a multi-
company will build a thin-film photovoltaic system of about
tranche international issue in the United States of non-con-
1.2 MW, which will supply part of the power required for the
vertible bonds for institutional investors in the form of subor-
construction works. Once the three plants are completed,
dinated hybrid instruments with an average maturity of about
the photovoltaic plant continue to operate, adding its own
60 years, denominated in US dollars (USD) in the amount of
renewable power to the green energy produced by the new
$1,250 million, equal to about €936 million on the issue date.
hydro plants.
3
September
Issues of hybrid financial
instruments
The transaction involves the issue of a $1,250 million bond
maturing on September 24, 2073, at a price of 99.183 with a
semi-annual fixed coupon of 8.75% (hedged with a euro swap
at a rate of around 7.50%) until the first early redemption date
scheduled for September 24, 2023. As from that date and un-
til maturity, the rate will be equal to the 5-year USD swap rate
plus a spread of 588.0 basis points and interest rate step-up of
25 basis points from September 24, 2028 and an additional 75
On September 3, 2013, Enel SpA launched a multi-tranche
basis points from September 24, 2043.
international issue of non-convertible bonds for institution-
The offering is being led by a syndicate of banks comprising
al investors in the form of subordinated hybrid instruments
Barclays Capital Inc., Citigroup Global Markets Inc., Credit
with an average maturity of about 60 years, denominated
Suisse Securities (USA) LLC, Goldman, Sachs & Co, JP Mor-
in euros and pounds sterling (GPB) in the total amount of
gan Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc.,
about €1.7 billion.
Mitsubishi UFJ Securities (USA) Inc., Mizuho Securities USA
The issue is structured in the following two tranches:
Inc., and Morgan Stanley & Co. LLC.
> €1,250 million maturing on January 10, 2074, issued at
a price of 98.956 with an annual fixed coupon of 6.50%
Both issues were carried out in execution of the resolution
until the first early redemption date scheduled for Janu-
of the Board of Directors of Enel of May 7, 2013. They form
ary 10, 2019. As from that date and until maturity, the
part of the measures to strengthen the financial structure
rate will be equal to the 5-year euro swap rate plus a
of the Enel Group set out in the business plan presented to
spread of 524.2 basis points and interest rate step-up of
the financial community on March 13, 2013.
25 basis points from January 10, 2024 and a further 75
The bonds, which have been listed on the Irish Stock Ex-
basis points from January 10, 2039;
change, have been assigned provisional ratings of “BB+” by
> £400 million maturing on September 10, 2075, issued at
Standard & Poor’s, “Ba1” by Moody’s and “BBB-” by Fitch.
64
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions 19
September
Agreement for the supply
of gas from Azerbaijan
Under the new agreement, Enel’s contribution will mainly
apply to the areas of flue gas purification, carbon capture
and storage, pilot project analysis of distributed power
generation in urban areas with innovative environmentally
sustainable technologies, renewable energy generation
On September 19, 2013, Enel Trade signed a 25-year
and the implementation of a regulatory framework to fos-
agreement with the Shah Deniz Consortium to purchase
ter pilot cap and trade programs in China.
part of the gas that will be produced by Stage 2 of the
Shah Deniz field in Azerbaijan. The gas will be transport-
ed to Italy through the Trans-Adriatic Pipeline (TAP). Gas
supplies from Azerbaijan will be used by Enel to supply its
Italian market. The agreement will enter force following
the final investment decision on the Shah Deniz - Stage
2 project, which is scheduled to take place by the end of
31
October
Award of right to contract
renewable energy
in South Africa
2013. The delivery of gas is due to start no earlier than
On October 31, 2013, Enel Green Power (EGP) was award-
2019. Stage 2 development of the Shah Deniz field, which
ed the right to enter into energy supply contracts with the
lies some 70 km offshore in the Azerbaijan sector of the
South African utility Eskom in the amount of 314 MW of
Caspian Sea, will enable the production of 16 billion cubic
solar projects and 199 MW of wind projects (for a total of
meters of gas, adding to the 9 billion cubic meters already
513 MW) in the third round of the renewable energy tender
produced by the field’s Stage 1. Thanks to Stage 2 of Shah
sponsored by the South African government.
Deniz, Azeri gas will be delivered to Europe for the first
In accordance with the rules of the tender, EGP participat-
time ever. The new gas will be transported through more
ed with vehicle companies, retaining a controlling 60%
than 3,500 km of pipelines running across Azerbaijan,
stake, in partnership with major local players. The four
Georgia, Turkey, Greece, Bulgaria, Albania and under the
photovoltaic projects (Aurora, Tom Burke, Paleisheweul
Adriatic Sea to Italy.
14
October
Memorandum of understanding
with Huaneng for cooperation
in power generation
and Pulida) will be in the Northern Cape, Western Cape,
Free State and Limpopo regions, in areas boasting the
highest concentration of solar radiation in the country.
The two wind projects (Gibson Bay and Cookhouse) will
be located in the Eastern Cape region in areas with abun-
dant wind resources.
Once completed, in 2016 the six projects, which will require
a total investment of about €630 million, will generate
On October 14, 2013, Enel signed a memorandum of
more than 1,300 GWh per year, making an environmentally
understanding with the China Huaneng Group (CHNG),
sustainable contribution to meeting the country’s rising en-
which operates in the energy sector, aimed at strength-
ergy demand.
ening cooperation on clean coal technologies, flue gas
purification, enhancing the efficiency and performance of
coal plants, renewable energy and distributed generation.
The memorandum is a product of the cooperation pro-
gram between Enel, the Chinese Ministry of Science and
Technology and the Italian Ministry for the Environment
launched in 2008 to boost the use of environmentally
13
November
Agreement for the sale
of SeverEnergia to Rosneft
sustainable technologies in power generation. More spe-
On September 24, 2013 Enel Investment Holding reached
cifically, the memorandum is the follow-up to the signing
an agreement with Itera, a wholly-owned subsidiary of
in 2012 of another agreement between Enel and CHNG’s
the Russian oil and gas company Rosneft, for the sale of
Clean Energy Research Institute that launched coopera-
its 40% stake in Artic Russia BV, which in turn owns 49%
tion between the two groups on research in clean coal,
of the share capital of SeverEnergia, giving Enel a weight-
renewables and distributed generation.
ed stake of 19.6% in the latter. The price for the interest
65
amounted to $1.8 billion, which was paid in cash upon
closing. The transaction was completed following receipt
of antitrust clearance and compliance with other normal
conditions, including waivers received from the other par-
ties involved in the transaction on November 13, 2013.
6
December
Disposal of 14.8% of Enel Rete
Gas to F2i and Ardian
26
November
Cooperation agreement
with Rosneft for joint
development of projects
in upstream segment
of the hydrocarbon industry
On December 6, 2013, Enel SpA and Enel Distribuzione
signed with F2i SGR SpA (F2i), Ardian and F2i Reti Italia Srl
an agreement for the sale of the remaining stake (equal to
14.8%) held by Enel Distribuzione in Enel Rete Gas.
The price agreed amounted to €122.4 million, giving the
overall company a valuation in line with its regulatory as-
set base. The disposal is subject to the pre-emption rights
On November 26, 2013 Enel and Rosneft signed a memo-
of all the other shareholders of Enel Rete Gas, including F2i
randum of understanding to team up in the international
Reti Italia Srl (a company controlled by F2i and Ardian that
upstream hydrocarbon sector.
owns 85.1% of Enel Rete Gas SpA), which has undertaken
Under the agreement Enel and Rosneft will partner to iden-
to exercise them in favor of a newly formed company also
tify commercial opportunities and to jointly develop pro-
controlled by F2i and Ardian.
jects in the exploration, production and transportation of
The agreement also established that at the time of the
hydrocarbons outside of Russia. More specifically, the two
transfer of the holding, F2i Reti Italia would repay Enel (in
companies will jointly pursue international expansion op-
advance of the contractual due date in 2017) of the vendor
portunities and will organize a series of meetings, seminars
loan received from the latter in 2009 at the time of the dis-
and workshops for exchanging information on exploration
posal of 80% of Enel Rete Gas.
and production activities and on their respective strategies
On December 20, 2013, the transaction was closed. Pend-
in the upstream sector.
ing the expiration of the pre-emption rights of all the oth-
The joint Enel/Rosneft working group will also analyze op-
er shareholders of Enel Rete Gas (representing a total of
portunities for partnering in Latin America, southern Eu-
about 0.05% of the share capital) and having verified that
rope, the Mediterranean basin and North Africa.
the conditions precedent to the sale have been met, on
29
November
Enel Green Power awarded
long-term contracts to supply
energy to Chile’s regulated
market
that date Enel Distribuzione also completed the transfer
to F2i Reti Italia 2 of the proportional interest due to F2i
Reti Italia for a price of around €122.3 million. Once the
rights of pre-emption expire, Enel Distribuzione will sell
the remaining shares of Enel Rete Gas to the other share-
holders who have exercised these rights or, if the rights go
unexercised, sell them to F2i Reti Italia 2, therefore raising
On November 29, 2013, Enel Green Power awarded the
the total expected amount of €122.4 million.
right to enter into long-term energy supply contracts with
Also on December 20, 2013, F2i Reti Italia repaid Enel a ven-
a pool of distribution companies operating in Chile’s regu-
dor loan amounting to about €177 million (including initial
lated electricity market, providing up to 4,159 GWh for the
principal and interest accrued but not yet paid).
entire duration of the contracts. The energy supply, at a
price of $128/MWh, will start in December 2013 and ter-
minate in 2024. The power supply will initially be generat-
ed by an existing plant and, later, by three new plants (two
photovoltaic plants and one wind farm), that will have a
total installed capacity of 161 MW and will be located in
Chile’s Central Interconnected System.
The new plants will be built and enter service by the end of
the first half of 2015.
66
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Reference scenario
Enel and the financial markets
Gross operating margin per share (euro)
Operating income per share (euro)
Group net earnings per share (euro)
Group net ordinary earnings per share (euro)
Dividend per share (euro) (1)
Group shareholders’ equity per share (euro)
Share price - 12-month high (euro)
Share price - 12-month low (euro)
Average share price in December (euro)
Market capitalization (2) (millions of euro)
No. of shares outstanding at December 31 (millions)
(1) Dividend authorized by the Shareholders' Meeting on May 22, 2014.
(2) Calculated on average share price in December.
Enel stock weighting in:
- FTSE MIB index
- STOXX Europe 600 Utilities index
- Bloomberg World Electric index
Rating:
Standard & Poor’s
Outlook
Medium/long-term
Short-term
Outlook
Medium/long-term
Short-term
Outlook
Medium/long-term
Short-term
Moody’s
Fitch
(1) Figures updated to January 31, 2014.
2013
2012 restated
1.81
1.06
0.34
0.33
0.13
3.82
3.38
2.30
3.10
1.68
0.72
0.03
0.30
0.15
3.80
3.31
2.03
3.05
29,150
9,403
28,774
9,403
Current (1)
at Dec. 31, 2013
at Dec. 31, 2012
at Dec. 31, 2011
9.17%
7.61%
3.31%
Stable
BBB
A-2
8.82%
7.61%
3.12%
11.02%
8.33%
3.17%
12.98%
8.25%
2.93%
Stable
Negative
Watch Negative
BBB
A-2
BBB+
A-2
A-
A-2
Negative
Negative
Negative
Negative
Baa2
P2
Baa2
P2
Baa2
P2
A3
P2
Watch Negative
Watch Negative
Watch Negative
Stable
BBB+
F2
BBB+
F2
BBB+
F2
A-
F2
In 2013, the world’s macroeconomic systems expanded at
The euro area saw its economy begin a weak recovery, with
a relatively moderate pace, with variations depending on
enduring signs of fragility.
geographical area.
For Italy, 2013 ended with a further contraction in GDP.
The economy of the United States strengthened substan-
However, in the 3rd Quarter of the year the decline in GDP
tially. The improvement enabled the Federal Reserve to ta-
under way since the summer of 2011 came to an end.
per its securities purchases without increasing volatility on
the financial markets.
The general improvement in the advanced economies fos-
In the emerging countries, economic growth differed con-
tered a narrowing of risk premiums in both public- and pri-
siderably: rapid in China and modest in the other develop-
vate-sector debt markets and spurred a rise in the financial
ing economies (notably in Brazil and Russia).
markets. The strains on the sovereign debt of the southern
67
European countries eased significantly over the course of
On June 27, 2013, Enel paid off the dividend on 2012 profits
2013.
of €0.15 per share.
The main European stock indices closed 2013 with substan-
Finance held 31.2% of Enel, while institutional investors
tial gains. The FTSE Italia All Share index in Italy ended the
41.9% and individual investors the remaining 26.9%.
At December 31, 2013 the Ministry for the Economy and
year with a gain of 18%.
For further information we invite you to visit the Investor Rela-
In this context share prices in the European utilities segment
tions section of our corporate website (http://www.enel.com/
rose more moderately, posting a gain of about 7% with sig-
en-GB/investor/), which contains financial data, presentations,
nificant differences in the performance of the shares making
on-line updates of the share price, information on corporate
up the index (which ranged from a gain of more than 80%
bodies and the regulations of shareholders’ meetings, as well
by EDF to a loss of about 15% by RWE).
as periodic updates on corporate governance issues.
As regards Enel shares, the year ended with the stock price
We have also created contact centers for private investors (which
virtually unchanged from the end of the previous year at
can be reached by phone at +39-0683054000 or by e-mail at
€3.174, up 1% on the end of 2012. The decline in the price
azionisti.retail@enel.com) and for institutional investors (phone:
over the first nine months of 2013 was entirely reversed in
+39-0683051; e-mail: investor.relations@enel.com).
the final quarter of the year.
68
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Performance of Enel share price and the Bloomberg World Electric, STOXX Europe 600 Utilities
and FTSE Italia All Share indices from January 1, 2013 to February 28, 2014
EURO
4.0
3.8
3.6
3.4
3.2
3.0
2.8
2.6
2.4
2.2
2.0
Jan.
13
Feb.
13
Mar.
13
Apr.
13
May
13
June
13
July
13
Aug.
13
Sep.
13
Oct.
13
Nov.
13
Dec.
13
Jan.
14
Feb.
14
Mar.
14
Enel
Bloomberg World Electric
STOXX Europe 600
Utilities
FTSE Italia All Share
69
Economic and energy conditions in 2013
Economic developments
The year 2013 was characterized by an improvement in the
Banks’ demand for liquidity in 2013 caused 3-month Euribor
global economic environment. The implementation of struc-
to decline significantly over the year, posting an average of
tural reforms in some European countries and the resumption
0.22%, well below that recorded in 2012 (0.57%). In foreign
of exports in others gave rise to signs of recovery, reflected in a
exchange markets, the euro/dollar rate rose from an average
significant narrowing in the spread against the German Bund
of 1.29 in 2012 to an average of 1.33 in 2013. The increase is
and, in some cases, a return to positive GDP growth after years
primarily attributable to flows of money toward the periph-
of economic stagnation and widespread recession. In Europe,
eral European countries and to the rise in 3-month Euribor
2013 confirmed the emergence from recession, with some
above its level at the end of 2012 (0.19%). This level was
countries that recorded GDP growth and others whose GDP
higher than both USD Libor and the policy rate of the ECB.
contracted but at a slower pace than the levels of 2012: Ire-
In order to facilitate access to credit by institutional inves-
land (0.5%), Spain (-1.2%), Italy (-1.8% compared with -2.5%
tors and support the level of investment, the European Cen-
in 2012), Greece (-3.6% compared with -6.4% in 2012) and
tral Bank lowered its rate on main refinancing operations to
Portugal (-1.5% compared with -3.2% the previous year).
0.25%. International stock market indices posted gains for
In the United States (growth of 1.9% in 2013 compared with
2013 as a whole that were about twice those achieved the
2.8% in 2012), the easing of uncertainties related to the ta-
previous year, thanks to their especially strong showing in
pering of quantitative easing and the extension of negotia-
the 2nd Half of the year following the publication of positive
tions on the budget and the public debt helped buoy the fi-
macroeconomic data and the continuation of expansionary
nancial market, with a positive impact on the real economy
monetary policies. For example, the US index rose by no less
and employment. The countries of South America performed
than 29.9% and that in Japan rose by 51.9%, with the latter
well (Argentina 5.5%, Brazil 2.1%, Chile 4.0%, Colombia 4.0%
undoubtedly boosted by the ultra-expansionary economic
and Peru 5.0%), although towards the end of the year, growth
policies put in place by the Japanese government.
rates exhibited increased volatility due to the sudden with-
The following table shows the growth rates of GDP in the
drawal of cash inflows from the industrial economies. Similar
main countries in which Enel operates through its subsidiaries.
growth was also achieved in China (+7.7% in 2013), a country
that is still grappling with environmental problems and ex-
cess credit levels that could hinder future development. Oth-
er strong performers included the United Kingdom (+1.9%
in 2013), thanks to the continuation of robust expansion in
the private and public consumption supporting the increas-
ingly solid recovery in growth, and Japan (+1.7% in 2013),
although that country experienced a weakening of private
consumption and investment while public consumption and
investment strengthened considerably. The eastern European
Annual real GDP growth
%
Italy
Spain
Portugal
Belgium
Greece
France
Bulgaria
Romania
countries are still affected by significant social imbalances,
Slovakia
fragile institutional arrangements and economic models that
will have to demonstrate their reliability in promoting a long
period of sustained growth (GDP growth of 1.3% for Slovakia
and 1.3% for Russia in 2013).
In the 2nd Half of the year, inflation in Europe subsided from
its average of 2.3% in 2012 to an average of 1.3% in 2013.
More generally, the recovery has not remained confined to
European countries but, albeit fragmented and uneven, it has
involved both the industrial countries (+1.3%) and the emerg-
ing economies (+4.7%).
70
Russia
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Canada
USA
2013
-1.8
-1.2
-1.5
0.2
-3.6
0.2
0.8
3.5
1.3
1.3
5.5
2.1
4.0
4.0
1.3
5.0
1.8
1.9
2012
-2.6
-1.6
-3.2
-0.1
-6.4
-
0.8
0.7
1.8
3.4
1.9
1.0
5.6
4.2
3.9
6.3
1.7
2.8
Source: National statistical institutes and Enel based on data from ISTAT, INE,
EUROSTAT, IMF, OECD and Global Insight.
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Developments in the main market indicators
Money market
1.60
1.55
1.50
1.45
1.40
1.35
1.30
1.25
1.20
1.15
1.10
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Jan.
2012
Mar.
2012
Jun.
2012
Sep.
2012
Dec.
2012
Feb.
2013
May.
2013
Aug.
2013
Nov.
2013
Euro/US dollar
3-month Euribor
International commodity prices
In 2013, despite the continuing weakness of macroeconomic
The supply of oil expanded by about 1% in 2013, although this
conditions, world oil consumption continued to grow rapidly,
was less than the sharp rise seen in 2012. A major driver of the
rising by 1.3% compared with 2012 (+1.1% between 2011 and
expansion was output in North America, which grew by 8%,
2012), compared with an annual average of 0.8% in the 2008-
continuing the trend that began in 2009 and bring American
2011 period. The rise was driven primarily by growing demand
supply back to its levels of the early 1990s. Excluding the in-
in the developing economies of non-OECD countries (+1.2 mil-
crease in oil production in North America and the small fall in
lion barrels/day), while demand in the OECD countries was vir-
Europe and Africa, the output of non-OPEC countries has re-
tually unchanged compared with 2012.
mained essentially unchanged since 2010.
71
Commodity prices
700
600
500
400
300
200
100
0
Jan.
11
Mar.
11
May
11
Jul.
11
Sep.
11
Nov.
11
Jan.
12
Mar.
12
May
12
Jul.
12
Sep.
12
Nov.
12
Jan.
13
Mar.
13
May
13
Jul.
13
Sep.
13
Nov.
13
Zeebrugge gas (€/toe)
API2 coal (€/toe)
Brent (€/toe)
Despite some signs of a partial easing of tensions in the
economic recovery in Europe and the positive outlook
Middle East, in 2013 the price of oil remained high at close
for developments in 2014 are sparking an increase, albeit
to $110/barrel. The recent agreement between six major
a modest one, in prices. The market remains very weak,
world powers and Iran, which commits the middle eastern
mainly because of the sharp competition with the gas in
country to shelve its efforts to enrich uranium beyond 5%,
the United States and fears that over the medium term
could lead to a review of the embargo on its petroleum
the emerging countries will not be able to sustain growth
products in the next few months. However, the market did
rates in line with those observed since the 2000s.
react to the news in any way, appearing more focused on
short-term developments in fundamentals: although data
Despite world economic developments, the growth in gas
on stocks show that the US market is well supplied, Libyan
consumption in 2013 was basically in line with the trends
output continues to suffer from the disruptions caused by
seen over the last decade, with no major differences be-
its delicate domestic situation. The recovery in oil prices
tween the advanced economies and the emerging coun-
also led to increases in the prices of refined products. Both
tries. The increase in demand was accompanied by an ex-
European and North American prices for diesel and gaso-
pansion of production in all three OECD macro areas.
line rose by between 1% and 3%.
In the Italian gas market, the combination of weak de-
Finally, the appreciation of the euro against the dollar
mand (especially for thermal generation) and the slight
(+3% compared with 2012 ) caused oil prices expressed in
increase in prices in northern Europe in 2013 caused the
euros to fall.
Italian spot price to converge towards that on European
Developments in 2013 underscored the importance of
exchanges. The spot price of natural gas at the Zeebrugge
coal in the international energy mix, with an increase in
hub in Europe rose from €25/MWh in 2012 to €27/MWh
world consumption in all OECD countries except North
in 2013, an increase of 8%, thus reducing the price differ-
America, where coal was substituted by low-cost gas in
ential with the Italian virtual gas trading point from €3/
electricity generation.
MWh to €1/MWh.
The average price of coal for delivery at the Amsterdam-
The indexing of gas prices to those of petroleum products
Rotterdam-Antwerp hub (ARA CIF CIM) fell below its lev-
remains an important factor in European contracts, al-
els in 2012, at $82/metric ton in 2013, about $10 less than
though the strength of the link has been reduced in recent
the previous year, continuing the downward trend under
years with the steady weakening of demand, producing
way since the peaks registered in 2010. The first signs of
what can be increasingly characterized as a buyer’s market.
72
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Electricity markets
Electricity demand
Developments in electricity demand
GWh
Italy
Spain
Portugal
France
Greece
Bulgaria
Romania (1)
Slovakia
Russia (2)
Argentina
Brazil
Chile (3)
Colombia
Peru
USA (4)
(1) At September 30, 2013 and 2012.
(2) Europe/Urals.
(3) Figure for the SIC - Sistema Interconectado Central.
(4) Net of grid losses.
Source: Enel based on TSO figures.
2013
317,144
246,206
49,057
494,986
46,451
32,192
36,665
26,745
767,804
130,272
565,065
49,343
60,885
39,789
2012
328,220
251,850
50,495
489,520
50,290
32,463
39,202
26,842
769,418
125,705
546,595
47,340
59,435
37,321
3,689,294
3,686,777
Change
-3.4%
-2.2%
-2.9%
1.1%
-7.6%
-0.8%
-6.5%
-0.4%
-0.2%
3.6%
3.4%
4.2%
2.4%
6.6%
0.1%
In Europe electricity demand decreased in the Mediterra-
of electricity demand. In the rest of Europe, electricity de-
nean countries, primarily due to the slowdown in indus-
mand in 2013 expanded in France (+1.1%) and declined
trial consumption. More specifically, in Italy (-3.4%), Spain
slightly in Russia (-0.2%). Demand continued to rise rapidly
(-2.2%), Greece (-7.6%) and Portugal (-2.9%) the nega-
in Latin America, with significant increases in Colombia
tive performance of the industrial sector and the macro-
(+2.4%), Argentina (+3.6%) and Brazil (+3.4%) and even
economic uncertainty had a decisive impact on the level
larger gains in Chile (+4.2%) and Peru (+6.6%).
73
Italy
Domestic electricity generation and demand
Millions of kWh
Net electricity generation:
- thermal
- hydroelectric
- wind
- geothermal
- photovoltaic
Total net electricity generation
Net electricity imports
Electricity delivered to the network
Consumption for pumping
Electricity demand
2013
2012
Change
182,528
52,515
14,886
5,305
22,146
277,380
42,153
319,533
(2,389)
317,144
207,331
43,260
13,333
5,251
18,631
287,806
43,103
330,909
(2,689)
328,220
(24,803)
-12.0%
9,255
1,553
54
3,515
(10,426)
(950)
(11,376)
300
(11,076)
21.4%
11.6%
1.0%
18.9%
-3.6%
-2.2%
-3.4%
11.2%
-3.4%
Source: Terna - Rete Elettrica Nazionale (monthly report - December 2013).
Domestic electricity demand in 2013 decreased by 3.4% com-
Net electricity generation in 2013 decreased by 3.6% or 10,426
pared with 2012, to 317,144 million kWh. Of total electricity
million kWh to 277,380 million kWh. More specifically, in an en-
demand, 86.7% was met by net domestic electricity genera-
vironment of depressed electricity demand, the increase in hy-
tion for consumption (86.9% in 2012) with the remaining
droelectric generation (9,255 million kWh), mainly attributable
13.3% being met by net electricity imports (13.1% in 2012).
to improved water availability conditions, and the rise on other
Net electricity imports in 2013 declined by 950 million kWh,
lion kWh and wind generation up 1,553 million kWh) as a result
mainly as a result of the fall in demand and overcapacity on
of the expansion in installed capacity in the country, led to a
the domestic market.
reduction in thermal generation of 24,803 million kWh.
renewables generation (photovoltaic generation up 3,515 mil-
Spain
Electricity generation and demand in the peninsular market
Millions of kWh
Gross electricity generation - ordinary regime:
- thermal
- nuclear
- hydroelectric
Total gross electricity generation - ordinary
regime
Consumption for auxiliary services
Electricity generation - special regime
Net electricity generation
Net electricity exports (1)
Consumption for pumping
Electricity demand
2013
64,882
56,827
33,970
155,679
(6,337)
110,823
260,165
(8,001)
(5,958)
246,206
2012
Change
93,314
61,470
19,455
174,239
(7,889)
102,293
268,643
(11,770)
(5,023)
251,850
(28,432)
(4,643)
14,515
(18,560)
1,552
8,530
(8,478)
3,769
(935)
(5,644)
-30.5%
-7.6%
74.6%
-10.7%
19.7%
8.3%
-3.2%
32.0%
-18.6%
-2.2%
(1) Includes the balance of trade with the extra-peninsular system.
Source: Red Eléctrica de España (Balance eléctrico diario Peninsular - December 2013 report). Volumes for 2012 are updated to October 2, 2013.
74
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
Electricity demand in the peninsular market in 2013 de-
million kWh. Developments in the electricity market, and con-
clined by 2.2% compared with 2012 to 246,206 million
sequently in electricity generation, were entirely analogous
kWh. Demand was entirely met by net domestic genera-
to those in Italy, with a sharp decline in conventional thermal
tion for consumption.
generation (-30.5%) and nuclear output (-7.6%), essentially
Net electricity exports in 2012 fell by 32.0% compared with 2012.
improved water conditions compared with the previous year,
due to higher hydroelectric generation (74.6%), owing to
and higher output under the special regime (8.3%), as well as
Net electricity generation in 2013 decreased by 3.2% or 8,478
lower market demand.
Electricity generation and demand in the extra-peninsular market
Millions of kWh
Gross electricity generation - ordinary regime:
- thermal
Total gross electricity generation - ordinary
regime
Consumption for auxiliary services
Electricity generation - special regime
Net electricity generation
Net imports
Electricity demand
2013
2012
Change
13,175
13,175
(784)
1,050
13,441
1,269
14,710
14,399
14,399
(850)
1,021
14,570
570
15,140
(1,224)
(1,224)
66
29
(1,129)
699
(430)
-8.5%
-8.5%
7.8%
2.8%
-7.7%
122.6%
-2.8%
Source: Red Eléctrica de España (Balance eléctrico diario Extrapeninsulares - December 2013 report).
Electricity demand in the extra-peninsular market in 2013
kWh and regarded trade with the Iberian peninsula.
decreased by 2.8% compared with 2012 to 14,710 million
kWh. Demand was almost entirely met by net domestic
Net electricity generation in 2013 fell by 7.7% or 1,129 mil-
generation for consumption.
lion kWh as a result of lower thermal generation (-8.5%),
which was only partially offset by greater output under
Net electricity imports in 2013 amounted to 1,269 million
the special regime.
Electricity prices
Electricity prices
Average baseload
price 2013
(€/MWh)
Change in
baseload price
2013-2012
Average
peakload price
(€/MWh)
Change in
peakload price
2013-2012
Italy
Spain
Russia
Slovakia
Brazil
Chile
Colombia
63.0
44.3
24.8
37.2
91.5
116.0
71.5
-16.6%
-6.3%
4.3%
-13.2%
38.5%
-23.4%
43.0%
70.3
50.7
28.6
48.9
207.0
221.6
165.4
-17.6%
-3.7%
4.0%
-10.6%
20.2%
-16.3%
45.9%
75
Developments in prices in the main markets
Eurocents/kWh
Final market (residential): (1)
Italy
France
Portugal
Romania
Spain
Slovakia
Final market (industrial): (2)
Italy
France
Portugal
Romania
Spain
Slovakia
2013
2012
Change
15.0
10.1
12.1
8.9
17.5
13.8
11.2
7.7
10.2
9.0
11.7
12.4
14.5
9.9
11.1
8.0
17.7
14.0
11.9
8.1
10.5
8.3
11.6
12.7
3.4%
2.0%
9.0%
11.3%
-1.1%
-1.4%
-5.9%
-4.9%
-2.9%
8.4%
0.9%
-2.4%
(1) Half-year price net of taxes - annual consumption of between 2,500 kWh and 5,000 kWh.
(2) Half-year price net of taxes - annual consumption of between 500 MWh and 2,000 MWh.
Source: Eurostat.
Electricity price developments in Italy
Power Exchange - PUN IPEX
(€/MWh)
Average residential user with annual
consumption of 2,700 kWh (eurocents/kWh):
price including taxes
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
2013
2012
63.8
57.4
65.5
65.2
81.2
73.5
81.5
65.7
19.1
18.9
19.2
19.0
17.3
19.1
19.1
19.4
Source: Energy Markets Operator; Authority for Electricity and Gas.
In Italy, the average uniform national sales price of electricity
ers set by the Authority for Electricity and Gas rose by 1.7% in
on the Power Exchange fell by 16.6% compared with 2012.
2013, mainly owing to the increase in the A3 rate component
The average annual price (including taxes) for residential us-
covering costs for incentives for renewable generation.
76
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
Natural gas markets
Gas demand
Millions of m3
Italy
Spain
2013
70,087
28,662
2012
74,929
31,183
Change
(4,842)
(2,521)
-6.5%
-8.1%
Demand for natural gas in 2013 fell in both Italy and Spain.
climate and changes in the mix of generation sources, char-
The decline is mainly attributable to the adverse economic
acterized by the growing use of renewable energy.
Italy
Domestic gas demand
Millions of m3
Residential and civil
Industrial and services
Thermal generation
Other (1)
Total
2013
30,061
16,651
21,224
2,151
70,087
2012
30,832
16,872
24,952
2,273
74,929
Change
(771)
(221)
(3,728)
(122)
(4,842)
-2.5%
-1.3%
-14.9%
-5.4%
-6.5%
(1) Includes other consumption and losses.
Source: Enel based on data from the Ministry for Economic Development and Snam Rete Gas.
Domestic demand for natural gas in 2013 amounted to
essentially the result of lower generation volumes, was
70,087 million cubic meters, a decrease of 6.5% on the
compounded by a decrease in consumption for domestic
previous year.
and civil uses, attributable to the impact of colder weather
The contraction in consumption for thermal generation,
in 2012.
Price developments
Average residential user with annual
consumption of 1,400 m3
(ceurocents/m3):
price including tax
Source: Authority for Electricity and Gas.
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
2013
2012
92.8
88.9
88.4
85.8
86.4
87.9
90.2
91.2
The annual average sales price of natural gas in Italy increased by 0.1% in 2013.
77
Regulatory and rate issues
The European regulatory framework
Internal Energy Market
were published as Delegated Regulations of the European
Commission on February 23, 2013.
In February 2011, the European Council set an objective of
The Regulation, commonly referred to as EMIR (European
integrating European energy markets by 2014, with the in-
Market Infrastructure Regulation), introduces new rules
tention of creating a single market for electricity and gas,
governing centralized clearing and risk mitigation for OTC
offering consumers full freedom of choice in an environ-
derivatives. Non-financial institutions are required to use
ment of fair and competitive prices, promoting renewa-
centralized clearing and adopt certain risk mitigation tech-
bles and ensuring and improving the security of supply.
niques only in cases in which the positions that they and
To this end, the Council mandated the Commission, the
other non-financial companies in the same group have
Agency for the Cooperation of Energy Regulators (ACER)
taken in OTC derivatives (only for those not used to hedge
and the European networks of transmission system opera-
commercial risk) exceed the specified clearing thresholds.
tors for electricity and gas (ENTSO-E and ENTSO-G) to de-
A number of the EMIR requirements came into effect start-
velop European Network Codes. These Codes are intended
ing from March 15, 2013. These include certain risk miti-
to define a set of common, harmonized rules to facilitate
gation techniques for OTC derivatives that are not subject
the management of cross-border issues with a systematic,
to centralized clearing obligations and a requirement for
coordinated approach. In 2013, the process of developing
non-financial institutions to monitor their OTC derivatives
and approving numerous electricity network codes made
positions to ensure that they do not exceed the clearing
full progress in the three Market, System Operation and
thresholds. Additional risk mitigation requirements took
Grid Connection macro-areas.
effect on September 15, 2013.
In parallel, in order to achieve the public-interest objectives
As from February 12, 2014, a daily reporting obligation for
mentioned above, the Member States may independently
all derivatives transactions carried out by European compa-
undertake actions that, if not appropriately designed and
nies took effect.
coordinated at the European level, could have a distortive
impact on the operation of the internal energy market. Ac-
cordingly, with specific regard to electricity markets, in No-
Emissions trading scheme
vember 2013 the Commission published a package of non-
Since 2005, Enel Group installations in Europe have been
binding guidelines for Member States concerning public
required to participate in the EU ETS, a market-based sys-
intervention involving: i) the adequacy of generation ca-
tem for reducing greenhouse gas emissions. Operators
pacity; ii) support schemes for renewables and cooperation
are expected to reduce their emissions by 21% by 2020
mechanisms; and iii) developing demand response.
(compared with 2005 levels). On January 1, 2013 the third
Regulation on
over-the-counter
derivatives, central
counterparties and trade
data repositories (EMIR)
phase of implementation (2013-2020) began. This phase
envisages a series of major changes introduced by Direc-
tive 2009/29/EC and subsequent regulations in order to
improve the efficiency, transparency and effectiveness of
the system.
The main change regards the method for allocating emis-
sions allowances. The free allocation of allowances will
gradually be replaced by an auction system. The power
generation sector will be required to purchase 100% of its
The main implementing measures for Regulation 648/2012
allowances through auctions as from January 2013. The pro-
of the European Parliament and of the Council on OTC de-
ceeds of the auctions are managed by the Member States,
rivatives, central counterparties and trade repositories,
who must however use at least 50% of the revenues to fi-
which had entered force on August 16 of the previous year,
nance projects involving low carbon technologies (carbon
78
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions capture and storage, renewable resources, etc.).
During 2013 the establishment of the Single European Un-
ion Registry was finalized, replacing the national registries in
accounting for emissions allowances and increasing the se-
curity and transparency of the emissions allowance market.
Regulation on the submission
and publication of data
in electricity markets
In November 2013, a new Registries Regulation was ap-
Following the comitology process, on June 15, 2013, the
proved, defining the flexibility calculation rules (use of inter-
Regulation on the submission and publication of data in
national credits for compliance purposes) for the third phase.
electricity markets (Commission Regulation 543/2013/EU)
With the exception of “new entrants”, no additional flexibility
was published. The regulation determines the minimum
is envisaged for 2013-2020. However, it will be possible to use
set of data on generation, transportation, consumption
the residual flexibility from phase 2 until 2020.
and balancing that must be made available to electricity
Also in November last year, the monetization of the final
market participants for subsequent central collection and
tranche of 100 million EUAs of the New Entrant Reserve
publication. The European Network of Transmission Sys-
(NER 300) by the European Investment Bank (EIB) was be-
tem Operators for Electricity (ENTSO-E) will be responsible
gun. The proceeds will be used to finance pilot projects
for establishing a central information transparency plat-
in the innovative renewable resources field and in carbon
form, which will aggregate and publish the data received
capture and storage (CCS) technologies.
from TSOs and other data providers.
As regards the inclusion of international flights under the
EU ETS in 2012, following numerous suits filed by a number
of non-European airlines, the compliance obligation under
the EU ETS was limited to European air space until a global
solution for reducing emissions in the aviation sector can
The 2030 climate and energy
package
be reached.
On January 22, 2014, the European Commission published
Finally, in December 2013, the Decision amending the ETS
the 2030 climate and energy policy framework, composed
Directive to formally authorize the European Commission
of the following documents:
to change the calendar of auctions for phase 3 was ap-
> a communication on the European policy for climate
proved, postponing (back-loading) the sale of 900 million
and energy through 2030, envisaging:
allowances in order to reduce the excess short-term supply
- a binding EU-level target to reduce greenhouse gas
on the carbon market.
Industrial Emissions Directive
emissions by 40% compared with 1990, with a larger
reduction for the ETS sector (-43% compared with
2005);
- a binding EU-level target to achieve 27% of final en-
As part of the process of implementing the Industrial Emis-
ergy consumption from renewables (not translatable
sions Directive (Directive 2010/75/EU), the European Com-
into national targets);
mission is working to update the reference document on
- no energy efficiency target;
best available techniques for large combustion plants (BREF
- a new governance framework based on national plans
LCP), which includes the emissions levels associated with
for competitive, secure and sustainable energy to en-
the best available technologies to be considered in the per-
sure greater harmonization of Member State policies;
mitting process. In the 2nd Half of 2013, a consultation was
> proposed legislation to introduce an automatic adjust-
conducted on the first draft presented by the Commission.
ment mechanism for the supply of allowances in the Eu-
The completion of the review process scheduled for the end
ropean Emissions Trading Scheme (EU ETS);
of 2014 could be delayed until the early months of 2015.
> a communication on energy prices to compare the com-
ponents of final prices across the Member States and
types of customer;
> a communication on exploration and production of non-
conventional hydrocarbons (in particular, shale gas).
79
The Italian regulatory
framework
Free-market operators are awarded contracts to provide
safeguard services on a geographical basis through three-
year auctions. Enel Energia was awarded contracts to pro-
vide safeguard services to five of the twelve areas subject
The current structure of the Italian electricity market is
to auction for the 2011-2013 period (Umbria and Marche;
the result of the liberalization process begun in 1992 with
Sardinia; Campania; Basilicata and Calabria; Sicily).
Directive 1992/96/EC, transposed into Italian law with
In October 2013 the Authority revised the rules for award-
Legislative Decree 79/1999. This decree provided for the
ing and delivering the service as from 2014, reorganizing
liberalization of electricity generation and sale; reserving
the territories and reducing their number from twelve to
transmission and ancillary services to an independent net-
ten. The decree of the Minister for Economic Development
work operator; the granting of concessions for distribution
of November 6, 2013, confirmed the three-year duration of
to Enel and other companies run by local governments; the
the service. Following the new auction for the 2014-2016
unbundling of network services from other activities.
period, Enel Energia was awarded five of the ten new areas
The introduction of Directives 2003/54/EC and 2009/72/
(Veneto, Emilia Romagna and Friuli Venezia Giulia; Sardin-
EC (transposed with Law 125/2007 and Legislative Decree
ia; Campania and Abruzzo; Calabria; Sicily).
93/2011, respectively) in Italy lent further impetus to the
By contrast, enhanced protection service is provided by
process, particularly through the complete opening of
sellers connected with distributors (Enel Servizio Elettrico
the retail market and the confirmation of the total inde-
for customers connected to Enel Distribuzione’s network).
pendence of the national transmission network operator
The prices and related terms are set by the Authority and
(already provided for in the decree of the Prime Minister
are updated quarterly based on criteria designed to ensure
of May 11, 2004) by separating its ownership from that of
that the operators’ costs are covered.
other electricity operators.
Operators set their own prices for free market services,
The process of liberalizing the natural gas market began
with the Authority’s role limited to setting rules to protect
with Directive 1998/30/EC, transposed in Italy through
both customers and operators.
Legislative Decree 164/2000, calling for the liberalization
In this role, the Authority has adopted a number of meas-
of the import, production and sale of gas and the sepa-
ures aimed at containing operators’ credit risk, which has
ration of network infrastructure management from other
risen in recent years due to the economic crisis and the lack
activities through the establishment of distinct companies.
of rules barring customers from switching suppliers solely
As regards the model for unbundling transport from other
to avoid paying their utility bills.
non-network activities, with Resolution 515/2013/R/gas,
the Authority mandated the transition to ownership un-
bundling pursuant to Directive 2009/73/EC.
Gas
Sales
Electricity
Retail market
Retail market
Legislative Decree 164/2000 established that as from Janu-
ary 1, 2003, all customers may freely choose their natural
gas supplier on the free market.
However, alongside this operators must offer a safeguard
service to their customers (only for residential customers
pursuant to Decree Law 69 of June 21, 2013), together
As provided for by Directive 2003/54/EC, starting from July
with their own commercial offers, at the regulated prices
1, 2007 all end users may freely choose their electricity sup-
established by the Authority.
plier on the free market or participate in regulated mar-
If there is no company supplying this service, the continu-
kets. Law 125/2007 identified these regulated markets as
ity of supply for small customers not in arrears on bill pay-
the “enhanced protection” market (for residential custom-
ments (residential and other uses with an annual consump-
ers and small businesses with low-voltage connections)
tion of less than 50,000 standard cubic meters) and for
and the “safeguard services” market (for large customers
users involved in providing public services shall by ensured
not eligible for enhanced protection services).
by the supplier of last resort. If the customer is in arrears
80
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions with bill payments or it is not possible for the supplier of
services, which is the efficient management of the flow of
last resort to provide service, supply continuity is ensured
electricity on the grid to ensure that deliveries and withdraw-
by the default distribution supplier selected annually, like
als are balanced, electricity generated may be sold on a dedi-
the supplier of last resort, through voluntary tenders for
cated market, the Ancillary Services Market (ASM), where
geographically-based contracts. For the period October 1,
Terna procures the required resources from generators.
2013 - September 30, 2014, Enel Energia was awarded de-
The Authority and the Ministry for Economic Develop-
fault service contracts in all areas covered by the auction.
ment are responsible for regulating the electricity market.
On October 1, 2013, the reform of the financial terms and
More specifically, with regard to dispatching services, the
conditions applied to safeguard customers entered force.
Authority has adopted a number of measures regulating
More specifically, the Authority modified the procedures
plants essential to the security of the electrical system.
for determining raw material component (QE), which had
These plants are deemed essential based on their geo-
long been indexed to oil prices, indexing it fully to spot
graphical location, their technical features and their impor-
market prices and introduced graduality components to
tance to the solution of certain critical grid issues by Terna.
facilitate the transition to short-term provisioning policies.
In exchange for being required to have electricity available
In order to link prices more closely with costs, the Author-
and providing binding offers, these plants receive special
ity also increased the component covering retail sales costs
remuneration determined by the Authority.
(QVD) by 50%.
Generation and Energy
Management
Electricity
Generation and wholesale market
Since the launch of the market in 2004, the regulations
have provided for a form of administered compensation
for generation capacity. In particular, plants that make their
capacity available for certain periods of the year identified
in advance by the grid operator to ensure the secure opera-
tion of the national electrical system receive a special fee.
In August 2011, the Authority published Resolution
98/2011, which establishes the criteria for introducing a
market mechanism for compensating generation capac-
ity that replaces the current administered reimbursement.
This mechanism involves holding auctions through which
Electricity generation was completely liberalized in 1999
Terna will purchase from generators the capacity required
with Legislative Decree 79/1999 and can be performed by
to ensure that the electricity system is adequately supplied
anyone possessing a specific permit.
in the coming years. The initial auctions will be held follow-
The electricity generated can be sold wholesale on the or-
ing approval by the Ministry for Economic Development of
ganized spot market (IPEX), managed by the Energy Mar-
the new mechanism developed by the Authority.
kets Operator (EMO), and through organized and over-
In order to cope with emergencies in the gas system, such
the-counter platforms for trading forward contracts. The
as the one that occurred between February 6 and 16, 2012,
organized platforms include the Forward Electricity Market
Decree Law 83/2012 – ratified with Law 134 of August 7,
(FEM), managed by the EMO, in which forward electricity
2012 – requires the identification on an annual basis as
contracts with physical delivery are traded. Trading can also
from the 2012-2013 gas year of thermal generation plants
be conducted in derivatives with electricity as their underly-
that can contribute to the security of the system thanks
ing are traded. The organized market for such transactions
to the use of fuels other than gas. Such plants, which are
is the forward market (IDEX), operated by Borsa Italiana,
different from those essential to the electrical system, are
while financial derivatives can also be negotiated on OTC
entitled to reimbursement of the costs incurred in ensur-
platforms.
ing availability in the period from January 1 to March 31 of
Generators may also sell electricity to companies engaged
each gas year on the basis of the procedures established by
in energy trading, to wholesalers that buy electricity for re-
the Authority.
sale at retail, and to the Single Buyer, whose duty is to en-
sure the supply of energy to enhanced protection service
customers.
In addition, for the purposes of the provision of dispatching
81
Gas
Wholesale market
gas interconnectors. The exemption is granted upon the ex-
plicit request of the companies involved and on the basis of an
assessment of the benefits of the infrastructure for the system.
The extraction, import (from EU countries) and export of nat-
ural gas have been liberalized.
According to the provisions of Legislative Decree 130/2010,
operators cannot hold a market share that exceeds 40% of
domestic consumption. This limit may be raised to 55% if the
Infrastructure
and Networks
operator commits to creating 4 billion cubic meters in new
storage capacity by 2015. Under this provision, the Ministry
Electricity
for Economic Development approved Eni’s proposed plan to
create new storage in early 2011. Following the approval of
Distribution and metering
the Parliamentary committees and the positive opinion of the
Enel Distribuzione provides distribution and metering within
Authority, on March 6, 2013, the ministerial decree approving
the Infrastructure and Networks Division under a 30-year
the rules for the natural gas forward market was signed, with
concession set to expire in 2030.
operations beginning on September 2, 2013. The forward
The distribution rates are set by the Authority at the start
market completed the structure of the Italian wholesale mar-
of each regulatory period (lasting 4 years) based on cover-
ket, joining the spot trading platform (the “Gas Exchange”),
ing the total cost of providing distribution and metering
which has been operating since 2010, and the balance market
services, considering operating costs and depreciation, and
begun in December 2011 under the rules set by the Authority.
provide an appropriate return on capital.
To foster the integration of the Italian market with the Eu-
The rate component covering operating costs is updated an-
ropean market, in compliance with EU rules, in 2012 the Au-
nually using a price-cap mechanism (i.e. based on the infla-
thority, following the start of daily auctions for the release of
tion rate and an annual rate of reduction of unit costs called
contracted but unused capacity on the TAG (the gas intercon-
the X-factor). The return-on-capital and depreciation com-
nector between Austria and Italy), introduced mechanisms to
ponents are revised each year to take account of new invest-
foster the transit of spot gas through the Tarvisio entry point.
ments, depreciation and the revaluation of existing assets
In 2013, these measures were extended to the Passo Gries en-
using the deflator for gross fixed capital formation.
try point.
Transport, storage
and regasification
For the first two years of the fourth regulatory period (2012-
2013) the Authority set a return-on-capital for distribution
and metering activities for the period at 7.6%. For 2014-
2015, the Authority updated the rate to 6.4% on the basis of
the yield on 10-year Italian government bonds (BTP).
Transport, storage and regasification (of LNG) are subject to
Increases of the WACC of 1% were envisaged for investments
regulation by the Authority, which sets the rates for engaging
as from 2012 and further increases (between 1.5% and 2%)
in these activities at the start of each regulatory period (last-
are also envisaged for certain categories of investments (for
ing 4 years) and updates them annually over the same period
example, medium-voltage lines in historical town centers,
using established mechanisms.
connection in areas with a high density of renewables gen-
Storage is carried out under a concession (for a maximum of
eration). The X-factor used in updating the operating costs
20 years) issued by the Ministry for Economic Development to
component is 2.8% for distribution and 7.1% for metering.
applicants that satisfy the requirements of Legislative Decree
With Resolution 607/2013, the Authority amended the
164/2000. LNG activities are subject to the grant of a special
regulatory treatment of one-off connection fees, establish-
ministerial permit. Access to transport, storage and regasifica-
ing that for the purposes of determining rates, they shall be
tion capacity is provided through non-discriminatory mecha-
considered as an adjustment of recognized capital employed
nisms established by the Authority, in order to guarantee
rather than as recognized operating expense, as they had
third-part access (TPA). The Ministry for Economic Develop-
been considered previously.
ment may grant an exemption from the TPA rules to compa-
Electricity distribution is also subject to service quality rules,
nies that own storage or regasification plants or cross-border
under which the Authority establishes the annual trend lev-
82
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions els for the following service continuity indicators for custom-
ers connected to low-voltage service:
Renewable Energy
> duration of long service interruptions;
In Italy, a variety of mechanisms, differing by resource and
> number of long and short interruptions.
size of plant, are used to encourage electricity generation
Each year distributors receive bonuses or penalties depend-
from renewable resources. The objectives and support in-
ing on whether their actual performance as determined us-
struments are established by Parliament in a manner consist-
ing these efficiency indicators is better or worse than the
ent with EU directives in this sector, while implementation
established trend values.
is handled by the Energy Services Operator (ESO), which is
responsible for managing incentives for renewables.
Energy efficiency
White certificates
Solar power incentives - Energy Account
Photovoltaic plants receive incentive through the so-
called Energy Account, which consists of the payment of
Energy efficiency in final uses has been promoted in Italy
feed-in premiums over and above the price of the electric-
through the Energy Efficiency Certificate mechanism (white
ity for power delivered to the grid over 20 years.
certificates) launched on January 1, 2005 in accordance with
With the ministerial decree of July 5, 2012, the incentive
the provisions of the related decrees of July 20, 2004.
system for photovoltaics was thoroughly overhauled in or-
Those decrees, which were subsequently amended and
der to ensure the more orderly growth of the sector and
updated in 2007, set national energy savings targets for
realign tariffs with European averages. The Fifth Energy
the period 2005-2012. The targets must be achieved each
Account is based on a system of comprehensive feed-in
year by distribution companies.
tariffs that have been reduced by an average of 40% from
To demonstrate that they have achieved their targets and
the previous system. The decree sets an annual ceiling on
avoid penalties, distributors must deliver a number of cer-
total incentives (including those already paid out under
tificates at least equal to a specified percentage of their
the previous Energy Accounts) of €6.7 billion, which was
requirement to the Authority by May 31 of each year.
reached on June 6, 2013. As a result the incentives under
The Authority covers part of the costs incurred to achieve
the Fifth Energy Account ended as from July 6, 2013.
the target through a rate subsidy that in 2012 was equal to
€86.98/toe for each certificate delivered.
With a decree issued on December 28, 2012, the Ministry
for Economic Development set new and rising energy sav-
ings targets for the 2013-2016 period.
Renewable resources other than
solar power: green certificates
and comprehensive tariffs
In addition, for the 2013-2014 period only, the minimum
The primary incentive mechanism used is green certificates
percentage achievement obligation was reduced from
(introduced with Legislative Decree 79/1999). Under this
60% to 50%. The Ministry has established that the re-
system, electricity producers and importers are required to
sidual obligation can be covered over the subsequent two
deliver a share of renewable energy. This obligation can be
years (rather than in the following year, as provided for
satisfied by purchasing green certificates from renewables
under the previous decrees).
generators.
With Resolution 13/2014, the Authority revised the pro-
The amount of the incentive depends upon the market
cedure for determining the rate grant as from 2013, us-
value at which operators can purchase green certificates
ing the general criteria set out in the ministerial decree
to meet their obligation. This market value is set within a
of December 28, 2012. More specifically, the Authority
range. The maximum value is equal to the price at which
established a provisional grant at the start of each year
the ESO places the certificates it holds on the market (cal-
and a definitive grant paid to distributors calculated at the
culated as provided for in Article 2(148) of Law 244/2007),
end of each year on the basis of prices in trades on the
which came to €114.46/MWh of renewables generation in
organized market. The provisional grant for 2013 was set
2013. The minimum price is equal to the price at which the
at €96.43/toe.
ESO withdraws green certificates exceeding the required
share from the market. For the years in the period from
83
2012 to 2015, that price is set at 78% of the difference
Following an appeal lodged by a number of associations
between an pre-set amount (€180/MWh) and the average
of renewables generators, the Regional Administrative
sale price for electricity for the year. For 2013, the green
Court of Lombardy voided provisions establishing fees for
certificate withdrawal price was €89.28/MWh.
unbalancing charged to owners of plants powered with
Legislative Decree 28/2011, transposing Directive 2009/28/
unschedulable resources.
EC, and the associated ministerial decree of July 6, 2012,
After an appeal by the Authority, the Council of State, which
substantially revised existing incentive mechanisms for
postponed any decision on the substance of the resolution,
plants that will enter service as from January 1, 2013.
specified that the provisions of Resolution 281/2012 neces-
More specifically, small plants (with a capacity of up to
sary to ensure system security remained in force.
5 MW, as well as hydroelectric plants up to 10 MW and
In implementation of the order of the Council of State, the
geothermal plants up to 20 MW) will receive incentives
Authority issued a resolution clarifying that, as from Oc-
through a comprehensive feed-in tariff mechanism, with
tober 2013, imbalancing fees shall apply as necessary to
rates (set in the decree) differentiated by type and size of
ensure system security. For imbalances in previous months,
the plant. Larger plants will qualify for comprehensive in-
settlement will be defined only after the Council of State
centives established on the basis of Dutch auctions run by
has ruled on legitimacy of Resolution 281/2012, which is
the ESO. Plant owners must submit bids for a percentage
expected to be issued in 2014.
reduction from the opening price, equal to the compre-
hensive rate for the last capacity bracket for small plants.
The green certificates mechanism will be gradually elimi-
nated through:
> the progressive reduction of the mandatory share to
zero by 2015;
> the provision of incentives to plants already participat-
ing in the green certificate system through rates equiva-
lent to the current withdrawal value of certificates (as
from 2015).
In order to ensure control of incentive costs, the decree
of July 6, 2012 sets a ceiling of €5.8 billion on aggregate
annual cost – including plants already receiving incentives
through the green certificate system – of incentives for re-
sources other than solar power.
Imbalancing for non-schedulable
plants
In addition to direct incentives (special rates and green
certificates), non-schedulable renewable resources were
exempt from fees for imbalancing (the difference between
actual power delivered to the grid and planned power de-
liveries defined on the basis of energy markets). With the
increase in non-schedulable renewable resource plants
– essentially photovoltaic and wind – the Authority, with
Resolution 281/2012, decided to eliminate the previous
exemption from imbalancing payments as from January 1,
2013, in order to foster better programming and integra-
tion of such plants into the national electrical system. In
2013, deductibles are envisaged to enable a gradual transi-
tion to the new rules.
84
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Iberia
and Latin America
Spain
General information
of the Spanish and Portuguese markets was completed in
July 2007 with a market-splitting mechanism where the in-
terconnection is operated jointly. The hourly rate corresponds
to the marginal price from the intersection of the supply and
demand curves. The volumes of energy sold through bilateral
contracts are not used in calculating the price, although they
must still be reported to OMEL. All plants with an output of
more than 50 MW are required to sell their electricity on the
The Spanish electricity system is mainly governed by Law
wholesale market. REE (Red Eléctrica de España) is the system
54/1997, which was amended by Law 17/2007 and Royal
operator and is responsible for the technical management
Decree Law 13/2012, among other acts, which transposed
and monitoring of the transmission network. In order to re-
the provisions associated with the European Union’s “Third
duce the rate deficit, Law 15/2012 introduced a package of
Energy Package”. The regulatory framework guidelines are as
fiscal measures, including a tax on generation and one on the
follows:
storage of fuel and residual by-products of nuclear power
> electricity generation is conducted in under free market
generation, a fee for using continental waters in hydroelec-
conditions;
tric generation equal to 22% of the revenues generated (the
> transport, distribution and renewables generation in the
fee is reduced by 90% for plants with a capacity equal to or
island and extra-peninsular areas, as well as the technical
less than 50 MW and for pumping plants with a capacity of
and financial operation of the system, are regulated;
more than 50 MW), environmental taxes (“centesimo verde”)
> regulated activities are remunerated on the basis of the
on the consumption of natural gas, coal, fuel oil and diesel
costs of an efficient and well-managed company. The law
fuel and a general tax on electricity generation equal to 7%
establishes the regulated return for the first regulatory
of total revenues.
period (until 2019), linking it to the yield on 10-year gov-
ernment securities plus 200 basis points for transport and
distribution in the island and extra-peninsular areas and
plus 300 basis points for renewables generation, high-effi-
ciency cogeneration and generation from waste;
National coal subsidy
(intervention in the operation of the
wholesale market)
> the associated parameters applicable to regulatory cycles
In September 2010, the European Commission granted the
of 6 years;
Spanish government’s request to subsidize the use of do-
> final markets are entirely liberalized; starting from July 1,
mestic coal by power plants. In February 2011, a ministerial
2009, consumers that satisfy certain conditions may opt to
resolution was published establishing the main parameters
be served by a Comercializadora de Referencia (CRs) – for-
for application of this mechanism, which should terminate on
merly CURs (Comercializadora de Ultimo Recurso) – which
December 31, 2014.
apply the Precio Voluntario para el Pequeño Consumidor
(PVPC) – formerly the TUR (Tarifa de Ultimo Recurso) – set
by the government;
Capacity payment
> connection fees are uniform across the country and are re-
The capacity payment mechanism, whose remuneration adds
ceived by distributors who perform this service on behalf
to that for activities carried out in the wholesale market, is
of the electricity system.
divided into three parts:
Wholesale market
> reimbursement for investments in plants in service from
January 1998;
> reimbursement for investments in improving the environ-
All sales of electricity by generation companies are conduct-
ment (installation of desulphurization technologies and
ed through the bidding system managed by the market op-
other devices for reducing the environmental impact of
erator, OMEL (Operador del Mercado Eléctrico), which was
coal plants);
formed in December 1997, since it operates the wholesale
> reimbursement for capacity availability.
market, MIBEL (Mercado Ibérico de Electricidad), that covers
Following the enactment of Royal Decree Law 9/2013,
the entire Iberian peninsula (Spain and Portugal). Integration
the amount compensated for the first category is equal to
85
€10,000/MW per year, with a doubling of the period initial-
panies based on a percentage set by the government. On
ly set at 10 years, but will be eliminated for plants entering
February 7, 2012, the Tribunal Supremo ruled that the cost
service as from January 1, 2016; for the second, it is €7,875/
of the social bonus should not be borne by electricity com-
MW per year over 10 years; for the third and final category, it
panies. In applying the court’s decision, ministerial order
is €5,150/MW per year for combined-cycle (CCGT), coal and
IET/843/2012, issued on April 25, 2012, modified the settle-
gas-fueled plants and reservoir-based hydroelectric plants
ment system and determined that the mechanism would be
and pumping plants that meet certain criteria on availability.
financed through the access fee.
The latter value is multiplied by availability coefficients based
Following the reform of July 2013, we are awaiting the adop-
on the technology employed.
tion of a royal decree governing the retail market, a royal de-
The cost of the capacity payments is covered by a rate com-
cree reforming the mechanism for setting the energy com-
ponent set periodically by the government and imposed on
ponent of the PVPC and a royal decree reforming the bono
all end users.
social mechanism, containing the following key measures:
Following the reform of July 2013, we are awaiting adoption
> the definition of the portion of electricity at regulated pric-
of a royal decree to govern the capacity payment mechanism
es linked to the exchange price, with the abolition of the
and mothballing. The general lines of the new mechanism
Cesur auctions;
provide for:
> the possibility of expanding the number of Comercializa-
> the grant of subsidies for investment through auctions, if
dores de Ultimo Recurso (CUR);
capacity adequacy is considered an issue;
> the reintroduction of the financing of the bono social mech-
> the restriction of the availability mechanism to com-
anism by companies or groups operating in the generation,
bined-cycle plants and coal plants with remuneration
distribution and sale of electricity in proportion to the sum
proportionate to the hourly thermal capacity and a pen-
of connection points and number of customers served.
alty mechanism for unavailability. The mechanism will be
financed by generators in proportion to their schedulable
contribution to peak demand.
Retail market.
TUR and the social bonus
Regulated costs, access rates
and rate deficit
Under the current regulatory system, the main “regulated
costs” of the Spanish electricity system pertain to remu-
neration for transport and distribution networks, financial
All end users have formally been participants in the free mar-
resources for the authorities that manage the system (regu-
ket since July 1, 2009. However, consumers with a contrac-
lator, market operator, etc.), extra costs arising from extra-
tual committed capacity of 10 kW or less are entitled to be
peninsular generation, subsidies for the special regime (régi-
charged the rate of last resort (Tarifa de Ultimo Recurso or
men especial, i.e. renewable resources, electricity generation
TUR, now replaced by the Precio Voluntario para el Pequeño
from waste and cogeneration) and the energy savings and
Consumidor or PVPC), which is established and regulated
efficiency plan.
by the government and whose energy component is deter-
In order to cover these costs, all customers pay an access rate
mined through quarterly auctions (Cesur).
set by the government annually (it may be adjusted quarterly
Under the provisions of Royal Decree 485/2009, the Ministry
to take account of changing market conditions). Royal De-
sets the rate of last resort to be charged by suppliers of last
cree 1544/2011, published in November 2011, also requires
resort. The Royal Decree also identifies the companies, includ-
producers to pay an access rate for energy delivered into the
ing Endesa, with sufficient resources to act as the supplier of
system of €0.5/MWh (in addition to paying for energy deliv-
last resort.
ered, pumping plants pay equally for the 30% of electricity
Royal Decree Law 6/2009 also introduced a social measure
consumed).
(the social bonus), available starting from July 1, 2009 to all
Over the years, access rate receipts have not covered actual
customers who meet certain income conditions set out in
regulated system costs. This situation created a rate deficit.
the decree. The social bonus is equal to the difference be-
Royal Decree Law 6/2009 set out a solution for reducing the
tween the TUR (now the PVPC) and a reference rate. The
annual deficit, with the goal of completely eliminating it by
social bonus is applied to customer bills by the sales com-
2013, through the introduction of annual ceilings. In 2010,
panies and the related cost is borne by the generation com-
since the access rate levels approved continued to not re-
86
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions flect the actual cost of regulated activities, Royal Decree Law
which created the implementing mechanisms.
14/2010 introduced a new deficit reduction path with the
The main feature of the extra-peninsular regulatory system is
following limits: €5.5 billion for 2010, €3 billion for 2011 and
that electricity generation is subject to regulated prices, un-
€1.5 billion for 2012. On December 31, 2012, with Royal De-
like on the Iberian peninsula. This remuneration was set so
cree Law 29/2012, the government eliminated the cap for
as to cover the costs of the activity and provide a return on
2012 (permitting the securitization of the entire deficit that
capital employed. In order to receive the comprehensive rate,
will result) and the explicit reference to the “cost reflectivity”
generation companies receive an indemnity corresponding
of rates as from January 1, 2013 (i.e. the adequacy of the ac-
to the difference between the two values, in addition to the
cess rates to cover “regulated costs”). The cumulative deficit
market price for electricity sold.
at December 31, 2013 reached €25 billion.
Indemnities were to be financed from the State budget start-
Through 2013, the deficit was divided among five electric
ing from 2013. During the transitional period (2009-2013),
companies: Endesa, Iberdrola, Gas Natural Fenosa (respon-
Royal Decree Law 6/2009 established a hybrid system under
sible for 93% of the total), Hidroeléctrica del Cantábrico
which extra-peninsular generation is financed by gradually
and E.ON.
increasing the portion covered by the general State budget
Royal Decree Law 6/2009 established a new financing mech-
and decreasing that borne by the electricity system.
anism through which electric companies may sell their receiv-
Royal Decree Law 9/2013 then set the contribution from the
ables to FADE (Fondo de Amortización del Déficit Eléctrico),
State budget at 50%, but Law 24/2013 established an excep-
which places them on the debt market. In January 2011, FADE
tion for 2013, funding all financing through the electrical set-
was formed with the support of the government, with the se-
tlement system.
curitization of the entire deficit generated up to 2012.
Following the reform of July 2013, we are awaiting the adop-
Law 24/2013 introduced a number of principles concern-
tion of a royal decree overhauling the remuneration system,
ing the economic and financial sustainability of the electri-
introducing competitive auctions to determine the remuner-
cal system:
ation of fuel costs, modifying the reference values for logistics
> revenues must be sufficient to cover all costs. The latter
costs and limiting remuneration to plants with a regulatory
will be financed with the access rates and financial mecha-
useful life of less than 25 years. Law 24/2013 also established
nisms established by the regulations, with partial financing
that for the first regulatory period (until the end of 2019)
from the state budget;
fixed costs would be remunerated with a spread of 200 basis
> any rules that entail an increase costs or a reduction in rev-
points over the average yield of government securities in the
enues must include an equivalent offset to ensure balance;
two previous years.
> as from January 1, 2014, any annual deficits may not ex-
With regard to the island electrical systems, on October 30,
ceed annual system revenues by more than 2.5% (or a cu-
2013, Law 17/2013 was published in the official bulletin. The
mulative 5%). In addition, any deficits that are not offset
legislation addresses the security of supply and the promo-
by rate increases will be financed by all operators partici-
tion of competition in the island and extra-peninsular electri-
pating in the settlement system in proportion to their re-
cal systems. The main aspects of the law regard:
ceivable;
> promotion of more efficient generation capacity: new
> in any case, if the access rate includes components cor-
plants may be admitted to the remuneration regime for the
responding to prior-year deficits, rate levels may not be
extra-peninsular electrical system (SEIE) for reasons of pro-
decreased.
The extra-peninsular
electricity system
curement efficiency and security, a status previously limited
to cases where the demand coverage ratio was not satisfied;
> promotion of the entry of new operators: operators that
hold more than 40% of the installed capacity will not
be able to benefit from the SEIE remuneration system
Article 12 of the law governing the electricity industry sub-
or from incentives for new plants. Exceptions are estab-
jects the supply of electricity to extra-peninsular regions (the
lished for renewable power plants that have successfully
Balearic and Canary Islands) to common regulation based
passed through the competitive process, that hold a li-
on the specific characteristics of their geographical loca-
cense or that are entered in the pre-assignment registry,
tion. This special regulation was established by Royal Decree
or investments in modernization and efficiency enhance-
1747/2003 and the Ministerial Order of March 30, 2006,
ment that do not involve an increase in capacity or for
87
which no other agent has demonstrated an interest;
muneration based on an explicit RAB and a rate of return
> ownership of pumping stations used to ensure the security
equal to the average yield on Spanish government securi-
of supply and the system as a whole, as well as the integra-
ties during the previous two years plus a spread of 200 basis
tion of unschedulable renewables generators, shall pass to
points. The rate of remuneration is defined in nominal pre-
system operators without prejudice to the ownership struc-
tax terms, while O&M costs are recognized on the basis of
ture of plants already in operation. In other cases, projects
standard values (costs) corrected by efficiency coefficients.
will be approved using competitive procedures. Despite the
For investments, a system-level ceiling has been established
foregoing, companies that hold a concession for the use of
at 0.12% of GDP, with a requirement for approval by the
water resources or an administrative authorization but do
autonomous communities.
not yet have a permit to enter service will retain ownership
subject to the presentation of and compliance with a work
plan and payment of a guarantee equal to 10% of the in-
vestment. As with the electrical system, regasification plants
will be transferred to the system operator within six months;
Law establishing the Comisión
Nacional de los Mercados y la
Competencia
> the new remuneration mechanism for new plants will be es-
Law 3/2013 reforms the architecture of the supervisory
tablished by the Ministry of Energy in order to reduce gen-
and regulatory bodies, centralizing functions with a new
eration costs and congestion;
agency, the Comisión Nacional de los Mercados y la Com-
> the fuel cost will be calculated on a competitive basis in ac-
petencia (CNMC), which incorporates the functions of a
cordance with the criteria of transparency, objectivity and
number of entities, including the Comisión Nacional de
non-discrimination;
la Competencia (CNC) and the energy industry regulator
> oversight by the Ministry and the system operator: the Di-
(CNE). The Commission will have both general functions,
rección General de Política energética y Minas (DGPE) may
such as safeguarding and fostering competition, and more
reduce the remuneration due to operators if it should find
specific duties in certain sectors and regulated markets.
a substantial reduction in plant availability or in the plant
With regard to the energy industry, the CNMC will exer-
quality indices.
Distribution
cise supervisory and control functions over the electricity
and natural gas segments, while other functions, such as
settlement operations in the electrical system, have been
transferred to the Ministry of Energy. The Commission be-
Royal Decree 222/2008, published in February 2008, establish-
gan operations on October 7, 2013.
es the policies for remunerating distribution activities to ensure
adequate service, offering incentives to improve service quality
and reduce losses.
Latin America
Each year, the competent Ministry sets the remuneration to
The Division operates in Latin America (Argentina, Brazil,
be paid based on a proposal of the Comisión Nacional de la
Chile, Colombia and Peru) through Endesa. Each country has
Energía. The remuneration is adjusted annually by comparing
its own regulatory framework, the main features of which
the investments made with the Modelo de Red de Referencia,
are described below for the various business activities.
a technical reference tool that calculates the grid’s ideal devel-
opment. Royal Decree Law 13/2012 reduced the remuneration
of distribution for 2012 and called for a reformulation of the
Generation
system, which culminated in the reform of July 2013. More spe-
Under the regulations established by the competent au-
cifically, Royal Decree Law 9/2013 and the royal decree imple-
thorities (regulatory authorities and ministries) in the vari-
menting the detailed regulations established:
ous countries, operators are free to make their own decisions
> a transitional period with remuneration based on an implicit
concerning investment in generation. Only in Argentina, fol-
regulatory asset base (RAB) and a rate of return equal to the
lowing the change in energy policy in recent years, is there a
average yield on Spanish government securities registered
regulatory framework that envisages greater public control
during the previous three months plus a spread of 100 basis
of investments. In Brazil plans for new generation capacity
points (for July-December 2013) or 200 basis points (for 2014);
are imposed by ministerial order, and this capacity is devel-
> the introduction of a regulatory period until 2019 with re-
oped through auctions open to all.
88
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions All of the countries have a centralized dispatching system
lations governing prices and network access. Distribution
with a system marginal price. Usually, the merit order is cre-
rates are revised every four years (Chile, Peru and the region
ated based on variable production costs that are measured
of Brazil served by Coelce) or five years (Colombia and the
periodically, with the exception of Colombia, where the merit
region of Brazil served by Ampla). As a result of the Ley de
order is based on the bids of market operators.
Emergencia Económica (the economic emergency law) of
Currently, in Argentina and Peru regulatory measures are in
2002, no rate reviews have yet been conducted in Argentina,
place governing the formulation of the spot market price.
despite rules mandating such revisions every five years.
In Argentina, the measure, adopted in 2002 following the
In Chile, Brazil and Peru, distribution companies hold auc-
economic and energy crisis that affected that country, is
tions to procure electricity for regulated market customers,
based on the assumption that there are no restrictions on
while in Colombia sales companies negotiate prices directly
the supply of gas in the country. Nevertheless, in view of
with generation companies, passing through the average
the current financial challenges faced by the wholesale
market price to end users. In general, all countries have im-
market, the government has announced its intention to
plemented a remuneration approach based on the RAB and
modify the existing regulatory framework and, in 2013-
a rate of return tied to the WACC, which ensures remunera-
2014, develop an electricity market based on a cost-plus
tion of the capital employed. The liberalization of the end-
model. By contrast, in Peru, intervention in the formulation
user market is generally at a fairly advanced stage, though
of spot prices has been in place since 2008, when the ex-
not yet complete. Eligibility thresholds are set at 30 kW in
istence of restrictions in the gas and electricity transport
Argentina (20% of volumes in 2010), 3 MW in Brazil (30% of
systems caused the authorities to adopt an emergency
volumes), 0.3 MW in Chile (40% of volumes), 0.1 MW in Co-
measure for defining an “ideal” marginal cost, assuming
lombia (35% of volumes in 2010) and 0.2 MW in Peru (44% of
the absence of such restrictions on transport networks.
volumes). Free-market customers can sign bilateral contracts
Long-term auction mechanisms are widely used for whole-
with generation companies for electricity. The regulatory au-
sale energy and/or capacity sales. These systems guarantee
thorities set the rates for regulated market customers.
continuity of supply and offer greater stability to genera-
tion companies, with the expectation that this encour-
ages new investments. Long-term sales contracts (up to
30 years) are used in Chile, Brazil, Peru and Colombia. In
Limits on concentration
and vertical integration
Brazil, the price at which electricity is sold is based on the
In principle, existing legislation permits companies to take
average long-term auction prices for new and existing en-
part in a variety of activities in the electricity sector (gen-
ergy. In Colombia, the price is set by auction between the
eration, distribution, sales). Usually, greater restrictions are
operators, which usually enter into medium-term contracts
imposed on participation in transmission activities so as to
(up to 4 years). Finally, a regulatory framework recently in-
ensure that all operators have adequate access to the net-
troduced in Chile and Peru allows distribution companies
work. There are special restrictions on generation and distri-
to sign long-term contracts to sell electricity on regulated
bution companies holding stakes in transmission companies
end-user markets. Auctions are gradually replacing the
in Argentina, Chile and Colombia. Furthermore, in Colombia
practice of regulators setting a nodal price for supplying
companies formed after 1994 may not adopt or maintain a
electricity to regulated customers.
vertically-integrated structure.
Chile, Peru and Brazil have also approved legislation to en-
As to concentration within the industry, Argentina, Brazil
courage the use of unconventional renewable resources,
and Chile have not set any specific restrictions on vertical or
which sets out the objectives for the contribution of re-
horizontal integration, while in Peru business combinations
newable resources to the energy mix and governs their
require prior authorization above certain thresholds. In Co-
generation.
Distribution and sale
lombia, no company may control more than 25% of the gen-
eration and sales markets, while in Brazil, as previously men-
tioned, there are no explicit restrictions on integration in the
electricity sector, although administrative authorization is re-
Distribution is performed mainly under concession arrange-
quired for business combinations that would result in market
ments, using long-term contracts (ranging from 30 to 95
share of over 40%, or that involve a company whose annual
years or in some cases with unspecified terms), with regu-
turnover exceeds BRL 400 million (about €177 million).
89
Chile
Law 20.701 - Electricity Concessions Act
On October 14, 2013, Law 20.701 was published in the Diario
Oficial. The law simplifies the process of granting electricity
concessions for the expansion of the transmission grid.
Argentina
government to control final rates and use administrative res-
olutions to introduce exceptions to the laws governing the
electricity sector and concession contracts.
New rate component
On November 23, 2012, the regulatory authority (ENRE) ap-
proved Resolution 347 increasing final rates through the intro-
duction of a new rate component to finance investment in the
Resolution 95 - New remuneration for
generation
On March 22, 2013, the Secretaría de Energía approved Reso-
distribution grid.
On January 3, 2014 the Ministerio de Planificación Federal, In-
versión Pública y Servicios approved Resolution 3/2014 requir-
lution 95, which establishes a new methodology for remuner-
ing the authorization of the Subsecretaría de Coordinación y
ating generation companies. The new model should allow op-
Control de Gestión for investments from the Focede fund.
erators to recover fixed costs and variable costs and ensure a
return on investment. The new regulations are applicable start-
ing from February 2013. The new regulatory framework also es-
tablishes that CAMMESA will manage the procurement of fuels
Resolution 1/2014 - Extraordinary fines for
supply suspension
On January 3, 2014, ENRE approved Resolution 1/2014 estab-
and the forward market once the existing contracts expire.
lishing the methodology for determining the amounts of the
On December 27, 2013, the Secretaría de Energía approved
extraordinary fines that Edesur will have to pay users affected
Note 8376, which allows Endesa Costanera to postpone until
by the suspension of supply in Buenos Aires in the final weeks
2014 the repayment of the excess revenues received in 2013
of December and the early days of January.
owing to the overlap of Resolution 95/2013 with the revenues
from the availability contracts of the Costanera plant.
In addition, on December 30, 2013, CAMMESA announced the
amounts concerning the availability contracts of the Costanera
combined-cycle plants, making it possible to account for them
for tax purposes in 2013.
Resolution 250/2013 - Approval of MMC
revenues and offsetting against debts from
the PUREE mechanism
On May 7, 2013 the Secretaría de Energía approved Resolu-
International
Russia
Wholesale market
The process of reorganizing and privatizing the assets of
RAO UES (the former state-controlled, vertically-integrated
monopolist) was successfully completed, ending with the
tion 250/2013, which determines the residual value of the
dissolution of RAO UES in July 2008. The generation assets,
MMC receivable (rate update scheduled for 2006 and only
divided among around 20 generation companies, were
partially implemented) and allows it to be offset (until Feb-
acquired by domestic and foreign investors (in addition to
ruary 2013) against the corresponding debt in respect of
Enel, the German company E.ON and the Finnish compa-
the PUREE program (a mechanism of bonuses and penal-
ny Fortum also participated). RusHydro (the hydroelectric
ties to encourage energy efficiency created with Resolution
genco), Rosenergoatom (the company that manages nucle-
745/2005) and other debts of Edesur in respect of the system.
ar power plants), InterRAO (the company engaged in trad-
The resulting balance will be allocated to a specific fund cre-
ing and generating electricity in Russia and abroad) and the
ated in November 2012 to finance investment in the distri-
grid companies remained under state control.
bution network. In addition, the Secretaría de Energía issued
Wholesale electricity and capacity sales were fully regulated
Note 6852 of November 6, 2013, extending the netting from
until 2007. Electricity is mainly sold through a day-ahead
March 2013 to September 2013.
market. In 2011, the temporary capacity market was replaced
Extension of emergency law
On October 11, 2013, the Parliament approved a two-year
with the long-term capacity market (on an annual basis for
2011 and 2012 and on a multi-year basis starting from 2013)
with the goal of ensuring sufficient long-term capacity avail-
extension of the emergency law, Law 26.898, allowing the
ability and stable revenues for generation companies.
90
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions However, the government, in order to ensure stable ca-
vulnerable consumers, who will be defined in future de-
pacity, has compiled a list of new plants (so-called DPMs)
crees.
that are not included in the capacity market and that re-
ceive guaranteed remuneration (capacity payments) for ten
years. In 2011, Enel OGK-5 placed two new gas combined-
cycle plants in Nevinnomysskaya and Sredneuralskaya (410
Decree 449 - New approach for the promo-
tion of renewable energy resources
On May 28, 2013, government Decree 449 “on the pro-
MW each) into service that will take part in the DPM capac-
motion of generation from renewable energy resources
ity payment system.
in the wholesale market” was published. The regulatory
In 2011, the government appointed a working groups com-
framework establishes remuneration similar to the capac-
posed of industry experts and market players (including
ity payment system for thermal plants (DPM) with limits on
Enel OGK-5) to prepare a proposal for reforming the mar-
electricity volumes broken down by technology. The remu-
ket. At the start of 2013, a proposed amendment to the
neration is granted through an auction system, the first of
plan for the electricity market was put forth envisioning a
which carried out in September, on the basis of the mini-
transition from a centralized capacity and energy market
mum cost of capital declared, which is subject to a cap es-
to a system based on bilateral contracts without separate
tablished by the government.
remuneration for capacity, while maintaining existing DPM
contracts (list of new plants identified by the government
as excluded from the capacity market). The first version
Approval of amendments to the tax code
Approval was given for changes to the MET rates (the tax on
of this reform was discussed by the government in March
extraction) for oil and gas. The new formula for gas will be
2013. The presentation of a second version, envisaged for
implemented as from July 1, 2014, and will bring greater clar-
some time between the 3rd and 4th Quarters of 2013, was
ity to the tax rules governing the sector.
postponed until the 2nd Half of 2014. The 1st Half of 2014
will be devoted to a revision of the heat market.
Retail market
Financial guarantees in the wholesale market
An order of February 21, 2013, approved by the Market
The market has been liberalized in several stages, with a grad-
ual increase in the volumes of electricity and capacity available
Council, introduced the use of financial guarantees in the
for sale on the free market. Since January 1, 2011, all volumes
wholesale market (day-ahead market and balancing mar-
for non-residential customers are sold on the free market. In
ket) conditional on monitoring conducted by a central
the retail market, the supply of power to residential custom-
authority (ZFR) to ensure the governance and timing of
ers is ensured by guarantee suppliers operating on a monopoly
payments.
basis, while non-residential customers are free to choose their
own suppliers. However, despite the approval of a number of
Decree 511 - Grid expansion strategy ap-
proved
On April 9, 2013 Decree 511 “on the grid expansion strategy”
measures designed to promote competition in the non-res-
idential market, switching is still limited since the process in-
volved is still too complex. On June 4, 2012, Decree 442 was
was published. Among its provisions, it envisages the follow-
published. The decree amends the pricing rules for the sales
ing measures:
market and simplifies the procedures for switching suppliers by
> the components remunerating transmission and distri-
end users. More specifically:
bution grids may not exceed 40% of the final rate;
> the procedures for calculating pricing and volumes for
> elimination of cross subsidies by 2022;
sourcing capacity on the wholesale and retail markets
> introduction of possibility of diversifying the transmis-
were aligned;
sion rate applicable to major industrial customers on a
> end users will pay the actual grid costs incurred by sup-
regional basis;
pliers;
> the privatization of a number of companies operating
> the remuneration of regulated suppliers (guarantee sup-
distribution grids, which will be assigned by auction.
pliers) may differ by the level of capacity available to indi-
Control of one of the distribution companies, MRSK, will
vidual customers;
be divested in 2014;
> new principles for the competitive award of guarantee
> beginning in 2014, social bonus will be introduced for
supplier licenses were introduced;
91
> regulator control of the financial condition of guarantee
reserved for generators connected to the DSO grid;
suppliers was enhanced;
> suppliers of auxiliary services and suppliers of electric-
> finally, as regards the opening of the market to competi-
ity to the TSO grids, as well as hydro plants with an in-
tion, a number of measures hindering switching were
stalled capacity of less than 5 MW, were exempted from
eliminated.
Slovakia
General information
the mechanism;
> as regards the must-run obligation of the ENO plant, the
variable costs directly associated with the purchase of lig-
nite, the purchase of CO2 allowances and other costs (water,
naphtha, other additives) will be considered as eligible costs
and will be reimbursed. Fixed costs will be adjusted on the
The wholesale market has been liberalized completely and
basis of the utilization factor of the plant.
has become increasingly liquid thanks to transparent, well-
operated regional trading platforms. The Slovakia - Czech
Republic - Hungary market coupling project seeks to im-
prove the conditions necessary to increase liquidity and
Resolution on 2014 tariff for the
ENO plant
short-term balancing.
URSO Decision 0014/2014/E was published on November 21,
More than half of the electricity generated in Slovakia is pro-
2013. The decision sets a rate of €63/MWh for electricity gener-
duced by nuclear power plants, followed by conventional
ated using local lignite at the ENO plant in 2014. Rate revenues
thermal and hydroelectric power. Lignite is the only domestic
for 2014 will amount to about €93 million.
fossil fuel used in electricity generation. This is the reason its
use is considered to be in the “general economic interest” and
is regulated under special rules, which govern the operation
Romania
of the Nováky power plant (ENO). The remuneration system
On July 1, 2007, Romania introduced European unbundling
will be in effect until 2020 and the local regulatory authority
principles for electricity companies. As a result, separate com-
(URSO) recognizes the costs incurred by the plant in an an-
panies were created for the management of the distribution
nual decree.
grid and the sale of electricity, with separate administrative,
The regulation of renewables generation underwent a
accounting and management arrangements. All customers
sweeping reform with the enactment of Law 309/2009.
are also free to choose their own suppliers on the free market,
The support mechanism uses a feed-in tariff guaranteed
again starting from that date. Customers that do not elect to
for 15 years. A further amendment of Law 309/2009 is ex-
choose their own suppliers are guaranteed service continuity
pected for 2014, possibly accompanied by the introduction
by an implicit supplier. In addition, in June 2012 the Roma-
of a single buyer.
nian government:
All customers can choose their own supplier and the market
> transposed the Third Energy Package. In doing so it select-
has been entirely liberalized since 2007. Final prices for resi-
ed the independent system operator (ISO) model for the
dential customers and small and medium-sized companies
national transmission grid operator, decided to gradually
are still regulated by URSO.
eliminate regulated prices for end users of gas and elec-
Decree on the regulation of the
electricity industry
tricity and introduced new measures to protect consumers
and ensure the security of supplies;
> approved a law reforming the rules governing the inde-
pendence and powers of the energy regulator (ANRE). The
URSO Decree 221/2013 on the regulation of the electricity
measures increase the independence and oversight pow-
industry received final approval in July 2013. The main issues
ers of the regulator in energy markets.
addressed can be summarized as follows:
> with regard to fees for access to the transmission and dis-
tribution grids (G-component), an access fee was levied on
Distribution
generators connected to the transmission or distribution
Electricity distribution rates are based on multi-year regu-
grids. The fee was set at a maximum of €0.5/MWh for gen-
latory periods – the first period of three years (2005-2007),
erators connected to the TSO grid and 30% of the capacity
and subsequent periods of 5 years – to which a revenue cap
92
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions mechanism is applied. Regulated distribution revenues are
for ARENH to the forecasts for the volume and profile of
calculated based on:
their portfolios and the share of nuclear energy used to
> remuneration of the regulatory asset base (RAB) through
cover consumption;
the WACC;
> responsibility for allocating ARENH volumes to alterna-
> recognition of operating and maintenance costs;
tive suppliers is assigned to regulator CRE;
> recognition of grid losses;
> regulated asset depreciation.
> the French transmission network operator (RTE) is respon-
sible for overseeing ARENH energy trades and an indepen-
For the second regulatory period (2008-2012), the authority
dent body (Caisse des Dépôts et Consignation) is responsible
applies an efficiency factor of not less than 1% to controllable
for managing cash flows;
operating costs. The rate for the regulated WACC is a real pre-
> the ARENH price will be set with a ministerial decree, using
tax rate of 10% and the target grid loss rate is 9.5% for 2012.
the level of the TaRTAM (Tarif Réglementé Transitoire d’Aju-
Also during the second regulatory period, a total ceiling of
stement du Marché – a rate set by the Ministry of Energy for
12% on annual distribution rate increases was imposed (ceil-
those customers that had initially decided to switch to the
ing determined in real terms, net of inflation).
free market. The ARENH mechanism replaced the TaRTAM)
The year 2013 will be treated as a stand-along year and the
at December 31, 2010 as a benchmark; as from 2013 the
rate was increased by 5% from its 2012 level. In October
ARENH price will be determined directly by CRE. The ARENH
2013 a new rate methodology for the third regulatory period
price was set at €40/MWh for 2010 and €42/MWh for 2012
(2014-2018) was approved and published. The regulated re-
and 2013;
turn was set at 8.52% with an additional premium of 0.5%
> the Ministry was required to establish, by the end of the
for investments in smart meters, subject to reductions in loss-
1st Half of 2012, the regulatory framework for develop-
es on the low-voltage grid.
Sales to regulated-market customers
ing the capacity market, a mechanism that must ensure
plant availability during peak periods. It is not yet certain
whether interconnection capacity will be included, al-
though it is possible that ways of incorporating it will be
The method for determining the price for regulated-market
explored over the medium-term.
customers is based on the principle of completely covering
the electricity purchase cost component in rates plus a mar-
gin of 2.5% on the cost of electricity. The Romanian regulator
The debate on the energy transition
ANRE sets the energy portfolio for each supplier in terms of
The debate on the energy transition announced by the French
prices and volumes in order to arrive at a single, final tariff for
President in September 2012 was formally launched on No-
the entire country.
vember 20 by the Minister for Ecology, Sustainable Develop-
The liberalization of the retail electricity market was com-
ment and Energy. In order to develop recommendations to be
pleted in December 2013 for business consumers and will be
incorporated in the energy policy act, originally scheduled for
completed by December 2017 for residential customers.
completion by the end of the 1st Half of 2013, a special expert
France
group was established, whose composition was suggested by
the Minister. A commission was then appointed to decide the
content of the law on the energy transition to be presented to
Enel sells electricity in France. The regulatory framework for
the Parliament by the end of 2014.
the French market was considerably modified by the NOME
Independently of the debate, the President also announced a
Act (Nouvelle Organisation du Marché de l’électricité), the
reduction of the share of nuclear power in the national gen-
main components of which are:
eration mix from 75% to 50% by 2025 and the closure of the
> access to nuclear-generated base electricity for alternative
Fessenheim nuclear plant in 2016.
suppliers at regulated prices (known as ARENH or “Accès
Régulé à l’électricité Nucléaire Historique”) for a 15-year
transitional period, with volumes calculated annually on the
basis of the volume of nuclear generation as a percentage
Capacity market:
Decree 2012-1405
of total consumption, with an annual ceiling of 100 TWh;
On December 18, 2012, Decree 2012-1405 was published
> every six months alternative suppliers can adapt requests
in the Official Journal. As provided for under the NOME Act,
93
the decree introduces a capacity market. The mechanism re-
is promoted in France with a feed-in tariff mechanism dif-
quires sellers to provide a percentage margin over their ex-
ferentiated by resource, using long-term contracts with a
pected supply peak. That obligation can be fulfilled by pur-
term of 15 years (geothermal, on-shore wind and biomass)
chasing capacity certificates on the market. The certificates
or 20 years (off-shore wind, photovoltaic and hydroelectric)
would be certified by the system operator (RTE). The system
that are inflation adjusted. Unlike other sources, photovol-
is a hybrid centralized-decentralized scheme, as although it
taic power has a more complex incentive mechanism, as
charges the system operator with defining adequacy obliga-
rates are adjusted on a quarterly basis using a coefficient
tions, the latter will also depend on sellers’ estimated shares
that measures the level of demand for new concessions in
of sales. The first year for delivery is scheduled to be 2016,
the previous quarter. In order to ensure achievement of the
to cover the winter of 2016-2017. Additional implementing
planned targets by energy source (Programmation Plurian-
rules were discussed in 2013.
nuelle des Investissements - PPI), the French government has
Renewable Energy
Bulgaria
promoted the use of auction mechanisms for the develop-
ment of ground-based photovoltaic plants with a capacity
of more than 100 kW and off-shore wind plants. The French
system also provides for the deployment of other forms of
support on an annual basis depending on the resources
available in the budget, with mechanisms such as acceler-
ated depreciation and tax deductions of up to 33% for in-
The Bulgarian incentive system primarily uses resource-
vestments in the overseas departments.
based feed-in tariffs. On-shore wind plants, photovoltaic
plants, hydroelectric plants of less than 10 MW and biomass
plants of less than 5 MW are eligible for these incentives.
Greece
The government made the following amendments to the
The Greek incentive system uses a feed-in tariff differenti-
law on renewable resources:
ated by renewable energy resource. Rates for all sources
> the incentive period was reduced from 15 to 12 years for
are adjusted annually by the change in the Greek consum-
all resources, except for photovoltaic, for which the pe-
er price index (CPI) increased by 25%. The incentives are
riod was cut from 25 to 20 years;
awarded through a 20-year contract for all resources, with
> the rates are calculated annually (June) and are held
the exception of roof-mounted photovoltaic systems with
constant during the entire incentive period (without
a capacity of less than 10 kW, which benefit from a 25-year
indexing);
contract. Resources that do not use local or European invest-
> eligibility for incentives takes effect as from the date the
ment support systems receive a rate premium of 15-20%,
work is completed.
with the exception of solar power.
In March 2013, acting on an appeal filed by numerous
In May 2013, Law 4153/2013 modified the tax on the reve-
private operators, the Supreme Administrative Court of
nues of existing renewable energy plants, orginally equal to
Bulgaria revoked the measure of September 2012 that
30% for photovoltaic plants and 25-30% for other renewa-
introduced a new grid access fee applicable to all renew-
bles. With the change, the levy on photovoltaic plants has
able energy generation plants. In addition, in approving
increased from 30% to 37-42% and from 27% to 34-40%,
the 2014 Budget Act, two further measures charged to re-
depending on the commercial operation date of the plant.
newables generators were introduced, which take effect as
The tax, introduced in November 2012, is temporary (July
from January 2014:
2012 - July 2014) but will very likely be extended for an ad-
> a tax of 20% on profits from the sale of electricity;
ditional year.
> a cap on the amount of electricity that can be sold to the
The same law also:
national market operator (NEK) at the preferential price.
> modified conditions for receiving permits for new renew-
France
ables plants;
> modified the calculation methods for determining the
tax for financing renewable energy subsidies;
Generation from hydroelectric, on-shore and off-shore
> changed the feed-in tariffs for new photovoltaic plants
wind, biomass, biogas, photovoltaic and geothermal plants
entering service as from June 1, 2013;
94
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions > suspended the issue of permits for connecting photovol-
taic plants and PPAs until the end of 2013 (this was ex-
Spain
tended until December 2014 with Law 4223/2013).
The Spanish incentive system for renewables, which was
Romania
updated with Royal Decree 661/2007, was mainly based on
feed-in tariff and feed-in premium mechanisms. All plants
in operation prior to January 1, 2008 could elect one of the
The main form of incentive in Romania for all renewable
two incentive schemes by January 1, 2009. Following that
energy resources is the green certificates system. The only
exception regards hydroelectric plants with a capacity of
more than 10 MW, which are not eligible for any incentive
mechanism. Sellers are required to purchase a specified
share of renewable energy each year through the purchase
of green certificates on the basis of annual targets set by
law for the share of gross generation from renewables
(8.3% in 2010, rising to 20% in 2020). Owing to a short-
age of supply of green certificates on the market, each year
the Romanian regulator publishes the mandatory share, re-
vised downward to balance supply and demand. The value
of the green certificates varies on the basis of coefficients
date the election was frozen for the entire incentive pe-
riod. As regards the feed-in premium system, Royal Decree
661/2007 also provides for a minimum and maximum range
(cap & floor) for the value of the incentive differentiated by
resource. As from September 28, 2008, with Royal Decree
1578/2008, photovoltaic systems are only eligible for the
feed-in tariff mechanism, with tariff rates being updated
during four annual windows (convocatoria) on the basis
of the capacity registered in the previous reference period.
Both tariff systems are all-inclusive and premiums are ad-
justed annually for inflation.
In 2009 the authorities established the criteria for the crea-
tion of a pre-register for access to the incentive mechanism
that differ by generation technology. More specifically,
for projects under the special regime.
these are 2 green certificates per MWh of generation from
With Royal Decree 1/2012, the Spanish government sus-
biomass, geothermal and wind until 2017 (after 2017, 1
pended the pre-register procedures and eliminated in-
green certificate), 6 green certificates per MWh of genera-
centive mechanisms for new renewable energy projects
tion from photovoltaic, and 3 green certificates per MWh
not already entered in the register at the date the decree
of generation from hydroelectric for new plants. The price
entered force.
is expressed in euros/green certificate and is determined by
Law 15/2012 introduced a tax of 7% on electricity gener-
law within a specified range (cap & floor). Sellers are sub-
ated with any technology and a royalty of 22% for the use of
ject to penalties in the event of non-compliance.
water for electricity generation (reduced by 90% for plants
In June 2013, the Romanian government approved meas-
with a capacity of less than 50 MW).
ure EGO 57/2013 temporarily modifying the green certifi-
cate system. The measures (which received final approval
on December 17, 2013) include the temporary suspension
(from July 1, 2013 to March 31, 2017) of trade in part of the
green certificates due to renewables generators (1 green
certificate per MWh for wind and mini-hydro and 2 green
certificates per MWh for photovoltaic). Trading in the de-
ferred green certificates could gradually resume after April
1, 2017 for photovoltaic and mini-hydro and after January
1, 2018 for wind, continuing until December 2020.
On December 16, 2013, Resolution 994/2013 was pub-
lished. It reduced the number of green certificates for new
plants as from January 1, 2014. More specifically, the new
Royal Decree 2/2013 eliminated the option of remuneration
based on the market price plus a feed-in premium, leaving
only the feed-in tariff option (price of energy included) or
the market price, with no premium, and modified the ba-
sis of the indexing used for the feed-in tariff for renewables
and cogeneration.
Royal Decree 9/2013 was approved in July 2013 as part of
the reform of the electricity industry. For renewables and
cogeneration, the legislation eliminated the feed-in tariff in
favor of the market price, although if the market price is not
sufficient to ensure “reasonable profitability” an additional
amount per MW would be paid annually. The additional re-
muneration will be determined on the basis of standard op-
erating expenses and investment levels of an efficient, well-
values are 1.5 certificates per MWh of wind generation un-
managed enterprise and for clusters of plants. In February
til 2017 (after 2017, 0.75 green certificates), 3 certificates
2014 draft secondary legislation was announced, contain-
per MWh of photovoltaic output and 2.3 certificates per
ing the reference parameters and the new remuneration
MWh of hydroelectric generation.
rates. Following the period for comments from stakeholders
95
and after publication of the report of the Comisión Nacional
as the date for the next auction of A-5 energy, with supply
de los Mercados y la Competencia, the legislation is sched-
starting as from January 2018, while on August 15 the Ministry
uled to be approved by the end of March 2014.
of Energy set November 18, 2013 as the date for the next auc-
Latin America
tion of A-3 energy, with supply starting as from January 2016.
The winning bidders are granted long-term contracts whose
term varies from 20 to 30 years depending on the technology.
The development of renewable energy resources in Latin
Solar projects will be eligible to participate for the first time.
America is less diversified than in Europe. In particular, the
Finally, on October 30, 2013, the state of Pernambuco set De-
territory has long had a large number of major hydroelectric
cember 20, 2013 as the date for the first auction reserved for
plants. The main incentive approach involves long-term pow-
solar power only. The winning bidders will be awarded long-
er purchase agreements (PPA), tax incentives and facilitated
term sales contracts with a term of 20 years, with supply start-
transport rates.
ing as from May 1, 2015.
Brazil
Chile
The incentive system for renewable energy in Brazil was cre-
Chile has a system mandating achievement of specified renew-
ated in 2002 with the implementation of a feed-in mecha-
able energy targets for those who withdraw power for sale
nism (PROINFA), and was then harmonized with the sales sys-
through distributors or sales companies. The law sets a level of
tem for conventional power using competitive auctions. The
5% of all power under contract after August 31, 2007. Between
auctions are divided between new plants and existing plants
2010 and 2014, the proportion of electricity from renewables
and comprise:
will remain at 5%, before rising by 0.5 points a year to reach a
> Leilão Fontes Alternativas, in which all technologies compete;
share of 10% by 2024. The current mechanism establishes pen-
> Leilão Energia de Reserva, in which a single technology com-
alties for failure to achieve the mandatory share. The Chilean
petes. These auctions are normally organized to increase re-
government is currently discussing the possibility of increasing
serve capacity and/or promote the development of certain
the mandatory share from 10% in 2024 to 20% in 2020. The
technologies (such as renewables).
Consejo Asesor para el Desarrollo Energético (CADE), which was
At present, the auctions are divided into A-1 (normally for ex-
charged with analyzing the Chilean energy market, produced
isting plants), A-3 and A-5 auctions on the basis of the genera-
a report recommending a renewables target of 15% by 2024.
tor’s obligation to supply the energy awarded after one, three
The proposal to set the target at 20% by 2020 was recently
or five years. An auction typically has two phases: the descend-
approved by the Senate and is currently being examined by
ing-clock phase in which the auction organizer establishes the
the Energy Committee of the Chamber of Deputies. All renew-
opening price for the auction and the generators submit de-
able energy resources are eligible for the purposes of meeting
creasing bids; and the pay-as-bid phase in which the remaining
the requirement. For hydroelectric plants with a capacity of up
generators further reduce the price until the supply of power
to 40 MW, the system provides for a corrective factor which
covers all the demand up for auction. The winning bidders are
counts all of the first 20 MW and a declining proportion of the
granted long-term contracts whose term varies by resource: 15
capacity between 20 and 40 MW.
years for thermal biomass plants, 20 years for wind plants and
As part of the process of revising the long-term targets in support
30 years for hydroelectric plants.
of renewable energy resources, on October 22, 2013, Law 20698
The Brazilian auction mechanism is used for all renewable re-
was published. It establishes that a certain percentage of total
sources, with the exception of hydroelectric plants with a ca-
contractual electricity supplied to the electrical system shall be
pacity of more than 30 MW.
generated from renewable resources. More specifically, for con-
On March 6, 2013, the National Council for Energy Policy pub-
tracts signed between 2007 and 2013, the target is 10% by 2024,
lished Decision 3/2013 with amendments of the algorithm
while for contracts signed after 2013 the target is 20% by 2025.
used for calculating the exchange price (PLD). Pending the im-
On March 8, 2013, Decreto Supremo 114 of the Energy Ministry
plementation of the new model, as from August 1, 2013, the
was published in Chile’s official journal. The decree governs a
resolution introduces a transitional model providing for two
number of aspects of Law 19657 concerning geothermal pow-
separate prices in the wholesale market (PLD1 and PLD2).
er. The decree establishes a number of departures from the
On July 10, 2013, the Ministry of Energy set December 13, 2013
provisions of the previous Decree 32, with improvements in a
96
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions number of aspects, including the granting of “exclusive rights”
gible for the incentive system. The auctions start with
in obtaining a production concession once exploration activi-
a maximum price and close depending on the bid price
ties have been completed, creating greater legal certainty and
(a pay-as-bid mechanism). The price can be adjusted on
protection for investors.
the basis of the US consumer price index if the increase
Mexico
The renewables promotion law (LAERFTE) was published in
2008 to govern the regulatory framework for the transition
of the country towards clean energy technologies. On June
3, 2013, the Mexican government recently took steps to
is more than 5%.
Central America
Siepac - Regional Electricity Market
further develop a regulatory framework in support of rene-
On June 1, 2013, the regional regulator (CRIE) announced
wables, publishing the National Climate Change Strategy,
the official launch of the Regional Electricity Market, with the
which sets a target of reducing greenhouse gas emissions
termination of the transitional system in place since March
from their 2000 level by 30% by 2020 and by 50% by 2050,
2013. The implementation of regional regulations marks the
incorporating renewable resources into the energy matrix,
first step towards the consolidation of the rules governing
implementing energy efficiency measures and transitio-
cross-border trade in electricity among 6 countries in Central
ning to smart cities.
America (Guatemala, El Salvador, Honduras, Nicaragua, Costa
Private investors participate as either independent power
Rica and Panama).
producers who sell all their output to the Comisión Fed-
eral de Energía using auction mechanisms, self-suppliers or
small-scale producers (with an installed capacity of less than
Panama
On June 12, 2013, in line with an energy policy directed at
30 MW) who sell their output at rates governed by the Co-
diversifying the energy mix, the Panamanian government
misión Federal de Energía.
ratified Law 605, which establishes tax incentives to support
On June 7, 2013, the Mexican government published an
the development of solar power. The new incentives provide
amendment to the renewable energy law (LAERFTE) that re-
for an exemption from import tax, tax credits (5% of capital
defines the standards used for hydroelectric plants to qualify
expenditure) and the option of acceleration depreciation.
as renewable resource plants. Large hydro plants (>30 MW)
may now qualify as such if the ratio of generation capacity
to the area of the reservoir containment wall is greater than
Costa Rica
On September 10, 2013, President Chinchilla approved De-
10W/m2, thereby gaining access to renewable energy incen-
cree 62-2012 formalizing the creation of a voluntary car-
tives, such as lower transport costs and tax relief.
bon trading system. The market, which uses a cap and trade
Finally on December 20, 2013 the anticipated energy reform
mechanism linked to reforestation and energy efficiency pro-
measures were published, with provisions intended to reor-
jects, should begin operations in 2014.
ganize the energy and oil industries. The reform, which en-
On December 17, 2013, the local regulator published Resolu-
visages the participation of private-sector operators in sec-
tion 105 updating the remuneration of existing plants, pro-
tors that had previously been restricted to the state, such as
viding for an increase of 2% on the previous values.
electricity distribution, will be completed during 2014 with
the publication of the implementing decrees, including one
governing the new regulatory framework for facilitating the
El Salvador
development of geothermal power.
On August 22, 2013, Congress approved Decree 460 setting
Peru
The renewable energy incentive system is based on auc-
out the rules governing the award of concessions for small-
scale projects. From the entry into force of the decree, the leg-
islature, and no longer the regulator, will have the authority
tions differentiated by renewable resource. It was in-
to approve concessions for mini-hydro and geothermal pro-
troduced in 2010. The auctions are defined in terms of
jects with an installed capacity of up to 5 MW.
electricity generated for wind, solar and biomass plants,
and by capacity for hydroelectric facilities. Hydroelectric
plants with a capacity of more than 20 MW are not eli-
97
United States
The United States has a two-level renewables incentive sys-
tem. The federal level envisages various types of support,
including tax incentives for production and investment (the
Production Tax Credit and the Investment Tax Credit), accel-
erated depreciation and federal subsidies. At the state level,
the main incentive is a Renewable Portfolio Standard (RPS)
mechanism, i.e. a system of mandatory percentages of gener-
ation from renewables for utilities, with targets differing from
state to state. Most states have adopted systems of tradable
certificates but there is no corresponding platform active at
the federal level. The American Taxpayer Relief Act, signed
on January 2, 2013, extended the life of the Production Tax
Credit for wind plants by one year and changed the termina-
tion dates for the Production Tax Credit for all other technolo-
gies: plants no longer must enter service by the termination
date in order to qualify but rather must begin construction by
December 31, 2013.
Between May and September 2013, the Internal Revenue
Service published guidelines with more detailed operational
specifications of the requirements for the definition of “begin
construction” for the purposes of qualifying for the Produc-
tion Tax Credit. The termination date of the Tax Credit Invest-
ment for solar power was left unchanged, with plants having
to enter service by December 31, 2016.
98
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Main risks and uncertainties
Due to the nature of its business, the Group is exposed to
responsibilities. More specifically, the governance model for
a variety of risks, notably market risks, credit risk, liquidity
financial, commodity and credit risks was consolidated. In
risk, industrial and environmental risks and regulatory risk.
addition to setting out specific policies, the model assigns
In order to limit its exposure to these risks, the Group ana-
strategic policy-making responsibilities for risk management
lyzes, monitors, manages and controls them as described
activities and supervision of risk management and control ac-
in this section.
tivities to special risk committees, both at the Group level and
From an organizational standpoint, over the last year spe-
at the division/company level, and establishes the structure
cific risk management policies were developed for each cat-
of an operational limits system for the Group and, if neces-
egory of risk, identifying management and control roles and
sary, for the individual divisions/companies.
Risks connected with market liberalization
and regulatory developments
The energy markets in which the Group operates are cur-
eration mix, improving the competitiveness of plants through
rently undergoing gradual liberalization, which is being im-
cost leadership, seeking out new high-potential markets and
plemented using different approaches and timetables from
developing renewable energy resources with appropriate in-
country to country.
vestment plans in a variety of countries.
As a result of these processes, the Group is exposed to increas-
The Group often operates in regulated markets or regulated
ing competition from new entrants and the development of
regimes, and changes in the rules governing operations in
organized markets.
such markets and regimes, and the associated instructions
The business risks generated by the natural participation of
and requirements with which the Group must comply, can
the Group in such markets have been addressed by integrat-
impact our operations and performance.
ing them along the value chain, with a greater drive for tech-
In order to mitigate the risks that such factors can engender,
nological innovation, diversification and geographical expan-
Enel has forged closer relationships with local government
sion. More specifically, the initiatives taken have increased
and regulatory bodies, adopting a transparent, collaborative
the customer base in the free market, with the aim of inte-
and proactive approach in tackling and eliminating sources of
grating downstream into final markets, optimizing the gen-
instability in regulatory arrangements.
Risks connected with CO2 emissions
In addition to being one of the factors with the largest po-
tential impact on Group operations, emissions of carbon di-
mitigate the risk factors associated with CO2 regulations, the
Group monitors the development and implementation of EU
oxide (CO2) are also one of the greatest challenges facing the
Group in safeguarding the environment.
and Italian legislation, diversifies its generation mix towards
the use of low-carbon technologies and resources, with a fo-
EU legislation governing the emissions trading scheme im-
cus on renewables and nuclear power, develops strategies
poses costs for the electricity industry, costs that could rise
to acquire allowances at competitive prices and, above all,
substantially in the future. In this context, the instability of
enhances the environmental performance of its generation
the emissions allowance market accentuates the difficul-
plants, increasing their energy efficiency.
ties of managing and monitoring the situation. In order to
99
Market risks
As part of its operations, Enel is exposed to a variety of mar-
To maintain this risk within the limits set out each year in the
ket risks, notably the risk of changes in interest rates, ex-
Group’s risk management policies, Enel uses derivatives ob-
change rates and commodity prices.
tained in the market.
Risks connected with commodity
prices and supply continuity
Given the nature of its business, Enel is exposed to changes
specification of a ceiling for maximum acceptable risk and the
in the prices of fuel and electricity, which can have a signifi-
implementation of a hedging strategy using derivatives.
cant impact on its results.
For a more detailed examination of commodity risk manage-
To mitigate this exposure, the Group has developed a strat-
ment and the outstanding derivatives portfolio, please see
egy of stabilizing margins by contracting for supplies of fuel
note 6 of the consolidated financial statements.
and the delivery of electricity to end users or wholesalers in
In order to limit the risk of interruptions in fuel supplies, the
advance.
Group has diversified fuel sources, using suppliers from dif-
The Group has also implemented a formal procedure that pro-
ferent geographical areas and encouraging the construction
vides for the measurement of the residual commodity risk, the
of transportation and storage infrastructure.
Exchange rate risk
The Group is exposed to the risk that changes in the ex-
> financial assets/liabilities measured at fair value.
change rates between the euro and the main other curren-
The consolidated financial statements are also exposed to
cies could give rise to adverse changes in the euro value of
the exchange rate risk associated with the consolidation val-
performance and financial aggregates denominated in for-
ues of equity investments denominated in currencies other
eign currencies. The exposure to exchange rate risk, which is
than the euro (translation risk).
mainly denominated in US dollars, is attributable to:
Exchange rate risk is managed within the Group policies for
> cash flows in respect of the purchase or sale of fuel or
managing financial risks, which provide for the stabilization
electricity on international markets;
of the effects of changes in exchange rates with the exclu-
> cash flows in respect of investments in foreign currency,
sion of translation risk. To this end, the Group has developed
dividends from unconsolidated foreign subsidiaries or the
operational processes that ensure the systematic coverage
purchase or sale of equity investments;
of exposures through appropriate hedging strategies, which
> financial liabilities assumed by the Parent Company or the
typically involve the use of financial derivatives.
individual subsidiaries denominated in currencies other
For more details, please see note 6 of the consolidated finan-
than the currency of account or functional currency of the
cial statements.
company holding the liability;
Interest rate risk
The nature of the financial risks to which the Group is ex-
refinance debt falling due on changing market terms and
posed is such that changes in interest rates could give rise to
conditions.
increases in net financial expense or adverse changes in the
Our interest rate risk management policy seeks to maintain
value of assets/liabilities measured at fair value.
the risk profile established within the framework of the for-
The main source of exposure to interest rate risk for the Enel
mal risk governance procedures of the Group, curbing bor-
Group comes from the fluctuation in the interest rates as-
rowing costs over time and limiting the volatility of results.
sociated with its floating-rate debt and from the need to
This goal is pursued through the strategic diversification of
100
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions the nature of our financial assets and liabilities and the use
non-recourse assignment of invoiced receivables and receiva-
of derivatives on over-the-counter markets.
bles to be invoiced in respect of customers in the enhanced
For more details, please see note 6 of the consolidated finan-
protection market in Italy.
cial statements.
Credit risk
In subsequent years, partly in view of the macroeconomic en-
vironment, the use of assignments was extended both geo-
graphically and to invoiced receivables and receivables to be
invoiced of companies operating in other segments of the
The Group’s commercial, commodity and financial operations
electricity industry than retail sales (such as, for example, re-
expose it to credit risk, i.e. the possibility that an unexpected
ceivables from generation activities, sales of electricity as part
change in the creditworthiness of a counterparty could im-
of energy management operations, the sale of green certifi-
pact the creditor position, in terms of insolvency (default risk)
cates or electricity transport services).
or changes in its market value (spread risk).
All of the above transactions are considered as non-recourse
Recent economic conditions, with the instability and uncer-
transactions for accounting purposes and therefore involved
tainty of the financial markets and the global economic crisis,
the full derecognition of the corresponding assigned assets
have given rise to an increase in average payment times by
from the balance sheet, as the risks and rewards associated
counterparties.
with them have been transferred.
In order to continue to minimize credit risk, the Group’s gen-
eral policy calls for an assessment of the creditworthiness of
the counterparties – on the basis of internal rating models
Liquidity risk
developed on a statistical basis and information supplied by
Liquidity risk is the risk that the Group, while solvent, would
external providers – and the structured monitoring of risk ex-
not be able to discharge its obligations in a timely manner
posures to promptly identify any deterioration in credit qual-
or would only be able to do so on unfavorable terms owing
ity, including with respect to specified limits. These methods
to factors connected to the perception of its riskiness by the
have been implemented in all the main divisions/countries,
market or to systemic crises (credit crunches, sovereign debt
with the application of uniform risk measurement metrics
crises, etc.).
that enable the consolidation and monitoring of credit risk
As part of the Group’s formal risk governance procedures,
exposure at the Group level.
risk management policies are designed to maintain a level
As regards credit risk in respect of the solvency of counter-
of liquidity sufficient to meet its obligations over a speci-
parties in commodity transactions, the Group’s Credit Risk
fied time horizon without having recourse to additional
Committee has approved, in addition to a new centralized
sources of financing, as well as to maintain a prudential li-
assessment system that enhances risk monitoring and man-
quidity buffer sufficient to meet unexpected obligations. In
agement, the use of portfolio limits both for the divisions/
addition, in order to ensure that the Group can discharge its
countries involved and at the Group level.
medium and long-term commitments, Enel pursues a bor-
As to credit risk in respect of open positions in financial trans-
rowing strategy that provides for a diversified structure of
actions, including those involving derivatives, and in the light
financing sources to which it can turn and a balanced matu-
of the recent downgrades made by international rating agen-
rity profile. Liquidity requirements are primarily met through
cies, risk is minimized by selecting counterparties with high
cash flows generated by normal operations, ensuring the ap-
credit ratings from among leading Italian and international
propriate management of any excess liquidity.
financial institutions, portfolio diversification, entering into
In order to optimize liquidity management within the
margin agreements for the exchange of cash collateral, or the
Group, Enel SpA (directly and through its subsidiary Enel
use of netting arrangements. The credit risk is measured at
Finance International NV) meets the cash needs of the
both the individual counterparty level and the portfolio level
Group companies through centralized access to the mon-
using an internal valuation system in this case as well.
ey and capital markets and provides management and co-
To manage credit risk even more effectively, for a number of
ordination services for Group companies that can access
years the Group has carried out non-recourse assignments of
market financing directly.
receivables, mainly specific segments of the commercial port-
Underscoring the Enel Group’s continued capacity to ac-
folio. More specifically, in 2011 a five-year framework agree-
cess the credit market despite the recent crisis in the finan-
ment was reached with two leading banks for the ongoing
cial markets, in 2013 the Group carried out bond issues with
101
institutional investors totaling €2.6 billion and bond issues
In Europe, austerity policies will continue to slow economic
within the framework of the Global Medium-Term Notes
growth in 2014 as well, especially in Italy and Spain. The expan-
program totaling €0.5 billion.
sionary stance of monetary policy in the United States, which
For more details, please see note 6 of the consolidated finan-
gave rise to the ongoing recovery, will probably be tapered in
cial statements.
Rating risk
the coming months, given the need to reconcile growth objec-
tives with the sustainability of the debt, while in Japan those
policies are expected to be kept in place for a longer period.
In the Middle East and North Africa the political situation
Credit ratings, which are assigned by rating agencies, impact
is marked by a degree of permanent conflict, mainly do-
the possibility of a company to access the various sources of
mestic, balanced by a certain easing of relations with the
financing and the associated cost of that financing. Any re-
western world.
duction in the rating could limit access to the capital market
In emerging Asia, the leading economies (China and India)
and increase finance costs, with a negative impact on the
continue to be affected by the slowdown in foreign demand
performance and financial situation of the company.
from the developed economies (compared with the peaks
In 2013, Standard & Poor’s revised the Enel Group’s long-
achieved prior to the crisis), which has not yet been entirely
term rating following the agency’s downgrade of the rating
offset by growth in domestic demand.
of the Italian Republic, in reflection of the deterioration of
Finally, it is reasonable to expect that the Latin American
macroeconomic conditions in the country. The stable out-
economies, despite the changes wrought with the most re-
look reflects the agency’s expectations that Enel will achieve
cent elections in Chile and Argentina, will continue to make a
and maintain performance and financial targets commensu-
substantial contribution to the growth of the world economy.
rate with its current rating as a result of its continued delev-
eraging efforts, the large contribution of regulated activities
and its good geographical and technological diversification
outside Europe.
At the end of the year Enel’s rating was: (i) “BBB” for Stand-
Industrial and
environmental risks
ard & Poor’s with a stable outlook; (ii) “BBB+”, with a nega-
Breakdowns or accidents that temporarily interrupt opera-
tive credit watch for Fitch; and (iii) “Baa2”, with a negative
tions at Enel’s plants represent an additional risk associated
outlook for Moody’s.
with the Group’s business.
Country risk
Industrial and environmental risks are therefore managed
by all business lines (Generation, Distribution, Sales and Up-
stream Gas) and all process phases (Business Development,
By now, more than 50% of the revenues of the Enel Group
Engineering Procurement and Construction, Operation
are generated outside Italy. The major international ex-
and Maintenance, Decommissioning). The Group is gradu-
pansion of the Group – located, among other countries, in
ally extending its risk management models to all divisions
Latin America and Russia – therefore requires the Group to
and countries in order to be able to use statistical methods
assess its exposure to country risk, namely the macroeco-
to assess risks in probabilistic and monetary terms. This will
nomic, financial, regulatory, market, geopolitical and social
make it possible to characterize each plant/network/pro-
risks whose manifestation could have a negative impact on
ject using specific risk factors. In addition, new models have
income or jeopardize corporate assets. In order to mitigate
been developed to measure the risk of natural disasters,
this form of risk, the Group has adopted a country risk calcu-
such as earthquakes, hurricanes, flooding, landslides and
lation model (using a shadow rating approach) that specifi-
major climatic events, with the objective of identifying the
cally monitors the level of country risk in the areas in which
most critical areas and preparing appropriate instruments
the Group operates.
to safeguard the industrial value of plants.
From a macroeconomic point of view, in 2013 we wit-
The attention that Enel devotes to environmental issues
nessed the gradual stabilization of international markets,
also prompted the development of models that enable the
with the easing of restrictive fiscal policies in Europe and
Group to measure, in probabilistic terms, the exposure of
the continuation of expansionary monetary policies in the
each plant to risks involving all possible segments of the
United States and Japan.
environment, such as the air, water, land and underground.
102
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions In order to mitigate such risks, the Group adopts leading
eration has made it necessary to take a new approach to
prevention and protection strategies, including preventive
managing risks through the analysis of grid losses and the
and predictive maintenance techniques and technology
management of active distribution systems in order to en-
surveys to identify and control risks, and recourse to inter-
sure the stability and security of electrical system, integrat-
national best practices.
ing management of ordinary risks with the optimization
Any residual risk is managed using specific insurance poli-
of service quality and managing exceptional risks deriving
cies to protect corporate assets and provide liability cov-
above all from major exogenous events.
erage in the event of harm caused to third parties by ac-
With regard to nuclear power generation, Enel operates in
cidents, including pollution, that may occur during the
Slovakia through Slovenské elektrárne and in Spain through
production and distribution of electricity and gas.
Endesa. In relation to its nuclear activities, the Group is ex-
As part of its strategy of maintaining and developing its
posed to operational risk and may face additional costs
cost leadership in the markets in which it has generation
because of, inter alia, accidents, safety violations, acts of
operations, the Group is involved in numerous projects for
terrorism, natural disasters, equipment malfunctions, mal-
the development, improvement and reconversion of its
functions in the storage, movement, transport and treat-
plants. These projects are exposed to the risks commonly
ment of nuclear substances and materials. In the countries
associated with construction activities, which the Group
where Enel has nuclear operations, specific laws based on
mitigates by requiring its suppliers to provide specific guar-
international conventions require operators to obtain in-
antees and, where possible, obtaining insurance coverage
surance coverage for liability for risks associated with the
against all phases of construction risk.
use and transport of nuclear fuel, with coverage ceilings
With regard to distribution operations, the evolution of the
and other terms and conditions set by law. Other mitigating
electrical system from a passive network to an active net-
measures have been taken in accordance with international
work as a result of the sharp increase in distributed gen-
best practices.
103
Outlook
The Group’s strategic priorities in the period covered by the
smart grids field, Enel intends to strengthen its leadership
2014-2018 Business Plan respond to the expected structural
position, leveraging the key driver, technological innovation,
evolution in the world’s macroeconomic conditions and in
and a geographically and technologically well-diversified as-
the energy industry. More specifically, the former will contin-
set portfolio which forms the foundation of the Group’s fu-
ue to move ahead at two speeds: on the one hand the Euro-
ture development.
pean countries, which are emerging slowly from the crisis; on
Reducing debt and generating cash flow will also remain a
the other the emerging economies, especially those in Latin
top priority for the Group. And maximization of cash flow is
America, where electricity demand is still expanding rapidly.
precisely the goal of the plan for optimizing operating costs
In this environment, Enel expects the following main trends
launched in 2013, which has already led to the identification
to drive the evolution of these scenarios: (i) the emerging
of major opportunities for efficiency gains, with results that
markets will continue to fuel global growth; (ii) technologi-
have easily exceeded expectations. These opportunities will
cal innovation will be one of the key factors driving trends
continue to be pursued in the coming years, with a special
in the energy sector; (iii) end users will be increasingly well-
focus on businesses in the mature markets.
informed about technology and environmental matters; and
In the 2014-2018 period, the Group expects to generate about
(iv) regulatory systems will sharpen their focus on environ-
€50 billion in operating cash flow (net of financial expense
mental issues and system costs.
and taxes), to be used to pursue the gross investment plan of
In the business plan, the Group confirms the increasingly im-
€28.6 billion and to pay dividends of €11.6 billion. The remain-
portant role of the emerging markets, with an investment
ing free cash flow, equal to about €10 billion, together with
policy targeted at consolidating its position and simplifying
the proceeds of the disposal plan in the expected amount of
its corporate structure. Renewables will expand substantially,
more than €4 billion, will be devoted to reducing the debt and
with careful selection of high-return investment opportuni-
minority buyouts, with a view to simplifying the Group’s struc-
ties. Another area of action will be the retail market, energy
ture and gradually enhancing the dividend policy. All of this
efficiency and, more generally, value-added services, a seg-
is expressed in the financial targets set out in the 2014-2018
ment with robust growth potential. In this area, as in the
Business Plan:
Billions of euro
Gross operating margin
Group net income
Net financial debt
2014
about 15.5
about 3
about 37
2016
about 16.5
about 3.7
about 39
2018
about 18
about 4.5
about 36
104
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Sustainability
Our mission
At Enel our mission
is to create and deliver value
in the international electricity market,
benefiting our customers and our shareholders,
fostering competition in the countries in which we operate,
and meeting the expectations of all those who work with us.
Enel works to serve the community,
while respecting the environment
and human safety,
with a commitment to leaving future generations
a better world.
106
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Sustainability in Enel
At Enel, sustainability is a strategic part of running and de-
lines established in our Strategic Sustainability Plan;
veloping our business in line with our business plan. The in-
> established the country/division CSR committees and
tegration of governance, the environment, and managing
appointed the CSR managers in the various countries in
relationships with interest groups and communities with
order to implement local sustainability policies and strat-
economic and financial factors enables us to create value
egies and the various CSR projects and other activities
both for the business and for the social contexts in which
called for in the Plan.
the Group operates, from the perspective of stable growth
In particular in 2013, Enel Green Power began efforts to
and social inclusion over the medium and long term.
bring the culture of sustainability to its own processes so as
In 2013, in line with our in-house CSR policy, we:
to orient its business model to the creation of shared value
> continued developing the organization and structure of
and the rational use of resources. The company also estab-
the CSR processes of planning, monitoring and reporting;
lished short, medium and long-term action plans in order to
> structured coordination by the Parent Company of the
ensure that sustainability becomes an integrated part of its
various CSR policies and activities, as well as of the guide-
day-to-day operations.
The Enel Group’s materiality matrix
In line with the latest international innovations, Enel has con-
both the Company and our stakeholders (i.e. the “material is-
tinued working on the materiality analysis process, efforts
sues”) and to verify the degree of alignment or misalignment
which began in 2012 in order to map out and study the issues
between outside expectations and internal relevance.
of interest and the expectations of our stakeholders, as well as
Based on this assessment, we have established the objec-
to bring the Company’s processes and procedures in line with
tives of the Strategic Sustainability Plan and determined the
these expectations. The unification of these two perspectives
content and information to be included in the Sustainability
will enable us to identify the issues of most importance to
Report.
The 2013-2017 Sustainability Plan
The sustainability plan focuses on the most relevant issues as
> Environmental issues: lowering emissions, making effi-
determined by the analysis of materiality, while also speci-
cient use of water, biodiversity, and global environmental
fying the goals and specific targets that Enel has set for the
management.
Group for the coming years.
> Social issues: access to electricity, responsible relation-
> Business and governance issues: creation of financial
ships with the community, the respect of individual rights,
value, governance, fairness and transparency, develop-
quality for the customer, the development of people, di-
ment of renewable energy, energy efficiency, and ESG
versity and equal opportunity, health and safety in the
risk management.
workplace, and a responsible supply chain.
The CSR data collection system
In order to monitor our sustainability performance and to
lect and monitor financial and other data and related com-
ensure the thorough traceability of data owners, we have
munications in an integrated, consistent manner throughout
launched a data collection system in collaboration with the
the Group and in line with international standards.
External Relations and Administration, Finance & Control de-
The system is also in line with the guiding principles of the
partments. Beginning in 2014, after establishing a dedicated
One Company project and will ensure that data will be gath-
information system that is to be integrated into the current
ered at the individual company level by way of an accurate
system used to collect financial data, it will be possible to col-
process of identifying the various data owners.
107
Sustainability reporting
Since 2002, Enel has, with its Sustainability Report, main-
Enel has also begun revising the structure of our Sustain-
tained a constant commitment to measuring and reporting
ability Report and the process of materiality analysis based
on corporate responsibility, ensuring maximum transparency
on the new GRI (GRI-G4) guidelines published in May 2013,
for all its stakeholders and continuous implementation of its
while also beginning the process of integrated the new G4
sustainability strategy. The reporting process involves collect-
indicators into our CSR data collection system.
ing and analyzing specific key financial, environmental and
The thoroughness and reliability of the Sustainability Report
social performance indicators.
are assessed by an external auditing firm, by the Control &
Enel’s Sustainability Report is prepared in accordance with
Risk Committee and also, since 2012, by the Nomination &
the Global Reporting Initiative (GRI) international standard
Corporate Governance Committee. The document is then
and the related Electric Utility Sector Supplement (EUSS), as
approved by the Enel SpA Board of Directors before being
well as with the United Nations Global Compact and princi-
presented to the shareholders.
ples of accountability.
The Enel Group in international sustainability
networks
Since 2004, Enel has been an active member of the United
integration of sustainability in business strategy. Enel is one
Nations Global Compact, and since 2011 we have been a
of the first corporations to have confirmed its participation
member of the steering committee of the Global Compact
in the pilot stage of this program.
LEAD program, which is made up of the organizations
most committed to promoting new global initiatives in
Other international sustainability initiatives that Enel has
sustainability.
undertaken include:
The Global Compact is an action program being promoted
> supporting the Global Reporting Initiative (GRI) in defin-
by the UN Secretary General with the goal of involving the
ing the new GRI-G4 guidelines, which were presented in
private sector in a new form of public-private partnership
May 2013 in Amsterdam during the Global Conference
through adherence to the ten universal principles that con-
on Sustainability Reporting;
cern human rights, employment, environmental protection
> our active contribution, as a member of the IIRC pilot
and the fight against corruption.
program, in developing the new international formats
In 2013 in particular, Enel’s efforts focused on our involve-
that will be used to certify and standardize integrated
ment in the global consultation to set the targets of sustain-
reporting;
able development that are to replace the Millennium Devel-
> our involvement – as the first utility in the world to do
opment Goals that will expire in 2015.
so – in the assessment of Ceres, the non-profit organiza-
The post-2015 agenda was the focus of the 2013 Leaders
tion that is mobilizing businesses and investors to take on
Summit held in New York in September 2013, which brought
the challenges of sustainability as concerns its efforts to
together over 3,000 representatives from businesses, insti-
manage water-related risks. Named “Aqua Gauge”, the
tutions and civil society from around the world in order to
initiative was presented to the European Parliament in
establish the next global architecture for corporate sustain-
September 2013;
ability. In conjunction with the Leaders Summit, the United
> our commitment to support the domestic and interna-
Nations selected Enel to present the Lead Board Program,
tional activities of Transparency International, serving as
which seeks to provide company boards with in-depth in-
members of the Business Advisory Board of this impor-
formation prepared by leading international experts in the
tant organization.
108
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Enel and socially responsible investors
Eleven years ago, Enel started down the road to achieving
diversified geographical presence, covering continental Eu-
the highest sustainability standards and has been rewarded
rope, the United Kingdom and North America.
with the interest of socially-responsible investment funds,
which continue to expand despite the challenging interna-
In 2013, for the tenth straight year, Enel was included in
tional economic climate: at December 31, 2013, Enel shares
the Dow Jones Sustainability Index, a market benchmark
were held by 117 (108 in 2012) socially-responsible investors
which includes the world’s leading companies that meet
(SRIs), representing about 15.6% of our identified institu-
strict economic, social and environmental criteria. During
tional shareholders (14.6% in 2012).
the year, Enel was again included in the FTSE4Good Index,
This figure refers to SRIs that include Environmental, Social,
which measures environmentally sustainable corporate
Governance (ESG) standards among the criteria used in mak-
practices, relations with stakeholders, respect for human
ing investment decisions. At December 31, 2013, these in-
rights, the quality of working conditions, and the tools that
vestors held around 5.5% of Enel’s total shares outstanding
companies employ to fight corruption, and we are one of
(5.0% in 2012), equal to about 8% of the float (7.3% in 2012).
the utility companies involved in the Carbon Disclosure Pro-
These funds represent a stable shareholder base with a well-
ject (CDP).
The four pillars of corporate ethics
For over ten years, Enel has had a solid system of ethics that
practices, a body of “common law” governing participation in
underlies our sustainability efforts. This system has become a
the company, the rules of citizenship that everyone who works
dynamic set of rules constantly incorporating international best
for and with Enel must respect and apply in their daily activities.
Code of Ethics
Our awareness of the social and environmental repercus-
The document applies to the entire Group, with consid-
sions of the Group’s activities and the importance of a trans-
eration given to the cultural, social and economic diversity
parent and fair approach with stakeholders prompted Enel,
found in the various countries in which Enel does business.
in 2002, to adopt a Code of Ethics.
The Code is binding on the conduct of all of Enel’s employ-
As such, this Code of Ethics lays the groundwork for all of our
ees. All of the companies in which Enel has an equity interest
activities and expresses our commitment and ethical respon-
and the Group’s major suppliers and partners are also re-
sibility in doing business, while also guiding and standard-
quired to adhere to the general principles contained therein.
izing corporate conduct based on the utmost transparency,
Any stakeholder can report a violation or suspected violation
respect and fairness towards all stakeholders.
of the Code of Ethics through dedicated channels.
Compliance Model (Legislative Decree 231/2001)
In 2002, the Board of Directors of Enel SpA approved a Com-
ency and responsibility in relations within the Company and
pliance Model that meets the requirements of Legislative
with the outside world.
Decree 231 of June 8, 2001, which introduced into Italian law
In 2010, Enel SpA also approved specific Guidelines aimed at
a system of administrative (though actually criminal) liability
extending the principles set out in the Compliance Model to
for companies for certain types of offences committed by
the Group’s foreign subsidiaries, in order to make them more
its directors, executives or employees on behalf of or to the
aware of the importance of ensuring the same conditions of
benefit of the company.
fairness and transparency in the conduct of their business
Having been approved and implemented by the Group com-
and corporate activities and to prevent situations that could
panies in Italy, the model serves as a point of reference for all
result in administrative liability pursuant to Legislative De-
who act in the name and on behalf of Enel such that they can
cree 231/2001 for the Parent Company, Enel SpA, and the
conduct themselves in line with the standards of transpar-
other Italian companies of the Group.
109
Zero-Tolerance-of-Corruption Plan
In 2006, the Board of Directors approved the adoption of the
The ZTC Plan does not replace or overlap the Code of Ethics
Zero-Tolerance-of-Corruption (ZTC) Plan as a concrete move
or the Compliance Model, but is rather a more detailed plan
marking Enel’s participation in the Global Compact (a 2000
for addressing the issue of corruption by following a series of
UN program of action) and the Partnering Against Corruption
recommendations for implementing principles developed by
Initiative (PACI) promoted by the World Economic Forum in
Transparency International.
Davos in 2005.
Policy on Business and Human Rights
In order to give effect to the guidelines of the UN Forum on
rights, in 2013 we also launched the risk-assessment process
Business and Human Rights, on February 5, 2013, the Board
aimed at identifying the main risks in the area of human rights
of Directors of Enel SpA approved a Human Rights Policy,
that the Company may encounter in the course of operations
which was subsequently extended to all of the Group’s sub-
in various countries and through relations with third parties
sidiaries. In line with the Code of Ethics, the policy sets out the
in general. The first phase of this risk assessment called for the
commitments and responsibilities in respect of human rights
inclusion of an ESG country-risk indicator within the Group’s
on the part of the employees of Enel SpA and its subsidiar-
risk-management process in order to quantify the risks that
ies, whether they be directors or employees in any manner
could have a negative impact on the Company, such as the
of those companies. Similarly, with this formal commitment,
violation of human rights and the potential involvement in
Enel explicitly becomes a promoter of the observance of such
the illegal conduct of others, which could expose the Compa-
rights on the part of contractors, suppliers and business part-
ny to systemic risks connected with certain institutional and
ners as part of its business relationships.
environmental conditions.
Within the scope of the due diligence in respect of human
Selected sustainability indicators
Net efficient capacity by primary energy source
MW
Net efficient thermal capacity
- Coal
- CCGT
- Fuel oil/gas
Total
Net efficient nuclear capacity
Net efficient renewable capacity
- Hydro
- Wind
- Geothermal
- Biomass and co-generation
- Other
Total
2013
2012
Change
17,501
16,584
22,592
56,677
5,370
17,589
15,684
23,286
56,559
5,351
30,463
30,436
5,200
4,394
795
134
277
769
160
170
36,869
35,929
(88)
900
(694)
118
19
27
806
26
(26)
107
940
Total net efficient capacity
98,916
97,839
1,077
110
-0.5%
5.7%
-3.0%
0.2%
0.4%
0.1%
18.3%
3.4%
-16.3%
62.9%
2.6%
1.1%
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Net efficient capacity by geographical area
MW
Italy
Iberian peninsula
Latin America
Russia
Slovakia
North America
Romania
Belgium
Greece
France
Morocco
Bulgaria
2013
2012
Change
39,923
39,940
24,068
17,155
9,107
5,399
1,683
534
406
290
186
123
42
23,931
16,794
9,052
5,400
1,239
498
406
248
166
123
42
(17)
137
361
55
(1)
444
36
-
42
20
-
-
-
0.6%
2.1%
0.6%
-
35.8%
7.2%
-
16.9%
12.0%
-
-
Total net efficient capacity
98,916
97,839
1,077
1.1%
Net electricity generation by primary energy source
GWh
Net thermal electricity generation
- Coal
- CCGT
- Fuel oil/gas
Total
Net nuclear electricity generation
Net renewable generation
- Hydro
- Wind
- Geothermal
- Biomass and co-generation
- Other
Total
Total net electricity generation
2013
2012
Change
82,388
40,766
29,312
91,729
42,908
35,211
(9,341)
(2,142)
(5,899)
152,466
169,848
(17,382)
40,591
41,378
(787)
74,344
12,314
5,581
546
304
68,139
9,138
5,492
644
194
6,205
3,176
89
(98)
110
93,089
83,607
9,482
286,146
294,833
(8,687)
-10.2%
-5.0%
-16.8%
-10.2%
-1.9%
9.1%
34.8%
1.6%
-15.2%
56.7%
11.3%
-2.9%
111
Net electricity generation by geographical area
GWh
Italy
Iberian peninsula
Latin America
Russia
Slovakia
North America
Romania
Belgium
Greece
France
Morocco
Bulgaria
Ireland
2013
2012
Change
72,897
74,436
(1,539)
74,614
65,712
41,901
21,343
5,360
1,080
1,373
566
362
852
86
-
81,727
65,916
44,511
20,720
3,899
588
1,183
476
364
906
83
24
(7,113)
(204)
(2,610)
623
1,461
492
190
90
(2)
(54)
3
-2.1%
-8.7%
-0.3%
-5.9%
3.0%
37.5%
83.7%
16.1%
18.9%
-0.5%
-6.0%
3.1%
(24)
-100.0%
Total net electricity generation
286,146
294,833
(8,687)
-2.9%
Other generation ratios
Generation from renewable resources (% of total)
Zero-emission generation (% of total) (1)
ISO 14001-certified net efficient capacity (% of total)
Average efficiency of thermal plants (%)
Specific emissions of CO2 from net generation (gCO2/kWheq) (2)
Specific water withdrawal (l/kWheq)
2013
2012
Change
32.5
46.7
94.0
39.8
391
0.64
28.4
42.4
92.6
39.9
418
0.62
4.1
4.3
1.4
(0.1)
(27)
0.02
14.4%
10.1%
1.5%
-0.3%
-6.5%
3.2%
(1) The 2012 figures have been restated in order to align them with the new method for recognizing energy generated in Latin America (which is measured at the
point of delivery).
(2) Specific emissions have been calculated by taking account of the total emissions from simple thermal generation, combined electrical and thermal, as a ratio
to the total generated by renewable sources, nuclear, simple thermal, and combined electrical and thermal generation (including the thermal contribution in
MWh equivalent).
Customers by geographic area
Average no.
Electricity
- Italy
- Latin America
- Iberian peninsula
- Romania
- Other countries
Total electricity customers
Natural gas
- Italy
- Spain
Total natural gas customers
112
2013
2012
Change
27,819,881
28,032,500
(212,619)
14,383,084
13,905,892
477,192
11,376,287
11,431,437
(55,150)
2,663,728
2,652,594
74,754
83,397
11,134
(8,643)
56,317,734 56,105,820
211,914
3,245,996
3,158,532
87,464
1,214,038
1,265,941
(51,903)
4,460,034
4,424,473
35,561
-0.8%
3.4%
-0.5%
0.4%
-10.4%
0.4%
2.8%
-4.1%
0.8%
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions
Safety rates
No.
Injury frequency rate
Injury severity rate
Serious and fatal injuries at Enel
Serious injuries (1)
Fatal injuries
Total
Serious and fatal injuries at contractors
Serious injuries (1)
Fatal injuries
Total
2013
2012
Change
1.42
0.07
1.98
0.10
(0.56)
(0.03)
7
6
13
17
10
27
15
-
15
23
11
34
(8)
6
(2)
(6)
(1)
(7)
-28.3%
-30.0%
-53.3%
-
-13.3%
-26.1%
-9.1%
-20.6%
(1) Injuries with an initial prognosis, as reported on the medical certificate issued, of greater than 30 days, or with a confidential prognosis until the actual prognosis
is released, or with an unknown prognosis that, based on an initial assessment by the company/division concerned, is expected to exceed 30 days. Once the
official prognosis is released, the related injury is considered serious only if said prognosis exceeds 30 days. Should a confidential prognosis never be released or
an unknown prognosis remain unknown, within 30 days of the event, the injury is to be deemed serious.
Other rates
No.
Average hours of training per employee
Verified violations of the Code of Ethics (1)
2013
2012
Change
39.8
27
44.8
41
(5.0)
(14)
-11.2%
-34.1%
(1) In 2013, an analysis was performed of violations reported in 2012. As a result, there was a change in the number of verified violations reported for 2012 from 34 to 41
Creating value for stakeholders
Enel’s stakeholders are individuals, groups or institutions whose contribution is needed to achieve its mission or who have a
stake in its pursuit.
The economic value created and shared by Enel gives a good indication of how the Group has created wealth for the following
stakeholders: shareholders, lenders, employees and government.
Millions of euro
Revenues
Net income/(charges) from commodity risk management
External costs
Gross global value added from continuing operations
Gross value added of discontinued operations
Gross global value added
distributed to:
Shareholders
Lenders
Employees
Government
Enterprises
2013
80,535
(378)
56,691
23,466
-
23,466
1,410
2,884
4,596
4,211
10,365
2012 restated (1)
84,949
38
61,451
23,536
-
23,536
1,505
2,971
5,789
3,910
9,361
(1) The 2012 consolidated income statement has been restated in order to better reflect the effects recognized in the previous year concerning the introduction of the IAS 19
Revised and the change in the method of recognizing environmental certificates.
113
People
Human resources
and organization
Organization
Functions and divisions
Staffing levels
In 2013, the Group’s model of operations was consolidated
with the goal of achieving the following benefits:
At December 31, 2013, the total workforce of the Enel Group
> more effective, streamlined decision-making processes;
numbered 71,394 employees, of whom 52% were employed
> economies of scale through a more integrated, efficient
by Group companies abroad.
management of services;
During the year, the number of employees fell by 2,308, most-
> more rigorous management and allocation of financial re-
ly reflecting the net negative balance between new hires and
sources among the various businesses and geographic ar-
terminations.
eas in order maximize the creation of value for the Group;
Of the total new hires, 85% concerned companies abroad,
> greater opportunities to develop the Group’s human re-
while 44% of the terminations took place in Italy, mainly
sources and talent.
through application, beginning in September, of the legal
mechanism established by Article 4 of Law 92/2012 concern-
The Group is structured as follows:
ing early retirement.
> Parent Company functions, which are responsible for the
guidance, coordination and strategic control of the activi-
ties of the Enel Group;
114
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions > global service functions, which are responsible for the
These efforts made it possible to conduct a detailed analysis
integrated management of services for the entire Group
of the optimal size of the various organizational structures
(i.e. Global ICT, Global Procurement and Global Business
of the Group.
Services);
It has also been possible to further increase the integration
> operating divisions/functions, which are responsible for
of the business units involved in the handling of:
managing operations within the scope of their respec-
> power plant engineering, construction and maintenance;
tive areas.
During the year:
> distribution;
> marketing, sales and customer operations;
> with regard to the Iberia and Latin America Division:
thereby promoting both the creation of global models of
- the organizational structure for the two distinct sub-ar-
coordination and the sharing of best practices between the
eas, i.e. Spain & Portugal and Latin America, was imple-
various geographic areas.
mented, thereby establishing the roles and responsibili-
Finally, in support of this integration, work was complet-
ties of the business and staff functions for each country
ed in 2013 on the mapping of the management and tech-
and for overall coordination of the Division;
nical positions that are seen as being of key importance
- the organizational structure for Brazil was rationalized,
to the Group.
shifting towards a single line of business of distribution
and sales, although with various legal entities;
> within the Generation, Energy Management and Sales
Italy Division:
- the Energy Management areas of Product Optimization
Hiring, training
and development
and Back Office were reorganized in order to take ad-
vantage of better operational synergies and to rational-
Hiring
ize the workforce;
The channels most used for recruiting are the organization’s
- two organizational structures dedicated to defining and
database (containing all applications submitted, divided
developing energy efficiency services for corporate and
by country), external databases, and the lists of graduates
retail customers were created in line with the positioning
provided by schools and universities. In 2013, with a view
goals of Enel in Italy in this new area of business. These
towards enhancing the recruiting channels and achiev-
two structures received the resources of Enel.si, which
ing global synergies in our employer branding efforts, we
was previously a part of the Renewable Energy Division;
signed an agreement with a global provider for the use of
> within the Renewable Energy Division, work continued
an online platform that will enable those responsible for hir-
on aligning the organization of the various structures of
ing in all of the various countries to publish job offers and
business development, operations and related support
search for interesting candidates.
services within the scope of the plan for growth in Latin
Based on the guidelines of the Group, the employee hiring
America and in the emerging markets;
process calls for an initial search within the company and,
> within the International Division:
should no suitable candidates be found within the compa-
- in Russia, the Operations unit was created within OGK-5,
ny, then beginning an external search. This external search
which was given the activities of engineering, produc-
can be conducted in multiple stages and in various ways de-
tion, and employee health and safety;
pending on the target profile and local practice in the coun-
- in Slovakia, the Generation and Energy Management
try concerned, such as:
units were integrated based on a model found in other
> an assessment center for junior positions, which includes
areas of the Group.
group testing and interviews;
Integration efforts
In 2013, work was completed on process redesign and the
> behavioral interviews, particularly for senior positions,
which focus on past experience, skills and motivation;
> technical/professional interviews.
definition of new operating models for the Group related
The hiring programs vary according to the type of recruit. In
to the primary functions of guidance, coordination and
particular, projects for the integration of university gradu-
control, in line with the goals of the One Company project.
ates include on-the-job training and structured training
115
courses that, in addition to providing the tools necessary
ones, which are defined by each person to be reviewed, are
for them to perform their work, contribute to their personal
to be assessed and validated by each reviewer.
and professional development. In-house mobility programs
This year, the entire management population, the key layers
include both progressive specialization within one’s as-
and another significant portion of the employee popula-
signed area and efforts to develop cross-functional skills.
tion with variable remuneration will be involved in the next
The job-posting system enables people to apply for avail-
assignment phase.
able positions, both domestically or internationally.
At the same time as the assessment of supervisors, there
The internationalization of the organization is promoted
will also be a phase of self-assessment by their staffs.
both by way of cross-country mobility, which facilitates the
The reviewers will discuss and validate the evaluations of
sharing of experience and best practice, and through inter-
their teams during the Calibration phase in order to im-
national working groups for projects of global scope.
prove review quality by comparing and discussing the cri-
Development
teria used. Finally, there is a feedback interview in order to
discuss the results of the review and establish a targeted
development plan for the coming year.
The overall performance review process which has been re-
The Talent Management system seeks to identify people
vised as part of the One Company project is now, and for
with excellent performance, high potential, interdiscipli-
the first time, managed globally by way of a single model
nary and international experience, who are necessary for a
and single system for all of the countries in which the Group
Group such as Enel that depends on the high quality of its
operates.
staff and needs managers capable of navigating their way
Conduct assessment within the organization is done in one
through a global environment. To that end, three “pools”
of two ways, depending on the target concerned: the 360°
have been defined:
Evaluation (for executive vice presidents, senior vice presi-
> Pool 1, consisting of managers with high responsibil-
dents, vice presidents, and other key positions) and the Be-
ity and complex posts whose work demands that they
havior Performance Review.
engage with internal and external interlocutors and
Results-oriented tools, on the other hand, include:
who will therefore have the opportunity to prepare
> the Objectives Performance Review (OPR);
themselves for one of the top 100 posts in the Group
> Task Management.
(at the level of senior vice president or executive vice-
Compared with the previous year, the most important
president);
change is the fact that all employees involved in the behav-
> Pool 2, consisting of people who have a solid profession-
ior assessment process who do not receive any variable re-
al background, currently hold pre-managerial coordinat-
muneration are to be assigned measurable tasks on which
ing roles, and are focused on attaining managerial posts
they will be evaluated.
of increasing complexity in the medium term;
Within the scope of the Objective Performance Review, the
> Pool 3, consisting of young employees with high growth
assignment of objectives is based on input coming directly
potential who aspire to enhance their careers through
from the business plan and involves the definition and pre-
interdisciplinary and/or international experience.
assignment of closed-ended targets. This is followed by the
In March 2013, the first edition of Pool 3 was launched with
definition of open-ended objectives, which calls for a pre-
the goal of creating a “Potentials Observatory” whereby,
paratory meeting between the reviewer and each person
over a period of two years, the Company will invest in and
to be reviewed in order to discuss strategies and priorities
involve these young people in an integrated program of
for the current year.
training and development in order to enhance their skills.
In turn, the purpose of the review process is to measure the
The starting point is an interview in which an individual de-
actual contribution made during one’s day-to-day activities
velopment plan is established. Over the course of the two
by assessing the targets and objectives assigned the previ-
years, this plan will be supported and monitored by the var-
ous year. The entire assessment process will involve a total
ious people responsible for the employee’s development.
of some 8,000 people throughout the Enel Group. During
In any event, responsibility for implementing the develop-
this phase, both closed and open-ended objectives will
ment plan has been assigned directly to the members of
be assessed. While the closed-ended objectives are to be
Pool 3; therefore, the commitment that each member ap-
reviewed by the Planning & Control unit, the open-ended
plies to his or her development will play a crucial role.
116
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions The training program has been designed so as to instill
tries in which Enel operates and has also made it possible
an ongoing rapport among the members of Pool 3 and
to involve their direct supervisors and middle management
to promote networking. In 2013, for example, training
– the targets of the Pool 2 program – in their development
was provided in Rome on topics such as change manage-
while also working on their skills in coaching and mentoring.
ment or innovation, and a virtual platform was created
In 2013, the Global One ALigned (GOAL) managerial train-
which members can use to discuss the various topics un-
ing campaign came to a close. This campaign involved all
til the next in-person training session, which is to be held
management within the Group with the goal of making
in 2014. At the same time, these young talents have been
them more aware of company strategies and objectives
invited to participate in a variety of projects and other
and of the conduct expected within the new One Company
activities of international/global scope, and, in the same
organization.
way, they have been made candidates for various job post-
Safety-related training also continued in 2013 in the form
ings in order to give them opportunities to develop their
of the Leadership for Safety campaign, which seeks to
careers within the Group.
strengthen the culture of prevention, wellness and the
In addition to the questions typically included in the survey,
sharing of best practices and which has involved about
the 2012 Climate and Safety Survey had the dual objective
1,000 people around the world over a period of three years.
of assessing the level of engagement, motivation and invest-
Efforts of a more technical/specialist nature also continued
ment in their jobs and determining what their perception
with the goal of promoting greater awareness of proce-
was with regard to the culture of safety, the various health
dures, tools, laws and regulations related to prevention and
and safety processes, and the impact of the action taken.
safety in the workplace.
An analysis of the results and the information provided by
A number of training courses for the technical and functional
the employees led to the creation of plans for improve-
schools (i.e. purchasing, AFC, legal affairs, engineering, and
ment at various levels of the organization and of local
energy management) were also started in 2013.
action plans. The actions implement in 2013 include: the
redesign of the leadership model with the goal of translat-
ing the Group’s values into actual behaviors; the new cas-
cade model in order to establish both a more fluid process
of communication and greater alignment and consensus;
Compensation
and incentive systems
a project focusing on the topic of innovation; the identi-
When defining the remuneration policy for 2013, we took
fication of internal and external best practices, and other
account of the challenges being posed by the current state
initiatives aimed at attracting, motivating and developing
of the economy. To that end, we have implemented a num-
young talent.
ber of measures in order to control the cost of labor in a man-
A specific project has been set up for each of these priori-
ner that best serves us all. Given the lack of economic growth
ties, with each project being sponsored by both divisional
and the limited competitiveness of the job market, the main
and country managers along with international teams, so
measures adopted concern the suspension of the discretion-
that the initiatives will be more effective for all of the vari-
ary compensation policy for all employees and a reduction
ous cultures found within the Enel Group
in the short-term variable portion of compensation tied to
Training
2013 objectives for management.
Nonetheless, as we do every year, we have assessed the re-
lated market benchmarks in order to determine the proper
In 2013, Enel University consolidated its efforts to interna-
positioning of salaries in order to ensure that our compensa-
tionalize training.
tion package as a whole remains competitive.
Within the scope of the Leadership Curriculum, the Group’s
In terms of short-term incentives, we are continuing MBO
system for developing cross-functional skills from new hires
as the primary means of guiding the performance of man-
on up to the highest levels of management, training related
agement. This program involves practically all upper man-
to performance reviews involved more than 6,000 people
agement and about 60% of middle management. The com-
around the world in a broad, diversified training program.
mercial staff also has specific short-term incentives aimed at
The Pool 3 project has led to the involvement of over 170
promoting the achievement of sales and customer-manage-
young people showing great potential in the various coun-
ment targets.
117
Workplace health and safety
2014 and involve over 5,000 people in all of the Group’s
countries and divisions.
Workplace accident statistics
The downward trend in accident rates continued in 2013. The
Conduct
In 2013, work was completed on the implementation,
frequency rate fell by approximately 60% from 2009 to 2013,
throughout the Group, of the project aimed at promoting
reaching 1.42, while the severity rate fell by 50%, to stand at
safe conduct by way of a systematic process of observing be-
0.07. This downward trend was also confirmed by the opera-
havior, providing immediate feedback, and establishing steps
tional accident frequency rate, which focuses on certain types
for improvement. The project has been implemented in 927
of especially serious accidents that are the most related to
Enel locations, and some 260,000 observations have been
the Company’s core business (e.g. electrocutions, falling from
made throughout the world. It has also been implemented
heights, blows-crushing-cuts, exposure to hazardous agents,
in 30 shared civil sites in a manner specific to office spaces.
and explosions) and which has fallen by 41% since 2009.
Beginning in 2014, the project will become a systematic pro-
Serious and fatal accidents fell by 68% from 2009 for those
cess of behavior observation. To that end, four workshops
involving Enel personnel and by 81% for those involving the
have been conducted in Italy, Spain, Slovakia and Colombia
employees of contractors. In 2013, there were six fatal acci-
aimed at defining steps for improvement to be implemented
dents involving Enel personnel, and there were 10 fatal ac-
based on past experience.
cidents involving employees of contractors.
This year, the efforts of the working group set up to investi-
gate the causes of certain injury case studies continued. The
The “5+1” program
working group also circulates the lessons learned and identi-
In 2013, the efforts of the six permanent working groups of
fies global improvements that can be made, with particular
the “5+1” program continued and focused on the following
regard to electrical accidents. Three best practices have been
key areas for improvement in health and safety processes:
defined with regard to lifting loads by mechanical means,
> development of a culture of safety and training;
grounding during electrical works, and preventive measures
> safety in tender processes;
to take to avoid falls when working on power lines.
> communicating about safety;
In 2013, Enel and Endesa were also deemed to be best in class
> structural safety and technological innovation;
in occupational health and safety within electrical utilities
> major works;
segment of the Dow Jones Sustainability Index.
> health.
The One Safety project
Chaired by executive sponsors, each area developed a pro-
gram of activities during the year aimed at strengthening the
culture of health and safety within the Enel Group and at pro-
In 2013, work continued on implementation of the One
moting the sharing of best practices and starting bottom-up
Safety project, a global initiative focused on the behavior of
initiatives by adopting an approach that is both global and
all Enel employees as well as contractors, the aim of which is
adapted to the various contexts within the Group.
to promote a coordinated and synergistic effort by the entire
Group to achieving the goal of zero injuries.
The project pursues two main lines of action: the strengthen-
ing of safety leadership (Leadership) and the promotion of
Development of a culture of safety
and training
The 2012 Climate and Security Survey, which included a sec-
safe and responsible conduct (Conduct).
tion specifically dedicated to safety for the first time, has
demonstrated that safety is seen as a key value for the Com-
Leadership
In 2013, on the back of the GOAL managerial training pro-
pany, while also underscoring the widespread commitment
of both Enel employees and of our various contractors. Based
gram, a cascade-training program focused on an analysis of
on the results of the survey, a global improvement plan has
the Enel film “Safety: the Heart of the Matter“ was launched.
been established that focuses on safety leadership, employee
In addition, 10 editions were initiated to train 200 internal
conduct, wellbeing and the prevention of stress, and safety
trainers, as were 130 cascade editions involving some 2,000
in the office.
people. This training program is scheduled to continue in
Within this context, work has also begun on a revision of the
118
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions leadership model in order to enhance the allocation of safety-
related responsibilities at all levels of the organization, and
the process for conducting safety walks by management has
Structural safety and technological
innovation
A health and safety catalog has been published. This work is
also been enhanced by integrating it with the periodic organ-
a collection of the technologies and structural solutions that
ization of health and safety meetings. A process of assessing
have been implemented by the various divisions in order to
health and safety attitudes has also been added to the hiring
increase safety standards and is to be sent to the lines of
process, and the Six Months of Safety project is currently be-
business in order to promote the sharing of experience and
ing extended to the various staff functions.
best practice.
A number of safety-innovation projects have also been de-
Safety in tender processes
In 2013, the One Safety - Contractors project began. This
veloped, such as: the Zero Accidents Project (ZAP), which
seeks to improve safety management at large-scale work
project seeks to promote the adoption of conduct self-mon-
sites; the Active Safety at Work project, the goal of which is
itoring by our contractors in order to limit unsafe conduct
to promote the use and control of personal protection de-
by their employees. In order to promote the involvement of
vices when conducting distribution activities; and the BOA
contractors in this project, we have established a system of
project, aimed at supporting the management of interfer-
rewards, such as reductions in security deposits, increases in
ence during power-plant maintenance.
safety scores for the vendor-rating system, and the ability to
use the Enel logo designed for the project.
In 2013, work also continued on consolidating the vendor-
Major works
A peer-review plan has been implemented in four of the
rating and contractor-qualification system, which establishes
Group’s leading work sites on the Iberian peninsula and in
specific, stringent health and safety requirements. These ef-
Colombia, Slovakia and Italy in order to enhance work-site
forts focused in particular on the foreign countries in which
safety management by setting common standards and iden-
the Group operates.
tifying best practices to be shared.
As part of the process of aligning the general contract condi-
tions for the Enel Group, we have revised the clauses related
to health and safety, which are broken down into general
Health
Work has begun on implementing the Global Health Plan,
obligations applicable throughout Enel and local require-
which includes initiatives of both prevention and increasing
ments, which vary in accordance with the laws and regula-
awareness in the three areas of health defined by the World
tions for the given country.
Health Organization (WHO), i.e. physical, mental and social
Throughout the Group, we have also enhanced the safety
wellbeing. Group policies have been defined concerning
controls for contractors, and around 300 meetings have
prevention and other health-related issues, and we have de-
been held as part of Contractors Safety Day in order to ana-
veloped a plan for the installation and use of defibrillators.
lyze the injuries that have occurred together with the con-
In Italy, we have launched a pilot campaign for voluntary
tractors, as well as to promote their involvement in the on-
cardiovascular screening and courses to help quit smoking.
going health and safety projects and to share experiences
The Enel Group has participated in the project Safe Work
and best practice.
Without Alcohol and Drugs, promoted by the International
Labour Organization (ILO) in order to promote the preven-
Communicating about safety
We have also launched the Safety in the Office campaign
tion of alcohol consumption and drug use, and we have
launched informational campaigns on other health-related
aimed at increasing awareness of the importance of safety
topics.
even in areas that are traditionally seen as presenting little or
Particular attention was given to the prevention of stress
no risk, and we have created a newsletter about the various
and the promotion of health and organizational wellbeing,
health and safety initiatives and other related topics.
for which a specific action plan has been prepared. This plan
The sixth edition of International Health & Safety Week was
calls for the definition of a global stress-prevention policy
held in November, with all areas of the Enel Group being in-
and the launch of a training program that focuses on three
volved in order to promote proactive commitment to safety.
targets: upper management, personnel managers, and em-
Nearly 2,000 initiatives involving over 97,000 participants in
ployees. We have also activated a psychological-support
18 countries were organized during the week.
service for employees.
119
Plan of controls
tive bargaining agreement in Italy, which was renewed for
In 2013, a plan of health and safety controls was created in
2013-2015 on February 18, 2013, and the signing of the 4th
order to verify compliance with procedures and other com-
Convenio Marco (framework agreement) of Endesa in Spain
pany guidelines within the Group’s various businesses. This
in December for the period 2013-2017.
plan focused on the Group sites with the most critical issues
A number of company contracts were also finalized in Latin
based on accidents recorded over the last three years. Spe-
America (particularly in Chile, Peru and Brazil), Russia and
cifically, 13 areas were analyzed in Latin America, Europe and
Slovakia in 2013.
Italy, and action plans were defined for each site visited. Im-
Activities of note in Italy, due in part to their innovative
plementation of these action plans is to be monitored and
nature, were the two trade-union agreements of May 9,
subject to a follow-up process. A distribution peer-review
2013, i.e. the framework agreement under Article 4 of Law
plan has also begun in order to promote the sharing of expe-
92/2012 and the agreement for geographic, functional and
rience and to identify any best practices that can be shared
intragroup mobility.
throughout the Group. This process is scheduled to continue
The former is the first of its kind in Italy for the handling
in 2014 with a particular focus on Latin America.
of “redundancies” without the need for social safety nets
Labor relations
and calls for the voluntary early retirement of up to 3,500
employees over the period 2013-2014, thereby allowing for
a generational change through a plan to hire up to 1,500
In June 2013, in line with the principles of the One Company
young people on apprentice contracts.
project, Enel and the Italian and international trade unions
On September 6, 2013, in application of this agreement and
signed a global framework agreement (GFA), which consol-
following completion of the established procedures, the
idates the three levels of the Group’s industrial relations, i.e.
main Italian companies of the Group signed an agreement
national/divisional, European and global. This agreement is
with the trade unions FILCTEM, FLAEI and UILTEC in imple-
based on the principles of individual and workers’ rights
mentation of the framework agreement of May 9, 2013. The
and on the most modern systems of transnational indus-
implementing company agreements establish the number
trial relations and those of leading international organiza-
of employees for each company to be included in forecasted
tions such as the International Labour Organization (ILO).
retirements, subject to the successful outcome of further
It establishes the guidelines for industrial relations, such as
verifications aimed at confirming these candidates meet the
the approach to handling matters of interest to the Compa-
established requirements. As at December 31, 2013, this plan
ny and its employees, and includes the creation of an infor-
has resulted in 1,911 employees leaving the Company.
mational body, the Global Works Council, to represent the
employees of the Enel Group and three multilateral com-
The agreement for geographic, functional and intragroup
mittees dedicated to significant transnational issues in the
mobility is closely correlated with the agreement above as
areas of Health and Safety, Training, and Equal Opportuni-
a mechanism that supplements and harmonizes its effects.
ties/Diversity, respectively.
This agreement establishes the possibility for groups of
In 2013, the multilateral committees were established and
workers to be transferred, in the event of redundancies, to
worked to define a joint document of group-level recom-
one or more other production units, while also seeking to
mendations for each of the three areas of interest. Each
promote better alignment in supply and demand on the in-
document was then approved by the Global Works Council
house job market by making use of people outside of their
at its first meeting held in October before being formally
specific company/division of origin.
presented to the Company’s management.
In terms of the talks concerning changes in the organiza-
Many of the Group’s national collective bargaining agree-
tion, the structure of the global functions and the operat-
ments were also renewed during the year.
ing divisions has been consolidated in all countries in which
Of particular note were the renewal of the industry’s collec-
the Group operates.
120
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Customers
In 2013, with a view towards ongoing improvement, in-
off on the rules for conciliation with these associations.
cluding better integration between the companies in the
These rules were then updated and approved again on No-
various countries that are now a part of the Enel Group, the
vember 26, 2012.
Commercial Best Practice Sharing project was completed.
As a complementary alternative to this online joint-concilia-
The goal of this project was to share and integrate, at the
tion process, on April 1, 2013, Enel also voluntarily adhered
global level, the methods used to calculate the key perfor-
to the Energy Customer Conciliation Service established by
mance indicators related to customer satisfaction and over-
the Authority for Electricity and Gas on June 21, 2012 (Reso-
all service quality.
lution 260/2012/E/com). This service also facilitates the out-
of-court settlement of disputes between customers and
In 2013, Enel was confronted with a fully liberalized mar-
operators (sellers or distributors) in the gas and electricity
ket in Italy, characterized by a high level of competition.
industries by way of a screen-based meeting over a virtual
In this environment, and in line with 2012, the Company
platform and with the help of a mediator, who helps the par-
confirmed its choice to maximize the creation of customer
ties to find a mutually agreeable solution.
value, focusing on achieving excellence in the quality of the
service we offer.
Since 2003, in Spain and Portugal, Endesa has adopted a
This was also a year of transformation for Enel Energia, with
Plan de Excelencia en la Atención Comercial (the Excellence
the company broadening its offering of products and solu-
in Customer Service Plan), which seeks to improve customer
tions for the home and for electric mobility, which have been
satisfaction indicators year after year.
designed for customers keen to reduce environmental im-
In 2013, this plan focused on the quality of customer service
pact in the use of electricity and gas.
(i.e. via phone, online and in person and including the han-
Again this year, the attention devoted to service quality is-
dling of complaints) and on the development of new invoic-
sues confirmed the rising trend in customer satisfaction seen
ing systems and models.
in recent years. The areas of intervention have been many,
Use of the web site www.ENDESAonline.com increased by
ranging from the development of new contact methods and
21% compared with 2012 to reach a total of 967,000 regis-
channels to improving back-office processes, and monitoring
tered users. Customer use of the online invoicing service also
complaints and requests for information in order to reduce
increased by 99.7% in 2013 to reach 995,000 e-factura con-
processing times and ensure their effective management
tracts in effect.
and analysis, with the objective of understanding customer
In 2013, Endesa continued efforts to enhance its portfolio of
perceptions and any problems that may arise and immedi-
value-added products and services, including a shift towards
ately implementing appropriate corrective action without
new business models and new sales channels, which will en-
compromising the overall satisfaction of the customer.
able the company to provide the market and their customers
The 100% Compliance project also continued in 2013. This
(households and small, medium and large-scale enterprises)
project involves a team of specialists in the field of service
with a series of products and services that unite sustainabili-
quality and seeks to monitor and improve the quality of the
ty with other economic benefits, such as ensuring both lower
responses sent to customers who write to our sales compa-
emissions and greater operational and/or energy efficiency.
nies with complaints, requests for billing adjustments, or
The Twenergy website has also become the world’s largest
simply to request information, all for the purpose of safe-
online community created around the issue of sustainability
guarding our customers and keeping them satisfied in all
and energy efficiency.
situations, including in respect of their right to receive fast,
Endesa is the only company in Spain’s electricity industry
thorough assistance.
to have established an ombudsman, independent from the
One part of this effort is the adoption by the Enel Group of
company’s organization, that provides customers with an-
an online joint-conciliation process with the signing, in May
other channel for dialog concerning the services the com-
2009, of a protocol with the consumer associations of the
pany provides. The ombudsman interacts with both internal
Italian National Council of Consumers and Users (CNCU, a
and external contacts and recommends new ways for identi-
body established within the Ministry for Economic Develop-
fying the customers’ needs and expectations, as well as ways
ment), in implementation of which the Sales Division signed
for improving the company’s customer services.
121
In Argentina, continued the project El Viaje de la Energia
ing how far they have to travel from home. Finally, 2013
(The Voyage of Energy), which targets schools in Buenos
included efforts to promote the “Client Handbook”, a
Aires and the areas of the province within the Edesur con-
practical guide to the contract process, 100,000 copies of
cession area. The primary goal of this project is to guide
which were distributed to the various Enel Points, and the
the community towards a rational, safe and efficient use
Energia Verde offering, the only offering of renewable en-
of energy with view towards sustainable development by
ergy, was launched.
educating people on the “voyage of energy”, from power
generation to how energy is used.
In order to improve customer service, invoices are also now
Society
being issued in Braille for the vision impaired, and a mes-
The companies of the Enel Group around the world play
saging system has been set up for the hearing impaired.
an important role in the communities in which they oper-
ate. Enel can make a concrete contribution to social and
In 2013, work continued in Colombia on the process of
economic development in these communities through
increase awareness among young people concerning the
various types of initiatives, such as the expansion of infra-
safe, efficient use of electricity as part of the programs Vi-
structures, education and training programs, projects of
gias de la Energia, which targets children, and Siembra En-
social inclusion, and support for local cultural activities.
ergía for the general public, which also seeks to promote
In particular, Enel is developing projects and other initia-
the use of energy-efficient light bulbs.
tives in the area of corporate social responsibility, which
Preferential channels for the elderly, pregnant women
are selected based on materiality analyses, detailed peer
and people with disabilities have also been established.
benchmarking, and an assessment of general trends in
sustainability.
In Chile, work continued on development of the program
The areas of development that have been given the high-
Vínculo Emocional con el Cliente (VEC), which seeks to
est priority concern: access to energy and eliminating the
strengthen the customer relationship through various loy-
barriers to entry for low-income consumers; implement-
alty programs.
ing the program to support high-quality education and
employability training, particularly in emerging nations;
In Peru, as part of efforts to calculate the customer satis-
and projects of social inclusion and in support of eco-
faction index (ISCAL), regional surveys began in June 2012
nomic development in the areas in which the Enel Group
in order to gather consumer opinions on energy provision,
operates.
billing, communication, and customer services.
Edelnor is keenly committed to providing customers, with
a particular emphasis on new users, with clear, transparent
Enabling Electricity
information concerning rates and the services provided, as
The fight against energy poverty is the focus of one of the
well as to providing preferential channels for the disabled.
United Nations Millennium Development Goals, as reaf-
firmed by the UN General Assembly, which unanimously
For the fifth consecutive year, Coelce was ranked as the
declared the period 2014-2024 as the Decade of Sustain-
best electricity distributor in Brazil. Improvement efforts
able Energy for All.
included the services for the disabled, which allow for
Within this context, as a member of the United Nations
better communication, including via Facebook. In addi-
Global Compact LEAD, at the end of 2011 Enel launched
tion, Coelce and Ampla continue work to promote the
the Enabling Electricity program with the goal of creating
energy-efficiency program aimed at educating customers
a new business model based on the access to energy, one
to make more responsible consumer decisions and reduce
which targets both people living in isolated rural areas
non-payment by the poorest segments of the population.
and those who live in the outskirts of major metropoli-
tan areas. To date, with projects under way in 12 nations,
In Romania in 2013, Enel developed a new self-service
the program has provided access to electricity to over 2.3
channel known as “Kiosk Enel” in order to provide cus-
million people around the world, bringing forward to this
tomers without access to the online services with an easy,
year achievement of the target for 2014 of doubling the
convenient means of contacting the Company by minimiz-
number of people reached by the program.
122
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Specifically, the project is based on three areas of action:
energy, helping them understand the sources of energy,
> projects aimed at facilitating access to electricity through
generation plants and the path electricity takes to get to
new distributed power generation technologies and grid
their home, with a view to increasing their awareness and
infrastructures;
critical skills, thereby nudging them towards sustainable
> projects to eliminate the economic barriers to electricity
decisions and behavior.
in territories such as Latin America;
More specifically, we are developing programs in Latin
> projects with the local communities in order to develop
America to provide communities with the tools and capa-
and share capacity-building capabilities, which provide
bilities they need for their members to be better able to
disadvantaged populations with the experience of the
enter the job market (especially in energy-related fields),
Enel Group.
including through partnerships with schools.
Energy, science, technology, environment: these are the
key works of the PlayEnergy initiative, a free project com-
bining entertainment and education that Enel has been
organizing for the last 11 years in schools in 10 different
countries, all with the goal of disseminating a responsible
energy culture among young people, starting with knowl-
edge to enable responsible decision-making. This commit-
ment is renewed each year, involving thousands of stu-
dents of all ages with the use of on- and off-line materials
and local initiatives.
Enel also publishes Oxygen, the quarterly magazine de-
voted to promoting scientific thought and debate, with a
focus on the environment, energy, innovation and, more
generally, geopolitical events.
Finally, Enel supports many initiatives aimed at providing
access to information and opportunities for dialog.
The relationship with local
communities
Strengthening the Group’s leadership necessarily involves
forging a responsible partnership with the local communi-
ties and areas which host our power plants and other ac-
tivities, credibility in relations with the governments and
authorities in the countries in which Enel operates and a
stable, ongoing and integrated relationship with all stake-
holders, based on trust and respect for shared values.
This constant interaction with the local communities is at the
heart of Enel’s relationship with them. In order to maintain
constructive exchange and involvement in managing Enel’s
impact on the local communities, it is necessary, first of all,
for those communities to be more aware of the Group’s
activities. This is the reasoning behind all of our initiatives
aimed at bringing the general public closer to the world of
energy, such as publications about our projects, tours of
our plants, speaking opportunities at cultural and scientific
events, informational videos, the publication of information
about our work sites, the Natura e Territorio (Nature and the
Territory) programs to promote sports and recreation, cul-
tural itineraries and nature walks around our plants, and all
of the other initiatives to promote our industrial heritage.
In 2013, Enel also launched the Stakeholder Management
project by which Enel ask them to share with us their expec-
tations concerning our business.
Education, science,
information
Enel has long promoted a culture of environmental sustain-
ability and the informed use of resources, both through
dedicated initiatives and by investing in research and in the
dissemination of scientific knowledge.
For example, Enel introduces young people to the world of
123
Climate strategy and the environment
Environmental management
and climate strategy
Enel recognizes the central importance of the fight against
and innovation, and the reduction of emissions through the
climate change within the scope of the responsibilities of a
implementation of projects in developing nations and in
global player in the energy industry and has, for years now,
transition economies.
been taking steps to reduce greenhouse gas emissions in all
For a number of years, Enel has also been active on the vol-
of the countries in which we operate, both by observing the
untary emissions reduction market, which is intended for
obligations of the ETS Directive and by implementing our
parties (i.e. companies, institutions, end users, etc.) who in-
own long-term strategy. In that regard, the CEO of the Com-
tend to monitor or neutralize the carbon footprint of their
pany has promoted the Eurelectric initiative under which 60
various (internal and external) activities (e.g. publications,
firms have committed to transforming the European electric-
products and services, events, etc.). All of these initiatives are
ity sector into a CO2 “emissions-neutral” industry by 2050.
In 2013, over 46.7% of the power Enel generates comes from
associated with the “CO2 NEUTRAL” trademark that Enel reg-
istered in 2011.
zero-emission sources, an increase of 10.1% on 2012. More
Alongside these mitigation polities, the Enel Group is also
specifically, about 940 MW of new capacity from renewable
working on adapting to the process of climate change. Ex-
sources was installed in 2013, thereby confirming our com-
treme weather can have a significant impact on the level
mitment to the development of carbon-free power genera-
and quality of power generation, distribution and provision
tion, a commitment which will continue over the years to
over both the short term and the long term. For this reason,
come. In addition, in 2013 the zero-emissions installed ca-
Enel has begun studying ways to adapt to climate change
pacity of the Enel Group was equal to 42.7% of the total, or
through a pilot project related to the Iberian peninsula and
42,239 MW.
Latin America. In 2014, this study will be extended to the
Since 1990 (the benchmark year for the Kyoto Protocol),
Group’s operations around the world.
specific CO2 emissions for the Enel Group have declined by
37%. In 2013, Enel reduced emissions by 16% compared
The Group’s commitment to the safe management of nu-
with 2007, which is in line with the target reduction set for
clear power generation is clearly laid out in our Nuclear
2020 compared with 2007, the year immediately preced-
Policy, which was approved in 2010 and more information
ing the first commitment period defined by the Kyoto Pro-
for which may be found online at http://www.enel.com/
tocol. In light of this encouraging performance, Enel will be
en_GB/sustainability/our_responsibility/enel_nuclear.
evaluating whether to set a mid-range target, given that our
This policy is intended to guarantee that all nuclear power
2013 performance was affected both by ongoing structural
investment projects in which the Group participates are
growth in power generation from renewable sources and by
conducted with overriding priority given to nuclear safety
contingent factors, such as high levels of water availability
and the protection of workers, the general public and the
and other market dynamics.
environment, while encouraging excellence and going be-
Enel has set the following targets for 2020, which concern
yond mere compliance with the law.
a number of environmental factors that are of greatest rel-
evance to the activities of the Group: -10% in total specific
The safety stress tests of nuclear power plants seek to de-
emissions of sulfur dioxide (SO2); -10% in total specific emis-
sions of nitrogen oxides (NOx); -50% in total specific emis-
sions of particulates; and -10% in total specific water con-
fine the margins of safety of active power plants when faced
with extreme stressors (whether external, e.g. earthquakes
or floods, or accidental) and to study how the reactors re-
sumption (all figures relative to 2010 totals).
spond under such extreme conditions.
The long-term strategy of the Enel Group is based on the
The Group’s nuclear power plants have been studied in
development of zero-emissions energy sources, the commit-
depth, and the steps for improvement identified are under
ment to improve existing technologies, the promotion of en-
way. Enel Engineering & Research has participated in the
ergy efficiency and the development of smart grids, research
testing stage and actively supported the Group’s nuclear
124
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions power companies in Spain and Slovakia in implementing any
and other suppliers, as are training and awareness initia-
improvements.
tives and more effective coordination mechanisms.
During operation of the plant, by way of the existing Envi-
Plant upgrading efforts included that of Santa Maria de
ronment Management System, we define specific plans for
Garoña, a shareholding of the Enel Group through Endesa,
improvement at the Group’s various sites, so as to identify
which was kept offline for all of 2013 and the operating per-
any action to be taken in order to manage and mitigate
mit of which expired on July 6. The fiscal regime on spent
any significant impact. These efforts include reducing and
nuclear fuel, which had forced the plant to shut down in De-
controlling emissions, managing waste, protecting water
cember 2012 based on the expected financial impact, was
resources, and managing environmental emergency situa-
favorably amended in September 2013. The plant operator
tions.
is assessing the possibility of starting up the plant again and
requesting a renewal of the operating permit within the
deadline of one year from expiration of the previous one.
Water scarcity
Renewables
Water resource management is an issue of increasing im-
portance, and Enel constantly monitors all of our produc-
tion sites in areas at risk in terms of water scarcity, so as to
In line with its health, safety and environmental policy, the
manage these resources in the most efficient manner pos-
Renewable Energy Division has the goal of protecting the
sible.
environment in all phases of the development, construc-
Beginning in 2013, consumption due to evaporation of a
tion and management of renewable energy systems. The
number of plants with special cooling processes has been
environmental impact of such activities varies based on the
calculated. This change in calculation methods overesti-
type of plant, the technology used, and the stage of devel-
mates consumption for 2013. Nonetheless, comparing the
opment the plant is currently in.
2013 figures with the same calculation method used for
Some types of impact are handled a priori through specific
the prior year, we see a decline in specific consumption of
strategic decisions. Examples of this include the introduc-
around 6%, which is in line with Enel’s commitment to re-
tion of specific green-procurement requirements or the
duce consumption by 10% by 2020 compared with 2010.
“short chain” in biomass power generation by procuring
More specifically, site monitoring is done at the following
biomass directly from local farms, thereby creating both a
levels of analysis:
source of inputs for the plant and stable, alternative sourc-
> mapping of the production sites located in areas of po-
es of income for the farms.
tential water scarcity, where the average value of renew-
When developing new infrastructure projects, environ-
able water resources per capita is less than the target set
mental impact assessments are conducted when request-
by the FAO and also identified by using special software
ing related authorizations in line with the laws and regula-
developed by the World Business Council for Sustainable
tions of the country concerned. Based on the outcome of
Development;
these assessments, we either establish any technical ad-
> identification of “critical” production sites, i.e. those with
justments needed in order to reduce environmental impact
fresh water supplies;
right from the planning stage or evaluate, together with
> more efficient management by making changes to plants
the local authorities, any compensatory measures that can
or processes to maximize use of waste water and sea wa-
be taken (e.g. biodiversity development projects that en-
ter;
hance the particular features of the local environment).
> monitoring of climate and vegetation data for each site.
During plant construction, which is the activity with the
Globally, Enel returns about 99% of the water used, and
greatest impact on the environment, we adopt a plan of
only about 7% of the Group’s total production uses and/or
environmental impact prevention and mitigation, which is
consumes fresh water in water-stressed areas.
defined, in part, in collaboration with the contractors that
In 2013, Enel was also the first utility to participate in the
will be working at the site. The goal of this plan is to estab-
Aqua Gauge questionnaire being promoted by the US in-
lish the environmental performance monitoring and con-
vestor network Ceres, the goal of which is to assess Com-
trol mechanisms for the work site, through which plans for
pany awareness of the environmental risks related to water
improvement are developed together with the contractors
resources.
125
Biodiversity
be based on in-depth knowledge of the various conditions
of equilibrium found in the areas in which we operate. As
Preserving biodiversity is one of the strategic objectives of
such, for each installation, the proximity of protected areas
Enel’s environmental policy.
has been monitored, identifying for each the reasons for
The Group promotes a number of projects throughout the
protection, the valuable ecosystems, biotopes and the en-
world with the aim of supporting the preservation of eco-
dangered animal or plant species to be protected, and the
systems and the natural habitats of the various territories in
related impact has been assessed. Knowing what species
which we operate, while playing an active role in the local
are present in a given area makes it possible to find those on
communities.
the “Red List” of the International Union for Conservation of
In 2013, we completed the mapping of the biodiversity
Nature and Natural Resources (IUCN) and, in relation to the
protection efforts of the Group, which has enabled Enel to
level of risk involved, to take any necessary protective meas-
adopt a Group Biodiversity Plan. This plan is comprised of
ures. The results of these efforts show that our activities are
133 projects, 34 of which were completed in 2011 and 2012
being conducted in an environmentally balanced manner
and 98 of which are still under way. The total financial outlay
that protects biodiversity.
since 2011 has been about €21 million. The projects are in
areas concerning production plants and other installations
As regards plant operations, in many areas, in agreement
and involve projects of various types, including: monitoring,
with local authorities, independent experts perform bio-
safeguarding, research and development, corrective or com-
monitoring studies of the land, rivers and sea in order to
pensatory measures, and social and environmental studies.
assess the impact of operations on biodiversity and the
adequacy of any compensatory or improvement meas-
At Enel, we feel that any action involving ecosystems must
ures taken.
Research and development
Model of technological
leadership
Traditional power
generation
The Enel Group aspires to be a technology leader in the
industry by developing innovative projects that generate
value and promote the creation of sustainable competitive
advantage.
Efficiency and reducing
emissions at coal-fueled plants
The primary means by which Enel defines strategy and de-
In 2013, the efforts of the Enel Group focused on the fol-
velops the Group’s Innovation Plan is the Technology Map,
lowing issues:
which has the goal of identifying the key technologies to fo-
> developing tools to monitor and control gas and coal-
cus on in the future, thereby anticipating the evolution and
fueled thermal plants in order to optimize operations to
other changes in energy policy and energy scenarios. The
make them more versatile, while reducing downtime,
map also seeks to establish the investment priorities based
consumption and emissions;
on these expectations and other market opportunities.
> studying processes able to increase plant efficiency by
In 2013, the Enel Group invested €76 million in research and
recovering energy from waste heat and optimizing other
innovation across the various areas of business, i.e. tradi-
processes;
tional power generation, renewable energy, networks, en-
> studying new technologies that can increase plant reli-
ergy storage, and end uses.
ability under more flexible operations.
126
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Environmental research seeks to anticipate scientific de-
ence Discovery), in which Enel is the project’s coordinator,
velopments in order to play a more proactive role in iden-
and other leading European distribution system operators
tifying any areas for improvement. The capabilities that
(DSOs) are also involved. The project uses the results and
Enel has developed in this field do, in fact, enable us to
data of other demonstration projects currently under way,
assess environmental impact related to the air, water and
such as Enel Info+ in Isernia, together with other Active
soil, thereby moving beyond the simple monitoring re-
Demand projects around Europe.
quired by law.
Enel is also responsible for technical directions for Euro-
Being active in the characterization and analysis of air
pean project Grid4EU, which encompasses six different
quality, the Enel Group has also carried out an initial cam-
projects in various nations and has the goal of conduct-
paign to validate the integrated method for establish-
ing wide-scale testing under real operating conditions
ing the environmental impact caused by operating coal-
of advanced smart grids aimed at promoting the use and
fueled thermal power plants.
More specifically, in 2013:
management of distributed power generation, support-
ing energy efficiency, and enabling and integrating active
> we worked to characterize the emission of macro- and
demand and new uses of electricity.
micro-pollutants on high-efficiency exhaust-treatment
September 2013 saw the start of the project EvolvDSO, the
systems with the goal of assessing the room for im-
goal of which is to define, develop and validate tools and
provement and performance over time;
methodologies that can allow for DSOs to play new roles.
> we launched a new line of water management activities
Various smart-grid projects are also under way in Spain
at the thermal power plants, which focuses on identify-
and Latin America, including the ICONO project for the
ing integrated solutions and/or new processes that can
development of functions for monitoring distributed
reduce the use of water;
power generation, automating the network, and improv-
> research continues regarding the development of ad-
ing operating efficiency, reliability and safety.
vanced applications of sensors, diagnostics and auto-
mation in order to increase the reliability, safety and ef-
ficiency of the Enel Group’s power plants and to reduce
Smart cities
accidents during the construction, maintenance and
The innovative technologies and skills developed by the
normal operations of such plants.
Enel Group have enabled us to promote the concept of
Smart grids, distributed
generation, and demand-
side management
Smart grids
“smart cities” in various parts of the world, uniting envi-
ronmental protection, energy efficiency and economic
sustainability within a single urban model.
In Italy, the first pilot projects are under way in Genoa,
Bari, Cosenza and L’Aquila, where Enel is helping the cities
to make the move towards becoming smart cities through
measures aimed at developing smart grids as an enabling
platform for new innovations and services.
Enel is also active in smart-city projects being funded at
Enel is a leading player, both within Italy and internation-
the European level. We are, for example, partnering with
ally, in numerous initiatives working towards innovations
the city of Genoa in the project FP7 TRANSFORM, which
in energy distribution systems in order to continue in-
features the involvement of other European cities (i.e. Am-
creasing grid efficiency.
sterdam, Hamburg, Copenhagen, Grand Lyon, and Vien-
The most significant project currently under way concerns
na) and other high-profile industrial partners.
“smart grids”, which add innovative digital solutions to
Also in 2013, work continued on the innovative smart-city
traditional technologies in order to make power grid man-
projects in Spain (Malaga and Barcelona) and Brazil (Búzi-
agement more flexible by increasing the efficacy of how
os), and another was started in Chile (Santiago). As a part
information is shared.
of these projects, new smart-grid technologies and solu-
With the goal of developing an action plan for implement-
tions will be implemented in order to manage the cities
ing Active Demand in Europe, work continues on project
more efficiently and in a more sustainable manner, while
ADVANCED (Active Demand Value ANd Consumer Experi-
also saving more energy.
127
Distributed power generation
the goal of which is to develop technologies to help op-
timize the energy efficiency of office buildings by focus-
In 2013, initial testing of the triangle-based omni-purpose
ing on the optimal control of the subsystems within the
building (TOP) was completed. This system is made up of
buildings, while also providing adequate means for inter-
photovoltaic panels and storage systems and is able to
acting effectively with the outside world (i.e. with other
provide renewable energy to populations in remote areas
buildings, local power generators, energy retailers and
that are not connected to the power grid.
distributors).
In Spain, work is ongoing on project “Novare Energrid”,
In Spain and South America, various energy-efficiency
an open, modular energy management platform based on
projects are under way, including the European project
a distributed infrastructure for managing the flow of en-
EnergyTIC, the goal of which is to develop various innova-
ergy on the grid. The system makes it possible to manage
tive solutions that will enable customers to save water and
power generation and consumption by way of a system
energy.
of nodes (in residential and business areas), thereby creat-
ing a decentralized system of dialog between consumers,
producers and users.
Renewable energy
The Enel Group is also greatly committed to a number of
Renewable energy is one of Enel’s key strategies for re-
projects in various countries, such as Italy, Spain and Bra-
zil, to create an innovative network of advanced smart
ducing CO2 emissions and, at the same time, for making
our production portfolio more competitive. There is great
infrastructures to recharge electric vehicles, so as to pro-
growth potential in terms of installed capacity, and in-
mote the use of these vehicles and favor more sustainable
tensive efforts are under way to develop increasingly ef-
mobility.
Energy efficiency
ficient, effective technologies that can be used in a variety
of contexts around the world. For this reason, Enel is ac-
tive in all of the leading renewable generation technolo-
gies, and we are identifying technologies that can help to
The Enel Group is developing innovative technologies and
take advantage of resources that are currently not being
new electrical services for our customers in order to opti-
used, such as the energy of the sea.
mize and rationalize the consumption of energy.
In 2013, the following activities were undertaken.
During the year, particular emphasis was placed on post-
metering services, the regulation of consumption, and
end-use energy efficiency, while also studying the related
technical aspects and defining and developing new busi-
ness models.
In particular:
Concentrated Solar Power
(CSP, or thermodynamic solar)
Construction and start-up have been completed at the 5
> work continued on the project Enel Info+, which calls
MWe “Archimede” concentrated solar power (CSP) plant,
for the testing of Enel smart info, a device that provides
and the procedures of plant management and steam gen-
customers with tracked generation/consumption data,
eration have been defined, as have the main guidelines of
thereby promoting greater awareness of their own en-
operation and maintenance. Studies are also being con-
ergy-use habits and fostering more efficient ones;
ducted concerning a new fluid mix with a lower melting
> the project Energy@Home was carried out in collabo-
point and the use of innovative plant components that
ration with Electrolux, Indesit Company and Telecom
will help to increase performance.
Italia. This project led to the development of a commu-
nication platform for smart devices in the home;
> work continued on the project Come Consumo (How I
Photovoltaics
Consume), a system that enables end users to view their
Efforts continue to find innovative technologies and plant
consumption in real time on either a local device or on-
components with a view towards their commercial and
line, while also providing access to historical consump-
pre-commercial development, and we have assessed the
tion data.
possibility of integrating semi-transparent photovoltaic
Enel is also involved in the European project ENCOURAGE,
modules into architecture.
128
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Wind
Efforts continue to refine the short- and medium-term (up to
72 hours) output forecasting models of wind farms.
Information and
Communication
Technologies (ICT)
Geothermal power
The increasing focus on innovative digital technologies
can be seen, in part, in the 2013 creation of a unit dedi-
In Stillwater, Nevada (USA), work has been completed on the
cated to the guidance, coordination, creation and promo-
detailed plans for the first CSP thermal solar plant to be in-
tion of innovative solutions based on such technologies.
tegrated with a binary geothermal plant, which will provide
By way of a network with the world’s most prominent ICT
additional thermal power of 17 MW.
firms, research labs, and a number of universities, we have
Biomass
been able to identify several innovative solutions for pre-
dictive maintenance applied to wind turbines and for de-
tecting energy fraud (i.e. non-technical losses). In terms of
Enel has focused on characterizing small-scale (100 kWe to 1
customer relations, we have been testing new technolo-
MWe) technologies able to provide high levels of efficiency
gies of sentiment analysis using the social networks and
and flexibility.
for the advanced analysis of the efficacy of the various
online tools.
Hydroelectric
Solutions have been developed that could optimize the
power generation of hydroelectric plants by using the water
released to meet minimum environmental flow obligations.
Marine energy
The R115 marine system has begun operating. This system
was developed in collaboration with 40South Energy and
is able to generate 100 kWe. Commercial agreements have
been signed with the partner firm for the provision of ad-
ditional systems.
Energy storage
The ability to store the energy generated from renewable
sources is proving to be one of the most interesting, sig-
nificant challenges in the management of renewable en-
ergy, as well as in the evolution of smart grids and in the
manner in which energy is managed at both the residen-
tial and industrial level. As storage systems become more
efficient, it will be possible to store the electricity gener-
ated when costs are lower and there is an abundance of
renewable energy and then use that energy at a later time
when it is needed.
In Italy and Spain, numerous pilot projects are under way
in which various storage technologies installed at various
points of the grid are being tested and compared.
129
Related parties
As an operator in the field of generation, distribution, tran-
The table below summarizes the main types of transactions
sport and sale of electricity and the sale of natural gas, Enel
carried out with such counterparties.
carries out transactions with a number of companies directly
or indirectly controlled by the Italian State, the Group’s con-
trolling shareholder.
Related party
Single Buyer
Relationship
Nature of main transactions
Fully controlled (indirectly) by the Ministry
for the Economy and Finance
Purchase of electricity for the enhanced
protection market
EMO - Energy Markets Operator
Fully controlled (indirectly) by the Ministry
for the Economy and Finance
ESO - Energy Services Operator
Fully controlled (directly) by the Ministry
for the Economy and Finance
Sale of electricity on the Power Exchange
Purchase of electricity on the Power Exchange for
pumping and plant planning
Sale of electricity for own use
Sale of subsidized electricity
Payment of A3 component for renewable
resource incentives
Sale of electricity for own use
Sale of electricity on the Ancillary Services Market
Purchase of transport, dispatching and metering
services
Sale of electricity for own use
Sale of electricity transport services
Purchase of fuels for generation plants, storage
services and natural gas distribution
Sale of electricity for own use
Indirectly controlled by the Ministry
for the Economy and Finance
Directly controlled by the Ministry
for the Economy and Finance
Directly controlled by the Ministry for the
Economy and Finance
Purchase of IT services and supply of goods
Sale of electricity for own use
Fully controlled (directly) by the Ministry
for the Economy and Finance
Purchase of postal services
Sale of electricity for own use
Terna
Eni Group
Finmeccanica Group
Poste Italiane Group
Finally, Enel also maintains relationships with the pension
For more details on transactions with related parties, ple-
funds FOPEN and Fondenel, Fondazione Enel and Enel
ase see the discussion in note 37 to these consolidated fi-
Cuore, an Enel non-profit company devoted to providing
nancial statements.
social and healthcare assistance.
All transactions with related parties were carried out on
normal market terms and conditions, which in some cases
are determined by the Authority for Electricity and Gas.
130
EnEl AnnuAl REpoRt 2013REpoRt on opERAtions Reconciliation of shareholders’ equity
and net income of Enel SpA and the
corresponding consolidated figures
Pursuant to CONSOB Notice DEM/6064293 of July 28, 2006,
for the year and shareholders’ equity with the corresponding
the following table provides a reconciliation of Group results
figures for the Parent Company.
Millions of euro
Income
statement
Shareholders’
equity
Income
statement
Shareholders’
equity
at Dec. 31, 2013
at Dec. 31, 2012 restated
Financial statements - Enel SpA
1,372
25,867
3,428
25,817
Carrying amount and impairment adjustments of consolidated equity
investments and equity investments accounted for using the equity
method
Shareholders’ equity and net income (calculated using harmonized
accounting policies) of the consolidated companies and groups and those
accounted for using the equity method, net of non-controlling interests
Consolidation differences at the Group consolidation level
Intercompany dividends
Elimination of unrealized intercompany comprehensive income, net of tax
effects and other minor adjustments
TOTAL SHAREHOLDERS OF THE PARENT COMPANY
NON-CONTROLLING INTERESTS
CONSOLIDATED FINANCIAL STATEMENTS
7
(77,828)
14
(77,683)
6,149
(745)
(3,540)
(8)
3,235
1,545
4,780
74,861
12,235
-
806
35,941
16,898
52,839
3,943
(2,504)
(4,583)
(60)
238
1,204
1,442
73,842
12,855
-
944
35,775
16,312
52,087
131
Consolidated
financial
statements
Consolidated Income Statement
Millions of euro
Notes
2013
2012 restated (1)
of which with
related parties
of which with
related parties
Revenues
Revenues from sales and services
Other revenues and income
Costs
Raw materials and consumables
Services
Personnel
Depreciation, amortization and impairment losses
Other operating expenses
Capitalized costs
Net income/(charges) from commodity risk management
Operating income
Financial income
Financial expense
Share of income/(expense) from equity investments
accounted for using the equity method
Income before taxes
Income taxes
Net income from continuing operations
Net income from discontinued operations
Net income for the year (shareholders of the Parent
Company and non-controlling interests)
Pertaining to shareholders of the Parent Company
Pertaining to non-controlling interests
Earnings per share (euro) pertaining to the ordinary
shareholders of the Parent Company
Diluted earnings per share (euro) pertaining to the ordinary
shareholders of the Parent Company
Earnings from continuing operations per share (euro)
pertaining to the ordinary shareholders of the Parent Company
Diluted earnings from continuing operations per share (euro)
pertaining to the ordinary shareholders of the Parent Company
9.a
9.b
[Subtotal]
10.a
10.b
10.c
10.d
10.e
10.f
[Subtotal]
11
12
12
13
14
15
15
15
15
7,217
46
9,971
2,298
39
82
13
8,753
401
10,266
2,510
30
78
35
4
77,258
3,277
80,535
41,612
15,551
4,596
7,067
2,837
(1,450)
70,213
(378)
9,944
2,453
5,266
86
7,217
2,437
4,780
-
4,780
3,235
1,545
0.34
0.34
0.34
0.34
82,431
2,518
84,949
46,582
15,780
5,789
9,003
2,774
(1,747)
78,181
38
6,806
2,185
5,197
88
3,882
2,440
1,442
-
1,442
238
1,204
0.03
0.03
0.03
0.03
(1) The consolidated income statement for 2012 has been restated to provide a better presentation of the impact recognized in the previous year of the introduc-
tion of IAS 19 Revised and the change in the accounting treatment of environmental certificates. For more information, please see note 4 below.
134
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Statement of Consolidated Comprehensive
Income
Millions of euro
Notes
Net income for the year
Other comprehensive income recyclable to profit or loss
Effective portion of change in the fair value of cash flow hedges
Share of income recognized in equity by companies accounted for using the equity method
Change in the fair value of financial investments available for sale
Change in translation reserve
Other comprehensive income not recyclable to profit or loss
Change in net liabilities (assets) in respect of defined-benefit plans
Income/(Loss) recognized directly in equity
Comprehensive income for the period
Pertaining to:
- shareholders of the Parent Company
- non-controlling interests
29
2013
4,780
(174)
(29)
(105)
(3,197)
(188)
(3,693)
1,087
1,514
(427)
2012
restated (1)
1,442
(760)
(7)
(416)
73
(248)
(1,358)
84
(1,232)
1,316
(1) The statement of consolidated comprehensive income for 2012 has been restated to provide a better presentation of the impact recognized in the previous year
of the introduction of IAS 19 Revised and the change in the accounting treatment of environmental certificates. For more information, please see note 4 below.
135
at Dec. 31, 2013
at Dec. 31, 2012
restated (1)
at Jan. 1, 2012
restated
of which with
related parties
of which with
related parties
of which with
related parties
Consolidated Balance Sheet
Millions of euro
Notes
ASSETS
Non-current assets
Property, plant and equipment
Investment property
Intangible assets
Deferred tax assets
Equity investments accounted for using the
equity method
Non-current financial assets
Other non-current assets
16
17
18
19
20
21
81,050
181
33,229
6,239
647
6,401
837
[Total]
128,584
Current assets
Inventories
Trade receivables
Tax receivables
Current financial assets
Other current assets
Cash and cash equivalents
Assets held for sale
TOTAL ASSETS
22
23
24
25
26
27
[Total current assets]
28
3,586
11,533
1,735
7,877
2,562
8,030
35,323
241
164,148
83,115
197
35,997
6,816
1,115
5,518
800
133,558
3,338
11,719
1,631
9,381
2,262
9,891
38,222
317
172,097
4
15
1,268
4
152
80,592
245
39,049
6,206
1,085
6,325
415
133,917
3,148
11,570
1,251
10,466
2,136
7,015
35,586
381
169,884
74
55
893
39
46
1,473
1
71
(1) The consolidated balance sheet at December 31, 2012 has been restated to provide a better presentation of the impact recognized in the previous year of the
introduction of IAS 19 Revised and the completion of the purchase price allocation process for a number of business combinations carried out the previous
year. For more information, please see note 4 below.
136
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Millions of euro
Notes
LIABILITIES AND SHAREHOLDERS’ EQUITY
at Dec. 31, 2013
at Dec. 31, 2012
restated (1)
at Jan. 1, 2012
restated
of which with
related parties
of which with
related parties
of which with
related parties
Equity pertaining to the shareholders of the
Parent Company
Share capital
Other reserves
Retained earnings (Loss carried forward)
Non-controlling interests
Total shareholders’ equity
Non-current liabilities
Long-term loans
Post-employment and other employee
benefits
Provisions for risks and charges
Deferred tax liabilities
Non-current financial liabilities
Other non-current liabilities
Current liabilities
Short-term loans
Current portion of long-term loans
Trade payables
Income tax payable
Current financial liabilities
Other current liabilities
Liabilities held for sale
Total liabilities
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
[Total]
29
27
30
31
18
32
33
[Total]
27
27
34
35
36
[Total]
28
9,403
7,084
19,454
35,941
16,898
52,839
51,113
3,696
8,047
10,905
2,257
1,266
77,284
2,529
4,690
9,403
8,747
17,625
35,775
16,312
52,087
55,959
4,542
8,648
11,786
2,553
1,151
84,639
3,970
4,057
2
9,403
10,217
18,892
38,512
15,589
54,101
48,703
3,192
8,057
11,505
2,307
1,313
75,077
4,799
9,672
2
13,004
3,647
13,903
3,496
12,931
3,304
308
3,640
9,834
34,005
20
111,309
164,148
4
24
364
3,138
9,931
35,363
8
120,010
172,097
1
39
671
3,668
8,907
40,648
58
115,783
169,884
2
15
(1) The consolidated balance sheet for 2012 has been restated to provide a better presentation of the impact recognized in the previous year of the introduction
of IAS 19 Revised and the completion of the purchase price allocation process for a number of business combinations carried out the previous year. For more
information, please see note 4 below.
137
Statement of Changes in Consolidated
Shareholders’ Equity
Share capital and reserves pertaining to the shareholders of the Parent Company
at January 1, 2012
Effect of application of IAS 19/R
at January 1, 2012 restated
Dividends and interim dividends
Change in scope of consolidation
Comprehensive income for the year
of which:
- Income/(Loss) recognized directly
in equity
- Net income/(loss) for the year
Share capital
Share premium
reserve
Legal reserve
9,403
-
9,403
5,292
-
5,292
1,881
-
1,881
Other
reserves
2,262
-
2,262
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
at December 31, 2012 restated (1)
9,403
5,292
1,881
2,262
Dividends and interim dividends
Change in scope of consolidation
Disposal of equity interests without
loss of control
Comprehensive income for the year
of which:
- Income/(Loss) recognized directly
in equity
- Net income/(loss) for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Reserve from
translation
of financial
statements in
currencies other
than euro
Reserve from
measurement of
financial instruments
Reserve from
Reserve from
disposal of equity
transactions in
accounted for
Reserve for
Reserve
from equity
investments
Equity
pertaining to
the shareholders
interests without
non-controlling
using the equity
employee
Other retained
of the Parent
Non-controlling
shareholders’
loss of control
interests
method
benefits
earnings
Company
interests
120
-
120
-
-
(28)
(28)
-
92
-
98
-
(49)
-
(49)
-
-
(1,204)
(1,204)
-
(1,253)
-
-
-
(1,290)
(237)
749
749
-
-
-
-
-
-
-
-
-
749
(28)
721
78
78
-
-
-
-
-
-
-
78
22
6
-
-
-
62
15
15
-
-
-
(7)
-
8
-
-
-
(24)
(24)
-
(16)
(231)
238
(1,232)
(7)
(231)
(131)
(131)
-
-
-
-
-
-
-
(362)
4
(170)
(170)
(528)
18,899
(7)
18,892
(1,505)
-
238
17,625
(1,410)
3,235
-
4
-
3,235
19,454
38,650
(138)
38,512
(1,505)
(1,470)
238
35,775
(1,410)
76
(14)
1,514
(1,721)
3,235
35,941
15,650
(61)
15,589
(628)
35
1,316
112
1,204
16,312
(829)
102
1,740
(427)
(1,972)
1,545
16,898
Total
equity
54,300
(199)
54,101
(2,133)
35
84
(1,358)
1,442
52,087
(2,239)
178
1,726
1,087
(3,693)
4,780
52,839
(237)
-
(1,490)
(1,290)
-
at December 31, 2013
9,403
5,292
1,881
2,262
(1,100)
(1) The statement of changes in consolidated shareholders’ equity at December 31, 2012 has been restated to provide a better presentation of the impact recog-
nized in the previous year of the introduction of IAS 19 Revised and the completion of the purchase price allocation process for a number of business combina-
tions carried out the previous year. For more information, please see note 4 below.
138
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Statement of Changes in Consolidated
Shareholders’ Equity
Share capital and reserves pertaining to the shareholders of the Parent Company
at January 1, 2012
9,403
5,292
1,881
2,262
Share premium
Other
currencies other
measurement of
Share capital
reserve
Legal reserve
reserves
than euro
financial instruments
at January 1, 2012 restated
9,403
5,292
1,881
2,262
Effect of application of IAS 19/R
Dividends and interim dividends
Change in scope of consolidation
Comprehensive income for the year
of which:
in equity
- Income/(Loss) recognized directly
- Net income/(loss) for the year
Dividends and interim dividends
Change in scope of consolidation
Disposal of equity interests without
loss of control
Comprehensive income for the year
of which:
in equity
- Income/(Loss) recognized directly
- Net income/(loss) for the year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
at December 31, 2012 restated (1)
9,403
5,292
1,881
2,262
-
-
-
-
-
-
-
-
-
-
-
-
120
120
(28)
(28)
92
98
-
-
-
-
-
-
-
(49)
(49)
(1,204)
(1,204)
(1,253)
-
-
-
-
-
-
-
-
(1,290)
(237)
(1,290)
(237)
at December 31, 2013
9,403
5,292
1,881
2,262
(1,100)
(1,490)
(1) The statement of changes in consolidated shareholders’ equity at December 31, 2012 has been restated to provide a better presentation of the impact recog-
nized in the previous year of the introduction of IAS 19 Revised and the completion of the purchase price allocation process for a number of business combina-
tions carried out the previous year. For more information, please see note 4 below.
Reserve from
translation
of financial
statements in
Reserve from
Reserve from
disposal of equity
interests without
loss of control
Reserve from
transactions in
non-controlling
interests
Reserve
from equity
investments
accounted for
using the equity
method
Reserve for
employee
benefits
Other retained
earnings
Equity
pertaining to
the shareholders
of the Parent
Company
Non-controlling
interests
Total
shareholders’
equity
749
749
-
-
-
-
749
-
-
(28)
-
-
-
721
78
-
78
-
-
-
-
-
78
-
22
6
-
-
-
62
15
-
15
-
-
(7)
(7)
-
8
-
-
-
-
(131)
(131)
-
-
18,899
(7)
18,892
(1,505)
38,650
(138)
38,512
(1,505)
(231)
238
(1,232)
(231)
-
(362)
-
-
4
-
238
17,625
(1,410)
-
4
(24)
(170)
3,235
(24)
-
(16)
(170)
-
(528)
-
3,235
19,454
(1,470)
238
35,775
(1,410)
76
(14)
1,514
(1,721)
3,235
35,941
15,650
(61)
15,589
(628)
35
1,316
112
1,204
16,312
(829)
102
1,740
(427)
(1,972)
1,545
16,898
54,300
(199)
54,101
(2,133)
35
84
(1,358)
1,442
52,087
(2,239)
178
1,726
1,087
(3,693)
4,780
52,839
139
Consolidated Statement of Cash Flows
Millions of euro
Notes
2013
2012 restated (1)
of which with
related parties
of which with
related parties
Income before taxes for the year
Adjustments for:
Amortization and impairment losses of intangible assets
Depreciation and impairment losses of property, plant and equipment
Exchange rate adjustments of foreign currency assets and liabilities (including cash
and cash equivalents)
Accruals to provisions
Financial (income)/expense
(Gains)/Losses from disposals and other non-monetary items
Cash flows from operating activities before changes in net current assets
Increase/(Decrease) in provisions
(Increase)/Decrease in inventories
(Increase)/Decrease in trade receivables
(Increase)/Decrease in financial and non-financial assets/liabilities
Increase/(Decrease) in trade payables
Interest income and other financial income collected
Interest expense and other financial expense paid
Income taxes paid
Cash flows from operating activities (a)
Investments in property, plant and equipment
Investments in intangible assets
Investments in entities (or business units) less cash and cash equivalents acquired
Disposals of entities (or business units) less cash and cash equivalents sold
(Increase)/Decrease in other investing activities
Cash flows from investing/disinvesting activities (b)
Financial debt (new long-term borrowing)
27
Financial debt (repayments and other net changes)
Collection of proceeds from disposal of equity interests without loss of control
Incidental expenses in disposal of equity interests without loss of control
Dividends and interim dividends paid
Cash flows from financing activities (c)
Impact of exchange rate fluctuations on cash and cash equivalents (d)
Increase/(Decrease) in cash and cash equivalents (a+b+c+d)
Cash and cash equivalents at the start of the year (2)
Cash and cash equivalents at the end of the year (3)
7,217
1,622
4,790
(264)
1,023
2,319
48
16,755
(1,884)
(249)
(596)
(681)
(893)
1,110
(3,715)
(2,606)
7,241
(5,350)
(610)
(210)
1,409
614
(4,147)
5,336
(9,565)
1,814
(85)
(2,044)
(4,544)
(426)
(1,876)
9,933
8,057
(375)
27
151
35
4
3,882
3,516
4,899
(66)
2,469
2,413
514
17,627
(1,517)
(190)
(825)
1
978
1,168
(3,898)
(2,929)
10,415
(6,522)
(627)
(182)
388
355
(6,588)
13,739
(12,505)
-
-
(2,229)
(995)
29
2,861
7,072
9,933
580
(117)
192
13
(1) The consolidated statement of cash flows for 2012 has been restated to reflect the application of the new IAS 19 Revised. For more information, please see
note 4 below.
(2) Of which cash and cash equivalents equal to €9,891 million at January 1, 2013 (€7,015 million at January 1, 2012), short-term securities equal to €42 million
at January 1, 2013 (€52 million at January 1, 2012) and cash equivalents pertaining to “assets held for sale” equal to zero at January 1, 2013 (€5 million at
January 1, 2012).
(3) Of which cash and cash equivalents equal to €8,030 million at December 31, 2013 (€9,891 million at December 31, 2012), short-term securities equal to
€17 million at December 31, 2013 (€42 million at December 31, 2012) and cash and cash equivalents pertaining to “assets held for sale” in the amount of
€10 million at December 31, 2013 (none at December 31, 2012).
140
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Notes to the financial statements
1
Form and content of the
financial statements
Basis of presentation
The consolidated financial statements consist of the con-
solidated income statement, the statement of consolidated
comprehensive income, the consolidated balance sheet, the
statement of changes in consolidated shareholders’ equity
and the consolidated statement of cash flows and the re-
lated notes.
Enel SpA, which operates in the energy utility sector, has its
The assets and liabilities reported in the consolidated bal-
registered office in Viale Regina Margherita 137, Rome, Italy.
ance sheet are classified on a “current/non-current basis”,
The consolidated financial statements for the period ended
with separate reporting of assets held for sale and liabilities
December 31, 2013 comprise the financial statements of the
associated with assets held for sale. Current assets, which in-
Company, its subsidiaries and joint ventures (“the Group”)
clude cash and cash equivalents, are assets that are intended
and the Group’s holdings in associated companies. A list of
to be realized, sold or consumed during the normal operat-
the subsidiaries, associated companies and joint ventures in-
ing cycle of the Company or in the twelve months following
cluded in the scope of consolidation is reported in the annex.
the balance-sheet date; current liabilities are liabilities that
These consolidated financial statements were approved for
are expected to be settled during the normal operating cycle
publication by the Board on March 11, 2014.
of the Company or within the twelve months following the
These financial statements have been audited by Reconta
close of the financial year.
Ernst & Young SpA.
Compliance with IFRS/IAS
The consolidated income statement is classified on the basis
of the nature of costs, while the indirect method is used for
the consolidated statement of cash flows.
The consolidated financial statements are presented in euro,
The consolidated financial statements for the year ended De-
the functional currency of the Parent Company Enel SpA. All
cember 31, 2013 have been prepared in accordance with in-
figures are shown in millions of euro unless stated otherwise.
ternational accounting standards (International Accounting
The financial statements are prepared on a going-concern
Standards - IAS and International Financial Reporting Stand-
basis using the cost method, with the exception of items that
ards - IFRS) issued by the International Accounting Standards
are measured at fair value under IFRS-EU, as specified in the
Board (IASB), the interpretations of the International Financial
measurement policies for the individual items.
Reporting Interpretations Committee (IFRIC) and the Standing
The consolidated income statement, the consolidated bal-
Interpretations Committee (SIC), recognized in the European
ance sheet and the consolidated statement of cash flows re-
Union pursuant to Regulation 1606/2002/EC and in effect as
port transactions with related parties, the definition of which
of the close of the year. All of these standards and interpreta-
is given in the next section.
tions are hereinafter referred to as the “IFRS-EU”.
The financial statements have also been prepared in conform-
ity with measures issued in implementation of Article 9, para-
graph 3, of Legislative Decree 38 of February 28, 2005.
141
2
Accounting policies and
measurement criteria
Use of estimates and management
judgment
uted during the period but not yet invoiced, which is equal
to the difference between the amount of electricity and gas
delivered to the distribution network and that invoiced in the
period, taking account of any network losses. Revenues be-
tween the date of the last meter reading and the end of the
year are based on estimates of the daily consumption of in-
dividual customers calculated on the basis of their consump-
tion record, adjusted to take account of weather conditions
and other factors that may affect estimated consumption.
Preparing the consolidated financial statements under
Pensions and other post-employment benefits
IFRS-EU requires management to take decisions and make
Some of the Group’s employees participate in pension
estimates and assumptions that may impact the value of
plans offering benefits based on their wage history and
revenues, costs, assets and liabilities and the related dis-
years of service.
closures concerning the items involved as well as contin-
Certain employees are also eligible for other post-employ-
gent assets and liabilities at the balance-sheet date. The
ment benefit schemes.
estimates and management’s judgments are based on pre-
The expenses and liabilities of such plans are calculated
vious experience and other factors considered reasonable
on the basis of estimates carried out by consulting actuar-
in the circumstances. They are formulated when the carry-
ies, who use a combination of statistical and actuarial el-
ing amount of assets and liabilities is not easily determined
ements in their calculations, including statistical data on
from other sources. The actual results may therefore dif-
past years and forecasts of future costs. Other components
fer from these estimates. The estimates and assumptions
of the estimation that are considered include mortality and
are periodically revised and the effects of any changes are
withdrawal rates as well as assumptions concerning future
reflected through profit or loss if they only involve that pe-
developments in discount rates, the rate of wage increases,
riod. If the revision involves both the current and future pe-
the inflation rate and trends in the cost of medical care.
riods, the change is recognized in the period in which the
These estimates can differ significantly from actual devel-
revision is made and in the related future periods.
opments owing to changes in economic and market condi-
In order to enhance understanding of the financial state-
tions, increases or decreases in withdrawal rates and the
ments, the following sections examine the main items af-
lifespan of participants, as well as changes in the effective
fected by the use of estimates and the cases that reflect
cost of medical care.
management judgments to a significant degree, under-
Such differences can have a substantial impact on the
scoring the main assumptions used by managers in meas-
quantification of pension costs and other related expenses.
uring these items in compliance with the IFRS-EU. The criti-
cal element of such valuations is the use of assumptions
Recoverability of non-current assets
and professional judgments concerning issues that are by
The carrying amount of non-current assets is reviewed pe-
their very nature uncertain.
riodically and wherever circumstances or events suggest
Changes in the conditions underlying the assumptions and
that a more frequent review is necessary. Goodwill is re-
judgments could have a substantial impact on future results.
viewed at least annually. Such assessments of the recover-
Use of estimates
able amount of assets are carried out in accordance with
the provisions of IAS 36, as described in greater detail in
note 17 below.
Revenue recognition
Where the value of a group of non-current assets is consid-
Revenues from sales to customers are recognized on an ac-
ered to be impaired, it is written down to its recoverable
cruals basis. Revenues from sales of electricity and gas to re-
value, as estimated on the basis of the use of the assets
tail customers are recognized at the time the electricity or gas
and their possible future disposal, in accordance with the
is supplied and include, in addition to amounts invoiced on
Company’s most recent plans.
the basis of periodic (and pertaining to the year) meter read-
The estimates of such recoverable values are considered
ings, an estimate of the value of electricity and gas distrib-
reasonable. Nevertheless, possible changes in the estima-
142
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts tion factors on which the calculation of such values is per-
that can be recovered at the end of existing concessions
formed could generate different recoverable values. The
(residual value).
analysis of each group of non-current assets is unique and
The main uncertainties are the following:
requires management to use estimates and assumptions
> the price for the transfer of the business unit must be nego-
considered prudent and reasonable in the specific circum-
tiated with the grantor agency five years prior to the expira-
stances.
tion of the concession, on the basis of currently unavailable
technical and financial parameters that will be announced
Depreciable value of certain elements of Italian hydroelec-
in a decree of the Ministry for Economic Development ac-
tric plants following enactment of Law 134/2012
ting on an opinion of the Authority for Electricity and Gas;
Law 134 of August 7, 2012 containing “urgent measures
> it is reasonable to expect that the process of quantifying
for growth”, published in the Gazzetta Ufficiale on August
that value will require assessments involving significant un-
11, 2012, introduced a sweeping overhaul of the rules gov-
certainties, especially as regards the determination of the
erning hydroelectric concessions. Among its various provi-
ordinary wear and tear of the assets under discussion and
sions, the law establishes that five years before the expi-
the positions that the parties involved could take;
ration of a major hydroelectric water diversion concession
> the law itself, which acknowledges the existence of objec-
and in cases of lapse, relinquishment or revocation, where
tive uncertainties associated with the determination of the
there is no predominant public interest in using the waters
price, establishes that in the event of disagreement betwe-
for another purpose that is incompatible with continuing
en the concession holder and the grantor, the issue shall be
use for hydroelectric purpose, the competent public entity
resolved through recourse to a panel of three independent
shall organize a public call for tender for the award for con-
and qualified third parties;
sideration of the concession for a period ranging from 20
> at present no historic data are available as the rules have not
to a maximum of 30 years.
yet been applied.
In order to ensure operational continuity, the law also es-
In view of the above uncertainties, management has con-
tablished procedures for the transfer from the departing
cluded that it cannot formulate an estimate of residual value.
concession holder to the new concession holder of owner-
Given that the legislation still requires the new concession
ship of the business unit necessary to operate the conces-
holder to make a payment to the departing concession hold-
sion, including all legal relationships associated with the
er, management reviewed the depreciation period for assets
concession, against payment of a price to be determined
classified as to be relinquished free of charge prior to the en-
in negotiations between the departing concession holder
actment of Law 134/2012 (until year ended December 31,
and the grantor agency, taking due account of the follow-
2011, in view of the fact that they were to be relinquished
ing elements:
free of charge, they were depreciated over the shorter of the
> for intake and governing works, penstocks and outflow
term of the concession and the useful life of each asset), no
channels, which under the consolidated law governing
longer basing it on the term of the concession but, if longer,
waters and electrical plants are to be relinquished free
on the economic and technical life of the individual asset. If
of charge (Article 25 of Royal Decree 1775 of December
further information should become available that would ena-
11, 1933), the payment shall be determined on the basis
ble a reliable estimate of residual value, the carrying amounts
of revalued cost less public capital grants (also revalued)
of the assets involved will be modified on a prospective basis.
received by the concession holder for the construction
of such works, as reduced for ordinary wear and tear;
Determining the fair value of financial instruments
> for other property, plant and equipment, the payment shall
The fair value of financial instruments is determined on
be determined on the basis of market value, meaning repla-
the basis of prices directly observable in the market, where
cement value, as reduced for ordinary wear and tear.
available, or, for unlisted financial instruments, using spe-
While acknowledging that the new regulations introduce
cific valuation techniques (mainly based on present value)
major changes in the transfer of ownership of the business
that maximize the use of observable market inputs. In rare
unit for the operation of hydroelectric concessions, the dif-
circumstances were this is not possible, the inputs are esti-
ficulties associated with the practical application of these
mated by management taking due account of the charac-
principles are clear, given the uncertainties that do not
teristics of the instruments being measured.
permit the formulation of a reliable estimate of the value
In accordance with the new international accounting
143
standard IFRS 13, the Group includes a measurement of
of historical experience with receivables with similar credit
credit risk, both of the counterparty (Credit Valuation Ad-
risk profiles, current and historical arrears, eliminations and
justment or CVA) and its own (Debit Valuation Adjustment
collections, as well as the careful monitoring of the quality
or DVA), in order to adjust the fair value of financial instru-
of the receivables portfolio and current and forecast condi-
ments for the corresponding amount of counterparty risk.
tions in the economy and the relevant markets.
More specifically, the Group measures CVA/DVA on the
Although we believe that the amount of such provisions is
basis of the net exposure to counterparty risk of the po-
appropriate, the use of different assumptions or a change in
sition and subsequently allocating the adjustment to the
economic conditions could result in changes in the provision
individual financial instruments that make up the overall
for doubtful accounts and, therefore, impact net income.
portfolio. In order to measure CVA/DVA, the Company uses
The estimates and assumptions are reviewed periodically
a Potential Future Exposure valuation technique, most of
and the effects of any changes are taken to the income
whose inputs are observable on the market.
statement in the year they accrue.
Changes in the assumptions made in estimating the input
date could have an impact on the fair value recognized for
Decommissioning and site restoration
those instruments.
In calculating liabilities in respect of decommissioning and
site restoration costs, especially for the decommissioning of
Recovery of deferred tax assets
nuclear power plants and the storage of waste fuel and other
At December 31, 2013, the financial statements report de-
radioactive materials, the estimation of future costs is a criti-
ferred tax assets in respect of tax losses to be reversed in
cal process in view of the fact that such costs will be incurred
subsequent years and income components whose deduct-
over a very long period of time, estimated at up to 100 years.
ibility is deferred in an amount whose recovery is consid-
The obligation, based on financial and engineering assump-
ered by management to be highly probable.
tions, is calculated by discounting the expected future cash
The recoverability of such assets is subject to the achieve-
flows that the Company considers it will have to pay for the
ment of future profits sufficient to absorb such tax losses
decommissioning operation.
and to use the benefits of the other deferred tax assets.
The discount rate used to determine the present value of the
The assessment of recoverability takes account of the es-
liability is the pre-tax risk-free rate and is based on the eco-
timate of future taxable incomes and is based on prudent
nomic parameters of the country in which the plant is located.
tax planning strategies. However, where the Company
That liability is quantified by management on the basis of the
should become aware that it is unable to recover all or part
technology existing at the measurement date and is reviewed
of recognized tax assets in future years, the consequent
each year, taking account of developments in decommission-
adjustment would be taken to the income statement in the
ing and site restoration technology, as well as the ongoing
year in which this circumstance arises.
evolution of the legislative framework concerning the protec-
Litigation
Subsequently, the value of the obligation is adjusted to re-
The Enel Group is involved in various legal disputes regard-
flect the passage of time and any changes in estimates.
tion of health and the environment.
ing the generation, transport and distribution of electricity.
In view of the nature of such litigation, it is not always ob-
Other
jectively possible to predict the outcome of such disputes,
In addition to the items listed above, estimates were also
which in some cases could be unfavorable.
used with regard to the valuation of share-based payment
Provisions have been recognized to cover all significant li-
plans and the fair value measurement of assets acquired and
abilities for cases in which legal counsel feels an adverse
liabilities assumed in business combinations. For these items,
outcome is likely and a reasonable estimate of the amount
the estimates and assumptions are discussed in the notes on
of the loss can be made.
the accounting policies adopted.
Provision for doubtful accounts
Management judgments
The provision for doubtful accounts reflects estimates of
losses on the Group’s receivables portfolio. Provisions have
Identification of cash generating units (CGUs)
been made against expected losses calculated on the basis
In application of “IAS 36 - Impairment of assets”, the goodwill
144
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts recognized in the consolidated financial statements of the
policies of an entity so as to obtain benefits from its activities.
Group as a result of business combinations has been allocated
The existence of control does not depend solely on owner-
to individual or groups of CGUs that will benefit from the com-
ship of a majority shareholding or the contractual form used
bination. A CGU is the smallest group of assets that generates
in the acquisition. Accordingly management must use its
largely independent cash inflows.
judgment in determining whether specific situations give
In identifying such CGUs, management took account of the spe-
the Group the power to govern the financial and operating
cific nature of its assets and the business in which it is involved
policies of the investee.
(geographical area, business area, regulatory framework, etc.),
For subsidiaries for which control does not derive from owner-
verifying that the cash flows of a given group of assets were
ship of a majority of voting rights, management has analyzed
closely interdependent and largely independent of those asso-
any agreements with other investors in order to determine
ciated with other assets (or groups of assets).
whether such agreements give the Group the power of gov-
The assets of each CGU were also identified on the basis of the
ernance indicated above, even though it holds a minority share
manner in which management manages and monitors those as-
of voting rights. In this assessment process, management also
sets within the business model adopted.
took account of potential voting rights (call options, warrants,
In particular, the CGUs identified in the Iberia and Latin Amer-
etc.) in order to determine whether they would be currently ex-
ica Division are represented by groups of electricity/gas pro-
ercisable as of the reporting date. Following such analysis, the
duction, distribution and sales assets in the Iberian peninsula
Group consolidated certain companies (Emgesa, Codensa and
and certain countries in Latin America that are managed on a
SE Hydropower) on a line-by-line basis even though it does not
unified basis by the Group, including in financial matters. The
hold more than half of the voting rights, as detailed in the at-
CGUs identified in the Generation and Energy Management Di-
tachment “Subsidiaries, associates and other significant equity
vision and the Sales Division are represented by assets resulting
investments of the Enel Group at December 31, 2013” to these
from business combinations involving gas regasification opera-
financial statements.
tions in Italy and the domestic retail gas market or by uniform
groups of assets operating in the sale or generation of elec-
Application of “IFRIC 12 - Service concession arrangements”
tricity. The CGUs identified in the Renewable Energy Division
to concessions
are represented (with a number of minor exceptions made in
“IFRIC 12 - Service concession arrangements” establishes
Italy and Spain to reflect the Group organizational model) by
that, depending on the characteristics of the concession ar-
the group of assets exclusively associated with the generation
rangements, the infrastructure used to deliver public services
of electricity from renewable energy resources located in geo-
shall be recognized under intangible assets or under finan-
graphical areas considered uniform on the basis of regulatory
cial assets, depending, respectively, on whether the conces-
and contractual aspects and characterized by a high degree of
sion holder has the right to charge users of the services or it
interdependence of business processes and substantial integra-
has the right to receive a specified amount from the grantor
tion in the same geographical area. The CGUs identified in the
agency.
International Division are represented by electricity generation
More specifically, IFRIC 12 applies to public-to-private service
and distribution/sales assets identified with business combina-
concession arrangements if:
tions and which constitute, by geographical area and business,
> the grantor controls or regulates what services the operator
individual units generating independent cash flows. The CGUs
must provide with the infrastructure, to whom it must provi-
identified by management to which the goodwill recognized
de them, and at what price; and
in these consolidated financial statements has been allocated
> the grantor controls – through ownership or otherwise –
are indicated in the section on intangible assets, to which the
any significant residual interest in the infrastructure at the
reader is invited to refer.
end of the term of the arrangement.
The number and scope of the CGUs are updated systemati-
In assessing the applicability of these provisions for the
cally to reflect the impact of new business combinations and
Group, management carefully analyzed existing concessions.
reorganizations carried out by the Group.
On the basis of that analysis, the provisions of IFRIC 12 are
Determination of the existence of control
the distribution of electricity of a number of companies in
“IAS 27 - Consolidated and separate financial statements” de-
the Iberia and Latin America Division that operate in Brazil
fines control as power to govern the financial and operating
(Ampla and Coelce).
applicable to the infrastructure used for the concessions for
145
Related parties
Associated companies
Related parties are mainly parties that have the same con-
Associated companies comprise those entities in which the
trolling entity as Enel SpA, companies that directly or indi-
Group has a significant influence. Potential voting rights that are
rectly through one or more intermediaries control, are con-
effectively exercisable or convertible are also taken into consid-
trolled or are subject to the joint control of Enel SpA and in
eration in determining the existence of significant influence.
which the latter has a holding that enables it to exercise a
These investments are initially recognized at cost, allocating
significant influence. Related parties also include the FOPEN
any difference between the cost of the equity investment
and Fondenel pension funds, and the members of the boards
and the share in the net fair value of the assets, liabilities
of auditors (and their close family members), and the key
and identifiable contingent liabilities of the associated com-
management personnel (and their close family members) of
pany in an analogous manner to the treatment of business
Enel SpA and the companies over which it exercises control.
combinations, and are subsequently measured using the
Key management personnel comprises management person-
equity method. The Group’s share of profit or loss is recog-
nel who have the power and direct or indirect responsibility
nized in the consolidated financial statements from the date
for the planning, management and control of the activities
on which it acquires the significant influence over the entity
of the company. They include company directors.
until such influence ceases.
Subsidiaries
Should the Group’s share of the loss for the period exceed
the carrying amount of the equity investment, the latter
is impaired and any excess recognized in a provision if the
Subsidiaries comprise those entities for which the Group has
Group has a commitment to meet legal or constructive obli-
the direct or indirect power to determine their financial and
gations of the associate or in any case to cover its losses.
operating policies for the purposes of obtaining the benefits
Where an interest is divested and as a result the Group no
of their activities. In assessing the existence of a situation of
longer exercises a significant influence, any capital gain (or
control, account is also taken of potential voting rights that
loss) on the sale and the effects of the remeasurement to fair
are effectively exercisable or convertible. The figures of the
value of the residual interest as at the sale date is recognized
subsidiaries are consolidated on a full line-by-line basis as
through profit or loss.
from the date control is acquired until such control ceases.
The acquisition of an additional stake in subsidiaries and the
sale of holdings that do not result in the loss of control are
Joint ventures
considered transactions between owners. As such, the ac-
Interests in joint ventures – enterprises over whose eco-
counting effects of these transactions are recognized directly
nomic activities the Group exercises joint control with
in consolidated equity.
other entities – are consolidated using the proportionate
Conversely, where a controlling interest is divested, any
method. The Group recognizes its share of the assets, li-
capital gain (or loss) on the sale and the effects of the re-
abilities, revenues and expenses on a line-by-line basis in
measurement to fair value of the residual interest as at the
proportion to the Group’s share in the entity from the date
sale date are recognized through profit or loss.
on which joint control is acquired until such control ceases.
The following table reports the contribution of the main
joint ventures to the aggregates in the consolidated finan-
cial statements:
Hydro Dolomiti
Enel
RusEnergoSbyt
Nuclenor
Atacama
Tejo
49.0%
282
47
81
38
147
86
49.5%
42
82
1
64
1,419
1,313
At Dec. 31, 2013
50.0%
50.0%
38.9%
28
44
36
25
4
3
204
122
31
44
134
100
164
53
122
36
78
63
Millions of euro
Percentage of consolidation
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Revenues
Costs
146
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Where an interest is divested and as a result the Group
cy of the consolidated financial statements are translated
no longer exercises joint control, any capital gain (or loss)
into euro by applying the relevant period-end exchange
on the sale and the effects of the remeasurement to fair
rate to the assets and liabilities, including goodwill and
value of the residual interest as at the sale date is recog-
consolidation adjustments, and the average exchange
nized through profit or loss.
rate for the period, which approximates the exchange
Consolidation procedures
rates prevailing at the date of the respective transactions,
to the income statement items.
Any resulting exchange rate gains or losses are recog-
The financial statements of subsidiaries used to prepare
nized as a separate component of equity in a special re-
the consolidated financial statements were prepared at
serve. The gains and losses are recognized proportion-
December 31, 2013 in accordance with the accounting
ately in the income statement on the disposal (partial or
policies adopted by the Parent Company.
total) of the subsidiary.
All intercompany balances and transactions, including
any unrealized profits or losses on transactions within
the Group, are eliminated, net of the theoretical tax ef-
Business combinations
fect. Unrealized profits and losses with associates and
At first-time adoption of the IFRS-EU, the Group elected
joint ventures are eliminated for the part pertaining to
to not apply IFRS 3 (Business combinations) retrospec-
the Group.
tively to acquisitions carried out prior to January 1, 2004.
In both cases, unrealized losses are eliminated except
Accordingly, the goodwill in respect of acquisitions pre-
when representative of impairment.
ceding the IFRS-EU transition date is carried at the value
Translation of foreign currency items
reported in the last consolidated financial statements
prepared on the basis of the previous accounting stand-
ards (for the year ended December 31, 2003).
Transactions in currencies other than the functional cur-
Business combinations initiated before January 1, 2010
rency are recognized in these financial statements at the
and completed within that financial year are recognized
exchange rate prevailing on the date of the transaction.
on the basis of IFRS 3 (2004).
Monetary assets and liabilities denominated in a foreign
Such business combinations were recognized using the
currency other than the functional currency are later ad-
acquisition method, where the purchase cost is equal to
justed using the balance-sheet exchange rate.
the fair value at the date of the exchange of the assets ac-
Non-monetary assets and liabilities in foreign currency stat-
quired and the liabilities incurred or assumed, plus costs
ed at historic cost are translated using the exchange rate
directly attributable to the acquisition. This cost was allo-
prevailing on the date of initial recognition of the transac-
cated by recognizing the assets, liabilities and identifiable
tion. Non-monetary assets and liabilities in foreign currency
contingent liabilities of the acquired company at their fair
stated at fair value are translated using the exchange rate
values. Any positive difference between the cost of the
prevailing on the date that value was determined.
acquisition and the fair value of the net assets acquired
Any exchange rate differences are recognized through the
pertaining to the shareholders of the Parent Company
income statement.
Translation of financial statements
denominated in a foreign currency
was recognized as goodwill. Any negative difference was
recognized in profit or loss. If the fair values of the assets,
liabilities and contingent liabilities could only be calculat-
ed on a provisional basis, the business combination was
recognized using such provisional values. The value of the
For the purposes of the consolidated financial state-
non-controlling interests was determined in proportion
ments, all profits/losses, assets and liabilities are stated
to the interest held by minority shareholders in the net
in euro, which is the functional currency of the Parent
assets. In the case of business combinations achieved in
Company, Enel SpA.
stages, at the date of acquisition of control the net assets
In order to prepare the consolidated financial statements,
acquired previously were remeasured to fair value and
the financial statements of consolidated companies in
any adjustments were recognized in equity. Any adjust-
functional currencies other than the presentation curren-
ments resulting from the completion of the measurement
147
process were recognized within twelve months of the ac-
between market participants at the measurement date.
quisition date.
The fair value measurement assumes that the transac-
tion to sell an asset or transfer a liability takes place in the
Business combinations carried out as from January 1, 2010
principal market, i.e. the market with the largest volume
are recognized on the basis of IFRS 3 (2008), which is re-
and level of activity for the asset or liability. In the absence
ferred to as IFRS 3 Revised hereafter.
of a principal market, it is assumed that the transaction
More specifically, business combinations are recognized
takes place in the most advantageous market to which
using the acquisition method, where the purchase cost
the Group has access, i.e. the market that maximizes the
(the consideration transferred) is equal to the fair value at
amount that would be received to sell the asset or mini-
the purchase date of the assets acquired and the liabilities
mizes the amount that would be paid to transfer the li-
incurred or assumed, as well as any equity instruments is-
ability.
sued by the purchaser.
After having identified the market, the entity identifies
Costs directly attributable to the acquisition are recog-
market participants, i.e. independent, knowledgeable
nized through profit or loss.
sellers and buyers who are able to enter into a transaction
This cost is allocated by recognizing the assets, liabilities
for the asset or the liability and who are motivated but not
and identifiable contingent liabilities of the acquired com-
forced or otherwise compelled to do so.
pany at their fair values as at the acquisition date. Any
In determining which assumptions to consider in measur-
positive difference between the price paid, measured at
ing fair value, an entity should use the assumptions that
fair value as at the acquisition date, plus the value of any
market participants would use when pricing the asset or
non-controlling interests, and the net value of the identifi-
liability, assuming that market participants act in their
able assets and liabilities of the acquiree measured at fair
economic best interest.
value is recognized as goodwill. Any negative difference is
In accordance with IFRS 13, fair value measurement takes
recognized in profit or loss.
account of the characteristics of the specific assets or li-
The value of the non-controlling interests is determined
abilities being measured, namely:
either in proportion to the interest held by minority share-
> for a non-financial asset, an entity takes into account a
holders in the net identifiable assets of the acquiree or at
market participant’s ability to generate economic ben-
their fair value as at the acquisition date.
efits by using the asset in its highest and best use or by
If the fair values of the assets, liabilities and contingent
selling it to another market participant that would use
liabilities can only be calculated on a provisional basis, the
the asset in its highest and best use;
business combination is recognized using such provisional
> for liabilities and equity, the fair value reflects the ef-
values. Any adjustments resulting from the completion of
fect of non-performance risk, the risk that an entity will
the measurement process are recognized within twelve
not fulfil an obligation;
months of the date of acquisition, restating comparative
> in the case of groups of financial assets or liabilities
figures.
managed on the basis of an entity’s net exposure to
In the case of business combinations achieved in stages,
market risks or credit risk, it may measure fair value on
at the date of acquisition of control the holdings acquired
a net basis.
previously are remeasured to fair value and any positive or
In measuring the fair value of assets and liabilities, the Group
negative difference is recognized in profit or loss.
uses valuation techniques that are appropriate in the circum-
Measurement of fair value
The Group determines fair value in accordance with IFRS
stances and for which sufficient data are available to meas-
ure fair value, maximizing the use of relevant observable in-
puts and minimizing the use of unobservable inputs.
13 whenever such measurement is required by the inter-
All of the assets and liabilities measured at fair value or
national accounting standards as a recognition or meas-
whose fair value is reported in the notes to the financial
urement criterion or as a supplemental disclosure regard-
statements are classified in accordance with the three-
ing specific assets or liabilities.
level hierarchy described below, depending on the inputs
Fair value is the price that would be received to sell an as-
used in determining their fair value.
set or paid to transfer a liability in an orderly transaction
More specifically:
148
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts > Level 1, where the fair value is determined on the ba-
ognized as an expense in the period in which it is incurred.
sis of quoted prices (unadjusted) in active markets for
The cost of replacing part or all of an asset is recognized as
identical assets or liabilities that the entity can access at
an increase in the value of the asset and is depreciated over
the measurement date;
its useful life; the net carrying amount of the replaced unit is
> Level 2, where the fair value is determined on the basis
eliminated through profit or loss.
of inputs other than quoted prices included within Lev-
Property, plant and equipment is reported net of accumu-
el 1 that are observable for the asset or liability, either
lated depreciation and any impairment losses determined as
directly or indirectly;
set out below. Depreciation is calculated on a straight-line
> Level 3, where the fair value is determined on the basis
basis over the item’s estimated useful life, which is reviewed
of unobservable inputs.
annually, and any changes are reflected on a prospective ba-
For assets and liabilities measured at fair value on a recur-
sis. Depreciation begins when the asset is ready for use.
ring basis, the Group determines whether any transfers
between these levels have occurred, identifying at the
The estimated useful life of the main items of property,
end of the reporting period the level in which the material
plant and equipment is as follows:
input with the lowest level has been classified.
Civil buildings
Buildings and civil works incorporated in plants
Property, plant and equipment
Property, plant and equipment is recognized at historic cost,
including directly attributable ancillary costs necessary for
the asset to be ready for use.
It is increased by the present value of the estimate of the
costs of decommissioning and restoring the asset where
there is a legal or constructive obligation to do so. The cor-
responding liability is recognized under provisions for risks
and charges. The accounting treatment of changes in the es-
timate of these costs, the passage of time and the discount
rate is discussed under “provisions for risks and charges”.
Hydroelectric power plants:
- penstock
- mechanical and electrical machinery
- other fixed hydraulic works
Thermal power plants:
- boilers and auxiliary components
- gas turbine components
- mechanical and electrical machinery
- other fixed hydraulic works
Nuclear power plants
Geothermal power plants:
- cooling towers
- turbines and generators
Borrowing costs associated with financing directly attribut-
- turbine parts in contact with fluid
able to the purchase or construction of assets that require a
- mechanical and electrical machinery
substantial period of time to get ready for its intended use
Wind power plants:
or sale (qualifying assets) are capitalized as part of the cost
- towers
of the assets themselves. Borrowing costs associated with
- turbines and generators
the purchase/construction of assets that do not meet such
- mechanical and electrical machinery
requirement are expensed in the period in which they are
Solar power plants:
20-67 years
20-67 years
22-65 years
20-40 years
20-100 years
18-46 years
10-26 years
17-45 years
21-66 years
40-60 years
20 years
30 years
10 years
20 years
20-25 years
20-25 years
15-25 years
incurred.
- mechanical and electrical machinery
15-40 years
Certain assets that were revalued at the IFRS-EU transition
date or in previous periods are recognized at their fair value,
which is considered to be their deemed cost at the revalua-
Public and artistic lighting:
- public lighting installations
- artistic lighting installations
tion date.
Where major components of individual items of property,
plant and equipment have different useful lives, the compo-
nents are recognized and depreciated separately.
Subsequent expenditure is recognized as an increase in the
Transport lines
Transformer stations
Distribution plants:
- high-voltage lines
- primary transformer stations
- low- and medium-voltage lines
carrying amount of the asset when it is probable that future
Meters:
economic benefits deriving from the cost incurred to replace
- electromechanical meters
a part of the asset will flow to the Group and the cost of the
- electricity balance measurement equipment
item can be reliably determined. All other expenditure is rec-
- electronic meters
18-25 years
20-25 years
21-50 years
24-50 years
40-50 years
15-40 years
30-50 years
6-25 years
10-35 years
10-20 years
149
The useful life of leasehold improvements is determined on
outflow channels and other assets on public lands were to
the basis of the term of the lease or, if shorter, on the duration
be relinquished free of charge to the State in good oper-
of the benefits produced by the improvements themselves.
ating condition. Accordingly, depreciation on assets to be
Land, both unbuilt and on which civil and industrial build-
relinquished was calculated over the shorter of the term of
ings stand, is not depreciated as it has an undetermined
the concession and the remaining useful life of the assets.
useful life.
In the wake of the legislative changes introduced with Law
Assets recognized under property, plant and equipment
134 of August 7, 2012, the assets previously classified as
are derecognized either at the time of their disposal or
assets “to be relinquished free of charge” connected with
when no future economic benefit is expected from their
the hydroelectric water diversion concessions are now con-
use or disposal. Any gain or loss, recognized through profit
sidered in the same manner as other categories of “prop-
or loss, is calculated as the difference between the net con-
erty, plant and equipment” and are therefore depreciated
sideration received in the disposal, where present, and the
over the economic and technical life of the asset (where
net book value of the derecognized assets.
this exceeds the term of the concession), as discussed in
Leased assets
Property, plant and equipment acquired under finance
ments of Italian hydroelectric plants following enactement
of Law 134/2012”, which you are invited to consult for
the section above on the “Depreciable value of certain ele-
leases, whereby all risks and rewards incident to owner-
more details.
ship are substantially transferred to the entity, are initially
recognized as assets at the lower of fair value and the pre-
In accordance with Spanish Laws 29/1985 and 46/1999, hy-
sent value of the minimum lease payments due, including
droelectric power stations in Spanish territory operate under
the payment required to exercise any purchase option. The
administrative concessions at the end of which the plants will
corresponding liability due to the lessor is recognized un-
be returned to the government in good operating condition.
der financial liabilities. The assets are depreciated on the
The terms of the concessions extend up to 2067.
basis of their useful lives. If it is not reasonably certain that
A number of generation companies that operate in Argen-
the Group will acquire the assets at the end of the lease,
tina, Brazil and Mexico hold administrative concessions
they are depreciated over the shorter of the lease term and
with similar conditions to those applied under the Spanish
the useful life of the assets.
concession system. These concessions will expire in the pe-
Leases where the lessor retains substantially all risks and
riod between 2013 and 2088.
rewards incident to ownership are classified as operating
leases. Operating lease costs are taken to profit or loss on a
As regards the distribution of electricity, the Group is a
systematic basis over the term of the lease.
concession holder in Italy for this service. The concession,
Although not formally designated as lease agreements,
granted by the Ministry for Economic Development, was is-
certain types of contract can be considered as such if per-
sued free of charge and terminates on December 31, 2030.
formance of such contracts depends on the use of one or
If the concession is not renewed upon expiry, the grantor is
more specific assets and if in substance those contracts
required to pay an indemnity. The amount of the indemnity
grant the right to use such assets.
will be determined by agreement of the parties using ap-
Assets to be relinquished free of charge
The Group’s plants include assets to be relinquished free of
propriate valuation methods, based on both the balance-
sheet value of the assets themselves and their profitability.
In determining the indemnity, such profitability will be rep-
charge at the end of the concessions. These mainly regard
resented by the present value of future cash flows. The in-
major water diversion works and the public lands used for
frastructure serving the concessions is owned and available
the operation of the thermal power plants. For plants in
to the concession holder. It is recognized under “property,
Italy, the concessions terminate in 2020 and 2040 (respec-
plant and equipment” and is depreciated over the useful
tively, for plants located in the Autonomous Province of
lives of the assets.
Trento and in the Autonomous Province of Bolzano) and
Enel also operates under administrative concessions for the
2029 (for all others). Within the regulatory framework in
distribution of electricity in other countries (including Spain
force until 2011, if the concessions are not renewed, at
and Romania). These concessions give the right to build and
those dates all intake and governing works, penstocks,
operate distribution networks for an indefinite period of time.
150
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Investment property
Investment property consists of the Group’s real estate
held to generate rental income or capital gains rather than
for use in operations or the delivery of goods and services.
Investment property is initially recognized at cost in the
same manner as other property, plant and equipment.
Subsequently, it is measured at cost net of depreciation
and any impairment losses.
Impairment losses are determined on the basis of the fol-
lowing criteria.
The fair value of investment property is determined assum-
ing that the individual assets are sold in an orderly trans-
action between market participants at the measurement
date at current market conditions. The calculation of fair
value takes account of the condition of the individual as-
sets and any lease income and other assumptions that mar-
ket participants would use in determining the price of the
asset at current market conditions. The fair value of invest-
Intangible assets with an indefinite useful life are not am-
ortized systematically. Instead, they undergo impairment
testing at least annually.
Intangible assets are derecognized either at the time of
their disposal or when no future economic benefit is ex-
pected from their use or disposal. Any gain or loss, recog-
nized through profit or loss, is calculated as the difference
between the net consideration received in the disposal,
where present, and the net book value of the derecog-
nized assets.
Goodwill deriving from the acquisition of subsidiaries, as-
sociated companies or joint ventures is allocated to each
of the cash generating units identified. After initial recog-
nition, goodwill is not amortized but is tested for recover-
ability at least annually using the criteria described in note
17 below. Goodwill relating to equity investments in asso-
ciates is included in their carrying amount.
ment property recognized at December 31, 2013, as deter-
Impairment of non-financial assets
mined on the basis of appraisals by independent experts, is
equal to €216 million.
Investment property is derecognized either at the time
of its disposal or when no future economic benefit is ex-
pected from its use or disposal. Any gain or loss, recog-
nized through profit or loss, is calculated as the difference
between the net consideration received in the disposal,
where present, and the net book value of the derecog-
nized assets.
Intangible assets
Intangible assets are identifiable assets without physical
substance controlled by the entity and capable of gener-
ating future economic benefits, as well as goodwill if ac-
quired for consideration. They are measured at purchase or
internal development cost, when it is probable that the use
of such assets will generate future economic benefits and
the related cost can be reliably determined.
The cost includes any directly attributable incidental ex-
penses necessary to make the assets ready for use.
The assets, with a definite useful life, are reported net of
accumulated amortization and any impairment losses, de-
termined as set out below.
Amortization is calculated on a straight-line basis over the
item’s estimated useful life, which is checked at least annu-
ally; any changes in amortization policies are reflected on
a prospective basis.
Amortization commences when the asset is ready for use.
At each reporting date, non-financial assets are reviewed
to determine whether there is evidence of impairment. If
such evidence exists, the recoverable amount of any prop-
erty, plant and equipment and intangible assets is estimat-
ed. The recoverable amount is the higher of an asset’s fair
value less costs of disposal and its value in use. Value in
use is represented by the present value of the estimated
future cash flows generated by the asset in question. Value
in use is determined by discounting estimated future cash
flows – calculated on the basis of the most recent business
plans – using a pre-tax discount rate that reflects the cur-
rent market assessment of the time value of money and the
specific risks of the asset. In determining the recoverable
amount of property, plant and equipment, intangible as-
sets and goodwill, the Group generally adopts the value in
use criterion.
The recoverable amount of assets that do not generate
independent cash flows is determined based on the cash
generating unit to which the asset belongs.
If an asset’s carrying amount or that of the cash generating
unit to which it is allocated is higher than its recoverable
amount, an impairment loss is recognized in the income
statement.
Impairment losses of cash generating units are first charged
against the carrying amount of any goodwill attributed to
it and then against the value of other assets, in proportion
to their carrying amount.
If the reasons for a previously recognized impairment loss
151
no longer apply, the carrying amount of the asset is re-
stored through profit or loss in an amount that shall not
Construction contracts
Construction contracts are measured on the basis of the
exceed the net carrying amount the asset would have had
contractual amounts accrued with reasonable certainty in
if the impairment loss had not been recognized and depre-
respect of the stage of completion of the works as deter-
ciation or amortization had been performed.
mined using the cost-to-cost method. Advances paid by
The recoverable amount of goodwill and intangible assets
customers are deducted from the value of the construction
with an indefinite useful life as well as that of intangible
contracts up to the extent of the accrued amounts; any
assets not yet available for use is tested for recoverability
excess is recognized under liabilities. Losses on individual
annually or even more frequently if there is evidence sug-
contracts are recognized in their entirety in the period in
gesting that the assets may be impaired. The original value
which they become probable, regardless of the stage of
of goodwill is not restored even if in subsequent years the
completion of the contract.
reasons for the impairment no longer apply.
If certain specific identified assets owned by the Group are
impacted by adverse economic or operating conditions
that undermine their capacity to contribute to the genera-
tion of cash flows, they can be isolated from the rest of the
assets of the CGU, undergo separate analysis of their recov-
Financial instruments
Financial assets measured at fair value
through profit or loss
This category includes debt securities and equity invest-
erability and written down where necessary.
ments in entities other than subsidiaries, associates and
Inventories
joint ventures held for trading and designated as at fair val-
ue through profit or loss at the time of initial recognition.
Such assets are initially recognized at fair value. Subse-
Inventories are measured at the lower of cost and net estimat-
quent to initial recognition, gains and losses from changes
ed realizable value, except for inventories involved in trading
in their fair value are recognized in the income statement.
activities, which are measured at fair value with recognition
through profit or loss. Average weighted cost is used, which
Financial assets held to maturity
includes related ancillary charges. Net estimated realizable
This category comprises non-derivative financial instru-
value is the estimated normal selling price net of estimated
ments with fixed or determinable payments, that do not
selling costs or, where applicable, replacement cost.
represent equity investments, are quoted on an active
For the portion of inventories held to discharge sales that
market and for which an entity has the positive intention
have already been made, the net realizable value is deter-
and ability to hold them until maturity. They are initially
mined on the basis of the amount established in the contract
recognized at fair value as measured at the trade date,
of sale.
including any transaction costs; subsequently, they are
Environmental certificates (green certificates, white certifi-
measured at amortized cost using the effective interest
cates and CO2 emissions allowances) not used for compli-
ance purposes in the reference period are recognized under
inventories. As regards CO2 emissions allowances, inventories
are allocated between the trading portfolio and that used
method, net of any impairment losses.
Impairment losses are calculated as the difference be-
tween the carrying amount of the asset and the present
value of expected future cash flows, discounted using the
for compliance with greenhouse gas emission requirements.
original effective interest rate.
Within the latter, the allowances are allocated in sub-portfo-
In the case of renegotiated financial assets, impairment
lios on the basis of the year of compliance to which they have
losses are calculated using the original effective interest
been assigned.
rate in effect prior to the amendment of the related terms
Materials and other consumables (including energy com-
and conditions.
modities) held for use in production are not written down if it
is expected that the final product in which they will be incor-
porated will be sold at a price sufficient to enable recovery of
Loans and receivables
This category includes non-derivative financial and trade
the cost incurred.
receivables, including debt securities, with fixed or deter-
Inventories also include purchases of nuclear fuel, whose use
minable payments that are not quoted on an active market
is determined on the basis of the energy produced.
and that the entity does not originally intend to sell.
152
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Such assets are initially recognized at fair value, adjusted
Objective evidence of an impairment loss includes observ-
for any transaction costs, and subsequently measured at
able data about events such as, for example, significant
amortized cost using the effective interest method, net of
financial difficulty of the obligor; default or delinquency
any impairment losses. Such impairment losses are calcu-
in interest or principal payments; it becoming probable
lated as the difference between the carrying amount of the
that the borrower will enter bankruptcy or other form of
asset and the present value of expected future cash flows,
financial reorganization; or observable data indicating a
discounted using the original effective interest rate. In the
measurable decrease in estimated future cash flows.
case of renegotiated financial assets, impairment losses are
Where an impairment loss is found, the latter is calculated
calculated using the original effective interest rate in effect
as indicated above for each type of financial asset involved.
prior to the amendment of the related terms and conditions.
When there is no realistic chance of recovering the finan-
Trade receivables falling due in line with generally accept-
cial asset, the corresponding value of the asset is written
ed trade terms are not discounted.
off through profit or loss.
Financial assets available for sale
This category includes listed debt securities not classified as
Cash and cash equivalents
This category reports assets that are available on demand or
held to maturity, equity investments in other entities (un-
at very short term, have cleared and have no collection costs
less classified as “designated as at fair value through profit
as well as highly short-term liquid financial investments that
or loss”) and financial assets that cannot be classified in
are readily convertible into a known amount of cash and
other categories. These instruments are measured at fair
which are subject to insignificant risk of changes in value.
value with changes recognized in shareholders’ equity.
In addition, for the purpose of the consolidated statement
At the time of sale, or when a financial asset available for
of cash flows, cash and cash equivalents do not include
sale becomes an investment in a subsidiary as a result of
bank overdrafts at period-end.
successive purchases, the cumulative gains and losses pre-
viously recognized in equity are reversed to the income
statement.
Trade payables
Trade payables are initially recognized at fair value and
Where there is objective evidence that such assets have in-
subsequently measured at amortized cost. Trade payables
curred an impairment loss, the cumulative loss previously
falling due in line with generally accepted trade terms are
recognized in equity is eliminated through reversal to the
not discounted.
income statement. Such impairment losses, which cannot
be reversed, are calculated as the difference between the
carrying amount of the asset and its fair value, determined
Financial liabilities
Financial liabilities other than derivatives are recognized
on the basis of the market price at the balance-sheet date
when the Company becomes a party to the contractual
for financial assets listed on regulated markets or on the
clauses representing the instrument and are initially meas-
basis of the present value of expected future cash flows,
ured at fair value adjusted for directly attributable transac-
discounted using the market interest rate for unlisted fi-
tion costs. Financial liabilities are subsequently measured
nancial assets.
at amortized cost using the effective interest rate method.
When the fair value cannot be determined reliably, these
assets are recognized at cost adjusted for any impairment
losses.
Derivative financial instruments
Derivatives are recognized at fair value and are designated
as hedging instruments when the relationship between
Impairment of financial assets
At each balance-sheet date, financial assets are analyzed
the derivative and the hedged item is formally document-
ed and the effectiveness of the hedge (assessed periodi-
to determine whether their value is impaired.
cally) meets the thresholds envisaged under IAS 39.
A financial asset is considered impaired when there is ob-
When the derivatives are used to hedge the risk of changes
jective evidence of such impairment loss as the result of
in the fair value of hedged assets or liabilities, any chang-
one or more events that occurred after the initial recogni-
es in the fair value of the hedging instrument are taken
tion of the asset that have had an impact on the reliably
to profit or loss. The adjustments in the fair values of the
estimated future cash flows of the asset.
hedged assets or liabilities are also taken to profit or loss.
153
When derivatives are used to hedge the risk of changes in
Financial liabilities are derecognized when they are extin-
the cash flows generated by the hedged items (cash flow
guished, i.e. when the contractual obligation has been dis-
hedges), changes in fair value are initially recognized in
charged, cancelled or lapsed.
equity, in the amount qualifying as effective, and are rec-
ognized in profit or loss only when the change in the cash
flows from the hedged items to be offset actually occurs.
The ineffective portion of the fair value of the hedging in-
Post-employment and other
employee benefits
strument is taken to profit or loss.
Liabilities related to employee benefits paid upon or after
Changes in the fair value of trading derivatives and those
ceasing employment in connection with defined-benefit
that no longer qualify for hedge accounting under IAS 39
plans or other long-term benefits accrued during the em-
are recognized in profit or loss.
ployment period are determined separately for each plan,
Derivative financial instruments are recognized at the
using actuarial assumptions to estimate the amount of the
trade date.
future benefits that employees have accrued at the balance-
Financial and non-financial contracts (that are not already
sheet date (the projected unit credit method). The liability,
measured at fair value) are analyzed to identify any em-
which is carried net of any plan assets, is recognized on an
bedded derivatives, which are separated and measured
accruals basis over the vesting period of the related rights.
at fair value. This analysis is conducted at the time the en-
These appraisals are performed by independent actuaries.
tity becomes party to the contract or when the contract
As regards the net liabilities (assets) of defined-benefit
is renegotiated in a manner that significantly changes the
plans, the actuarial gains and losses from the actuarial
original associated cash flows.
measurement of the liabilities, the return on the plan as-
The Group also analyzes all forward contracts for the pur-
sets (net of the associated interest income) and the effect
chase or sale of non-financial assets, with a specific focus
of the asset ceiling (net of the associated interest) are rec-
on forward purchases and sales of electricity and energy
ognized in other comprehensive income when they occur.
commodities, in order to determine if they must be classi-
In the event of a change being made to an existing de-
fied and treated in conformity with IAS 39 or if they have
fined-benefit plan or the introduction of a new plan, any
been entered into for physical delivery in line with the nor-
past service cost is recognized immediately in profit or loss.
mal purchase/sale/use needs of the Company (own use
exemption).
If such contracts have not been entered into in order to ob-
Termination benefits
tain or deliver electricity or energy commodities, they are
Liabilities for benefits due to employees for the early ter-
measured at fair value.
mination of the employment relationship are recognized
Derecognition of financial assets and
liabilities
Financial assets are derecognized whenever one of the fol-
at the earlier of the following dates:
> when the entity can no longer withdraw its offer of be-
nefits; and
> when the entity recognizes a cost for a restructuring that
lowing conditions is met:
is within the scope of IAS 37 and involves the payment
> the contractual right to receive the cash flows associa-
of termination benefits.
ted with the asset expires;
The liabilities are measured on the basis of the nature of
> the Company has transferred substantially all the risks
the employee benefit. More specifically, when the bene-
and rewards associated with the asset, transferring its
fits represent an enhancement of other post-employment
rights to receive the cash flows of the asset or assuming
benefits, the associated liability is measured in accordance
a contractual obligation to pay such cash flows to one
with the rules governing that type of benefits. Otherwise,
or more beneficiaries under a contract that meets the
if the termination benefits due to employees are expected
requirements envisaged under IAS 39 (the “pass throu-
to be settled wholly before 12 months after the end of the
gh test”);
annual reporting period, the entity measures the liability in
> the Company has not transferred or retained substan-
accordance with the requirements for short-term employ-
tially all the risks and rewards associated with the asset
ee benefits; if they are not expected to be settled wholly
but has transferred control over the asset.
before 12 months after the end of the annual reporting
154
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
period, the entity measures the liability in accordance with
the time value of money and, if applicable, the risks spe-
the requirements for other long-term employee benefits.
cific to the liability.
Share-based payments
If the provision is discounted, the periodic adjustment of
the present value for the time factor is recognized as a fi-
nancial expense.
Stock option plans
The cost of services rendered by employees and remuner-
Where the liability relates to decommissioning and/or site
restoration in respect of property, plant and equipment,
ated through stock option plans is determined based on
the initial recognition of the provision is made against the
the fair value of the options granted to employees at the
related asset and the expense is then recognized in profit
grant date.
or loss through the depreciation of the asset involved.
The calculation method to determine the fair value consid-
Where the liability regards the treatment and storage of
ers all characteristics of the option (option term, price and
nuclear waste and other radioactive materials, the provi-
exercise conditions, etc.), as well as the Enel share price
sion is recognized against the related operating costs.
at the grant date, the volatility of the stock and the yield
Changes in estimates of accruals to the provision are recog-
curve at the grant date consistent with the expected life
nized in the income statement in the period in which the
of the plan. The pricing model used is the Cox-Rubinstein.
changes occur, with the exception of those in the costs of
This cost is recognized in the income statement, with a
dismantling and/or restoration resulting from changes in the
specific contra-item in shareholders’ equity, over the vest-
timetable and costs necessary to extinguish the obligation or
ing period considering the best estimate possible of the
from a change in the discount rate. These changes increase
number of options that will become exercisable.
or decrease the value of the related assets and are taken to
the income statement through depreciation. Where they in-
Restricted share units incentive plans
The cost of services rendered by employees and remuner-
crease the value of the assets, it is also determined whether
the new carrying amount of the assets is fully recoverable. If
ated through restricted share units (RSU) incentive plans is
this is not the case, a loss equal to the unrecoverable amount
determined based on the fair value of the RSU granted to
is recognized in the income statement.
employees, in relation to the vesting of the right to receive
Decreases in estimates are recognized up to the carrying
the benefit.
amount of the assets. Any excess is recognized immedi-
The calculation method to determine the fair value consid-
ately in the income statement.
ers all characteristics of the RSU (term, exercise conditions,
For more information on the estimation criteria adopted
etc.), as well as the price and volatility of Enel shares over
in determining provisions for dismantling and/or restora-
the vesting period. The pricing model used is the Monte
tion of property, plant and equipment, especially those as-
Carlo method.
sociated with nuclear power plants, please see the section
This cost is recognized in the income statement, with rec-
on the use of estimates.
ognition of a specific liability adjusted periodically to fair
value, over the vesting period, considering the best esti-
mate possible of the number of RSU that will become ex-
Grants
ercisable.
Provisions for risks and charges
Grants are recognized at fair value when it is reasonably
certain that they will be received or that the conditions
for receipt have been met as provided for by the govern-
ments, government agencies and similar local, national or
Accruals to the provisions for risks and charges are rec-
international authorities.
ognized where there is a legal or constructive obligation
Grants received for specific expenditure or specific assets
as a result of a past event at period-end, the settlement
the value of which is recognized as an item of property,
of which is expected to result in an outflow of resourc-
plant and equipment or an intangible asset are recognized
es whose amount can be reliably estimated. Where the
as other liabilities and credited to the income statement
impact is significant, the accruals are determined by dis-
over the period in which the related costs are recognized.
counting expected future cash flows using a pre-tax dis-
Operating grants are recognized fully in profit or loss at
count rate that reflects the current market assessment of
the time they satisfy the requirements for recognition.
155
Environmental certificates
> revenues from the sale and transport of electricity and
Some Group companies are affected by national regula-
tions governing green certificates and white certificates,
as well as the European emissions trading system.
Green certificates earned in respect of electricity gener-
ated by renewable energy plants and white certificates
(energy efficiency certificates) earned in respect of energy
savings achieved that have been certified by the compe-
tent authority are treated as non-monetary operating
grants and are recognized at fair value under other reve-
nues and income, with recognition of an asset under other
non-financial assets, if the certificates are not yet credited
to the ownership account, or under inventories, if the cer-
tificates have already been credited to that account.
At the time the certificates are credited to the ownership
account, their value is reclassified from other assets to in-
ventories.
In the case of sale, the difference between the sale price
of those certificates and the carrying amount at the sale
date is recognized under revenues from sales.
For the purposes of accounting for charges in respect of
regulatory requirements concerning green and white cer-
tificates and CO2 emissions allowances, the Group uses the
“net liability approach”.
Under this treatment, environmental certificates received
free of charge and those earned as a result of company
operations that are to be used to meet compliance re-
quirements are recognized at nominal value (zero). In ad-
dition, charges incurred in acquiring certificates on the
market (or obtained for consideration of some form) to
make up any compliance shortfall are recognized through
profit or loss on an accruals basis under other operating
expenses, as they represent “system charges” consequent
upon compliance with a regulatory requirement.
Revenues
gas refer to the quantities provided during the period,
even if these have not yet been invoiced, and are de-
termined using estimates as well as periodic meter
readings. Where applicable, this revenue is based on
the rates and related restrictions established by law
or the Authority for Electricity and Gas and analogous
foreign authorities during the applicable period. In par-
ticular, the authorities that regulate the electricity and
gas markets can use mechanisms to reduce the impact
of the temporal mismatching between the setting of
prices for energy for the regulated market as applied
to distributors and the setting of prices by the latter for
final consumers;
> revenues from the rendering of services are recognized
in line with the stage of completion of the services.
Where it is not possible to reliably determine the value
of the revenues, they are recognized in the amount of
the costs that it is considered will be recovered;
> revenues accrued in the period in respect of construc-
tion contracts are recognized on the basis of the pay-
ments agreed in relation to the stage of completion of
the work, determined using the cost-to-cost method,
under which costs, revenues and the related margins
are recognized on the basis of the progress of the pro-
ject. The stage of completion is determined as a ratio
between costs incurred at the measurement date and
the overall costs expected for the project. In additional
to contractual payments, project revenues include any
payments in respect of variations, price revisions and
incentives, with the latter recognized where it is proba-
ble that they will actually be earned and can be reliably
determined. Revenues are also adjusted for any penal-
ties for delays attributable to the Company;
> revenues for fees for connection to the electricity dis-
tribution grid are recognized in full upon completion
of connection activities if the service provided can be
recognized separately from any electricity distribution
services provided on an ongoing basis.
Revenues are recognized when it is probable that the
future economic benefits will flow to the Company and
Financial income and expense
these benefits can be measured reliably.
More specifically, the following criteria are used depend-
ing on the type of transaction:
> revenues from the sale of goods are recognized when
the significant risks and rewards of ownership are
transferred to the buyer and their amount can be reli-
ably determined;
Financial income and expense is recognized on an accru-
als basis in line with interest accrued on the net carrying
amount of the related financial assets and liabilities us-
ing the effective interest rate method. They include the
changes in the fair value of financial instruments recog-
nized at fair value through profit or loss and changes in
156
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts the fair value of derivatives connected with financial
liabilities. This only occurs when the sale is highly probable
transactions.
and the non-current assets (or disposal groups) are availa-
Income taxes
ble in their current condition for immediate sale.
Non-current assets (or disposal groups) classified as held
for sale are first recognized in compliance with the ap-
Current income taxes for the period, which are recognized
propriate IFRS/IAS applicable to the specific assets or lia-
under “income tax payable” net of payments on account,
bilities and subsequently measured at the lower of the
or under “income tax receivable” where there is a credit
carrying amount and the fair value, net of costs to sell. Any
balance, are determined using an estimate of taxable in-
subsequent impairment losses are recognized as a direct
come and in conformity with the applicable regulations.
adjustment to the non-current assets (or disposal groups)
Deferred tax liabilities and assets are calculated on the
classified as held for sale and expensed in the income sta-
temporary differences between the carrying amounts of
tement. The corresponding values for the previous period
assets and liabilities in the consolidated financial state-
are not reclassified.
ments and their corresponding values recognized for tax
A discontinued operation is a component of an entity that
purposes on the basis of tax rates in effect on the date the
has been divested or classified as held for sale and:
temporary difference will reverse, which is determined on
> represents a major line of business or geographical area
the basis of tax rates that are in force or substantively in
of operations;
force at the balance-sheet date.
> is part of a single coordinated plan to dispose of a se-
Deferred tax assets are recognized when recovery is prob-
parate major line of business or geographical area of
able, i.e. when an entity expects to have sufficient future
operations; or
taxable income to recover the asset.
> is a subsidiary acquired exclusively with a view to resale.
The recoverability of deferred tax assets is reviewed at
Gains or losses on operating assets sold – whether dispo-
each period-end.
sed of or classified as held for sale – are shown separately
Deferred tax assets and liabilities in respect of taxes levied
in the income statement, net of the tax effects. The cor-
by the same tax authority are offset if the Company has a
legal right to offset current tax assets against current tax
responding values for the previous period, where present,
are reclassified and reported separately in the income sta-
liabilities generated at the time they reverse.
tement, net of tax effects, for comparative purposes.
Current and deferred taxes are recognized in profit or
Non-current assets that no longer meet the requirements
loss, with the exception of those in respect of items di-
for classification as held for sale or which cease to belong
rectly credited or debited to equity, which are recognized
to a disposal group classified as held for sale are measured
directly in equity.
as the lower of:
Dividends
> the book value before the asset (or disposal group) was
classified as held for sale, adjusted for depreciation,
amortization, writedowns or writebacks that would
Dividends from equity investments are recognized when
have been recognized if the asset (or disposal group)
the shareholders’ right to receive them is established.
had not been classified as held for sale; and
Dividends and interim dividends payable to third parties
> the recoverable value, which is equal to the greater of
are recognized as changes in equity at the date they are
its fair value net of costs to sell and its value in use, as
approved by the Shareholders’ Meeting and the Board of
calculated at the date on which the decision not to sell
Directors, respectively.
was taken.
Discontinued operations and non-
current assets held for sale
Non-current assets (or disposal groups) whose carrying
amount will mainly be recovered through sale, rather than
through ongoing use, are classified as held for sale and
shown separately from the other balance-sheet assets and
157
3
Recently issued accounting
standards
First-time adoption and applicable
standards
The Group has adopted the following amendment to
international accounting standards that took effect as from
January 1, 2013:
financial liabilities”, issued in December 2011, in parallel
with the amendments to IAS 32; the amendments esta-
blish more extensive disclosures for the offsetting of
financial assets and liabilities, with a view to enabling
users of financial statements to assess the actual and
potential effects on the entity’s financial position of net-
ting arrangements, including the set-off rights associa-
ted with recognized assets or liabilities. The application
of the new provisions did not have a significant impact.
> “IFRIC 20 - Stripping costs in the production phase of
a surface mine”, issued in October 2011; the interpreta-
tion sets out the accounting treatment to be applied to
costs incurred for the removal of mine waste materials
during the production phase, clarifying when they can
be recognized as an asset. The application of the new in-
> “Amendment to IAS 1 - Presentation of items of other
terpretation did not have an impact on the consolidated
comprehensive
income”,
issued
in June 2011. The
financial statements.
amendment calls for the separate presentation of items
> “Annual Improvements to IFRSs 2009-2011 Cycle”, is-
of other comprehensive income (OCI) that may be re-
sued in May 2012; the document contains formal modi-
classified to profit or loss in the future (“recycling”) and
fications and clarifications of existing standards. The ap-
those that will not be recycled. The application of the
plication of the new provisions did not have a significant
amendment did not have a significant impact.
impact for the Group. More specifically, the following
> “IAS 19 - Employee benefits”, issued in June 2011; the
standards have been amended:
standard supersedes the current IAS 19 governing the
- “IAS 1 - Presentation of financial statements”; the
accounting treatment of employee benefits. The most
amendment clarifies how comparative
information
significant change regards the requirement to recognize
must be presented in the financial statements and spe-
all actuarial gains/losses in OCI, with the elimination of
cifies that an entity may voluntarily elect to provide ad-
the corridor approach. The amended standard also in-
ditional comparative information;
troduces more stringent rules for disclosures, with the
- “IAS 16 - Property, plant and equipment”; the
disaggregation of the cost into three components; eli-
amendment clarifies that if spare parts and servicing
minates the expected return of plan assets; no longer
equipment meet the requirements for classification as
permits the deferral of the recognition of past service
“property, plant and equipment” they shall be recogni-
cost in profit or loss; and introduces more detailed rules
zed and measured in accordance with IAS 16; otherwise
for the recognition of termination benefits. The impact
they shall be classified as inventory;
of the application of the amended standard is summa-
- “IAS 32 - Financial
instruments: presentation”; the
rized in note 4.
amendment establishes that income taxes relating to di-
> “IFRS 13 - Fair value measurement”, issued in May 2011;
stributions to equity holders and to transaction costs of
the standard represents a single IFRS framework to be
equity transactions shall be accounted for in accordance
used whenever another accounting standard requires or
with IAS 12;
permits the use of fair value measurement. The standard
- “IAS 34 - Interim financial reporting”; the amendment
sets out guidelines for measuring fair value and introdu-
clarifies that interim financial reports shall specify the
ces specific disclosure requirements. The overall impacts
total assets and liabilities for a particular reportable seg-
on profit or loss and equity of the application, on a pro-
ment only if such amounts are regularly provided by the
spective basis, of the new standard were a positive €4
chief operating decision maker and if there has been a
million and €46 million, respectively, mainly due to the
material change from the amount disclosed in the last
new method used to determine counterparty risk, which
annual financial statements presented.
also includes non-performance risk.
> “Amendments to IFRS 7 - Offsetting financial assets and-
158
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Standards not yet applicable
and not yet adopted
In 2012 and 2013, the European Commission endorsed the
following accounting standards and interpretations, which will
be applicable to the Group in future years:
> “IFRS 10 - Consolidated financial statements”, issued in
May 2011; replaces “SIC 12 - Consolidation - special pur-
pose entities” and, for the part concerning consolidated
financial statements, “IAS 27 - Consolidated and separate
financial statements”, the title of which was changed to
“Separate financial statements”. The standard introduces a
new approach to determining whether an entity controls
another (the essential condition for consolidating an in-
vestee), without modifying the consolidation procedures
envisaged in the current IAS 27. This approach must be
applied to all investees, including special purpose entities,
which are called “structured entities” in the new standard.
While current accounting standards give priority – where
control does not derive from holding a majority of actual
or potential voting rights – to an assessment of the risks/
benefits associated with the holding in the investee, IFRS
10 focuses the determination on three elements to be
considered in each assessment: power over the investee;
exposure to variable returns from the involvement in the
investee; and the link between power and returns, i.e.
the ability to use that decision-making power over the
investee to affect the amount of returns. The accounting
effects of a loss of control or a change in the ownership
interest that does not result in a loss of control are unchan-
ged with respect to the provisions of the current IAS 27.
The new standard will take effect retrospectively for an-
nual reporting periods beginning on or after January 1,
2014. The application of the new provisions will not have
an impact on the Group.
> “IAS 27 - Separate financial statements”, issued in May
2011. Together with the issue of IFRS 10 and IFRS 12, the
current IAS 27 was amended, with changes to its title and
its content. All provisions concerning the preparation of
consolidated financial statements were eliminated, whi-
le the other provisions were not modified. Following the
amendment, the standard therefore only specifies the reco-
gnition and measurement criteria and the disclosure requi-
rements for separate financial statements concerning sub-
sidiaries, joint ventures and associates. The new standard
will take effect retrospectively for annual reporting periods
beginning on or after January 1, 2014. The application of
the new provisions will not have an impact on the Group.
> “IFRS 11 - Joint arrangements”, issued in May 2011; repla-
ces “IAS 31 - Interests in joint ventures” and “SIC 13 - Jointly
controlled entities - non-monetary contributions by ventu-
rers”. Unlike IAS 31, which assesses joint arrangements on
the basis of the contractual form adopted, IFRS 11 assesses
them on the basis of how the related rights and obliga-
tions are attributed to the parties. In particular, the new
standard identifies two types of joint arrangement: joint
operations, where the parties to the arrangement have
pro-rata rights to the assets and pro-rata obligations for
the liabilities relating to the arrangement; and joint ven-
tures, where the parties have rights to a share of the net
assets or profit/loss of the arrangement. In the consoli-
dated financial statements, accounting for an interest in
a joint operation involves the recognition of the assets/
liabilities and revenues/expenses related to the arrange-
ment on the basis of the associated rights/obligations,
without taking account of the interest held. Accounting
for an interest in a joint venture involves the recognition
of an investment accounted for using the equity method
(proportionate consolidation is no longer permitted).
The new standard will take effect retrospectively for annu-
al reporting periods beginning on or after January 1, 2014.
The application of the new standard will involve a change
in the measurement of joint ventures, which will now be
accounted for exclusively with the equity method. More
specifically, while there will be no impact on the net inco-
me and equity of the Group, if IFRS 11 had been adopted
for the purposes of preparing the consolidated financial
statements at December 31, 2013, revenues for 2013
would have been about €1,800 million lower, while total
assets at December 31, 2013 would have been about €700
million lower.
> “IAS 28 - Investments in associates and joint ventures”, is-
sued in May 2011. Together with the issue of IFRS 11 and
IFRS 12, the current IAS 28 was amended, with changes
to its title and its content. In particular, the new standard,
which also includes the provisions of “SIC 13 - Jointly con-
trolled entities - non-monetary contributions by venturers”,
describes the application of the equity method, which in
consolidated financial statements is used to account for
associates and joint ventures. The new standard will take
effect retrospectively for annual reporting periods begin-
ning on or after January 1, 2014. The future application of
the new provisions will not have an impact on the Group,
with the exception of the effects discussed earlier of the
application of IFRS 11.
159
> “IFRS 12 - Disclosure of interests in other entities”, issued
sures to be provided in the first year of application. IFRS
in May 2011; IFRS 12 brings together in a single standard
11 and IFRS 12 were amended analogously, limiting
the required disclosures concerning interests held in subsi-
the effects, both in terms of restatement of financial
diaries, joint operations and joint ventures, associates and
data and of disclosures, of initial application of IFRS 11.
structured entities. In particular, the standard replaces the
The amendments will take effect retrospectively for pe-
disclosures called for in the current IAS 27, IAS 28 and IAS
riods beginning on or after January 1, 2014. The future ap-
31 with new disclosure requirements in order to ensure the
plication of the new provisions will not have a significant
disclosure of more uniform and consistent information,
impact on the Group.
introducing new requirements for disclosures concerning
> “Amendments to IFRS 10, IFRS 12 and IAS 27 - Investment
subsidiaries with significant non-controlling shareholders
entities”, issued in October 2012. The amendments intro-
and individually material associates and joint ventures.
duce an exception to the requirement under IFRS 10 to
The new standard will take effect retrospectively for an-
consolidate all subsidiaries if the parent qualifies as an
nual reporting periods beginning on or after January 1,
“investment entity”. More specifically, investment entities,
2014. The future application of the new provisions will re-
as defined in the amendments, shall not consolidate their
quire implementation of the new disclosure requirements.
subsidiaries unless the latter provide services associated
> “Amendments to IAS 32 - Offsetting financial assets and
with the investment activities of the parent. Non-conso-
financial liabilities”, issued in December 2011. IAS 32 esta-
lidated subsidiaries shall be measured in conformity with
blishes that a financial asset and a financial liability should
IFRS 9 or IAS 39. The parent of an investment entity shall,
be offset and the net amount reported in the balance she-
however, consolidate all of its subsidiaries (including those
et when, and only when, an entity:
held through the investment entity) unless it also qualifies
a) has a legally enforceable right to set off the amounts;
as an investment entity. The amendments will take effect
and
retrospectively for periods beginning on or after January 1,
b) intends either to settle on a net basis or to realize the
2014. The future application of the new provisions will not
asset and settle the liability simultaneously.
have an impact on the Group.
The amendments to IAS 32 clarify the conditions that must
> “Amendments to IAS 36 - Recoverable amount disclo-
be met for these two requirements to be satisfied. As re-
sures for non-financial assets”, issued in May 2013. The
gards the first requirement, the amendment expands the
amendments of IAS 36 as a consequence of the pro-
illustration of cases in which an entity “currently has a legal-
visions of IFRS 13 did not reflect the intentions of the
ly enforceable right of set-off”, while as regards the second
IASB concerning the disclosures to report about the re-
the amendment clarifies that, where the entity settles the
coverable amount of
impaired assets. Consequently,
financial asset and liability separately, for set-off to be allo-
the IASB amended the standard further, eliminating the
wed the associated credit and liquidity risk should be insi-
disclosure requirements originally introduced by IFRS
gnificant and, in this regard, specifies the characteristics that
13 and requiring specific disclosures concerning the me-
gross settlement systems must have.
asurement of fair value in cases in which the recovera-
The amendments will take effect retrospectively for annual
ble amount of impaired assets is calculated on the basis
reporting periods beginning on or after January 1, 2014.
of fair value less costs of disposal. The amendments also
The future application of the new provisions will give rise to
require disclosures on the recoverable amount of as-
the reclassification of a number of items in the consolidated
sets or cash generating units for which an impairment
balance sheet, with no impact on consolidated equity.
loss has been recognized or reversed during the period.
> “Amendments to IFRS 10, IFRS 11 and IFRS 12 - Transi-
The amendments will take effect retrospectively for pe-
tion guidance”, issued in June 2012. The amendments
riods beginning on or after January 1, 2014. The future
are intended to clarify a number of issues concerning
application of the new provisions will not have an impact
the first-time adoption of IFRS 10, IFRS 11 and IFRS 12. In
on the Group.
particular, IFRS 10 was amended to clarify that the date
> “Amendments to IAS 39 - Novation of derivatives and con-
of initial application of the standard shall mean “the be-
tinuation of hedge accounting”, issued in June 2013. The
ginning of the annual reporting period in which IFRS 10
amendments are intended to allow entities, under certain
is applied for the first time” (i.e. January 1, 2013). In ad-
conditions, to continue hedge accounting in the case of no-
dition, the amendments limited the comparative disclo-
vation of the hedging instrument with a central counterpar-
160
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts ty as a result of the introduction of a new law or regulation.
ments”, postponing the mandatory effective date from
The amendments will take effect retrospectively for pe-
January 1, 2013 to January 1, 2015 and establishing new
riods beginning on or after January 1, 2014. The future
rules for the transition from IAS 39 to IFRS 9. These provi-
application of the new provisions will not have an impact
sions have been superseded by the amendments of IFRS
on the Group.
9 issued in November 2013 (see previous paragraph).
The amendments being discussed here also modify “IFRS
In the years from 2009 to 2013, the International Accounting
7 - Financial instruments: disclosures”, introducing new
Standards Board (IASB) and the International Financial Repor-
comparative disclosures, which will be mandatory or
ting Interpretations Committee (IFRIC) also published new
optional depending on the date of transition to IFRS 9.
standards and interpretations that, as of December 31, 2013,
The Group is assessing the potential impact of the future ap-
had not yet been endorsed by the European Commission. The
plication of the new provisions.
rules that could have an impact on the consolidated financial
> “IFRIC 21 - Levies”, issued in May 2013. The interpretation
statements of the Group are set out below:
defines when a liability in respect of the obligation to pay
> “IFRS 9 - Financial instruments”, issued in November 2009
a levy (other than income taxes) due to the government,
and subsequently revised: the standard is the first of three
whether local, national or international must be reco-
phases in the project to replace IAS 39. The standard esta-
gnized. More specifically, the interpretation established
blishes new criteria for the classification of financial assets
that the liability shall be recognized when the obliga-
and liabilities. Financial assets must be classified based on
ting event giving rise to the liability to pay the levy (for
the business model of the entity and the characteristics of
example, upon reaching a given threshold level of reve-
the associated cash flows. The new standard requires finan-
nue), as set out in the applicable law, occurs. If the obli-
cial assets and liabilities to be measured initially at fair va-
gating event occurs over a specified period of time, the
lue plus any transaction costs directly attributable to their
liability shall be recognized gradually over that period.
assumption or issue. Subsequently, they are measured at
The interpretation will take effect, subject to endorse-
fair value or amortized cost, unless the fair value option is
ment, for periods beginning on or after January 1, 2014.
applied. As regards equity instruments not held for trading,
The Group does not expect the future application of the
an entity can make an irrevocable election to measure them
provisions to have an impact.
at fair value through other comprehensive income. Any di-
> “Amendment to IAS 19 - Defined-benefit plans: em-
vidend income shall be recognized through profit or loss.
ployee contributions”, issued in November 2013. The
In November 2013, a section on hedge accounting was
amendments are intended to clarify how to recognize con-
introduced. The new provisions governing the recogni-
tributions from employees within a defined-benefit plan.
tion of the effects of hedging relationships call for risk
More specifically, contributions linked to service should be
management policies to be reflected in the financial sta-
recognized as a reduction in service cost:
tements, eliminating inconsistencies and weaknesses in
- over the periods in which employees render their servi-
the hedge accounting model in IAS 39. The current version
ces, if the amount of the contributions is dependent on
of IFRS 9 does not address macro hedging, an issue that
the number of years of service; or
the IASB is still discussing. Accordingly, until the comple-
- in the period in which the service is rendered, if the
tion of the entire hedge accounting project, the standard
amount of the contributions is independent of the num-
permits entities to choose between applying the hedge
ber of years of service.
accounting requirements of IFRS 9 and those of IAS 39.
The amendments will take effect, subject to endorsement,
The amendments introduced in November 2013 also eli-
for periods beginning on or after January 1, 2015. The
minated the reference to a mandatory effective date for
Group is assessing the potential impact of the future appli-
the standard, which is available for immediate application.
cation of the measures.
The Group, however, will not apply the standard before
> “Annual improvements to IFRSs 2010-2012 cycle”, issued
endorsement. The Group is assessing the potential impact
in December 2013; the document contains formal modifi-
of the future application of the new provisions.
cations and clarifications of existing standards that are not
> “Amendments to IFRS 9 and IFRS 7 - Mandatory effec-
expected to have a significant impact on the Group. More
tive date and transition disclosure”, issued in December
specifically, the following standards were amended:
2011. The amendment modifies “IFRS 9 - Financial instru-
- “IFRS 2 - Share-based payment”; the amendment clari-
161
fies the meaning of “vesting conditions”, defining “per-
clarifies that an entity is a related party if that entity,
formance conditions” and “service conditions” sepa-
or any member of a group of which it is a part, provi-
rately. The changes will apply prospectively, subject to
des key management personnel services (a so-called
endorsement, to share-based payment transactions for
management entity). The amendment also introduces
which the grant date is on or after July 1, 2014;
disclosure requirements concerning that sort of related
- “IFRS 3 - Business combinations”; the amendment clari-
party. The changes will apply, subject to endorsement,
fies how to classify any contingent consideration agreed
to annual periods beginning on or after January 1, 2015;
in a business combination. Specifically, the amendment
- “IAS 38 - Intangible assets”; the amendment clarifies
establishes that if the contingent consideration meets
that when an intangible asset is revalued, its gross
the definition of financial instrument it shall be classified
carrying amount shall be adjusted in a manner consi-
as a financial liability or equity. In the former case, the
stent with the revaluation. In addition, it also clarifies
liability shall be measured at fair value and changes in
that the accumulated amortization shall be calculated
fair value shall be recognized in profit or loss in accor-
as the difference between the gross carrying amount
dance with IFRS 9. Contingent consideration that does
and the carrying amount of the asset after taking ac-
not meet the definition of financial instrument shall be
count of accumulated impairment losses. The changes
measured at fair value and changes in fair value shall be
will apply, subject to endorsement, to annual periods
recognized in profit or loss. The changes will apply pro-
beginning on or after January 1, 2015. More specifically,
spectively, subject to endorsement, to business combi-
they will be applicable to revaluations recognized in the
nations for which the acquisition date is on or after July
year ending December 31, 2015 and in the immediately
1, 2014;
preceding annual period.
- “IFRS 8 - Operating segments”; the amendment intro-
> “Annual improvements to IFRSs 2011-2013 cycle”, issued
duces new disclosure requirements. In particular, the
in December 2013; the document contains formal modifi-
disclosures shall include a brief description of how
cations and clarifications of existing standards that are not
segments have been aggregated and what economic
expected to have a significant impact on the Group. More
indicators have been assessed in determining that the
specifically, the following standards were amended:
aggregated operating segments share similar econo-
- “IFRS 3 - Business combinations”; the amendment cla-
mic characteristics. The changes will apply, subject to
rifies that IFRS 3 does not apply in the financial state-
endorsement, to annual periods beginning on or after
ments of a joint arrangement to the recognition of the
January 1, 2015;
formation of every type of joint arrangement (pursuant
- “IFRS 13 - Fair value measurement”; the amendment cla-
to IFRS 11). The changes will apply prospectively, subject
rifies, within the standard’s Basis for Conclusions, that
to endorsement, for annual periods beginning on or af-
the IASB does not intend to modify the measurement
ter January 1, 2015;
requirements for short-term receivables and payables;
- “IFRS 13 - Fair value measurement”; the amendment cla-
- “IAS 16 - Property, plant and equipment”; the
rifies that the exception provided for in that standard of
amendment clarifies that, when an item of property,
measuring financial assets and liabilities on the basis of
plant and equipment is revalued, the gross carrying
the net exposure of the portfolio shall apply to all con-
amount of that asset shall be adjusted in a manner con-
tracts within the scope of IAS 39/IFRS 9 even if they do
sistent with the revaluation. In addition, it also clarifies
not meet the definitions in IAS 32 of financial assets/
that the accumulated depreciation shall be calculated
liabilities. The changes will apply, subject to endorse-
as the difference between the gross carrying amount
ment, for annual periods beginning on or after January
and the carrying amount of the asset after taking ac-
1, 2015. More specifically, they will apply prospectively
count of accumulated impairment losses. The changes
from the date that the Group initially applies IFRS 13;
will apply, subject to endorsement, to annual periods
- “IAS 40 - Investment property”; the amendment establi-
beginning on or after January 1, 2015. More specifical-
shes that a property interest held by a lessee under an
ly, they will be applicable to revaluations recognized in
operating lease may be classified as an investment pro-
the year ending December 31, 2015 and in the imme-
perty if and only if the property would otherwise meet
diately preceding annual period;
the definition of an investment property and if the lessee
- “IAS 24 - Related party disclosures”; the amendment
used the fair value model to measure such investments.
162
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts The amendment also clarifies that when an entity ac-
subject to endorsement, for annual periods beginning
quires an investment property, it must determine whe-
on or after January 1, 2015; the amendment concerning
ther that acquisition is a business combination under
the acquisition of an investment property shall apply
the provisions of IFRS 3. The change regarding proper-
prospectively, subject to endorsement, to acquisitions
ty interests held under a lease shall apply retroactively,
made on or after January 1, 2015.
4
Restatement of comparative
figures at December 31, 2012
Following the application, as from January 1, 2013 with ret-
rospective effect, of the new version of “IAS 19/R - Employ-
ee benefits”, the main effects on the income statement and
balance sheet for the previous year are discussed below:
> as the corridor approach may no longer be used, all actua-
rial gains and losses previously unrecognized at January 1,
2012 have been recognized directly in equity. Accordingly,
the amortization accruing in respect of the excess gains and
losses outside the corridor was eliminated from the income
statement (€19 million). The restatement of those items led
to the adjustment of the respective defined-benefit obliga-
tion and the net plan assets recognized in the balance sheet;
> as the recognition of past service cost in the income sta-
tement may no longer be deferred, for employee bene-
fits already existing at December 31, 2011, the portion of
the past service cost not yet recognized was recognized
in its entirety in equity at January 1, 2012, increasing the
employee benefit obligation. For employee benefit plans
introduced in 2012, the effect of the increase in the asso-
ciated obligation was recognized directly through profit or
loss for that period. That recognition through profit or loss
included charges of €932 million for the obligation in re-
spect of the transition-to-retirement plan implemented for
certain employees in Italy at the end of 2012;
> in application of the new standard, net interest income on
plan assets is recognized in substitution of the expected
return on those assets. As a result, that interest is no longer
presented under financial income but is instead deducted
from the financial expense of the benefit plans. The impact
of that change on the restated 2012 income statement for
the Group was not material.
In all cases, the theoretical tax effects and amounts pertain-
ing to non-controlling interests were also calculated.
In addition, in 2013, the Group adopted a new accounting
policy to standardize the recognition and presentation of
the various types of environmental certificates (CO2 allow-
ances, green certificates, white certificates). The new ap-
proach is based on the business model of the companies in-
volved in the environmental certificate mechanisms and led
only to a number of reclassifications in the income state-
ment and consolidated balance sheet.
Finally, as a result of the definitive allocation of the purchase
prices of the Kafireas pipeline and of Stipa Nayaá and Eólica
Zopiloapan, companies operating in the Renewable Energy
Division, which was completed after December 31, 2012, the
balance-sheet accounts at that date have been restated to
reflect the fair value adjustment of the assets acquired and
liabilities assumed in the associated business combinations.
The following tables reports the changes in the income
statement, statement of comprehensive income and con-
solidated balance sheet following the above amendments,
including the associated tax effects. The impact on the
consolidated statement of cash flows is limited to a number
of reclassifications among the various components, in line
with the figures reported in the balance sheet and income
statement.
163
Millions of euro
Revenues
Revenues from sales and services
Other revenues and income
Total revenues
Costs
Raw materials and consumables
Services
Personnel
Depreciation, amortization and impairment
losses
Other operating expenses
Capitalized costs
Total costs
Net income/(charges) from commodity risk
management
Operating income
Financial income
Financial expense
Share of income/(expense) from equity
investments accounted for using the equity
method
Income before taxes
Income taxes
Net income from continuing operations
Net income from discontinued operations
Net income for the year (shareholders of
the Parent Company and non-controlling
interests)
Pertaining to shareholders of the Parent
Company
Pertaining to non-controlling interests
2012
IAS 19/R effect
New environmental
certificate policy
2012
restated
82,699
2,190
84,889
46,130
15,738
4,860
9,003
3,208
(1,747)
77,192
38
7,735
2,272
5,275
88
4,820
2,745
2,075
-
2,075
865
1,210
-
-
-
-
-
929
-
-
-
929
-
(929)
(87)
(78)
-
(938)
(305)
(633)
-
(633)
(627)
(6)
(268)
328
60
452
42
-
-
(434)
-
60
-
-
-
-
-
-
-
-
-
-
-
-
82,431
2,518
84,949
46,582
15,780
5,789
9,003
2,774
(1,747)
78,181
38
6,806
2,185
5,197
88
3,882
2,440
1,442
-
1,442
238
1,204
164
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Millions of euro
Net income for the year
Other comprehensive income recyclable to profit or loss
Effective portion of change in the fair value of cash flow
hedges
Share of income recognized in equity by companies accounted
for using the equity method
Change in the fair value of financial investments available for
sale
Change in translation reserve
Other comprehensive income not recyclable to profit or loss
Change in net liabilities/(assets) in respect of defined-benefit
plans
Income/(Loss) recognized directly in equity
Comprehensive income for the period
Pertaining to:
- shareholders of the Parent Company
- non-controlling interests
2012
2,075
(760)
(7)
(416)
73
-
(1,110)
965
(374)
1,339
IAS 19/R effect
2012 restated
(633)
1,442
-
-
-
-
(248)
(248)
(881)
(858)
(23)
(760)
(7)
(416)
73
(248)
(1,358)
84
(1,232)
1,316
Millions of euro
Non-current assets
Property, plant and equipment
Investment property
Intangible assets
Deferred tax assets
Equity investments accounted for
using the equity method
Non-current financial assets
Other non-current assets
Current assets
Inventories
Trade receivables
Tax receivables
Current financial assets
Other current assets
Cash and cash equivalents
Total current assets
Assets held for sale
TOTAL ASSETS
Total non-current assets
133,924
at Dec. 31,
2011
IAS 19/R
effect
at Jan. 1,
2012
restated
at Dec. 31,
2012
IAS 19/R
effect
Renewable
Energy
Division PPA
at Dec. 31,
2012
restated
80,592
245
39,049
6,116
1,085
6,325
512
3,148
11,570
1,251
10,466
2,136
7,015
35,586
381
-
-
-
90
-
-
(97)
(7)
-
-
-
-
-
-
-
-
80,592
83,115
245
39,049
6,206
1,085
6,325
415
197
35,970
6,305
1,115
5,518
897
133,917
133,117
3,148
11,570
1,251
10,466
2,136
7,015
3,338
11,719
1,631
9,381
2,262
9,891
35,586
38,222
381
317
-
-
-
511
-
-
(97)
414
-
-
-
-
-
-
-
-
-
-
27
-
-
-
-
83,115
197
35,997
6,816
1,115
5,518
800
27
133,558
-
-
-
-
-
-
-
-
3,338
11,719
1,631
9,381
2,262
9,891
38,222
317
169,891
(7)
169,884
171,656
414
27
172,097
165
Millions of euro
Equity pertaining to the
shareholders of the Parent Company
Share capital
Other reserves
Retained earnings (Loss carried
forward)
Non-controlling interests
TOTAL SHAREHOLDERS’ EQUITY
Non-current liabilities
Long-term loans
Post-employment and other
employee benefits
Provisions for risks and charges
Deferred tax liabilities
Non-current financial liabilities
Other non-current liabilities
Current liabilities
Short-term loans
Current portion of long-term loans
Trade payables
Income tax payable
Current financial liabilities
Other current liabilities
Liabilities held for sale
TOTAL LIABILITIES
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
at Dec. 31,
2011
IAS 19/R
effect
at Jan. 1,
2012
restated
at Dec. 31,
2012
IAS 19/R
effect
Renewable
Energy
Division PPA
at Dec. 31,
2012
restated
9,403
10,348
18,899
38,650
15,650
54,300
-
(131)
(7)
(138)
(61)
(199)
9,403
10,217
18,892
38,512
15,589
54,101
9,403
9,109
18,259
36,771
16,387
53,158
-
(362)
(634)
(996)
(84)
(1,080)
48,703
-
48,703
55,959
-
3,000
8,057
11,505
2,307
1,313
74,885
4,799
9,672
12,931
671
3,668
8,907
40,648
58
115,591
192
-
-
-
-
3,192
8,057
3,063
8,648
11,505
11,753
2,307
1,313
2,553
1,151
1,479
-
15
-
-
192
75,077
83,127
1,494
-
-
-
-
-
-
-
-
4,799
9,672
3,970
4,057
12,931
13,903
671
3,668
8,907
364
3,138
9,931
40,648
35,363
58
8
-
-
-
-
-
-
-
-
192
115,783
118,498
1,494
169,891
(7)
169,884
171,656
414
-
-
-
-
9
9
-
-
-
18
-
-
18
-
-
-
-
-
-
-
-
18
27
9,403
8,747
17,625
35,775
16,312
52,087
55,959
4,542
8,648
11,786
2,553
1,151
84,639
3,970
4,057
13,903
364
3,138
9,931
35,363
8
120,010
172,097
166
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 5
Main changes in the scope of consolidation
In the two periods under review, the scope of consolidation changed as a result of the following main transactions.
2012
2013
> acquisition, on January 13, 2012, of an additional 49% of
> acquisition, on March 22, 2013, of 100% of Parque Eólico
Rocky Ridge Wind Project, which was already a subsidi-
Talinay Oriente, a company operating in the wind genera-
ary (consolidated line-by-line) controlled through a 51%
tion sector in Chile;
stake;
> acquisition, on March 26, 2013, of 50% of PowerCrop, a
> acquisition, on February 14, 2012, of the remaining 50%
company operating in the generation of electricity from
of Enel Stoccaggi, a company in which the Group already
biomass; in view of the joint control exercised with another
held a 50% interest. As from that date the company has
owner, the company is consolidated on a proportionate ba-
been consolidated on a line-by-line basis (previously
sis;
consolidated proportionately in view of the joint control
> disposal, on April 8, 2013, of 51% of Buffalo Dunes Wind
exercised);
Project, a company operating in the wind generation sec-
> acquisition, on June 27, 2012, of the remaining 50%
tor in the United States;
of a number of companies in the Kafireas wind power
> acquisition, on May 22, 2013, of 26% of Chisholm View
pipeline in Greece, which had previously been includ-
Wind Project and Prairie Rose Wind Project, two compa-
ed under “Elica 2” and accounted for using the equity
nies operating in the wind generation sector in the United
method in view of its 30% stake; as from that date the
States in which the Group held a stake of 49%; as a result
companies have therefore been consolidated on a line-
of the purchase, the companies are no longer consoli-
by-line basis;
dated using the equity method but are consolidated on
> acquisition, on June 28, 2012, of 100% of Stipa Nayaá,
a line-by-line basis;
a Mexican company operating in the wind generation
> acquisition, on August 9, 2013, of 70% of Domus Energia
sector;
(now Enel Green Power Finale Emilia), a company operat-
> disposal, on August 2, 2012, of the entire capital of Water
ing in the biomass generation sector;
& Industrial Services Company (Wisco), which operates in
> acquisition, on October 31, 2013, of 100% of Compañía
the waste water treatment sector in Italy;
Energética Veracruz, a company operating in the develop-
> disposal, on October 9, 2012, of the entire share capital
ment of hydroelectric plants in Peru;
of Endesa Ireland, a company operating in the generation
> disposal, on November 13, 2013, of 40% of Artic Russia,
of electricity;
with the consequent deconsolidation of the interest held
> acquisition, on October 12, 2012, of the additional 58%
by the latter in SeverEnergia;
of Trade Wind Energy, a company in which the Group had
> acquisition, in November and December 2013, of nine
held a stake of 42%; as a result of the purchase, the com-
companies (representing three business combinations)
pany is no longer consolidated using the equity method
operating in the development of wind power projects in
but is consolidated on a line-by-line basis;
the United States;
> acquisition, on December 21, 2012, of 99.9% of Eólica
> disposal, on December 20, 2013, of the remaining stake
Zopiloapan, a Mexican company operating in the wind
in Enel Rete Gas, previously consolidated using the eq-
generation sector.
uity method.
167
Definitive allocation of the purchase
price of a number of companies of the
Renewable Energy Division
Following the acquisition of control in 2012 of a number of
completion of the determination of their fair value;
companies of the Greek Kafireas wind pipeline and 100% of
> determined the tax effects associated with the above re-
Stipa Nayaá and Eólica Zopiloapan, Mexican companies ope-
cognition;
rating in the wind generation sector, in 2013, the Group com-
> allocated to non-controlling interests the portion of those
pleted the allocation of the associated purchase prices to the
assets pertaining to them.
assets acquired and the liabilities assumed. More specifically,
The following table summarizes the accounting effects as of
in all cases the Group:
the acquisition dates
> recognized certain intangible assets as a result of the
Definitive allocation of the purchase price
Millions of euro
Net assets acquired before allocation
Adjustments for measurement at fair value:
- intangible assets
- deferred tax liabilities
- non-controlling interests
Net assets acquired after allocation
Value of the transaction (1)
Goodwill
(1) Including incidental expenses.
Kafireas pipeline
Stipa Nayaá
Eólica Zopiloapan
1
55
(11)
(9)
36
58
22
125
14
(4)
-
135
139
4
112
11
(3)
-
120
126
6
Business combinations and
acquisitions of joint ventures in 2013
As regards the acquisitions in 2013 that represent a business
separate business combinations), the transactions were rec-
combination and in compliance with the provision of IFRS 3
ognized on a provisional basis pending completion of the
Revised, the following table reports the impact of the initial
allocation of the purchase price pursuant to IFRS 3 Revised.
recognition of those transactions. As regards the business
Conversely, the business combinations with Chisholm View
combinations with Parque Eólico Talinay Oriente, Compañía
and Prairie Rose were already carried out on a definitive ba-
Energética Veracruz, PowerCrop, a number of minor compa-
sis and incorporate the remeasurement at fair value of prop-
nies in the Renewable Energy Division and a number of wind
erty, plant and equipment in the amounts of €4 million and
projects in the United States (the latter representing three
€1 million, respectively.
168
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Business combinations and acquisitions of joint ventures in 2013
Business combinations
Parque Eólico
Talinay Oriente
Chisholm View
Wind Project
Prairie Rose
Wind
US wind
projects
Acquisitions of
joint ventures
Other minor
operations in
the Renewable
Energy Division
Compañía
Energética
Veracruz
PowerCrop
127
-
19
-
-
-
(20)
-
126
-
126
81 (2)
81
276
223
-
-
8
4
(124)
(29)
(34)
101
-
101
35 (3)
27
-
-
9
2
(108)
(24)
(25)
77
-
77
27 (4)
18
7
69
-
-
-
(20)
(6)
-
50
-
50
-
-
9
-
-
1
-
(2)
-
(3)
5
14
19
19
18
-
14
-
-
-
-
-
-
14
-
14
2
2
10
2
-
-
5
-
(2)
-
15
9
24
4 (5)
4
Millions of euro
Property, plant and equipment
Intangible assets
Other non-current assets
Cash and cash equivalents
Current assets
Non-current liabilities
Current liabilities
Non-controlling interests
Net assets acquired
Goodwill
Price of the transaction (1)
Cash flow impact
Cash flow impact excluding cash
and cash equivalents acquired
(1) Including incidental expenses.
(2) Net of the advance paid in 2012 (€27 million) and the amount still to be paid (€18 million).
(3) Net of the value of the interest acquired in 2012, previously accounted for using the equity method (€66 million).
(4) Net of the value of the interest acquired in 2012, previously accounted for using the equity method (€50 million).
(5) Net of the advance paid in 2012 (€8 million) and the amount still to be paid (€12 million).
Effects of Enersis capital increase
On March 29, 2013, the capital increase of the Chilean com-
> Empresa Distribuidora Sur, with an interest of 6.22%;
pany Enersis was completed in the overall amount of €4,559
> Endesa Brasil, with an interest of 28.48%;
million. The capital increase was subscribed by Endesa
> Endesa Cemsa, with an interest of 55.00%;
(60.6%) with the transfer of the equity investments includ-
> Generalima, with an interest of 100.00%;
ed in Cono Sur Participaciones and by other shareholders
> Inversiones Distrilima, with an interest of 34.83%;
(39.4%) in cash.
> Inversora Dock Sud, with an interest of 57.14%;
More specifically, the equity investments held directly by
> Yacylec, with an interest of 22.22%.
Cono Sur Participaciones at the transaction date were:
> Ampla Energia e Serviços, with an interest of 7.70%;
Since the capital increase was fully subscribed by existing
> Ampla Investimentos e Serviços, with an interest of 7.71%;
shareholders, after the operation the shareholder base of
> Codensa, with an interest of 26.66%;
Enersis was unchanged. For the Enel Group, the transaction
> Compañia Eléctrica San Isidro, with an interest of 4.39%;
qualifies as a disposal of a minority interest to the extent
> Eléctrica Cabo Blanco, with an interest of 80.00%;
of the dilution produced with the transfer of the assets to
> Emgesa, with an interest of 21.60%;
Enersis.
169
The following table summarizes the impact of the disposal on the accounts:
Effects of the disposal of minority interests pertaining to the Endesa-Latin America CGU
Millions of euro
Determination of the value of the interest divested in the Enersis capital increase
Net assets of Cono Sur Participaciones
Non-controlling interests in those assets
Goodwill pertaining to those assets
Value of 92.06% of Cono Sur Participaciones
Interest transferred in Enersis capital increase (39.4%)
Determination of price for assets transferred
Capital increase subscribed in cash
Share pertaining to Enel Group (55.8%)
Cost of transaction pertaining to Enel Group (1)
Price received for disposal
Net result on transaction (recognized in reserve from disposal of equity interests without loss of control)
(1) Calculated on basis of total costs incurred of €94 million, net of tax effects and non-controlling interests.
2,261
(180)
357
2,438
961
1,795
1,001
54
947
(14)
6
Risk management
Market risk
eign currencies, such as costs, revenues, assets and liabilities,
as well as the consolidation values of equity investments
denominated in currencies other than the euro (translation
risk).
As with interest rates, changes in exchange rates can cause
As part of its operations, the Enel Group is exposed to a varie-
variations in the value of financial assets and liabilities meas-
ty of market risks, notably the risk of changes in interest rates,
ured at fair value.
exchange rates and commodity prices.
The Group’s policies for managing financial risks provide
for the stabilization of the effects of changes in interest
As part of the governance of risk management, market risks
rates and exchange rates with the exclusion of translation
are governed through specific policies set at both the Group
risk. This objective is achieved both at the source of the risk,
level and at the level of individual divisions/countries, with
through the strategic diversification of the nature of finan-
special Risk Committees responsible for strategic policy-ma-
cial assets and liabilities, and by modifying the risk profile of
king and oversight. The governance arrangements for risk
exposures with derivatives entered into on over-the-counter
management provide for a system of operational limits defi-
markets.
ned by individual risk type, which are monitored periodically
by the Risk Management units.
The risk of fluctuations in commodity prices is generated by
the volatility of those prices and existing structural correla-
The nature of the financial risks to which the Group is ex-
tions. The combination of these factors creates uncertainty
posed is such that changes in interest rates can cause an
about the margin on transactions in fuels and energy. The
increase in net financial expense or adverse changes in the
variability of prices can also impact the industrial and com-
value of assets/liabilities measured at fair value.
mercial strategies of the Group.
The Group is also exposed to the risk that changes in the
In order to minimize the effects of such fluctuations and sta-
exchange rates between the euro and the main foreign cur-
bilize margins, strategies such as advance sourcing and hed-
rencies could have an adverse impact on the value in euro of
ging with derivatives are defined and planned in accordance
performance and financial aggregates denominated in for-
with the Group’s policies and the operational limits specified
170
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts under risk governance arrangements. The Group also enga-
on the basis of the market yield curve at the balance-sheet
ges in proprietary trading activities, aimed at monitoring the
date and translating amounts in currencies other than the
energy commodity markets used by the Group.
euro using year-end exchange rates provided by the Euro-
The strategies for hedging the price risk arising from trading
pean Central Bank.
in commodities can be implemented by Group companies
For contracts involving commodities, the measurement is
through financial instruments that eliminate market risk by
conducted using prices for the same instruments on both
sterilizing the variable components of prices. To make the
regulated and unregulated markets.
process more efficient, Enel has centralized the hedging of
commodity price risk using financial instruments with a spe-
In accordance with the new international accounting stand-
cialized organizational unit that primarily operates through
ards, the Group includes a measurement of credit risk, both
contracts for difference and swaps, and turns to the derivati-
of the counterparty (Credit Valuation Adjustment or CVA)
ves market to hedge the net balance of the exposures.
and its own (Debit Valuation Adjustment or DVA), in order
to adjust the fair value of financial instruments for the cor-
During 2013, EMIR (European Market Infrastructure Regula-
responding amount of counterparty risk.
tion 648/2012 of the European Parliament) came into force.
More specifically, the Group measures CVA/DVA using a Po-
It is intended to regulate the OTC derivatives market in order
tential Future Exposure valuation technique for the net ex-
to contain the systemic and counterparty risk typical of the
posure of the position and subsequently allocating the ad-
market within sustainable limits, increasing the transparency
justment to the individual financial instruments that make
of trading and reducing the scope for market abuse.
up the overall portfolio. All of the inputs used in this tech-
To this end, the EMIR framework introduces an operational
nique are observable on the market.
model for the management of the entire life cycle of OTC
Changes in the assumptions made in estimating the input
derivatives, involving both financial and non-financial coun-
date could have an impact on the fair value recognized for
terparties. Among the main innovations, it provides for the
those instruments.
standardization of contracts, the obligation to use a clearing
system involving a central or bilateral counterparty, and re-
The notional amount of a derivative contract is the amount
quirements to report to authorized entities at the European
on which cash flows are exchanged. This amount can be
level (trade repositories).
expressed as a value or a quantity (for example tons, con-
In 2013, the Enel Group, as non-financial counterparty, un-
verted into euros by multiplying the notional amount by the
dertook a number of initiatives to ensure compliance with
agreed price). Amounts denominated in currencies other
the EMIR regulatory framework.
than the euro are converted into euros at the exchange rate
In particular, in the more specific area of risk management
provided by the European Central Bank.
governance, the Group has begun monitoring the size of
The notional amounts of derivatives reported here do not
the OTC derivatives portfolio in relation to the threshold
necessarily represent amounts exchanged between the
values set by regulators for the activation of the clearing
parties and therefore are not a measure of the Company’s
obligations. During 2013, no overshoot of those threshold
credit risk exposure.
values was detected.
In conformity with the international accounting standards,
We report below the scale of transactions in derivative in-
financial assets and liabilities associated with derivative in-
struments outstanding at December 31, 2013, indicating
struments are classified as:
the fair value and notional amount for each class of instru-
> cash flow hedge derivatives related to i) hedging the risk of
ment.
changes in cash flows associated with long-term floating-
The fair value of a derivative contract is determined using
rate borrowings; ii) hedging the exchange rate risk associ-
the official prices for instruments traded on regulated mar-
ated with long-term debt denominated in currencies other
kets. The fair value of instruments not listed on a regulated
than the currency of account or the functional currency in
market is determined using valuation methods appropriate
which the company holding the financial liability operates;
for each type of financial instrument and market data as
iii) hedging the exchange rate risk associated with the
of the close of the period (such as interest rates, exchange
price of fuels priced in foreign currencies; iv) hedging the
rates, volatility), discounting expected future cash flows
price risk associated with forecast sales of electricity at vari-
171
able prices; and v) hedging the price risk associated with
change of floating-rate interest flows for fixed-rate interest
sales of coal and oil commodities;
flows, both of which are calculated on the basis of the no-
> fair value hedge derivatives, related to hedging the expo-
tional principal amount.
sure to changes in the fair value of an asset, liability or firm
Interest rate options involve the exchange of interest differ-
commitment attributable to a particular risk;
ences calculated on a notional principal amount once cer-
> trading derivatives associated with proprietary trading in
tain thresholds (strike prices) are reached. These thresholds
commodities or hedging interest and exchange rate risk or
specify the effective maximum rate (cap) or the minimum rate
commodity risk which it would be inappropriate to desig-
(floor) on the debt as a result of the hedge. Hedging strate-
nate as cash flow hedges/fair value hedges or which do
gies can also make use of combinations of options (collars)
not meet the formal requirements of IAS 39.
that establish the minimum and maximum rates at the same
time. In this case, the strike prices are normally set so that no
Interest rate risk
The twin objectives of reducing the amount of debt subject to
premium is paid on the contract (zero cost collars).
Such contracts are normally used when the fixed interest rate
changes in interest rates and of containing borrowing costs
that can be obtained in an interest rate swap is considered
are pursued with the use of a variety of derivatives contracts,
too high with respect to Enel’s expectations for future inter-
notably interest rate swaps, interest rate options and swap-
est rate developments. In addition, interest rate options are
tions. The term of such contracts does not exceed the matu-
also considered appropriate in periods of uncertainty about
rity of the underlying financial liability, so that any change in
future interest rate developments, in order to benefit from
the fair value and/or cash flows of such contracts is offset by
any decreases in interest rates.
a corresponding change in the fair value and/or cash flows of
The following table reports the notional amount of interest
the underlying position.
rate derivatives at December 31, 2013 and December 31,
Interest rate swaps normally provide for the periodic ex-
2012 broken down by type of contract:.
Millions of euro
Interest rate swaps
Interest rate options
Total
Notional amount
2013
8,803
50
8,853
2012
8,294
50
8,344
The following table reports the notional amount and fair
December 31, 2012, broken down by designation (IAS 39):
value of interest rate derivatives at December 31, 2013 and
Millions of euro
Notional amount
Fair value
Fair value assets
Fair value liabilities
at Dec.
31, 2013
at Dec.
31, 2012
at Dec.
31, 2013
at Dec.
31, 2012
at Dec.
31, 2013
at Dec.
31, 2012
at Dec.
31, 2013
at Dec.
31, 2012
Cash flow hedge derivatives
Interest rate swaps
6,878
6,433
(386)
(686)
40
Fair value hedge derivatives
Interest rate swaps
Trading derivatives
Interest rate swaps
Interest rate options
Total interest rate swaps
Total interest rate options
TOTAL INTEREST RATE
DERIVATIVES
1,121
83
49
17
804
50
8,803
50
1,778
50
8,294
50
(67)
(4)
(404)
(4)
(110)
(7)
(779)
(7)
8,853
8,344
(408)
(786)
49
2
-
91
-
91
5
17
4
-
26
-
26
(426)
(691)
-
-
(69)
(4)
(495)
(4)
(114)
(7)
(805)
(7)
(499)
(812)
172
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts The following table reports the cash flows expected in coming years from these financial derivatives:
Expected cash flows from interest rate derivatives
Millions of euro
Notional amount
CFH on interest rates
Positive fair value
Negative fair value
FVH on interest rates
Positive fair value
Trading derivatives on interest rates
Positive fair value
Negative fair value
at Dec. 31,
2013
2014
2015
2016
2017
2018
Beyond
40
(426)
(7)
(173)
(9)
(104)
49
(3)
2
(73)
2
(21)
19
1
(9)
(6)
(57)
14
-
(7)
(1)
(40)
4
-
(6)
4
(28)
(2)
-
(5)
72
(117)
39
-
(39)
The amount of floating-rate debt that is not hedged against
action categories:
interest rate risk is the main risk factor that could impact the
> debt denominated in currencies other than the currency
income statement (raising borrowing costs) in the event of an
of account or the functional currency entered into by the
increase in market interest rates.
holding company or the individual subsidiaries;
> cash flows in respect of the purchase or sale of fuel or elec-
At December 31, 2013, 9% of net long-term financial debt
tricity on international markets;
was floating rate (17% at December 31, 2012). Taking ac-
> cash flows in respect of investments in foreign currency,
count of cash flow hedges of interest rates considered ef-
dividends from unconsolidated foreign companies or the
fective pursuant to the IFRS-EU, net financial debt was more
purchase or sale of equity investments.
than 6% overhedged at December 31, 2013 (97% hedged
In order to minimize this risk, the Group normally uses a variety
at December 31, 2012). Including interest rate derivatives
of over-the-counter (OTC) derivatives such as currency forwards,
treated as hedges for management purposes but ineligible
cross currency interest rate swaps and currency options. The term
for hedge accounting, net financial debt was more than 6%
of such contracts does not exceed the maturity of the underlying
overhedged (99% hedged at December 31, 2012).
financial liability, so that any change in the fair value and/or cash
flows of such contracts is offset by a corresponding change in the
If interest rates had been 25 basis points higher at Decem-
fair value and/or cash flows of the underlying position.
ber 31, 2013, all other variables being equal, shareholders’
Cross currency interest rate swaps are used to transform a long-
equity would have been €68.8 million higher (€79.4 million
term fixed- or floating-rate liability in foreign currency into an
at December 31, 2012) as a result of the increase in the fair
equivalent fixed- or floating-rate liability in euros. In addition
value of CFH derivatives on interest rates. Conversely, if inter-
to having notionals denominated in different currencies, these
est rates had been 25 basis point lower at that date, all other
instruments differ from interest rate swaps in that they provide
variables being equal, shareholders’ equity would have been
both for the periodic exchange of cash flows and the final ex-
€68.8 million lower (€79.4 million at December 31, 2012) as
change of principal.
a result of the decrease in the fair value of CFH derivatives on
Currency forwards are contracts in which the counterparties
interest rates.
agree to exchange principal amounts denominated in differ-
An equivalent increase (decrease) in interest rates, all other
ent currencies at a specified future date and exchange rate (the
variables being equal, would have a negative (positive) im-
strike). Such contracts may call for the actual exchange of the two
pact on the income statement in terms of higher (lower) in-
amounts (deliverable forwards) or payment of the difference
terest expense on the portion of debt not hedged against
between the strike exchange rate and the prevailing exchange
interest rate risk of about €35 million.
rate at maturity (non-deliverable forwards). In the latter case, the
Exchange rate risk
Exchange rate risk is mainly generated with the following trans-
strike rate and/or the spot rate may be determined as averages
of the official fixings of the European Central Bank.
Currency options involve the purchase (or sale) of the right to
173
exchange, at an agreed future date, two principal amounts de-
deliverable). In the latter case, the strike rate and/or the spot rate
nominated in different currencies on specified terms (the con-
may be determined as averages of the official fixings of the Eu-
tractual exchange rate represents the option strike price); such
ropean Central Bank.
contracts may call for the actual exchange of the two amounts
The following table reports the notional amount of transactions
(deliverable) or payment of the difference between the strike ex-
outstanding at December 31, 2013 and December 31, 2012, bro-
change rate and the prevailing exchange rate at maturity (non-
ken down by type of hedged item:
Millions of euro
Notional amount
Cross currency interest rate swaps (CCIRSs) hedging debt denominated in currencies
other than the euro
Currency forwards hedging exchange rate risk on commodities
Currency forwards hedging future cash flows in currencies other than euro
Currency swaps hedging commercial paper
Currency forwards hedging credit lines
Other currency forward
Total
2013
14,263
4,253
1,906
246
201
423
21,292
2012
13,892
6,250
1,348
232
201
-
21,923
More specifically, these include:
lion used to hedge the exchange rate risk associated with
> CCIRSs with a notional amount of €14,263 million to
redemptions of commercial paper issued in currencies
hedge the exchange rate risk on debt denominated in
other than the euro (€232 million at December 31, 2012);
currencies other than the euro (€13,892 million at De-
> currency forwards with a total notional amount of €201
cember 31, 2012);
million used to hedge the exchange rate risk associated
> currency forwards with a total notional amount of €6,159
with credit lines in currencies other than the euro (€201
million used to hedge the exchange rate risk associated
million at December 31, 2012).
with purchases of fuel, imported electricity and expected
cash flows in currencies other than the euro (€7,598 mil-
The following table reports the notional amount and fair
lion at December 31, 2012);
value of exchange rate derivatives at December 31, 2013 and
> currency swaps with a total notional amount of €246 mil-
December 31, 2012, broken down by designation (IAS 39):
Millions of euro
Notional amount
Fair value
Fair value assets
Fair value liabilities
at Dec. 31,
2013
at Dec. 31,
2012
at Dec. 31,
2013
at Dec. 31,
2012
at Dec. 31,
2013
at Dec. 31,
2012
at Dec. 31,
2013
at Dec. 31,
2012
Cash flow hedge derivatives:
- currency forwards
- CCIRSs
2,989
14,258
3,458
13,631
(91)
(1,551)
5
261
(2)
4,040
7,029
4,573
8,031
12
(79)
14,263
13,892
(1,553)
(83)
(847)
18
35
(48)
(829)
4
435
4
927
(95)
(87)
(1,986)
(1,774)
-
23
(2)
(5)
46
50
435
74
78
950
(34)
(129)
(39)
(126)
(1,988)
(1,779)
21,292
21,923
(1,632)
(877)
485
1,028
(2,117)
(1,905)
Fair value hedge derivatives:
- CCIRSs
Trading derivatives:
- currency forwards
Total forwards
Total CCIRS
TOTAL EXCHANGE RATE
DERIVATIVES
174
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
The following table reports the cash flows expected in coming years from these financial derivatives:
Expected cash flows from exchange rate derivatives
Millions of euro
CFH on exchange rates
Positive fair value
Negative fair value
FVH on exchange rates
Negative fair value
Trading derivatives on exchange rates
Positive fair value
Negative fair value
Fair value
at Dec. 31,
2013
Distribution of expected cash flows
2014
2015
2016
2017
2018
Beyond
439
(2,081)
164
(346)
70
(71)
52
(186)
48
(32)
32
(47)
275
(313)
(2)
(1)
(1)
46
(34)
35
(35)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
An analysis of the Group’s debt shows that 31% of medium-
As regards electricity sold by the Group, Enel uses fixed-price
and long-term debt (29% at December 31, 2012) is denomi-
contracts in the form of bilateral physical contracts and finan-
nated in currencies other than the euro.
cial contracts (e.g. contracts for differences, VPP contracts,
Taking account of exchange rate hedges and the portion of
etc.) in which differences are paid to the counterparty if the
debt denominated in the currency of account or the functional
market electricity price exceeds the strike price and to Enel in
currency of the Group company holding the debt position, the
the opposite case.
proportion of unhedged debt decreases to 1% (2% at Decem-
The residual exposure in respect of the sale of energy on the
ber 31, 2012), a proportion that is felt would not have a signifi-
spot market not hedged with such contracts is quantified
cant impact on the Group’s earnings in the event of a change in
and managed on the basis of an estimation of developments
market exchange rates.
in generation costs. The residual positions thus determined
are aggregated on the basis of uniform risk factors that can
At December 31, 2013, assuming a 10% appreciation of the
be hedged in the market. Various types of derivatives are
euro against the foreign currencies involved, all other vari-
used to reduce the exposure to fluctuations in energy com-
ables being equal, shareholders’ equity would have been
modity prices (mainly forwards, swaps, commodity options,
€1,539 million lower (€1,689 million at December 31, 2012),
futures and contracts for differences). Enel also engages in
as a result of the decrease in the fair value of CFH deriva-
proprietary trading in order to maintain a presence in the
tives on exchange rates. Conversely, assuming a 10% depre-
Group’s reference energy commodity markets. These opera-
ciation of the euro against the foreign currencies involved,
tions consist in taking on exposures in energy commodi-
all other variables being equal, shareholders’ equity would
have been €1,881 million higher (€2,064 million at Decem-
ties (oil products, gas, coal, CO2 certificates and electricity
in the main European countries), using financial derivatives
ber 31, 2012) as a result of the increase in the fair value of
and physical contracts traded on regulated and over-the-
CFH derivatives on exchange rates.
counter markets, exploiting profit opportunities through
arbitrage transactions carried out on the basis of expected
Commodity risk
The exposure to the risk of changes in commodity prices is
market developments.
The commodity risk management processes established at
associated with the purchase of fuel for power plants and
the Group level are designed to constantly monitor develop-
the purchase and sale of gas under indexed contracts as
ments in risk over time and to determine whether the risk
well as the purchase and sale of electricity at variable prices
levels, as observed for specific analytical dimensions (for ex-
(indexed bilateral contracts and sales on the electricity spot
ample, geographical areas, organizational structures, busi-
market).
ness lines, etc.), comply with the thresholds consistent with
The exposures on indexed contracts are quantified by break-
the risk appetite established by top management. These
ing down the contracts that generate exposure into the un-
operations are conducted within the framework of formal
derlying risk factors.
governance rules that establish strict risk limits. Compliance
175
with the limits is verified by units that are independent of
of Value-at-Risk over a 1-day time horizon and a confidence
those undertaking the transactions. Positions are monitored
level of 95%; the sum of the limits for 2013 is equal to about
monthly, assessing the Profit at Risk, in the case of industrial
€33 million.
portfolios, and daily, calculating Value at Risk, in the case of
The following table reports the notional amount and fair val-
the trading book.
ue of derivative contracts relating to commodities at Decem-
The risk limits for Enel’s proprietary trading are set in terms
ber 31, 2013 and December 31, 2012.
Millions of euro
Notional amount
Fair value
Fair value assets
Fair value liabilities
at Dec. 31,
2013
at Dec. 31,
2012
at Dec. 31,
2013
at Dec. 31,
2012
at Dec. 31,
2013
at Dec. 31,
2012
at Dec. 31,
2013
at Dec. 31,
2012
Cash flow hedge derivatives:
- derivatives on energy
- derivatives on coal
- derivatives on gas
- other derivatives on commodities
Trading derivatives:
2,024
1,250
1,413
90
1,847
1,507
585
-
- derivatives on energy
13,812
13,371
- swaps on oil commodities
- futures/options on oil commodities
- derivatives on coal
- embedded derivatives
TOTAL COMMODITY
DERIVATIVES
5,426
3,357
1,442
659
3,380
4,661
1,724
126
(19)
(120)
(8)
6
127
(44)
30
6
(1)
19
(141)
(5)
-
66
(66)
5
(3)
(122)
16
-
-
6
268
1,621
173
69
-
23
-
-
-
(35)
(120)
(8)
-
(4)
(141)
(5)
-
84
(141)
(18)
1,346
(1,665)
(1,412)
80
84
-
(143)
(63)
(1)
(75)
(87)
(122)
29,473
27,201
(23)
(247)
2,153
1,617
(2,176)
(1,864)
Cash flow hedge derivatives refer to the physical positions
table shows the fair value of the derivatives and the con-
in the underlying and, therefore, any negative (positive)
sequent impact on shareholders’ equity at December 31,
change in the fair value of the derivative instrument cor-
2013 (gross of taxes) that would have resulted, all other
responds to a positive (negative) change in the fair value
conditions being equal, in the event of a 10% increase or
of the underlying physical commodity, so that the impact
decrease in the prices of the commodities underlying the
on the income statement is equal to zero. The following
valuation model considered in the scenario at that date.
Millions of euro
Fair value of cash flow hedge derivatives on energy
Fair value of cash flow hedge derivatives on coal
Fair value of cash flow hedge derivatives on gas
Fair value of cash flow hedge derivatives on other commodities
-10%
Scenario
+10%
at Dec. 31, 2013
121
(204)
(24)
3
(19)
(120)
(8)
6
(159)
(27)
7
5
The following table shows the fair value of derivatives and
event of a 10% increase or decrease in the prices of the com-
the consequent impact on the income statement and share-
modities underlying the valuation model considered in the
holders’ equity at December 31, 2013 (gross of taxes), that
scenario at that date.
would have resulted, all other conditions being equal, in the
Millions of euro
-10%
Scenario
+10%
Fair value of trading derivatives on energy
Fair value of trading derivatives on oil commodities
Fair value of trading derivatives on coal
at Dec. 31, 2013
19
(39)
(18)
127
(14)
6
244
25
21
176
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Embedded derivatives relate to contracts for the purchase
rate whose fair value at December 31, 2013 was nil;
and sale of energy entered into by Slovenské elektrárne in
b. a derivative on the price of gas whose fair value at Decem-
Slovakia. The risk factors underlying the contracts are the
ber 31, 2013 was a negative €1 million.
price of electricity on the Slovakian market, the price of
aluminum on the London Metal Exchange and the euro/
The following tables show the fair value at December 31,
US dollar exchange rate. The market value at December 31,
2013, as well as the value expected from a 10% increase or
2013 came to a negative €0.8 million, composed of:
decrease in the underlying risk factors.
a. an embedded derivative on the euro/US dollar exchange
Fair value embedded derivative (a)
Millions of euro
Decrease of 10%
Scenario at Dec. 31, 2013
Increase of 10%
Fair value embedded derivative (b)
Millions of euro
Decrease of 10%
Scenario at Dec. 31, 2013
Increase of 10%
euro/US dollar exchange rate
-
-
-
Aluminum price
(14)
(1)
12
The following table reports the cash flows expected in subsequent years from these financial derivatives on commodities.
Millions of euro
Cash flow hedge derivatives
Positive fair value
Negative fair value
Trading derivatives
Positive fair value
Negative fair value
Credit risk
Fair value
at Dec. 31,
2013
22
(163)
2,131
(2,013)
Distribution of expected cash flows
2014
2015
2016
2017
2018
Beyond
10
(156)
2,192
2,096
8
(6)
(20)
37
2
(1)
(51)
53
2
-
10
(7)
-
-
-
-
-
-
-
-
The Group’s commercial, commodity and financial oper-
tored through the assessment of the related credit risk and
ations expose it to credit risk, i.e. the possibility that an
the request for suitable guarantees and/or security deposits
unexpected change in the creditworthiness of a coun-
to ensure adequate protection from counterparty default
terparty has an effect on the creditor position, in terms
risk.
of insolvency (default risk) or changes in its market value
(spread risk).
Open positions in financial derivatives are entered into with
leading Italian and international financial institutions, diver-
As part of the sale and distribution of electricity and gas to
sifying the exposure among different institutions and con-
eligible customers, the selection of counterparties is moni-
stantly monitoring their credit ratings.
177
In addition, Enel entered into margin agreements with the
commercial portfolio. More specifically, in 2011 a five-year
leading financial institutions with which it operates that call
framework agreement was reached with two leading banks
for the exchange of cash collateral, which significantly miti-
for the ongoing non-recourse assignment of invoiced re-
gates the exposure to counterparty risk.
ceivables and receivables to be invoiced in respect of cus-
tomers in the enhanced protection market in Italy.
As regards the credit risk associated with the solvency of
In subsequent years, partly in view of the macroeconomic
counterparties in commodities transactions, the Group
environment, the use of assignments was extended both
uses a centralized assessment system that enhances the
geographically and to invoiced receivables and receivables
monitoring and governance of the risk. In 2013, in addition
to be invoiced of companies operating in other segments of
to a new centralized system that increases the effective-
the electricity industry than retail sales (such as, for example,
ness of risk monitoring and governance, the Group Credit
receivables from generation activities, sales of electricity as
Risk Committee approved the application of portfolio lim-
part of energy management operations, the sale of green
its for the divisions/countries involved and for the Group
certificates or electricity transport services).
as a whole.
All of the above transactions are considered as non-recourse
transactions for accounting purposes and therefore involved
To manage credit risk even more effectively, for a number
the full derecognition of the corresponding assigned assets
of years the Group has carried out non-recourse assign-
from the balance sheet, as the risks and rewards associated
ments of receivables, in particular specific segments of the
with them have been transferred.
Liquidity risk
Within the Group, Enel SpA (directly and through its subsidi-
At December 31, 2013, the Enel Group had a total of about €8
ary Enel Finance International NV) manages the centralized
billion in cash or cash equivalents, of which €3.3 billion held by
treasury function, ensuring access to the money and capital
Endesa, as well as total committed credit lines of €15.4 billion,
markets. The Parent Company meets liquidity requirements
of which €3.8 billion held by Endesa. The limits on the commit-
primarily through cash flows generated by ordinary operations
ted credit lines amounted to €16.8 billion (€1.4 billion drawn),
and drawing on a range of sources of financing. In addition, it
of which €3.8 billion held by Endesa (€0.05 billion drawn). In
manages any excess liquidity as appropriate.
addition, the Group had uncommitted credit lines totaling €0.9
billion (€0.1 billion drawn), of which €0.7 billion held by Endesa
Underscoring the Enel Group’s continued capacity to access the
(entirely undrawn).
credit market despite the financial market crisis, in 2013 the
Finally, the Group has outstanding commercial paper programs
Group carried out bond issues with retail investors totaling €3.6
with a maximum ceiling of about €9.3 billion (€2.2 billion used),
billion, and obtained bank loans and other financing totaling
of which €3.3 billion held by Endesa through its subsidiaries
€1.8 billion.
(€0.8 billion used).
178
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 6.1 Derivatives contracts classified under non-current
financial assets - €444 million
The following table shows the notional amount and fair value of derivative contracts classified under non-current finan-
cial assets.
Millions of euro
Cash flow hedge derivatives:
- interest rates
- exchange rates
- commodities
Total
Fair value hedge derivatives:
- interest rates
- exchange rates
Total
Trading derivatives:
- interest rates
- exchange rates
- commodities
Total
TOTAL
Notional amount
Fair value
at Dec. 31, 2013
at Dec. 31, 2012
at Dec. 31, 2013
at Dec. 31, 2012
Change
1,236
3,973
137
5,346
1,045
-
1,045
30
-
58
88
6,479
25
7,227
34
7,286
83
254
337
45
92
40
177
7,800
35
347
12
394
45
-
45
2
-
3
5
444
5
890
7
902
17
23
40
4
1
6
11
953
30
(543)
5
(508)
28
(23)
5
(2)
(1)
(3)
(6)
(509)
At December 31, 2013, the notional amount of the cash flow
Fair value hedge derivatives essentially increased due to new
hedge derivative contracts classified as non-current financial
hedges using interest rate swaps of the hybrid bond issued by
assets came to €5,346 million, with the corresponding fair
Enel SpA in the notional amount of €800 million.
value of €394 million.
The change in fair value hedge derivatives on exchange
The cash flow hedge derivatives on interest rates are essen-
rates was basically attributable to cross currency interest
tially related to new hedges of loans using interest rate swaps
rate swaps, with the reclassification from “non-current finan-
in a notional amount of about €665 million and with a fair
cial assets” to “non-current financial liabilities” of a notional
value of €17 million.
amount of €119 million with a fair value of €14 million, and
The general increase in interest rates gave rise to a reclassifi-
the reclassification from “non-current financial assets” to
cation from “non-current financial liabilities” to “non-current
“current financial assets” of a notional amount of €80 million.
financial assets” of derivatives in a notional amount of €464
million and with a fair value of €11 million.
Cash flow hedge derivatives on commodities include deriva-
The cash flow hedge derivatives on exchange rates are essen-
tives on energy with a fair value of €10 million and transac-
tially related to transactions hedging the exchange rate risk
on bond issues in currencies other than the euro using cross
tions in CO2 with a fair value of €2 million. Trading derivatives
essentially regard energy transactions entered into by Endesa
currency interest rate swaps.
(with a fair value of €3 million).
Developments in the euro exchange rate against the main
Non-current financial assets concerning derivatives with a
currencies caused the fair value of these derivatives to de-
carrying amount of €385 million were governed by mas-
cline. For some derivatives positions, this change led to the re-
ter netting agreements or similar agreements that do not
classification to “non-current financial liabilities” of a notional
meet the requirements for offsetting under the current
amount of €1,848 million in respect of transactions that at
version of IAS 32.
December 31, 2012 had been classified under “non-current
financial assets”. Finally, a notional amount of about €91 mil-
For a summary of the balances of the fair value of non-current
lion was reclassified from “non-current financial assets” to
derivatives classified as assets, broken down by measurement
“current financial assets”, as the positions expire in 2014.
criteria, please see note 7 on IFRS 13 disclosures.
179
6.2 Derivatives contracts classified under current financial
assets - €2,285 million
The following table reports the notional amount and fair value of the derivative contracts, grouped by type and designation.
Millions of euro
Notional amount
Fair value
at Dec. 31, 2013
at Dec. 31, 2012
at Dec. 31, 2013
at Dec. 31, 2012
Change
Cash flow hedge derivatives:
- interest rates
- exchange rates
- commodities
Total
Fair value hedge derivatives:
- interest rates
Total
Trading derivatives:
- exchange rates
- commodities
Total
TOTAL
22
1,506
149
1,677
76
76
1,807
13,990
15,797
17,550
-
1,139
1,693
2,832
-
-
2,298
16,395
18,693
21,525
5
92
10
107
4
4
46
2,128
2,174
2,285
-
41
16
57
-
-
73
1,588
1,661
1,718
-
5
51
(6)
50
4
4
(27)
540
513
567
The cash flow hedge derivatives on exchange rates are es-
of €4 million classified as cash flow hedges. Trading deriva-
sentially related to transactions hedging the exchange rate
tives regard energy transactions in the amount of €265 mil-
risk on bond issues in currencies other than the euro using
lion, and hedges of fuels and other commodities classified
cross currency interest rate swaps.
as trading transactions with a fair value of €1,863 million.
For these derivatives, a notional amount of about €1,234
Current financial assets in respect of trading derivatives
million with a fair value of €79 million was reclassified from
on commodities have been offset in the amount of €406
“non-current financial assets” to “current financial assets”,
million by the value of derivatives reported under current
as the positions expire in 2014.
financial liabilities where such netting is permitted under
In addition, transactions in a notional amount of €758 mil-
contractual and statutory provisions.
lion with a fair value of €38 million expired in January 2013.
Current financial assets concerning derivatives with a carry-
Trading derivatives on exchange rates essentially comprise
ing amount of €1,777 million were governed by master net-
transactions to hedge the exchange rate risk associated
ting agreements or similar agreements that do not meet
with the prices of energy commodities. The decrease in the
the requirements for offsetting under the current version
notional amount and fair value of these derivatives is main-
of IAS 32.
ly associated with normal operations.
Commodity derivatives regard energy derivatives with a fair
derivatives classified as assets, broken down by measure-
value of €6 million and transactions in CO2 with a fair value
ment criteria, please see note 7 on IFRS 13 disclosures.
For a summary of the balances of the fair value of current
180
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
6.3 Derivatives contracts classified under non-current
financial liabilities - €2,257 million
The following table reports the notional amount and fair value of the cash flow hedge, fair value hedge and trading deriva-
tives.
Millions of euro
Notional amount
Fair value
at Dec. 31, 2013
at Dec. 31, 2012
Change at Dec. 31, 2013
at Dec. 31, 2012
Change
Cash flow hedge derivatives:
- interest rates
- exchange rates
- commodities
Total
Fair value hedge derivatives:
- exchange rates
Total
Trading derivatives:
- interest rates
- exchange rates
- commodities
Total
TOTAL
4,275
8,825
391
6,405
5,955
282
13,491
12,642
5
5
216
14
66
296
7
7
763
30
46
839
13,792
13,488
(2,130)
2,870
109
849
(2)
(2)
(547)
(16)
20
(543)
304
402
1,821
7
2,230
2
2
22
-
3
25
691
1,777
16
2,484
5
5
62
1
1
64
2,257
2,553
(289)
44
(9)
(254)
(3)
(3)
(40)
(1)
2
(39)
(296)
At December 31, 2013, the notional amount of derivatives
ties”, as well as new CCIRSs entered into by Enel SpA to
classified under non-current financial liabilities came to
hedge the tranches of the hybrid bond denominated in
€13,792 million, with a corresponding fair value of €2,257
pounds sterling and US dollars in the total amount of
million. Compared with December 31, 2012, these repre-
€1,389 million.
sent an increase of €304 million and a decrease of €296
million, respectively.
Commodity derivatives classified as cash flow hedges re-
The improvement in the fair value of the cash flow hedge
gard hedges on gas and energy with a fair value of €7
derivatives on interest rates is mainly due to the broad rise in
million.
the yield curve over the course of the year.
Trading derivatives on commodities include derivatives on
A notional amount of €500 million with a fair value of €30
energy entered into by Endesa with a fair value of €3 million.
million was reclassified from “non-current financial liabili-
Non-current financial liabilities concerning derivatives with
ties” to “current financial liabilities”, as the positions ex-
a carrying amount of €2,030 million were governed by mas-
pire in 2014.
ter netting agreements or similar agreements that do not
Cash flow hedge derivatives on exchange rates essential-
meet the requirements for offsetting under the current ver-
ly regard the hedging (using cross currency interest rate
sion of IAS 32.
swaps) of bond issues in currencies other than the euro.
The fair value reflects the change in the euro against the
For a summary of the balances of the fair value of non-
hedged currencies. The increase in the notional amount
current derivatives classified as liabilities, broken down by
is mainly associated with the reclassification from “non-
measurement criteria, please see note 7 on IFRS 13 disclo-
current financial assets” to “non-current financial liabili-
sures.
181
6.4 Derivatives contracts classified under current financial
liabilities - €2,535 million
The following table reports the notional amount and fair value of the derivative contracts.
Millions of euro
Notional amount
Fair value
at Dec. 31, 2013
at Dec. 31, 2012
at Dec. 31, 2013
at Dec. 31, 2012
Change
Cash flow hedge derivatives:
- interest rates
- exchange rates
- commodities
Total
Trading derivatives:
- interest rates
- exchange rates
- commodities
Total
TOTAL
1,345
2,943
4,100
8,388
608
2,219
10,582
13,409
21,797
3
2,768
1,930
4,701
1,020
2,153
6,781
9,954
14,655
24
260
156
440
51
34
2,010
2,095
2,535
-
84
134
218
59
38
1,713
1,810
2,028
24
176
22
222
(8)
(4)
297
285
507
The substantial increase in the notional amount of interest
to energy sale contracts in Slovakia, with a fair value of €1 mil-
rate derivatives is entirely attributable to the reclassifica-
lion.
tion of a number of derivatives from “non-current financial
Current financial liabilities in respect of trading derivatives
liabilities” to “current financial liabilities”.
on commodities have been offset in the amount of €406
The deterioration in the fair value of cash flow hedges on
million by the value of derivatives reported under current
exchange rates, mainly cross currency interest rate swaps
financial assets where such netting is permitted under con-
by Enersis, is essentially due to the reclassification of those
tractual and statutory provisions.
transactions from “non-current financial liabilities” to “cur-
Current financial liabilities concerning derivatives with a
rent financial liabilities”.
carrying amount of €1,904 million were governed by mas-
Cash flow hedge derivatives on commodities regard energy
meet the requirements for offsetting under the current
ter netting agreements or similar agreements that do not
derivatives with a fair value of €2 million, contracts for differ-
version of IAS 32.
ences in the amount of €32 million and hedges of gas, coal
and shipping contracts of €122 million; trading derivatives
For a summary of the balances of the fair value of current
include contracts on fuels and other commodities with a fair
derivatives classified as liabilities, broken down by meas-
value of €1,871 million, trading operations in energy with a
urement criteria, please see note 7 on IFRS 13 disclosures.
fair value of €138 million and embedded derivatives related
182
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 7
Disclosures on the fair value
of assets and liabilities
Following amendments to IFRS 13, which entered force as
from the current year, a number of specific disclosure re-
quirements concerning such items have been introduced.
In these consolidated financial statements, certain items are
The following tables summarize the individual components
measured at fair value, which is the price that would be re-
of the consolidated balance sheet that have been measured
ceived to sell an asset or paid to transfer a liability in an or-
at fair value, with a breakdown of the levels of the fair value
derly transaction between market participants at the meas-
hierarchy (as defined in the international accounting stand-
urement date.
ards) to which they belong.
7.1 Assets
The following table reports the value of assets measured at fair value, broken down by level of fair value inputs.
Millions of euro
Notes
Fair value
Level 1
Level 2
Level 3
at Dec. 31, 2013
Investment property (1)
Equity investments in other entities
Service concession arrangements
Securities held to maturity
Financial investments in funds or portfolio
management products measured at
fair value through profit or loss
Cash flow hedge derivatives
(current and non-current):
- interest rates
- exchange rates
- commodities
Fair value hedge derivatives
(current and non-current):
- interest rates
Trading derivatives
(current and non-current):
- interest rates
- exchange rates
- commodities
Inventories measured at fair value
Assets held for sale
Securities available for sale
(1) Asset not measured at fair value.
20
20
27
27
6
6
6
22
28
27
216
183
618
128
24
40
439
22
49
2
46
2,131
498
198
17
-
174
-
128
24
-
-
1
-
-
-
617
420
-
14
-
3
618
-
-
40
439
21
49
2
46
1,514
-
3
-
216
6
-
-
-
-
-
-
-
-
-
-
78
195
3
183
Investment property
The value of investment property, presented in the table
Service concession arrangements
Service concession arrangements regard electricity dis-
as measured using Level 3 inputs, was calculated with the
tribution activities in the Brazilian market by Ampla and
assistance of appraisals provided by independent experts
Coelce, which are measured in accordance with IFRIC 12.
who used different valuation techniques depending on
The fair value was estimated as the net replacement cost
the specific features of the individual properties. The fair
based on the most recent available data on rates and the
value rose by €9 million compared with the previous year.
general price index for the Brazilian market.
Equity investments in other entities
The fair value of investment in listed companies was deter-
Securities held to maturity
Securities held to maturity are composed of bonds.
mined on the basis of the market price on the closing date
The following table reports changes in securities measured
of the year. That of unlisted companies was determined on
using Level 3 inputs.
the basis of a valuation, considered reliable, of significant
balance-sheet aggregates. There was no change in the Level
3 fair value compared with 2012.
Millions of euro
Balance at January 1, 2013
Gain/(Loss) through profit or loss
Subscriptions
Balance at December 31, 2013
4
(4)
-
-
Securities classified under Level 3 comprise promissory notes issued in 2012.
Financial derivatives
The fair value was determined on the basis of official prices
Assets held for sale/Liabilities held for sale
Assets and liabilities held for sale mainly regard Marcinelle
for instruments traded on regulated markets. For instru-
Energie, and the associated fair value was calculated as the
ments not traded on regulated markets the fair value was de-
estimated realizable value.
termined by discounting expected cash flows on the basis of
the market yield curve at the reference date and converting
the amounts in currencies other than the euro at period-end
Securities available for sale
There was no change in the Level 3 fair value compared
exchange rates. The balance of those measured using Level
with 2012.
1 inputs regards positions in futures on CO2, on Brent listed
on the Intercontinental Exchange (ICE) and on gas listed on
the main natural gas spot markets (NBP, TTF, NCG, PEG, etc.).
Inventories measured at fair value
The value of inventories measured using Level 3 inputs
was calculated with the assistance of appraisals provided
by independent experts who used different valuation
techniques depending on the specific features of the in-
dividual cases.
184
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 7.2 Liabilities
The following table reports the value of liabilities measured a fair value, broken down by level of fair value inputs.
Millions of euro
Notes
Fair value
Level 1
Level 2
Level 3
Cash flow hedge derivatives (current and non-current):
6
at Dec. 31, 2013
- interest rates
- exchange rates
- commodities
Fair value hedge derivatives (current and non-current):
- exchange rates
Trading derivatives (current and non-current):
- interest rates
- exchange rates
- commodities
Liabilities for acquisition of equity investments
Liabilities for put options granted to
non-controlling shareholders
Bonds: (1)
- fixed rate
- floating rate
Bank loans: (1)
- fixed rate
- floating rate
Other loans: (1)
- fixed rate
- floating rate
Short-term payables to banks (1)
Commercial paper (1)
Cash collateral and other financing on derivatives
Other short-term financial debt (1)
Liabilities held for sale
(1) Liabilities not measured at fair value.
6
6
36
36
27
27
27
27
27
27
27
28
426
2,081
163
2
73
34
2,013
37
801
39,517
8,131
976
9,026
1,153
605
150
2,202
119
58
8
-
-
102
-
-
-
1,070
-
-
31,662
4,365
-
-
-
-
-
-
-
-
-
426
2,081
61
2
73
34
942
-
7,856
3,766
976
9,026
1,153
605
150
2,202
119
58
-
-
-
-
-
-
-
1
37
801
-
-
-
-
-
-
-
-
-
-
8
Trading derivatives
The balance of Level 3 items regards the embedded deriva-
energy acquired, while in the second step a Monte Carlo sim-
tive (identified as such in note 6 of these consolidated finan-
ulation was used to determine the value of the contract. The
cial statements) on the price of gas in the energy purchase
fair value of the contract is equal to the difference between
contract agreed by Slovenské elektrárne in Slovakia.
the average of the value obtained in the simulation and the
The measurement of the contract was carried out in two steps.
market value of the energy acquired.
The first step involved determining the market value of the
The following table reports changes in the item in 2013.
Millions of euro
Opening balance at January 1, 2013
(Gain)/Loss through profit or loss
Closing balance at December 31, 2013
Embedded derivatives of Slovenské elektrárne
48
(47)
1
185
The profit taken to the income statement is associated with
of companies in North America, whose fair value was deter-
Slovenské elektrárne’s termination of the embedded deriva-
mined on the basis of the contractual conditions of the agree-
tive on the price of gas (€48 million) and the opening of a new
ments between the parties.
embedded derivative position on the price of aluminum, en-
tered into by the same company in December 2013.
Medium and long-term loans
In the case of transactions directly observable and quoted on
Liabilities for put options granted to non-con-
trolling shareholders
Of the overall liability, €778 million is accounted for by the liability
in respect of the options on Enel Distributie Muntenia and Enel En-
the market, fair value is determined using official prices (mar-
ergie Muntenia and was determined in relation to the vesting con-
ket approach). In cases where such variables are not present,
ditions specified in the associated contracts. The remainder of €23
the valuation techniques are adopted as appropriate for each
million regards the liability in respect of the put options on Reno-
category of financial instrument (income and cost approaches).
vables de Guatemala and Maicor Wind, whose fair value was de-
Liabilities for acquisition of equity investments
The liability regards the debt for the purchase of a number
termined using the binominal option pricing model (BOPM) and
the discounted cash flow model (DCF). There were no changes in
the Level 3 fair values compared with the previous year.
8
Segment information
The representation of performance and financial position
For more information on developments in performance and
by business area presented here is based on the approach
financial position during the year, please see the appropriate
used by management in monitoring Group performance
section of the report on operations.
for the two periods being compared.
Segment information for 2013 and 2012
Results for 2013 (1)
Millions of euro
Sales
GEM
Infra. &
Networks
Iberia and
Latin America
Renewable
Energy
Int’l
Other,
eliminations
and
adjustments
Total
Revenues from third
parties
Revenues from other
segments
Total revenues
Total costs
Net income/(charges)
from commodity risk
management
Depreciation and
amortization
Impairment losses/
Reversals
Operating income
Capital expenditure
16,699
18,878
3,669
30,825
7,103
2,337
1,024
80,535
222
16,921
15,973
4,041
22,919
21,578
4,029
7,698
3,690
110
30,935
24,041
(82)
(165)
-
(148)
101
403
362
99
516
106
554
318
977
2,700
3
3,028
1,046
210
3,836
2,181
634
7,737
6,328
(4)
486
834
85
924
490
2,827
1,060
21
526
91
1,171
1,307 (2)
(9,526)
(8,502)
(9,524)
-
80,535
63,146
-
(378)
103
11
908
84
5,409
1,658
9,944
5,959
(1) Segment revenues include both revenues from third parties and revenue flows between the segments. An analogous approach was taken for other income and
costs for the period.
(2) Does not include €1 million regarding units classified as “held for sale”.
186
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Results for 2012 restated (1) (2)
Millions of euro
Sales
GEM
Infra. &
Networks
Iberia and
Latin America
Renewable
Energy
Int’l
Other,
eliminations
and
adjustments
Total
Revenues from third
parties
Revenues from other
segments
Total revenues
Total costs
Net income/
(charges) from
commodity risk
management
Depreciation and
amortization
Impairment losses/
Reversals
Operating income
Capital expenditure
18,170
18,869
3,820
33,708
8,015
2,264
103
84,949
181
18,351
17,759
6,375
25,244
24,284
4,297
8,117
4,494
461
34,169
26,778
688
8,703
7,110
432
(12,434)
2,696
1,049
(12,331)
(12,296)
-
84,949
69,178
17
87
419
103
97
131
626
(40)
505
403
-
(161)
925
2,892
69
2,629
1,497
2,663
1,675
2,497 (3)
1,161
57
453
219
978
(6)
487
73
1,081
1,257
-
38
126
5,596
4
(165)
163 (4)
3,407
6,806
7,075
(1) Segment revenues include both revenues from third parties and revenue flows between the segments. An analogous approach was taken for other income
and costs for the period.
(2) The figures have been restated to take account of the impact of the change, with retrospective effect, of the accounting policy.
(3) Does not include €73 million regarding units classified as “held for sale”.
(4) Does not include €1 million regarding units classified as “held for sale”.
Financial position by segment
At December 31, 2013
Millions of euro
Sales
GEM
Infra. &
Networks
Iberia and
Latin America
Property, plant and
equipment
Intangible assets
Trade receivables
Other
39
775
4,015
250
9,615
651
3,068
2,506
15,096
117
1,706
1,240
35,936
27,264
3,615
2,009
Other,
eliminations
and
adjustments
Renewable
Energy
10,224
2,212
371
408
504
282
(1,830)
(204)
Int’l
9,847
1,928
595
471
Total
81,261
33,229
11,540
6,680
Operating assets
5,079
15,840 (1)
18,159
68.824
12,841 (2)
13,215 (4)
(1,248)
132,710
Trade payables
Sundry provisions
Other
Operating liabilities
3,070
234
1,959
5,263
3,570
1,218
729
5,517
2,488
2,536
2,994
8,018
4,226
4,131
4,371
832
2,744
1,123
762
180
496
12,728
4,699 (3)
1,438 (5)
(1,937)
700
(1,546)
(2,783)
13,011
11,743
10,126
34,880
(1) Of which €6 million regarding units classified as “held for sale”.
(2) Of which €194 million regarding units classified as “held for sale”.
(3) Of which €1 million regarding units classified as “held for sale”.
(4) Of which €26 million regarding units classified as “held for sale”.
(5) Of which €8 million regarding units classified as “held for sale”.
187
At December 31, 2012 restated (1)
Millions of euro
Sales
GEM
Infra. &
Networks
Iberia and
Latin America
Renewable
Energy
Int’l
Other,
eliminations
and
adjustments
Property, plant and
equipment
Intangible assets
Trade receivables
Other
Operating assets
Trade payables
Sundry provisions
Other
Operating liabilities
34
780
4,198
261
5,273
3,874
306
1,886
6,066
Total
83,328
35,997
11,719
6,200
9,833
687
3,564
2,164
15,212
125
2,149
722
38,481
29,037
3,746
2,524
10,085
2,840
773
463
9,124
2,229
571
231
559
299
(3,282)
(165)
16,248
18,208
73,788
14,161 (2)
12,155
(2,589)
137,244
3,765
1,363
533
5,661
2,669
2,585
2,943
8,197
5,154
5,023
3,154
1,058
2,972
1,230
1,072
(3,688)
192
479
749
(88)
13,331
5,260 (3)
1,743
(3,027)
13,904
13,190
10,137
37,231
(1) The figures have been restated to take account of the impact of the change, with retrospective effect, of the accounting policy used for of employee benefits
under the new version of IAS 19/R, as well as the completion of the allocation of the purchase price of the assets acquired and the liabilities assumed of the
Kafireas pipeline and of Stipa Nayaá and Eólica Zopiloapan. For further information please see note 4.
(2) Of which €217 million regarding units classified as “held for sale”.
(3) Of which €1 million regarding units classified as “held for sale”.
The following table reconciles segment assets and liabilities and the consolidated figures.
Millions of euro
Total assets
Equity investments accounted for using the equity method
Non-current financial assets
Long-term tax receivables included in “other non-current assets”
Current financial assets
Cash and cash equivalents
Deferred tax assets
Tax receivables
Financial and tax assets of “assets held for sale”
Segment assets
Total liabilities
Long-term loans
Non-current financial liabilities
Short-term loans
Current portion of long-term loans
Current financial liabilities
Deferred tax liabilities
Income tax payable
Other tax payables
Financial and tax liabilities of “liabilities held for sale”
Segment liabilities
188
at Dec. 31, 2013
at Dec. 31, 2012 restated
164,148
172,097
647
6,401
494
7,877
8,030
6,239
1,735
15
1,115
5,518
401
9,381
9,891
6,816
1,631
100
132,710
137,244
111,309
51,113
2,257
2,529
4,690
3,640
10,905
308
976
11
34,880
120,010
55,959
2,553
3,970
4,057
3,138
11,786
364
945
7
37,231
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Revenues
9.a Revenues from sales and services - €77,258 million
Millions of euro
Revenues from the sale and transport of electricity and contributions from
Electricity Equalization Fund and similar bodies
Revenues from the sale and transport of natural gas to end users
Revenues from fuel sales
Connection fees for the electricity and gas networks
Revenues for contract work in progress
Other sales and services
Total
2013
2012 restated
Change
67,285
4,451
2,635
998
6
1,883
77,258
71,322
(4,037)
4,402
1,931
1,413
21
3,342
82,431
49
704
(415)
(15)
(1,459)
(5,173)
-5.7%
1.1%
36.5%
-29.4%
-71.4%
-43.7%
-6.3%
“Revenues from the sale and transport of electricity and
million in revenues from the sale and transport of natural
contributions from Electricity Equalization Fund and simi-
gas in Italy (€2,473 million in 2012) and €2,074 million in
lar bodies” amounted to €67,285 million (€71,322 million
sales of natural gas abroad (€1,929 million in 2012).
in 2012). Among others, they include €33,135 million in
“Revenues from fuel sales” amounted to €2,635 million
revenues from the sale of electricity to end users (€36,756
in 2013, which includes €2,161 million in sales of natural
million in 2012), €17,525 million in revenues from the sale
gas (€1,460 million in 2012), while the sale of other fuels
of electricity to wholesale buyers (€16,974 million in 2012),
amounted to €474 million (€471 million in 2012).
€4,520 million in revenues from electricity trading activities
“Other sales and services” declined mainly owning to the
(€5,763 million in 2012), and €9,611 million in revenues
from the transport of electricity (€9,031 million in 2012).
reduction of €1,287 million in trading in CO2 emission allow-
ances and other environmental certificates.
“Revenues from the sale and transport of natural gas to end
The table below gives a breakdown of revenues from sales
users” came to €4,451 million in 2013 and include €2,377
and services by geographical area:
Millions of euro
Italy
Europe - EU
Europe - non EU
America
Other
Total
2013
32,556
31,070
3,305
9,720
607
77,258
2012 restated
32,427
35,034
3,390
11,006
574
82,431
189
9.b Other revenues and income - €3,277 million
Millions of euro
Cost contributions and other fees
Grants for environmental certificates
Sundry reimbursements
Gains on disposal of assets
Measurement at fair value after changes in control
Gains on sale of property, plant and equipment and intangible assets
Service continuity bonuses
Proceeds from reimbursement of charges for
elimination of Electrical Worker Pension Fund
Other revenues
Total
2013
73
848
183
944
21
38
96
-
1,074
3,277
2012
restated
99
553
195
6
16
43
99
615
892
2,518
Change
(26)
295
(12)
938
5
(5)
(3)
(615)
182
759
-26.3%
53.3%
-6.2%
-
31.2%
-11.6%
-3.0%
-100.0%
20.4%
30.1%
“Cost contributions and other fees” regard revenues on
Acciona for the sale of La Cinqueta (€43 million).
certain connections to the electricity and gas networks,
The gain from “measurement at fair value after changes
while “grants for environmental certificates” are incentives
in control” amounted to €21 million and regarded the
paid to renewables generation plants or for energy effi-
remeasurement of the net assets still held in the Buffalo
ciency activities.
Dunes Wind Project (49% of the company) following the
“Sundry reimbursements” are accounted for by reimburse-
disposal that led to the loss of control.
ments from customers and suppliers in the amount of €76
“Proceeds from reimbursement of charges for elimination
million (€136 million in 2012) and insurance settlements
of Electrical Worker Pension Fund” recognized in 2012
totaling €107 million (€59 million in 2012).
regards the authorization of the reimbursement of costs
“Gains on disposal of assets” amounted to €944 million
incurred for the elimination of the pension fund by the Au-
in 2013, mainly in respect of the gain on the disposal of
thority for Electricity and Gas with its Resolution 157/2012.
Artic Russia (and indirectly the stake held by the latter in
The increase in “Other revenues” is mainly accounted for
SeverEnergia) in the amount of €964 million and of 51% of
by the government grant of €381 million to the Argentine
the Buffalo Dunes Wind Project (€20 million). These factors
distribution company Edesur under the provisions of Reso-
were partially offset by the cancellation of the gain posted
lución 250/13 regarding the Mecanismo de Monitoreo de
in 2009 owing to the withdrawal of the agreement with
Costos.
190
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Costs
10.a Raw materials and consumables - €41,612 million
Millions of euro
Electricity
Fuel and gas
Materials
Total
- of which capitalized costs for materials
2013
28,297
11,738
1,577
41,612
(737)
2012
restated
30,080
13,379
3,123
46,582
(989)
Change
(1,783)
(1,641)
(1,546)
(4,970)
252
-5.9%
-12.3%
-49.5%
-10.7%
-25.5%
Purchases of “electricity” comprise those from the Single
tially offset by an increase in purchases on electricity ex-
Buyer in the amount of €5,135 million (€5,992 million in
changes.
2012) and purchases from the Energy Markets Operator
Purchases of “fuel and gas” include €6,142 million in natu-
in the amount of €4,451 million (€3,290 million in 2012).
ral gas purchases (€6,630 million in 2012) and €5,596 mil-
The decline in the item is mainly due to the reduction in
lion in purchases of other fuels (€6,642 million in 2012).
costs for electricity purchases through bilateral contracts
Purchases of “materials” fell mainly as a result of a decline
and on national and international markets, essentially as
a result of the decline in demand. These factors were par-
in sourcing of CO2 emission allowances and other environ-
mental certificates, which were mainly used for resale.
10.b Services - €15,551 milion
Millions of euro
Electricity and gas wheeling
Maintenance and repairs
Telephone and postal costs
Communication services
IT services
Leases and rentals
Other
Total
2013
9,601
1,338
253
119
264
619
3,357
15,551
2012
restated
9,819
1,337
276
130
254
569
3,355
15,780
Change
(218)
(39)
(23)
(11)
10
50
2
(229)
-2.2%
-2.8%
-8.3%
-8.5%
3.9%
8.8%
0.1%
-1.5%
Costs for services came to €15,551 million in 2013, declin-
crease in electricity demand in the main markets in which
ing with respect to 2012 largely due to the decline in elec-
the Group operates.
tricity transported for third parties as a result of the de-
191
10.c Personnel - €4,596 million
Millions of euro
Wages and salaries
Social security contributions
Post-employment benefits
Other costs
Total
- of which capitalized
2013
3,406
917
117
156
4,596
(714)
2012
restated
3,511
896
119
1,263
5,789
(759)
Change
(105)
21
(2)
(1,107)
(1,193)
45
-3.0%
2.3%
-1.7%
-87.6%
-20.6%
-5.9%
Personnel costs amounted to €4,596 million in 2013, a de-
ing €970 million. In 2013, the termination of that plan had a
crease of €1,193 million.
positive impact on profit or loss of €1,028 million (equal to
The workforce contracted by 2,308, due to the effect of
the reversal of the initial provision of €970 million plus cur-
the balance between hirings and terminations (a decrease
rent service costs and interest costs accrued in the period of
of 2,336 employees), only partially offset by the increase re-
€58 million), which fully offset the charges connected with
lated to the change in the scope of consolidation largely as-
the application of the union agreements to implement, for
sociated with the acquisition of PowerCrop (28 employees).
a number of companies in Italy, the mechanism provided
At December 31, 2013 the number of employees associated
for under Article 4, paragraphs 1-7-ter, of Law 92/2012 (the
with assets held for sale (the Belgian company Marcinelle En-
Fornero Act), which amounted to €898 million.
ergie) was 37.
For more information on employee benefit plans, please see
The decline in “other costs” for personnel reflects the net
note 30 below.
effect of the termination of the transition-to-retirement
The table below shows the average number of employees
plan established for certain employees in Italy at the end of
by category compared with the previous year, and the actual
2012, which had prompted the recognition of a charge total-
number of employees at December 31, 2013.
Senior managers
Middle managers
Office staff
Workers
Total
Average number (1)
Headcount (1)
2013
1,374
14,552
39,833
17,224
72,983
2012
1,375
14,232
40,610
18,393
74,610
Change
at Dec. 31, 2013 (2)
(1)
320
(777)
(1,169)
(1,627)
1,374
14,630
38,818
16,572
71,394
(1) For companies consolidated on a proportionate basis, the headcount corresponds to Enel percentage share of the total.
(2) Of which 37 in units classified as “held for sale”.
192
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
10.d Depreciation, amortization and impairment losses -
€7,067 million
Millions of euro
Depreciation
Amortization
Impairment losses
Total
2013
4,583
826
1,658
7,067
2012
restated
4,708
888
3,407
9,003
Change
(125)
(62)
(1,749)
(1,936)
-2.7%
-7.0%
-51.3%
-21.5%
Depreciation and amortization (comprising property, plant
impairment loss on the assets held for sale of Marcinelle En-
and equipment and intangible assets) decreased by €187
ergie (€14 million) following developments in negotiations
million in 2013, essentially due to the end of the useful life of
with the potential purchasers and the consequent adjust-
a number of generation plants and the revision of the useful
ment of the value of the assets to their estimated realiz-
life of the nuclear generation plants in Slovakia and a num-
able value (an analogous impairment loss of €145 million
ber of conventional thermal generation plants, as well as as-
was recognized for the same company in 2012), as well as
sets previously classified as to be relinquished free of charge
impairment losses on property, plant and equipment and
following the enactment of Law 134 of August 7, 2012. For
intangible assets of €242 million (€95 million in 2012), es-
the latter, the new law impacted all of 2013, while in 2012 it
sentially in respect of a number of generation and storage
was in effect only as from August.
facilities in Italy, photovoltaic manufacturing plants in Italy
“Impairment losses” mainly regard writedowns of trade re-
ous year, the item included the impairment of goodwill of
ceivables amounting to €656 million (€588 million in 2012),
the cash generating units “Endesa-Iberia” in the amount of
the impairment of the goodwill recognized on Enel OGK-5
€2,392 million and Endesa Ireland in the amount of €67 mil-
in the amount of €744 million (€112 million in 2012), the
lion.
and geothermal generation plants in Nicaragua. The previ-
10.e Other operating expenses - €2,837 million
Millions of euro
Provisions for risks and charges
System charges - emissions allowances
Charges for white certificates
Charges for green certificates
Taxes and duties
Other
Total
2013
85
335
295
270
1,468
384
2,837
2012
restated
468
47
366
95
1,225
573
2,774
Change
(383)
-81.8%
288
(71)
175
243
(189)
63
-
-19.4%
-
19.8%
-33.0%
2.3%
Other operating expenses totaled €2,837 million, up €63 mil-
effect of which was only partially offset by the reduction in
lion, mainly due to an increase of €175 million in costs for the
taxes on electricity companies established by Brazilian regula-
purchase of green certificates and increased charges for com-
tors with Medida Provisória 579/2012 and the subsequent De-
pliance with environmental restrictions in the amount of €288
cree 7891/2013. These increases were also partially offset by
million. An additional factor was the increase of €243 million
a reduction in provisions for risks and charges for the year and
in taxes and duties for the period, largely attributable to the
the downward revision of estimates for provisions recognized
tax on emissions introduced in Spain with Law 15/2012, the
in prior years in the amount of €383 million.
193
10.f Capitalized costs - €(1,450) million
Capitalized costs consist of €714 million in personnel
€759 million and €988 million, respectively, in 2012).
costs and €736 million in materials costs (compared with
Net income/(charges)
from commodity risk management
11. Net charges from commodity risk management -
€(378) million
Net income from commodity risk management reflects
ing the year and €114 million in unrealized net charges on
€264 million in net income realized on positions closed dur-
open positions in derivatives at December 31, 2013.
Millions of euro
Income
Unrealized on positions open at the end of the period
Realized on positions closed during the period
Total income
Charges
Unrealized on positions open at the end of the period
Realized on positions closed during the period
Total charges
NET INCOME/(CHARGES) FROM COMMODITY RISK
MANAGEMENT
- of which trading/non-IFRS/IAS hedge derivatives
- of which ineffective portion of CFH
2013
2012 restated
Change
1,815
739
2,554
(1,929)
(1,003)
(2,932)
(378)
(265)
(2)
1,368
220
1,588
(1,549)
(1)
(1,550)
38
88
(3)
447
519
966
(380)
(1,002)
(1,382)
(416)
(353)
1
32.7%
-
60.8%
24.5%
-
89.2%
-
-
-33.3%
194
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 12. Financial income/(expense) - €(2,813)million
Financial income
Millions of euro
Total interest and other income from financial assets (current and non-
current):
- interest income at effective rate on non-current securities and receivables
- financial income on non-current securities at fair value through profit or loss
- interest income at effective rate on short-term financial investments
Total interest and other income from financial assets
Foreign exchange gains
Income from derivative instruments:
- income from cash flow hedge derivatives
- income from derivatives at fair value through profit or loss
- income from fair value hedge derivatives
Total income from derivative instruments
Income from equity investments
Other income
TOTAL FINANCIAL INCOME
2013
2012
restated
Change
56
2
293
351
847
232
455
70
757
86
412
49
2
284
335
640
218
273
34
525
218
467
2,453
2,185
7
-
9
16
207
14
182
36
232
(132)
(55)
268
14.3%
-
3.2%
4.8%
32.3%
6.4%
66.7%
105.9%
44.2%
-60.6%
-11.8%
12.3%
Financial income amounted to €2,453 million, an increase
Medgaz (€64 million) and Endesa Gas T&D (€12 million). In
of €268 million compared with the previous year.
2012, the item included the proceeds from the disposal of
“Income from derivative instruments” came to €757 mil-
the stake in Terna (€185 million).
lion, of which €362 million realized (€380 million in 2012)
“Other income” for 2013 include financial income in the total
and €395 million unrealized (€145 million in 2012).
amount of €103 million (€180 million in 2012) recognized as
The increase in foreign exchange gains mainly reflects the
an increase in the financial assets recognized in application of
positive impact of exchange rate changes on debt denomi-
IFRIC 12 in Brazil following the entry into force of the Medida
nated in currencies other than the euro.
Provisória 579/2012. The item also includes €43 million in inter-
“Income from equity investments” for 2013 came to €86
est paid to Edesur in Argentina on the government grant to that
million, mainly in respect of the gains on the disposals of
company under the provisions of Resolución 250/2013.
195
Financial expense
Millions of euro
Interest expense and other charges on financial debt
(current and non-current):
- interest expense on bank loans
- interest on bonds
- interest expense on other loans
- financial expense on securities at fair value through profit or loss
- commissions on unused lines of credit
Total interest expense and other charges on financial debt
Foreign exchange losses
Expense on derivative instruments:
- expense on cash flow hedge derivatives
- expense on derivatives at fair value through profit
or loss
- expense on fair value hedge derivatives
Total expense on derivative instruments
Accretion of post-employment and other
employee benefits
Accretion of other provisions
Charges on equity investments
Other charges
TOTAL FINANCIAL EXPENSE
2013
536
2,170
111
-
66
2,883
583
812
397
9
1,218
163
203
7
209
2012
restated
Change
577
2,206
149
-
38
2,970
573
491
269
17
777
281
259
12
325
(41)
(36)
(38)
-
28
(87)
10
321
128
(8)
441
(118)
(56)
(5)
(116)
69
-7.1%
-1.6%
-25.5%
-
73.7%
-2.9%
1.7%
65.4%
47.6%
-47.1%
56.8%
-42.0%
-21.6%
-41.7%
-35.7%
1.3%
5,266
5,197
Financial expense totaled €5,266 million, up €69 million com-
and €697 million in unrealized charges (€243 million in 2012).
pared with 2012.
Expense from accretion, with regard to both employee ben-
More specifically, the decrease in “interest expense and other
efits and other provisions, decreased by a total of €174 million,
charges on financial debt” is mainly attributable to the gener-
largely due to the reduction of the provisions themselves, as
alized decline in interest rates compared with 2012, as well as
well as of the discount rates used in the measurement of the
the debt refinancing strategy to optimize the financial struc-
provisions.
ture and lengthen the average maturity of the debt of the
Other charges for 2013 amounted to €209 million (€325 mil-
Group.
lion in 2012), and reflect the positive impact of €66 million
“Expense on derivative instruments” came to €1,218 million,
from the writeback of the value of the receivable due from
of which €521 million in realized charges (€534 million in 2012)
the Slovakian National Nuclear Fund.
13. Share of income/(expense) from equity investments
accounted for using the equity method - €86 million
Millions of euro
Income from associates
Expense on associates
Total
2013
119
(33)
86
2012
restated
123
(35)
88
Change
(4)
2
(2)
-3.3%
-5.7%
-2.3%
For more information on the composition of the balance, please see note 19.
The share of income and expense from equity investments accounted for using the equity method is largely in line with the
previous year.
196
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
14. Income taxes - €2,437 million
Millions of euro
Current taxes
Adjustments for income taxes related to prior years
Deferred tax liabilities
Deferred tax assets
Total
2013
2,458
(178)
(250)
407
2,437
2012
restated
2,898
(319)
489
(628)
2,440
Change
(440)
141
(739)
1,035
(3)
-15.2%
-44.2%
-
-
-0.1%
Income taxes for 2013 amounted to €2,437 million, equal to
new international accounting standards, which had a signifi-
33.8% of taxable income, compared with 62.9% in 2012.
cant impact on deferred tax assets in respect of employee ben-
These developments reflect the recognition in 2012 of the
efits, the adjustment recognized in 2012 of the deferred taxes
impairment losses on goodwill, which did not generate a cor-
of the Chilean and Slovakian companies following the rise in
responding tax benefit, and the impact of the increase in es-
tax rates in those two countries as from January 1, 2013, and
sentially tax-exempt gains recognized in 2013, as well as adjust-
changes in provisions for risks recognized in 2012 and 2013.
ments of taxes for previous years, which include an adjustment
of €56 million of the receivable in respect of the request for the
The following table reconciles the theoretical tax rate with
IRES/IRAP reimbursement made under the provisions of Article
the effective tax rate. Please note that the estimated tax li-
4, paragraph 12, of Decree Law 16 of March 2, 2012.
ability of Group companies outside of Italy is €890 million
Developments in deferred tax assets and liabilities reflect the
(€1,025 million in 2012).
Millions of euro
Income before taxes
Theoretical taxes
Theoretical tax effect on impairment losses on goodwill
Permanent differences, effect of different foreign tax rates, and minor items
IRES surtax (Decree Law 112/2008)
Difference on estimated income taxes from prior years for Italian companies
IRAP
Total
2013
2012 restated
7,217
1,985
205
(281)
363
(174)
339
2,437
-
27.5%
2.8%
-3.9%
5.0%
-2.4%
4.7%
33.8%
3,882
1,068
707
69
495
(272)
373
2,440
-
27.5%
18.2%
1.8%
12.8%
-7.0%
9.6%
62.9%
197
15. Basic and diluted earnings per share
Both metrics are calculated on the basis of the average num-
shares, adjusted for the diluting effect of outstanding stock
ber of ordinary shares in the period, equal to 9,403,357,795
options (zero euro in both periods).
2012
restated
Change
Millions of euro
Net income from continuing operations pertaining to shareholders of the Parent
Company (millions of euro)
Net income from discontinued operations pertaining to shareholders of
the Parent Company (millions of euro)
Net income pertaining to shareholders of the Parent Company (millions
of euro)
Number of ordinary shares
Dilutive effect of stock options
Basic and diluted earnings per share (euro)
Basic and diluted earnings from continuing operations per share (euro)
Basic and diluted earnings from discontinued operations per share (euro)
2013
3,235
-
3,235
238
-
238
9,403,357,795
9,403,357,795
-
0.34
0.34
-
-
0.03
0.03
-
2,997
-
2,997
-
-
0.31
0.31
-
Please note that existing stock option plans for top manage-
Between the balance-sheet date and the date of publication
ment could dilute basic earnings per share in the future. For
of the financial statements, no events or transactions took
more information on those plans, please see the appropriate
place that changed the number of ordinary shares or poten-
section of these notes.
tial ordinary shares in circulation at the end of the year.
198
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Information on the Consolidated Balance Sheet
16. Property, plant and equipment - €81,050 million
Changes in property, plant and equipment for 2012 and 2013 are shown below:
(237)
(4,261)
(21)
(105)
Millions of euro
Land
Buildings
Plant and
machinery
Industrial and
commercial
equipment
Cost
580
10,564
142,608
Accumulated depreciation
-
5,262
79,054
580
5,302
63,554
Balance at Jan. 1, 2012
restated
Capital expenditure
Assets entering service
Exchange rate difference
Change in scope of
consolidation
Depreciation
Impairment losses
Other changes
Remeasurement at fair value
after changes in control
Reclassification from/to “assets
held for sale”
Total changes
Cost
6
10
8
1
-
(78)
62
-
-
9
58
222
29
1,633
4,828
363
-
215
32
160
-
(4)
260
(14)
242
-
(314)
2,692
589
11,101
149,109
Accumulated depreciation
-
5,539
82,863
Balance at Dec. 31, 2012
restated
Capital expenditure
Assets entering service
Exchange rate differences
Change in scope of
consolidation
Depreciation
Impairment losses
Other changes
Reclassification from/to “assets
held for sale”
Total changes
Cost
Accumulated depreciation
Balance at Dec. 31, 2013
589
2
15
(24)
9
-
30
(40)
-
(8)
581
-
581
5,562
66,246
60
188
1,094
3,341
(134)
(1,740)
30
(223)
(9)
(5)
(3)
(96)
590
(4,145)
(90)
(612)
(14)
(1,576)
11,174
149,155
5,708
5,466
84,485
64,670
Assets
under con-
struction
and
advances
Leasehold
improve-
ments
Total
223
152
71
5
40
-
-
(18)
-
(1)
-
-
26
261
164
97
8
14
-
-
9,556
166,648
-
86,056
9,556
4,633
(5,127)
63
6
-
(13)
29
4
-
(405)
80,592
6,436
-
468
222
(4,700)
(73)
484
4
(318)
2,523
9,151
173,382
-
90,267
9,151
83,115
4,110
(3,698)
5,346
-
(419)
(2,358)
(45)
584
(19)
-
(4,560)
-
5
-
8
286
181
105
(94)
(141)
(180)
(880)
-
(17)
(287)
(2,065)
8,864
173,144
-
92,094
8,864
81,050
Other
assets
1,468
1,101
Leased
assets
1,232
162
367
1,070
68
23
(3)
-
-
(30)
-
-
(47)
1,463
1,143
13
3
8
-
(58)
-
19
-
-
(15)
1,275
220
320
1,055
49
59
(17)
-
(101)
(13)
(12)
-
(35)
1,431
1,146
285
8
76
(24)
-
(53)
-
(76)
-
(69)
1,203
217
986
417
325
92
20
1
-
-
-
3
-
-
3
433
338
95
15
5
-
-
(19)
(4)
1
-
(2)
450
357
93
“Plant and machinery” includes assets to be relinquished free of
network (€3,688 million at December 31, 2012).
charge with a net carrying amount of €9,864 million (€11,002
“Leased assets” include certain assets which the Group is using
million at December 31, 2012), €5,120 million of which related
in Spain, France, Greece, Italy, Latin America and Slovakia. More
to power generation plants (€5,986 million at December 31,
specifically, in Spain the assets relate to a 25-year “tolling” con-
2012) and €3,192 million to Endesa’s electricity distribution
tract for which an analysis pursuant to IFRIC 4 identified an em-
199
bedded finance lease, under which Endesa has access to the
- hydroelectric
generation capacity of a combined-cycle plant for which the
toller, Elecgas, has undertaken to transform gas into electricity
in exchange for a toll at a rate of 9.62%. The other lease agree-
ments regard wind plants that the Group uses in France (with
a term of 15 years expiring in 2024-2025), in Greece (with a
term of 10 years expiring in 2014) and in Italy (with a term of
18 years expiring in 2029-2031).
In Latin America, the assets relate to leased power transmis-
sion lines and plant (Ralco-Charrúa), with a residual term of 10
years on the lease at a 6.5% rate, a lease of a combined-cycle
plant (Talara) with a term of 9 years at a fixed rate of 5.8%,
as well as a number of combined cycle plants in Peru (residual
lease term of three years bearing a floating rate). The leased
assets in Slovakia essentially relate to the sale and lease back
agreements for the V1 nuclear power plant at Jaslovske Bo-
hunice and the hydroelectric plant at Gabcikovo. The leasing
arrangements were a necessary condition for the start of the
privatization of the Slovakian electricity system. The lease for
the V1 plant covers the entire remaining useful life of the asset
and the period between the end of generation and the start
of the decommissioning process, while the lease for the Gab-
cikovo plant has a 30-year term as from April 2006.
The following table reports the minimum lease payments
and the related present value.
Millions of euro
Minimum lease payments
Present value
2013
2014-2017
After 2017
Total
at Dec. 31, 2012
70
300
687
1,057
70
198
492
760
Millions of euro
Minimum lease payments
Present value
2014
2015-2018
After 2018
Total
at Dec. 31, 2013
68
353
606
1,027
68
224
440
732
- geothermal
- nuclear
- alternative resources
Total power plants
Electricity distribution network
Land, buildings and other assets
and equipment
TOTAL
557
226
722
942
3,185
2,022
139
5,346
656
214
802
911
3,535
2,782
119
6,436
Capital expenditure on power plants totaled €3,185 million, a
decrease of 350 million on the previous year. This mainly reflects
lower investment in conventional thermal plants and nuclear
power plants in Italy, eastern Europe and Latin America.
These effects were only partially offset by increased investment in
renewable generation plants by the Renewable Energy Division.
Capital expenditure for the electricity distribution network to-
taled €2,022 million, a decrease of €760 million over the previ-
ous year. The decrease is essentially attributable to a selective
approach to work on the medium and low voltage grids in Italy
and Spain.
The “change in scope of consolidation” for the period mainly
concerned the acquisitions of control of the US companies
Chisholm View Wind Project and Prairie Rose Wind Project (€499
million), the acquisition of a 100% stake in Parque Eólico Talinay
Oriente, a company operating in the wind generation sector in
Chile (€127 million), and of 50% of PowerCrop, which operates
in biomass generation in Italy (€10 million). These factors were
partially offset by the impact of the deconsolidation of the Buf-
falo Dunes Wind Project (€64 million).
“Impairment losses” on property, plant and equipment amount-
ed to €180 million, mainly accounted for by the impairment loss-
es recognized in respect of a number of generation plants and
fuel storage facilities in view of changes in plans for their future
use as well as an increase in impairment losses on photovoltaic
manufacturing facilities in Italy, a number of geothermal plants
in Nicaragua and a number of specific projects in North America
and the Iberian peninsula.
Owing to the persistence of the economic crisis in Italy and in
The table below summarizes capital expenditure in 2013 by
view of the adverse impact of that crisis on the traditional gen-
category. These expenditures, totaling €5,346 million, fell by
eration sector, although the Group has already incorporated
€1,090 million compared with 2012.
assumptions of a slow economic recovery in the business plan
Millions of euro
Power plants:
- thermal
200
approved in March 2013, we have found that the continuation
of economic distress could represent evidence of impairment in
2013
2012
accordance with IAS 36. Accordingly, we conducted an impair-
738
952
generating unit (whose assets are represented by conventional
ment test at December 31, 2013 of the Enel Produzione cash
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts generation facilities in Italy). No impairment losses requiring rec-
“Other changes” include, among other items, the effect of the
ognition were found by those tests.
capitalization of interest on specific loans for capital expendi-
The model used in that testing was a unlevered discounted cash
ture in the amount of €129 million (€91 million in 2012), as
flow (DCF) approach applied to pre-tax amounts, with a time ho-
well as the change (positive in 2012 and negative in 2013) in
rizon based on an explicit period of 10 years plus a terminal value
the change in decommissioning plans for nuclear plants (see
calculated as a perpetuity with stable growth. The assumptions
note 31).
concerning the growth rate and the discount rate were analo-
gous to those adopted for other CGUs. In particular, the growth
“Reclassification to ‘assets held for sale’” essentially reports the
rate was determined on the basis of the average forecast for me-
property, plant and equipment of the French company WP France
dium/long-term electricity demand and set at 1.1%, while the
3, which in view of the decisions taken by management meets the
discount rate was determined as the pre-tax WACC of 9.9%.
requirements of IFRS 5 for classification as assets held for sale.
17. Intangible assets - €33,229 million
Changes in intangible assets for 2012 and 2013 are shown below:
Millions of euro
Cost
Accumulated amortization
Balance at Jan. 1, 2012 restated
Capital expenditure
Assets entering service
Exchange rate differences
Change in scope of consolidation
Amortization
Impairment losses
Other changes
Remeasurement at fair value after
changes in control
Reclassification from/to “assets held
for sale”
Total changes
Cost
Accumulated amortization
Balance at Dec. 31, 2012 restated
Capital expenditure
Assets entering service
Exchange rate differences
Change in scope of consolidation
Amortization
Impairment losses
Other changes
Reclassification from/to “assets held
for sale”
Total changes
Cost
Accumulated amortization
Balance at Dec. 31, 2013
Industrial
patents
and intellec-
tual property
rights
Concessions,
licenses,
trademarks
and similar
rights
Service
concession
arrangements
Develop-
ment costs
30
9
21
12
(1)
1
1
(4)
-
(3)
-
-
6
41
14
27
8
8
(4)
-
(4)
-
(4)
-
4
47
16
31
2,185
1,609
576
117
130
(2)
-
17,558
1,262
16,296
5
19
93
35
4,412
1,466
2,946
94
143
(300)
-
Other
1,487
936
551
34
25
(5)
25
(250)
(289)
(213)
(128)
-
2
-
-
(3)
2,432
1,859
573
86
116
(8)
-
(270)
-
(26)
-
(102)
2,522
2,051
471
2
11
1
(44)
(167)
17,605
1,476
16,129
3
-
(1,160)
14
(236)
(1)
(50)
(2)
(1,432)
16,208
1.511
14,697
-
(202)
-
-
(478)
4,196
1,728
2,468
242
-
(416)
-
(196)
(44)
(36)
-
(450)
3,671
1,653
2,018
(1)
5
-
-
(45)
1,595
1,089
506
30
16
(8)
-
(117)
(3)
83
-
1
1,667
1,160
507
Assets
under de-
velopment
and
advances
Goodwill
Total
317
18,342
44,331
-
317
365
(316)
-
74
(4)
-
-
5,282
18,342
39,049
-
-
28
60
-
627
-
(185)
195
(888)
(2,517)
(2,516)
(63)
(3)
(253)
11
-
67
-
-
12
(44)
(2,432)
(3,052)
384
15,910
42,163
-
384
241
(140)
(6)
71
-
(1)
(59)
-
106
490
-
-
6,166
15,910
35,997
-
-
610
-
(160)
(1,762)
23
-
(745)
(13)
108
(823)
(794)
(105)
-
(2)
(895)
(2,768)
15,015
39,620
-
6,391
490
15,015
33,229
201
The “change in scope of consolidation” for the period, net
tion is calculated on a straight-line basis over the average
of the increase in “goodwill”, mainly concerned a number
duration of the relationships with the customers acquired or
of wind projects in the United States and the acquisition of
the concessions. The item includes assets with an indefinite
Compañía Energética Veracruz in Peru.
useful life in the amount of €9,995 million (€10,622 million at
“Industrial patents and intellectual property rights” relate
December 31, 2012), essentially accounted for by concessions
mainly to costs incurred in purchasing software and open-
for distribution activities in Spain (€5,676 million), Colombia
ended software licenses. The most important applications
(€2,034 million), Chile (€1,669 million) and Peru (€616 mil-
relate to invoicing and customer management, the develop-
lion), for which there is no statutory or currently predictable
ment of Internet portals and the management of company
expiration date. On the basis of the forecasts developed, cash
systems. Amortization is calculated on a straight-line basis
flows for each of the electricity distribution concessions are
over the asset’s residual useful life (on average between three
sufficient to recover the value of the intangible assets.
and five years).
“Service concession arrangements”, recognized pursuant to
“Concessions, licenses, trademarks and similar rights” include
IFRIC 12, regard certain infrastructure serving electricity distri-
costs incurred by the gas companies and the foreign electric-
bution concessions in Brazil.
ity distribution companies to acquire customers. Amortiza-
“Goodwill” amounted to €15,015 million, a decrease of €895 million over the previous year.
Millions of euro
at Dec. 31, 2012 restated
Accumulat-
ed impair-
ment
Net car-
rying
amount
Cost
Change in
scope of
consolida-
tion
Exchange
rate
differences
Impairment
losses
Other
changes
Endesa
Enel OGK-5
Gruppo Enel Green
Power (1)
Slovenské elektrárne
Enel Energia
Enel Distributie
Muntenia
Enel Energie Muntenia
RusEnergoSbyt
Nuove Energie
Enel Stoccaggi
Enel Lab
Artic Russia
Total
14,259
(2,392)
11,867
1,257
(112)
1,145
-
-
-
-
(138)
(744)
974
697
579
548
113
45
26
1
-
10
(85)
-
-
-
-
-
-
-
-
(10)
889
697
579
548
113
45
26
1
-
-
18,509
(2,599)
15,910
22
(16)
-
-
-
-
-
-
-
1
-
23
-
-
(1)
-
(5)
-
-
-
-
-
-
-
-
-
-
-
(1)
-
-
at Dec. 31, 2013
Accumulat-
ed impair-
ment
Net car-
rying
amount
Cost
14,259
(2,392)
11,867
1,119
(856)
263
967
697
579
547
113
40
26
1
1
-
(85)
-
-
-
-
-
-
(1)
-
-
882
697
579
547
113
40
26
-
1
-
-
-
(13)
-
-
-
-
-
-
-
-
-
(160)
(745)
(13)
18,349
(3,334)
15,015
(1) EGP España, EGP Latin America, EGP North America, EGP Hellas, Enel Panama, EGP France, EGP Romania, EGP Bulgaria, Powercrop, EGP Finale Emilia, EGP South
Africa, EGP Portoscuso and other minor companies.
The “change in the scope of consolidation” mainly regards
business, on the operational rules and regulations of the mar-
the acquisition of 50% of PowerCrop, which operates in the
kets in which Enel operates and on the corporate organiza-
biomass generation sector, and other minor acquisitions by
tion, including technical and management factors, as well as
the Renewable Energy Division.
on the level of reporting monitored by management.
“Impairment losses” are recognized following impairment
tests, as discussed below.
The recoverable value of the goodwill recognized was esti-
The criteria used to identify the cash generating units (CGUs)
mated by calculating the value in use of the CGUs using dis-
were essentially based (in line with management’s strategic
counted cash flow models, which involve estimating expect-
and operational vision) on the specific characteristics of their
ed future cash flows and applying an appropriate discount
202
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
rate, selected on the basis of market inputs such as risk-free
term developments in the main variables that determine
rates, betas and market risk premiums.
cash flows, the average residual useful life of assets or the
Cash flows were determined on the basis of the best informa-
duration of the concessions.
tion available at the time of the estimate and drawn:
More specifically, the terminal value was calculated as a per-
> for the explicit period, from the 10-year business plan ap-
petuity or annuity with a nominal growth rate equal to the
proved by the Board of Directors of the Parent Company
long-term rate of growth in electricity and/or inflation (de-
containing forecasts for volumes, revenues, operating
pending on the country and business involved) and in any
costs, capital expenditure, industrial and commercial or-
case no higher than the average long-term growth rate of
ganization and developments in the main macroeconomic
the reference market. The value in use calculated as described
variables (inflation, nominal interest rates and exchange
above was found to be greater than the amount recognized
rates) and commodity prices. More specifically, the explicit
on the balance sheet, with the exceptions discussed below.
period of cash flows considered in impairment testing dif-
In order to verify the robustness of the value in use of the
fers in accordance with the specific features and business
CGUs, sensitivity analyses were conducted for the main drivers
cycles of the various CGUs being tested. These differences
of the values, in particular WACC and the long-term growth
are generally associated with the different average times
rate, the outcomes of which fully supported that value.
needed to build and bring into service the plant and other
works that characterize the investments of the specific
The table below reports the composition of the main goodwill
businesses that make up the CGU (conventional thermal
values according to the company to which the CGU belongs,
generation, nuclear power, renewables, distribution, etc.);
along with the discount rates applied and the time horizon
> for subsequent years, from assumptions concerning long-
over which the expected cash flows have been discounted.
203
Amount
at Dec. 31, 2012
8,607
3,260
1,145
697
661
579
407
270
107
38
45
26
25
24
13
5
-
-
-
1
1.90%
- (5)
1.20%
1.00%
2.40%
0.40%
2.00%
3.40%
2.20%
2.00%
0.40%
2.00%
1.90%
2.40%
3.00%
-
-
-
-
8.00%
9.50%
13.30%
9.60%
10.30%
11.50%
8.40%
9.90%
7.70%
16.80%
16.50%
9.20%
10.10%
7.80%
11.50%
9.30%
-
-
-
10 years
10 years
10 years
10 years
10 years
10 years
5 years
5 years
5 years
10 years
10 years
10 years
10 years
5 years
5 years
10 years
-
-
-
Perpetuity
Perpetuity
Perpetuity
Perpetuity
Perpetuity
10 years
17 years
21 years
20 years
20 years
18 years
15 years
18 years
20 years
12 years
-
-
-
-
0.40%
8.80%
10 years
31 years
Millions of euro
Amount
Growth rate (1)
Discount rate
pre-tax WACC (2)
Explicit period of
cash flows
Terminal
value (3)
Growth
Rate (1)
Discount rate
pre-tax
WACC (2)
Explicit period
of cash flows
Terminal
value (3)
Endesa-Iberia (4)
Endesa-Latin America
Enel OGK-5
Slovenské elektrárne
Enel Romania (6)
Enel Energia
EGP España
EGP Latin America
EGP North America
EGP Hellas
RusEnergoSbyt
Nuove Energie
EGP Portoscuso and other minor
EGP France
EGP Romania
EGP Bulgaria
PowerCrop
EGP Finale Emilia
EGP South Africa
Enel Stoccaggi
at Dec. 31, 2013
8,607
3,260
263
697
660
579
403
262
103
33
40
26
21
29
13
5
9
3
1
-
1.80%
- (5)
1.20%
1.00%
2.40%
0.70%
2.00%
3.40%
2.10%
2.00%
-
0.70%
2.00%
1.90%
2.40%
3.00%
2.00%
2.00%
1.90%
-
8.40%
8.90%
12.20%
8.80%
9.90%
12.70%
7.90%
8.50%
7.70%
13.60%
15.60%
9.90%
10.00%
7.60%
10.60%
8.20%
11.50%
12.00%
9.80%
-
10 years
10 years
10 years
10 years
10 years
10 years
5 years
5 years
5 years
10 years
10 years
10 years
10 years
5 years
10 years
10 years
10 years
10 years
5 years
-
Perpetuity
Perpetuity
Perpetuity
Perpetuity
Perpetuity
10 years
14 years
23 years
19 years
18 years
-
17 years
18 years
19 years
13 years
11 years
7 years
7 years
23 years
-
(1) Perpetual growth rate of cash flows after explicit period.
(2) Pre-tax WACC calculated using the iterative method: the discount rate that ensures that the value in use calculated with pre-tax cash flows is equal to that
calculated with post-tax cash flows discounted with the post-tax WACC.
(3) The terminal value has been estimated on the basis of a perpetuity or an annuity with a rising yield for the years indicated in the column.
(4) Goodwill includes the portion referring to EGP España.
(5) Growth rate equal to 4.0% (3.8% at December 31, 2012) for the first 10 years after the explicit period, followed by a perpetuity at a growth rate of 1.0% (1.0%
at December 31, 2012).
(6) Includes all companies operating in Romania.
At December 31, 2013, impairment testing found impairment
At December 31, 2012 the following impairment losses had
losses of €744 million on the Enel OGK-5 CGU. The assessment
been recognized:
reflects, largely to the same extent as the other parameters
> €2,392 million on the Endesa-Iberia CGU, to reflect the
used in the determination, the expected contraction in esti-
decrease in the expected cash flows from the assets be-
mated future cash flows as a result of the persistent signs of a
longing to the CGU, partly as a result of various measures
slowdown in economic growth and a consequent contraction
adopted by the Spanish government in the energy field
in forecasts for price increases in the medium term. In parti-
during 2012, and from the rise in country risk, which is fac-
cular, in 2013 the local government implemented a number
tored into the discount rate;
of measures to contain energy spending that have helped
> €112 million on the Enel OGK-5 CGU, reflecting the emer-
heighten uncertainty concerning the timetable for the full libe-
gence of the first signs of a change in industry conditions,
ralization of gas prices in Russia, which is considered a key step
prompting management to recognize a deterioration in
in making the electricity industry attractive to foreign investors,
the earnings potential of the CGU.
making it possible to upgrade plants.
204
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Millions of euro
Amount
Growth rate (1)
pre-tax WACC (2)
cash flows
Discount rate
Explicit period of
at Dec. 31, 2013
Endesa-Iberia (4)
Endesa-Latin America
Enel OGK-5
Slovenské elektrárne
Enel Romania (6)
Enel Energia
EGP España
EGP Latin America
EGP North America
EGP Hellas
RusEnergoSbyt
Nuove Energie
EGP France
EGP Romania
EGP Bulgaria
PowerCrop
EGP Finale Emilia
EGP South Africa
Enel Stoccaggi
EGP Portoscuso and other minor
8,607
3,260
263
697
660
579
403
262
103
33
40
26
21
29
13
5
9
3
1
-
1.80%
- (5)
1.20%
1.00%
2.40%
0.70%
2.00%
3.40%
2.10%
2.00%
-
0.70%
2.00%
1.90%
2.40%
3.00%
2.00%
2.00%
1.90%
-
8.40%
8.90%
12.20%
8.80%
9.90%
12.70%
7.90%
8.50%
7.70%
13.60%
15.60%
9.90%
10.00%
7.60%
10.60%
8.20%
11.50%
12.00%
9.80%
-
10 years
10 years
10 years
10 years
10 years
10 years
5 years
5 years
5 years
10 years
10 years
10 years
10 years
5 years
10 years
10 years
10 years
10 years
5 years
-
Terminal
value (3)
Perpetuity
Perpetuity
Perpetuity
Perpetuity
Perpetuity
10 years
14 years
23 years
19 years
18 years
17 years
18 years
19 years
13 years
11 years
7 years
7 years
23 years
-
-
(1) Perpetual growth rate of cash flows after explicit period.
(2) Pre-tax WACC calculated using the iterative method: the discount rate that ensures that the value in use calculated with pre-tax cash flows is equal to that
calculated with post-tax cash flows discounted with the post-tax WACC.
(3) The terminal value has been estimated on the basis of a perpetuity or an annuity with a rising yield for the years indicated in the column.
(5) Growth rate equal to 4.0% (3.8% at December 31, 2012) for the first 10 years after the explicit period, followed by a perpetuity at a growth rate of 1.0% (1.0%
(4) Goodwill includes the portion referring to EGP España.
at December 31, 2012).
(6) Includes all companies operating in Romania.
Amount
at Dec. 31, 2012
8,607
3,260
1,145
697
661
579
407
270
107
38
45
26
25
24
13
5
-
-
-
1
Growth
Rate (1)
Discount rate
pre-tax
WACC (2)
Explicit period
of cash flows
Terminal
value (3)
1.90%
- (5)
1.20%
1.00%
2.40%
0.40%
2.00%
3.40%
2.20%
2.00%
-
0.40%
2.00%
1.90%
2.40%
3.00%
-
-
-
8.00%
9.50%
13.30%
9.60%
10.30%
11.50%
8.40%
9.90%
7.70%
16.80%
16.50%
9.20%
10.10%
7.80%
11.50%
9.30%
-
-
-
10 years
10 years
10 years
10 years
10 years
10 years
5 years
5 years
5 years
10 years
10 years
10 years
10 years
5 years
5 years
10 years
-
-
-
Perpetuity
Perpetuity
Perpetuity
Perpetuity
Perpetuity
10 years
17 years
21 years
20 years
20 years
-
18 years
15 years
18 years
20 years
12 years
-
-
-
0.40%
8.80%
10 years
31 years
205
18. Deferred tax assets and liabilities - €6,239 million and
€10,905 million
The following table details changes in deferred tax assets
tions. The table also reports the amount of deferred tax
and liabilities by type of timing difference and calculated
assets that, where allowed, can be offset against deferred
based on the tax rates established by applicable regula-
tax liabilities.
Increase/
(Decrease)
taken to
income
statement
Change
in scope of
consolidation
Other
changes
Exchange rate
differences
Millions of euro
at Dec. 31, 2012
restated
Deferred tax assets:
- differences in the value of intangible assets,
and property, plant and equipment
- accruals to provisions for risks and charges and
impairment losses with deferred deductibility
- tax loss carried forward
- measurement of financial instruments
- other items
Total
Deferred tax liabilities:
- differences on non-current and financial assets
- measurement of financial instruments
- other items
Total
Non-offsettable deferred tax assets
Non-offsettable deferred tax liabilities
Offsettable deferred tax liabilities
1,805
102
2,307
116
650
1,938
6,816
8,942
220
2,624
(258)
(22)
(45)
(184)
(407)
(337)
14
73
11,786
(250)
-
-
-
-
1
1
22
-
-
22
13
21
23
(123)
3
(63)
16
(62)
(22)
(68)
at Dec. 31,
2013
1,893
2,042
111
472
1,721
6,239
8,095
170
2,640
(27)
(28)
(6)
(10)
(37)
(108)
(548)
(2)
(35)
(585)
10,905
2,664
4,626
2,704
At December 31, 2013 “deferred tax assets” totaled €6,239
nal allocation of the cost of acquisitions made in the various
million (€6,816 million at December 31, 2012).
years and the deferred taxation in respect of the differences
It should also be noted that no deferred tax assets were re-
between depreciation charged for tax purposes, including
corded in relation to prior tax losses in the amount of €1,069
accelerated depreciation, and depreciation based on the
million, because, on the basis of current estimates of future
estimated useful lives of assets. The exchange rate losses,
taxable income, it is not certain that such assets will be re-
amounting to €585 million, are essentially attributable to
covered. More specifically, the losses include those attribut-
the Latin American companies.
able to the holding companies located in the Netherlands
Finally, no deferred tax liabilities were recognized for the
(€363 million).
subsidiary Enel Energy Europe in respect of the difference
(€537 million) between the carrying amount and the value
“Deferred tax liabilities”, which totaled €10,905 million at
used for tax purposes for the company in application of the
December 31, 2013 (€11,786 million at December 31, 2012),
exemption provided for under IAS 12, paragraph 39. That
essentially include the determination of the tax effects of
difference was generated by the distribution of a special
the value adjustments to assets acquired as part of the fi-
dividend by Endesa to its direct subsidiary in December 2013.
206
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
19. Equity investments accounted for using the equity
method - €647 million
Investments in associated companies accounted for using the equity method are as follows:
Millions of euro
% holding
Change in
scope of con-
solidation
Income
effect
Reclassified
to “assets
held for
sale“
Other
changes
%
holding
Elica 2
LaGeo
Buffalo Dunes Wind Project
CESI
ENEOP-Eólicas de Portugal
Tecnatom
Tirme
Suministradora Eléctrica de Cádiz
Eevm - Empreendimentos Eólicos
do Vale do Minho
Compañía Eólica Tierras Altas
Chisholm View Wind Project
Prairie Rose Wind Project
Endesa Gas T&D (formerly Nubia
2000)
SeverEnergia
Enel Rete Gas
Other
Total
at Dec. 31,
2012
restated
134
103
30.00%
36.20%
-
35
36
29
21
16
7
14
60
48
32
292
125
163
1,115
42.70%
35.96%
45.00%
40.00%
33.50%
50.00%
35.63%
49.00%
49.00%
20.00%
19.60%
14.80%
-
31
(1)
2
16
1
2
3
16
1
6
2
(6)
9
8
(4)
86
-
-
63
-
-
-
-
-
-
-
(66)
(50)
(26)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(269)
(126)
-
(79)
(395)
at Dec. 31, 2013
30.00%
36.20%
49.00%
42.70%
35.96%
45.00%
40.00%
33.50%
50.00%
35.63%
135
98
69
37
55
30
23
17
15
14
-
-
-
-
-
154
647
1
(36)
7
-
3
-
-
(2)
(8)
(1)
-
-
-
(32)
(7)
(5)
(80)
The “change in scope of consolidation” item includes €63
are now consolidated on a full line-by-line basis.
million in respect of the sale of 51% of the Buffalo Dunes
The item “reclassified to ‘assets held for sale’” regards the
Wind Project, a company previously consolidated on a full
interests held in SeverEnergia and Enel Rete Gas that in
line-by-line basis and now accounted for using the equity
consideration of management decisions were classified as
method. That change was partially offset by the acquisition
such during the year in accordance with IFRS 5. The equity
of control of Chisholm View Wind Project and Prairie Rose
investments were sold in the final quarter of 2013.
Wind Project for a total amount of €116 million, which had
The main income statement and balance-sheet data for the
been accounted for using the equity method but following
principal equity investments in associates are reported in
the acquisition of an additional 26% stake in share capital
the following table.
207
Millions of euro
Elica 2
LaGeo
Buffalo Dunes Wind Project
CESI
ENEOP-Eólicas de Portugal
Tecnatom
Tirme
Suministradora Eléctrica de Cádiz
Eevm - Empreendimentos Eólicos do Vale do
Minho
Compañía Eólica Tierras Altas
Millions of euro
Elica 2
LaGeo
CESI
ENEOP-Eólicas de Portugal
Tecnatom
Tirme
Suministradora Eléctrica de Cádiz
Eevm - Empreendimentos Eólicos do Vale do
Minho
Compañía Eólica Tierras Altas
Non-
current assets
Current
assets
Non-current
liabilities
Current
liabilities
Revenues
Net income/
(loss)
7
258
328
60
1,214
69
424
75
274
45
at Dec. 31, 2013
6
142
20
94
278
69
104
17
53
16
-
11
158
18
1,249
33
446
22
234
6
-
54
50
40
159
39
24
19
61
15
-
176
2
91
195
100
73
16
89
20
-
85
-
10
40
2
4
9
32
4
Non-
current assets
Current
assets
Non-current
liabilities
Current
liabilities
Revenues
Net income/
(loss)
at Dec. 31, 2012 restated
2
170
88
260
70
125
19
37
5
-
18
16
1,149
23
477
25
255
10
9
243
54
1,126
61
472
73
288
50
1
49
46
147
43
49
20
56
7
-
197
61
147
111
100
17
74
29
20. Non-current financial assets - €6,401 million
Millions of euro
Equity investments in other companies
Receivables and securities included in net
financial debt (see note 27.3)
Derivative contracts (see note 6.1)
Service concession arrangements
Prepaid non-current financial expense
Total
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
285
4,951
444
618
103
6,401
362
(77)
3,576
953
594
33
5,518
1,375
(509)
24
70
883
“Equity investments in other companies” includes invest-
whose fair value could not be readily determined and, in the
ments measured at fair value in the amount of €183 million,
absence of plans to sell the holdings, were therefore recog-
while the remainder of €102 million regarded investments
nized at cost less impairment losses.
208
-
94
8
20
8
5
9
28
11
-21.3%
38.5%
-53.4%
4.0%
-
16.0%
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
More specifically, equity investments in other companies break down as follows:
Millions of euro
Bayan Resources
Echelon
Galsi
Other
Total
% holding
% holding
at Dec. 31, 2013
at Dec. 31, 2012 restated
Change
169
5
15
96
285
10.00%
7.07%
15.61%
222
6
15
119
362
10.00%
7.36%
15.61%
(53)
(1)
-
(23)
(77)
The change with respect to 2012 is essentially attributable to
nancial assets, please see note 6.1.
both the disposal of a number of minor equity investments
“Service concession arrangements” regard amounts due
in Spain and a reduction in the fair value of Bayan Resources.
from the grantor for the construction and/or improve-
ment of infrastructure used to provide public services on a
For more on “receivables and securities included in net fi-
concession basis and recognized in application of IFRIC 12.
nancial debt”, please see note 27.3.
For more on derivatives classified under non-current fi-
measurement criteria, please see note 7 on IFRS 13 disclosures.
For a summary of the fair value balances, broken down by
21. Other non-current assets - €837 million
Millions of euro
Receivables due from Electricity Equalization
Fund and similar bodies
Net assets of employee benefit programs
Other receivables
Total
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
46
21
770
837
51
-
749
800
(5)
21
21
37
-9.8%
-
2.8%
4.6%
“Receivables due from Electricity Equalization Fund and simi-
ployees, net of actuarial liabilities.
lar bodies” at December 31, 2013 include only the receivable
“Other receivables” at December 31, 2013 are mainly com-
in respect of the Electricity Equalization Fund claimed by the
posed of tax receivables in the amount of €494 million
Italian distribution companies.
(€401 million at December 31, 2012) and advances to sup-
“Net assets of employee benefit programs” reports assets
pliers in the amount of €154 million (€263 million at the
backing a number of employee benefit plans for Endesa em-
end of 2012).
22. Inventories - €3,586 million
Millions of euro
Raw materials, consumables and supplies:
- fuel
- materials, equipment and other inventories
Total
Buildings available for sale
Advances
TOTAL
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
1,824
1,627
3,451
77
58
3,586
2,271
983
3,254
79
5
3,338
(447)
644
197
(2)
53
248
-19.7%
65.5%
6.1%
-2.5%
-
7.4%
209
Raw materials, consumables and supplies consist of fuel
inventories to cover the requirements of the generation
item also includes CO2 emission allowances in the amount of
€525 million at December 31, 2013 (€384 million at Decem-
companies and trading activities, as well as materials and
ber 31, 2012). The buildings available for sale are related to
equipment for the operation, maintenance and construc-
remaining units from the Group’s real estate portfolio and
tion of generation plants and distribution networks. The in-
are primarily civil buildings.
crease for the year is mainly attributable to the rise in green
Inventories measured at fair value amounted to €498 mil-
and environmental certificate inventories, which more than
lion. For more information on the level of fair value inputs
offset the contraction in stocks of gas and other fuels. The
and the measurement policies, please see note 7.
23. Trade receivables - €11,533 million
Millions of euro
Customers:
- sale and transport of electricity
- distribution and sale of natural gas
- other activities
Total
Trade receivables due from associates
Receivables for contract work in progress
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
8,738
1,524
1,200
11,462
34
37
8,838
1,570
1,243
11,651
29
39
(100)
(46)
(43)
(189)
5
(2)
(186)
-1.1%
-2.9%
-3.5%
-1.6%
17.2%
-5.1%
-1.6%
TOTAL
11,533
11,719
Trade receivables from customers are recognized net of
ing balance of €1,421 million. The table below shows the
allowances for doubtful accounts, which totaled €1,482
changes in these allowances.
million, at the end of the year, as compared with an open-
1,661
588
(802)
(26)
1,421
654
(546)
(47)
1,482
Millions of euro
Total at January 1, 2012
Accruals
Utilization
Other changes
Total at December 31, 2012 restated
Accruals
Utilization
Other changes
Total at December 31, 2013
210
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
Trade receivables that had not been written down at December 31, 2013 break down by maturity as follows:
Millions of euro
Not past due
Past due:
- from 0 to 6 months
- from 6 to 12 months
- from 12 to 24 months
- more than 24 months
Total at December 31, 2013
7,600
1,890
438
740
865
11,533
In a number of residual cases with no material impact on the
against trade payables where permitted under contractual
financial statements, trade receivables have been netted
and statutory provisions.
24. Tax receivables - €1,735 million
Tax receivables at December 31, 2013 amounted to €1,735
lion (€593 million at December 31, 2012) and receivables for
million and are essentially related to income tax credits in
other taxes and tax surcharges in the amount of €134 mil-
the amount of €995 million (€528 million at December 31,
lion (€394 million at December 31, 2012).
2012), credits for indirect taxes in the amount of €435 mil-
25. Current financial assets - €7,877 million
Millions of euro
Current financial assets included in net financial position (see note 27.4)
Derivative contracts (see note 6.2)
Other
Total
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
5,489
2,285
103
7,877
7,571
1,718
92
9,381
(2,082)
567
11
(1,504)
-27.5%
33.0%
12.0%
-16.0%
For more on “current financial assets included in net finan-
For more information on “derivative contracts”, please see
cial position”, please see note 27.4.
note 6.2.
211
26. Other current assets - €2,562 million
Millions of euro
Receivables due from Electricity Equalization Fund and similar bodies
Receivable due from employees
Receivables due from others
Accrued operating income and prepaid expenses
Total
at Dec. 31, 2013
at Dec. 31, 2012
restated
745
37
1,517
263
2,562
936
40
1,092
194
2,262
Change
(191)
-20.4%
(3)
425
69
300
-7.5%
38.9%
35.6%
13.3%
“Receivables due from Electricity Equalization Fund and sim-
to €791 million (€987 million at December 31, 2012), offset
ilar bodies” include receivables in respect of the Italian sys-
by payables of €3,312 million (€3,371 million at December
tem in the amount of €669 million (€454 million at Decem-
31, 2012).
ber 31, 2012) and the Spanish system in the amount of €76
The increase in “receivables due from others” is mainly at-
million (€482 million at December 31, 2012). Including the
tributable to the increase in receivables for expired deriva-
portion of receivables classified as long-term (€46 million),
tives positions that have not yet been settled in the amount
operating receivables due from the Electricity Equalization
of €203 million and the change of €142 million in receiva-
Fund and similar bodies at December 31, 2013 amounted
bles for grants to be received in respect of green certificates.
27. Net financial position and long-term financial receivables
and securities - €39,862 million
The following table reports the net financial position and
of the items on the consolidated balance sheet.
long-term financial receivables and securities on the basis
Millions of euro
Long-term loans
Short-term loans
Current portion of long-term loans
Non-current financial assets included in debt
Current financial assets included in debt
Cash and cash equivalents
Total
Notes
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
27.1
27.2
27.1
27.3
27.4
27.5
51,113
2,529
4,690
(4,951)
(5,489)
(8,030)
39,862
55,959
3,970
4,057
(3,576)
(7,571)
(9,891)
42,948
(4,846)
(1,441)
633
(1,375)
2,082
1,861
(3,086)
-8.7%
-36.3%
15.6%
-38.5%
27.5%
18.8%
-7.2%
Pursuant to the CONSOB instructions of July 28, 2006, the fol-
cial debt as provided for in the presentation methods of the
lowing table reports the net financial position at December
Enel Group.
31, 2013, and December 31, 2012, reconciled with net finan-
212
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Millions of euro
Cash and cash equivalents on hand
Bank and post office deposits
Securities
Liquidity
Short-term financial receivables
Factoring receivables
Short-term portion of long-term financial receivables
Current financial receivables
Short-term bank debt
Commercial paper
Short-term portion of long-term bank debt
Bonds and preference shares
(short-term portion)
Other loans (short-term portion)
Other short-term financial payables
Total short-term financial debt
Net short-term financial position
Debt to banks and financing entities
Bonds and preference shares
Other loans
Long-term financial position
Net financial position as per CONSOB instructions
Long-term financial receivables and securities
NET FINANCIAL DEBT
There are no transactions with related parties for these items.
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
1,065
6,965
17
8,047
2,232
263
2,977
5,472
(150)
(2,202)
(1,788)
(2,649)
(253)
(177)
(7,219)
6,300
(8,287)
(41,483)
(1,343)
(51,113)
(44,813)
4,951
(39,862)
1,027
8,864
42
9,933
1,923
288
5,318
7,529
(283)
(2,914)
(714)
(3,115)
(228)
(773)
(8,027)
9,435
(13,282)
(41,509)
(1,168)
(55,959)
(46,524)
3,576
(42,948)
38
(1,899)
(25)
(1,886)
309
(25)
(2,341)
(2,057)
133
712
(1,074)
466
(25)
596
808
(3,135)
4,995
26
(175)
4,846
1,711
1,375
3,086
3.7%
-21.4%
-59.5%
-19.0%
16.1%
-8.7%
-44.0%
-27.3%
47.0%
24.4%
-
15.0%
-11.0%
77.1%
10.1%
-33.2%
37.6%
0.1%
-15.0%
8.7%
3.7%
38.5%
7.2%
213
27.1 Long-term loans (including the portion falling due
within 12 months) - €55,803 million
The aggregate includes long-term liabilities in respect of bon-
The following table shows long-term debt and repayment
ds, bank loans and other loans in euro and other currencies,
schedules at December 31, 2013, grouped by loan and in-
including the portion falling due within twelve months.
terest rate type.
Millions of euro
Maturing
Balance
Nominal value
Balance
Current portion
than 12 months
Maturing in
at Dec. 31, 2013
at Dec. 31, 2012
2015
2016
2017
2018
Beyond
Bonds:
- listed, fixed rate
- listed, floating rate
- unlisted, fixed rate
- unlisted, floating rate
Total bonds
Bank loans:
- fixed rate
- floating rate
- use of revolving credit lines
Total bank loans
Preference shares: (2)
- floating rate
Total preference shares
Non-bank loans:
- fixed rate
- floating rate
Total non-bank loans
TOTAL
2014-2097 (1)
2014-2031
2014-2039
2014-2032
2014-2046
2014-2035
2014-2017
2013
2014-2035
2014-2030
30,730
6,506
5,463
1,433
44,132
966
8,031
1,078
10,075
-
-
1,065
531
1,596
55,803
31,021
6,545
5,479
1,434
44,479
974
8,048
1,078
10,100
-
-
1,065
531
1,596
56,175
29,882
6,507
6,460
1,594
44,443
853
11,814
1,329
13,996
181
181
915
481
1,396
60,016
(1) The maturity dates of listed fixed-rate bonds reported here are based on the assumption that the option to extinguish the hybrid bonds issued in September
2013 is exercised at the first possible date for each issue, as reported below. The amortized cost was also calculated using the same assumption.
(2) The preference shares issued by Endesa Capital Finance LLC are perpetual, with an option for early redemption at par as from 2013.
214
Portion falling
due at more
30,263
5,371
4,477
1,372
41,483
928
7,138
221
8,287
-
-
949
394
1,343
51,113
467
1,135
986
61
2,649
38
893
857
1,788
-
-
116
137
253
4,690
2,589
1,436
-
63
4,088
66
753
161
980
-
-
103
65
168
5,236
3,693
1,177
108
64
5,042
75
839
60
974
-
-
98
61
159
6,175
2,480
346
1,085
65
3,976
72
1,114
-
-
-
91
76
167
5,329
5,545
770
-
66
6,381
279
760
-
-
-
96
49
145
15,956
1,642
3,284
1,114
21,996
436
3,672
-
-
-
561
143
704
7,565
26,808
1,186
1,039
4,108
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Millions of euro
Maturing
Balance
Nominal value
Balance
Current portion
Portion falling
due at more
than 12 months
Maturing in
at Dec. 31, 2013
at Dec. 31, 2012
2015
2016
2017
2018
Beyond
- use of revolving credit lines
Bonds:
- listed, fixed rate
- listed, floating rate
- unlisted, fixed rate
- unlisted, floating rate
Total bonds
Bank loans:
- fixed rate
- floating rate
Total bank loans
Preference shares: (2)
- floating rate
Total preference shares
Non-bank loans:
- fixed rate
- floating rate
Total non-bank loans
TOTAL
2014-2097 (1)
2014-2031
2014-2039
2014-2032
2014-2046
2014-2035
2014-2017
2013
2014-2035
2014-2030
30,730
6,506
5,463
1,433
44,132
966
8,031
1,078
10,075
-
-
1,065
531
1,596
55,803
31,021
6,545
5,479
1,434
44,479
974
8,048
1,078
10,100
-
-
1,065
531
1,596
56,175
29,882
6,507
6,460
1,594
44,443
853
11,814
1,329
13,996
181
181
915
481
1,396
60,016
(1) The maturity dates of listed fixed-rate bonds reported here are based on the assumption that the option to extinguish the hybrid bonds issued in September
2013 is exercised at the first possible date for each issue, as reported below. The amortized cost was also calculated using the same assumption.
(2) The preference shares issued by Endesa Capital Finance LLC are perpetual, with an option for early redemption at par as from 2013.
467
1,135
986
61
2,649
38
893
857
1,788
-
-
116
137
253
4,690
30,263
5,371
4,477
1,372
41,483
928
7,138
221
8,287
-
-
949
394
1,343
51,113
2,589
1,436
-
63
4,088
66
753
161
980
-
-
103
65
168
5,236
3,693
1,177
108
64
5,042
75
839
60
974
-
-
98
61
159
6,175
2,480
346
1,085
65
3,976
72
1,114
-
1,186
-
-
91
76
167
5,329
5,545
770
-
66
6,381
279
760
-
1,039
-
-
96
49
145
15,956
1,642
3,284
1,114
21,996
436
3,672
-
4,108
-
-
561
143
704
7,565
26,808
215
The balance for bonds regards, net of €734 million, the
in portfolio, while Enel.Re (now Enel Insurance NV) holds
unlisted floating-rate “Special series of bonds reserved for
bonds issued by Enel SpA totaling €30 million.
employees 1994-2019”, which the Parent Company holds
The table below reports long-term financial debt by currency and interest rate.
Long-term financial debt by currency and interest rate
Millions of euro
Euro
US dollar
Pound sterling
Colombian peso
Brazilian real
Swiss franc
Chilean peso/UF
Peruvian sol
Russian ruble
Japanese yen
Other currencies
Balance
Nominal
value
Balance
Current average
interest rate
Current effective
interest rate
at Dec. 31, 2013
at Dec. 31, 2012
at Dec. 31, 2013
38,482
38,741
8,467
4,486
1,662
746
593
461
302
243
238
123
8,504
4,546
1,662
748
595
473
302
243
238
123
3.71%
6.04%
6.00%
7.60%
3.86%
6.29%
6.15%
7.60%
10.00%
10.20%
2.85%
7.30%
6.60%
7.79%
2.35%
2.91%
9.20%
6.60%
8.39%
2.38%
42,777
8,380
4,102
1,600
839
603
532
349
347
304
183
17,239
60,016
Total non-euro currencies
TOTAL
17,321
17,434
55,803
56,175
Long-term financial debt denominated in currencies other
in dollars, Russian rubles and the Latin American currencies,
than the euro increased by €82 million. The change is largely
partially offset by new borrowing in dollars, pounds sterling,
attributable to repayments of loans falling due denominated
Brazilian reais and Colombian pesos.
Change in the nominal value of long-term debt
Millions of euro
Nominal value
Repayments
Change in own
bonds
Change in
scope of
consolidation New financing
Exchange rate
differences
Bonds
Bank loans
Preference shares
Other loans
Total financial
debt
at Dec. 31,
2012
44,794
14,066
181
1,396
(2,952)
(5,448)
(181)
(173)
(101)
-
-
-
60,437
(8,754)
(101)
-
-
-
265
265
3,571
1,573
(833)
(91)
192
(81)
5,336
(1,005)
Other Nominal value
at Dec. 31,
2013
-
-
-
(3)
(3)
44,479
10,100
-
1,596
56,175
Compared with December 31, 2012, the nominal value of
the United States that had previously entered into tax part-
long-term debt at December 31, 2013 decreased by €4,262
nership agreements, and €3 million in other items.
million, which is the net effect of €8,754 million in repay-
ments, repurchases of €101 million of own bonds, €5,336
The main repayments in 2013 concerned bonds and pref-
million in new loans and €1,005 million in exchange rate
erence shares in the amount of €3,133 million, bank loans
losses, of which €265 million due to the change in the scope
totaling €5,448 million and other loans for €173 million.
of consolidation, mainly attributable to the acquisition of a
More specifically, the main bonds maturing in 2013 included:
number of companies in the renewable generation sector in
> $1,000 million in respect of a fixed-rate bond, issued by
216
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Enel Finance International, maturing January 2013;
maturing in 2014 and renegotiated a bilateral revolving
> €700 million in respect of a fixed-rate bond issued by Inter-
credit facility in the total amount of €800 million struc-
national Endesa, maturing in February 2013;
tured in the following tranches: €400 million falling due in
> €181 million in respect of the early repayment of Endesa
2015 and €400 million falling due in 2016;
Capital Finance preference shares in March 2013;
> on November 14, 2013, Enel Distribuzione entered into
> €750 million in respect of a fixed-rate bond, issued by Enel
a 20-year European Investment Bank loan worth €270
SpA, maturing in June 2013;
million;
> $400 million in respect of a fixed-rate bond, issued by
> on November 28, 2013, Enel Green Power International
Endesa Chile, maturing in August 2013.
entered into a 15-year European Investment Bank loan
worth €200 million;
The main repayments of bank loans in the years included
> on December 16, 2013, Enel Green Power International
the following:
entered into a 12-year loan agreement worth €100 million
> €341 million in respect of repayments of revolving credit
with the Danish Export Credit Agency;
lines by Endesa;
> on December 19, 2013, Enel Green Power Latin America
> €293 million in respect of floating-rate bank loans of
entered into a 5-year loan agreement worth $150 million;
Endesa;
> on December 19, 2013, Inelec entered into a 5-year loan
> €100 million in respect of repayments of a revolving credit
agreement worth $150 million;
line by Enel SpA;
> on December 27, 2013, Slovenské elektrárne entered into a
> €100 million in respect of repayments of a credit line of
7-year project financing arrangement worth €133 million;
Enel Finance International;
> €250 million in respect of the early repayment of bilateral
The main financing operations carried out in 2013 include:
term loans falling due in 2017 by Enel Finance Interna-
> the private placement in February, March and April under
tional;
the Global Medium-Term Notes program of bonds by Enel
> €617 million in respect of the tranche falling due in 2014
Finance International, with an Enel guarantee, in the total
of the 2009 Credit Facility by Enel SpA and Enel Finance
amount of €485 million, with the following characteristics:
International;
- €100 million fixed-rate 5% maturing on February 18,
> €3,200 million in respect of the early repayment of the
2023;
Credit Facility falling due in 2017 by Enel Finance Interna-
- €50 million floating-rate maturing on March 27, 2023;
tional;
- €50 million floating-rate maturing on April 4, 2025;
> €360 million in respect of the repayment of subsidized
- €50 million fixed-rate 4.875% maturing on April 19,
loans held by Group companies.
2028;
- €180 million fixed-rate 4.45% maturing on April 23,
The main financing contracts finalized in 2013 include:
2025;
> on January 15, 2013, Enel SpA renegotiated a bilateral re-
- €55 million fixed-rate 4.75% maturing on April 26, 2027;
volving credit facility in the total amount of €500 million
> in September, Enel SpA issued hybrid bonds, with the fol-
falling due in 2014;
lowing characteristics:
> on February 8, 2013, Enel SpA and Enel Finance Interna-
- €1,250 million fixed-rate 6.50%, maturing on January
tional entered into a revolving forward starting credit facil-
10, 2074 with a call option vesting on January 10, 2019;
ity of about €9.4 billion, falling due in April 2018, which
- £400 million fixed-rate 7.75%, maturing on September
will replace the current €10 billion revolving credit line as
10, 2075 with a call option vesting on September 10,
from the expiry of the latter, which is scheduled for 2015
2020;
under the terms of the contract;
- $1,250 million fixed-rate 8.75%, maturing on Septem-
> on March 18, 2013, Enel Latin America entered into a
ber 24, 2073 with a call option vesting on September 24,
5-year loan agreement in the total amount of $100 million;
2023;
> on July 30, 2013, Enel Latin America (Chile) entered into a
> in September, Emgesa issued bonds in Colombian pesos
5-year loan agreement in the total amount of $100 million;
totaling €212 million;
> on July 18, 2013, Enel SpA extinguished a bilateral revolv-
> in November, Codensa issued bonds in Colombian pesos
ing credit facility early, in the total amount of €500 million
totaling €141 million;
217
> an increase in drawings by Slovenské elektrárne on com-
> drawings by Endesa on other financing in the total amount
mitted revolving credit lines in the amount of €185 million;
of €179 million.
> drawings by Endesa on an European Investment Bank (EIB)
loan in the total amount of €150 million;
The following table compares the carrying amount and the
> drawings by Enel Green Power International floating-rate
fair value of long-term debt, including the portion falling
bank loans in the amount of €170 million;
due within 12 months, broken down by category. For listed
> drawings by Enel Distribuzione on financing with EIB funds
debt instruments, the fair value is given by official prices.
in the amount of €270 million maturing on June 15, 2033;
For unlisted instruments the fair value is determined using
> drawings by Enel Green Power Latin America on floating-
appropriate valuation models for each category of financial
rate bank loans in the total amount of €225 million;
instrument and market data at the closing date of the year,
> drawings by Inelec on fixed-rate bank loans in the total
including the credit spreads of Enel SpA.
amount of €185 million;
> drawings by Endesa on floating-rate bank loans in the to-
tal amount of €171 million;
Millions of euro
Carrying amount
Fair value
Carrying amount
Fair value
at Dec. 31, 2013
at Dec. 31, 2012
Bonds:
- fixed rate
- floating rate
Total bonds
Bank loans:
- fixed rate
- floating rate
Total bank loans
Preference shares:
- floating rate
Total preference shares
Other loans:
- fixed rate
- floating rate
Total other loans
TOTAL
36,193
7,939
44,132
966
9,109
10,075
-
-
1,065
531
1,596
55,803
39,517
8,131
47,648
976
9,026
10,002
-
-
1,153
605
1,758
59,408
36,342
8,101
44,443
853
13,143
13,996
181
181
915
481
1,396
60,016
38,338
7,891
46,229
932
12,982
13,914
181
181
959
476
1,435
61,759
The following tables show the changes in long-term loans for the period, distinguishing current amounts from amounts falling
due at more than 12 months.
218
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Long-term loans (excluding current portion)
Millions of euro
Carrying amount
at Dec. 31, 2013
at Dec. 31, 2012
Change
Bonds:
- fixed rate
- floating rate
Total bonds
Bank loans:
- fixed rate
- floating rate
Total bank loans
Preference shares:
- floating rate
Total preference shares
Other loans:
- fixed rate
- floating rate
Total other loans
TOTAL
34,740
6,743
41,483
928
7,359
8,287
-
-
949
394
1,343
51,113
33,624
7,885
41,509
803
12,479
13,282
-
-
816
352
1,168
55,959
1,116
(1,142)
(26)
125
(5,120)
(4,995)
-
-
133
42
175
(4,846)
219
Current portion of long-term loans
Millions of euro
Carrying amount
at Dec. 31, 2013
at Dec. 31, 2012
Bonds:
- fixed rate
- floating rate
Total bonds
Bank loans:
- fixed rate
- floating rate
Total bank bonds
Preference shares:
- floating rate
Total preference shares
Other loans:
- fixed rate
- floating rate
Total other loans
TOTAL
1,453
1,196
2,649
38
1,750
1,788
-
116
137
253
4,690
2,718
216
2,934
50
664
714
181
181
99
129
228
4,057
Change
(1,265)
980
(285)
(12)
1,086
1,074
181
181
17
8
25
633
The Group’s main long-term financial debts are governed by
> specification of default events, whose occurrence (e.g. in-
covenants containing undertakings by the borrowers (Enel,
solvency, failure to pay principal or interest, initiation of
Endesa and the other Group companies) and in some cases the
liquidation proceedings, etc.) constitutes a default; under
Parent Company as guarantor that are commonly adopted in
cross-default clauses, the occurrence of a default event in
international business practice. The main covenants regard the
respect of any financial liability (above a threshold level) is-
bond issues carried out within the framework of the Global
sued by the issuer or “significant” subsidiaries (i.e. consoli-
Medium-Term Notes program, loans granted by the EIB and
dated companies whose gross revenues or total assets are
Cassa Depositi e Prestiti, the €10 billion revolving line of credit
at least 10% of gross consolidated revenues or total con-
agreed in April 2010, the Forward Start Facility Agreement en-
solidated assets) constitutes a default in respect of the li-
tered into on February 8, 2013 in the amount of €9.44 billion
ability in question, which becomes immediately repayable;
and issues of subordinated unconvertible hybrid bonds.
> early redemption clauses in the event of new tax require-
To date none of the covenants have been triggered.
ments, which permit early redemption at par of all out-
The main commitments in respect of the bond issues in the
standing bonds.
Global Medium-Term Notes program can be summarized as
The main covenants governing the loans granted to a num-
follows:
ber of Group companies by the EIB can be summarized as
> negative pledge clauses under which the issuer may not
follows:
establish or maintain (except under statutory requirement)
> negative pledge clauses, under which Enel undertakes not
mortgages, liens or other encumbrances on all or part of its
to establish or grant to third parties additional guarantees
assets to secure any listed bond or bond for which listing is
or privileges with respect to those already established in
planned unless the same guarantee is extended equally or
the individual contracts by the company or other subsidi-
pro rata to the bonds in question;
aries of the Group, unless an equivalent guarantee is ex-
> pari passu clauses, under which the securities constitute a
tended equally or pro rata to the loans in question;
direct, unconditional and unsecured obligation of the issu-
> clauses that require the guarantor (whether Enel SpA or
er and are issued without preferential rights among them
banks acceptable to the EIB) to maintain its rating above a
and have at least the same seniority as other present and
specified grade; in the case of guarantees provided by Enel
future bonds of the issuer itself;
SpA, the Group’s equity may not fall below a specified level;
220
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts > material changes clauses, under which the occurrence of a
period (half yearly), Enel’s consolidated net financial debt
specified event (mergers, spin-offs, disposal or transfer of
shall not exceed 4.5 times annual consolidated EBITDA.
business units, changes in company control structure, etc.)
gives rise to the consequent adjustment of the contract,
The main covenants for the €10 billion revolving line of credit
without which the loan shall become repayable immedi-
and the Forward Start Facility Agreement are substantially si-
ately without payment of any commission;
milar and can be summarized as follows:
> requirements to report periodically to the EIB;
> negative pledge clauses under which the borrower (and
> requirement for insurance coverage and maintenance of
its significant subsidiaries) may not establish or maintain
property, possession and use of the works, plant and ma-
(with the exception of permitted guarantees) mortgages,
chinery financed by the loan over the entire term of the
liens or other encumbrances on all or part of its assets to
agreement;
secure any present or future financial liability;
> contract termination clauses, under which the occur-
> pari passu clauses, under which the payment undertak-
rence of a specified event (serious inaccuracies in docu-
ings constitute a direct, unconditional and unsecured ob-
mentation presented in support of the contract, failure
ligation of the borrower and bear no preferential rights
to repay at maturity, suspension of payments, insol-
among them and have at least the same seniority as other
vency, special administration, disposal of assets to credi-
present and future loans;
tors, dissolution, liquidation, total or partial disposal of
> change of control clause, which is triggered in the event
assets, declaration of bankruptcy or composition with
(i) control of Enel is acquired by one or more parties other
creditors or receivership, substantial decrease in equity,
than the Italian State or (ii) Enel or any of its subsidiaries
etc.) triggers immediate repayment.
transfer a substantial portion of the Group’s assets to par-
ties outside the Group such that the financial reliability of
In 2009 Cassa Depositi e Prestiti granted a loan to Enel Dis-
the Group is significantly compromised. The occurrence of
tribuzione that was amended in 2011. The main covenants
one of the two circumstances may give rise to (a) the re-
governing the loan and the guarantee issued by the Parent
negotiation of the terms and conditions of the financing
Company can be summarized as follows:
or (b) compulsory early repayment of the financing by the
> a termination and acceleration clause, under which the oc-
borrower;
currence of a specified event (such as failure to pay princi-
> specification of default events, whose occurrence (e.g. fail-
pal or interest installments, breach of contract obligations
ure to make payment, breach of contract, false statements,
or occurrence of a substantive prejudicial event, etc.) enti-
insolvency or declaration of insolvency by the borrower or
tles Cassa Depositi e Prestiti to terminate the loan;
its significant subsidiaries, business closure, government
> a clause forbidding Enel or its significant subsidiaries
intervention or nationalization, administrative proceeding
(defined in the contract and the guarantee as subsidi-
with potential negative impact, illegal conduct, nation-
aries pursuant to Article 2359 of the Italian Civil Code
alization and government expropriation or compulsory
or consolidated companies whose turnover or total
acquisition of the borrower or one of its significant sub-
gross assets are at least 10% of consolidated turnover
sidiaries) constitutes a default. Unless remedied within a
or consolidated gross assets) from establishing addition-
specified period of time, such default will trigger an obli-
al liens, guarantees or other encumbrances except for
gation to make immediate repayment of the loan under
those expressly permitted unless Cassa Depositi e Pres-
an acceleration clause;
titi gives it prior consent;
> under cross-default clauses, the occurrence of a default
> clauses requiring Enel to report to Cassa Depositi e Pres-
event in respect of any financial liability (above a thresh-
titi both periodically and upon the occurrence of speci-
old level) of the issuer or “significant” subsidiaries (i.e.
fied events (such as a change in Enel’s credit rating, or
consolidated companies whose gross revenues or to-
breach in an amount above a specified threshold in re-
tal assets are at least equal to a specified percentage
spect of any financial debt contracted by Enel, Enel Dis-
amounting to 10% of gross consolidated revenues or to-
tribuzione or any of their significant subsidiaries). Viola-
tal consolidated assets) constitutes a default in respect
tion of such obligation entitles Cassa Depositi e Prestiti
of the liabilities in question, which become immediately
to exercise an acceleration clause;
repayable;
> a clause, under which, at the end of each measurement
> periodic reporting requirements.
221
The main covenants covering the hybrid bonds can be sum-
> pari passu clauses, under which the securities and guar-
marized as follows:
antees have at least the same seniority as all other pre-
> specification of default events, whose occurrence (e.g.
sent and future unsecured and unsubordinated securi-
failure to pay principle or interest, insolvency, initiation
ties issued by Endesa Capital or Endesa.
of liquidation proceedings, etc.) constitutes a default in
Finally, the loans granted to Endesa, International Endesa
respect of the liability in question, which in some cases
BV and Endesa Capital do not contain cross-default claus-
becomes immediately repayable;
es regarding the debt of subsidiaries in Latin America.
> subordination clauses: each hybrid bond is subordinate
to all other bonds issued by the Company and ranks pari
Undertakings in respect of project financing granted to
passu with all other hybrid financial instruments issued,
subsidiaries regarding renewables and other subsidiaries in
being senior only to equity instruments;
Latin America contain covenants commonly adopted in in-
> prohibition on mergers with other companies, the sale
ternational business practice. The main commitments regard
or leasing of all or a substantial part of the Company’s
clauses pledging all the assets assigned to the projects in fa-
assets to another company, unless the latter succeeds in
vor of the creditors.
all obligations of the issuer.
A residual portion of the debt of Enersis and Endesa Chile
(both controlled indirectly by Endesa) is subject to cross-de-
The undertakings in respect of the bond issues carried out
fault clauses under which the occurrence of a default event
by Endesa Capital under the Global Medium-Term Notes
(failure to make payment or breach of other obligations) in
program can be summarized as follows:
respect of any financial liability of a subsidiary of Enersis or
> cross-default clauses under which debt repayment
Endesa Chile constitutes a default in respect of the liability in
would be accelerated in the case of failure to make pay-
question, which becomes immediately repayable.
ment (above specified amounts) on any financial liabil-
In addition, many of these agreements also contain cross-
ity of Endesa or Endesa Capital that is listed or could be
acceleration clauses that are triggered by specific circum-
listed on a regulated market;
stances, certain government actions, insolvency or judicial
> negative pledge clauses under which the issuer may not
expropriation of assets.
establish mortgages, liens or other encumbrances on all
In addition to the foregoing, a number of loans provide for
or part of its assets to secure any financial liability that
early repayment in the case of a change of control over Ende-
is listed or could be listed on a regulated market, unless
sa or the subsidiaries.
an equivalent guarantee is extended equally or pro rata
to the bonds in question;
222
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 27.2 Short-term loans - €2,529 million
At December 31, 2013 short-term loans amounted to €2,529 million, a decrease of €1,441 million compared with December
31, 2012. They break down as follows.
Millions of euro
Carrying
amount
Fair value
Carrying
amount
Fair value
Carrying
amount
Fair value
at Dec. 31, 2013
at Dec. 31, 2012 restated
Change
Short-term amounts due to banks
Commercial paper
Cash collateral and other financing on derivatives
Other short-term financial payables
Short-term financial debt
150
2,202
119
58
2,529
150
2,202
119
58
2,529
283
2,914
691
82
3,970
283
2,914
691
82
(133)
(712)
(572)
(24)
(133)
(712)
(572)
(24)
3,970
(1,441)
(1,441)
Short-term amounts due to banks totaled €150 million. The
noamérica) and Enersis.
payables represented by commercial paper relate to issues
At December 31, 2013 issues under these programs totaled
outstanding at the end of December 2013 in the context
€2,202 million, of which €1,388 million pertaining to Enel Fi-
of the €6,000 million program launched in November 2005
nance International and €814 million to Endesa Latinoamérica.
by Enel Finance International and guaranteed by Enel SpA,
which was renewed in April 2010, as well as the €3,209 mil-
For a summary of the fair value balances, broken down by
lion program of Endesa Internacional BV (now Endesa Lati-
measurement criteria, please see note 7.
27.3 Non-current financial assets included in debt -
€4,951 million
Millions of euro
Securities held to maturity
Financial investments in funds or portfolio
management products at fair value through
profit or loss
Securities available for sale
Financial receivables in respect of Spanish
electrical system deficit
Other financial receivables
Total
at Dec. 31, 2013
at Dec. 31, 2012
Change
128
24
-
1,498
3,301
4,951
130
12
4
-
3,430
3,576
(2)
12
(4)
1,498
(129)
1,375
-1.5%
100.0%
-100.0%
-
-3.8%
38.5%
For a summary of the fair value balances, broken down by
a result of the introduction of a number of new regulations
measurement criteria, please see note 7.
in 2013 is recognized under “non-current financial assets”
rather than under “current financial assets” as was done the
“Financial receivables in respect of Spanish electrical sys-
previous year.
tem” represent amounts due to Endesa Distribución in re-
At December 31, 2013, “other financial receivables” include,
spect of the rate deficit system in Spain, which substantially
among other things:
defers part of the remuneration due to distributors for costs
> receivables in respect of the State Decommissioning Fund
incurred that are not covered by billing of ordinary rate rev-
of Slovakia in the amount of €813 million (€653 million at
enues. The mechanism, which in substance is equivalent to a
December 31, 2012);
loan from Endesa Distribución to the Spanish electrical sys-
> receivables in respect of the Electricity Equalization Fund
tem, has given rise to a receivable of €1,498 million, which as
in the amount of €434 million (unchanged at December
223
31, 2013 and 2012) for reimbursement of the extraordi-
> the receivable of the Argentine generation companies in
nary costs incurred for the early replacement of electrome-
respect of the wholesale electricity market deposited with
chanical meters with digital meters;
the FONINVEMEM (Fondo Nacional de Inversión Mercado
> receivables in respect of the reimbursement established by
Eléctrico Mayorista) in the amount of €216 million (€281
the Authority with Resolution 157/2012 of costs incurred
million at December 31, 2012). The sum was for the con-
with the termination of the Electrical Worker Pension Fund
struction of three combined cycle plants, two of which
in the amount of €448 million (€504 million at December
were completed in 2010, and will be reimbursed to the
31, 2012). Under the provisions of that resolution, the
generation companies within 120 months of the entry into
amounts will be recovered by Enel Distribuzione SpA in
service of those plants. The loans earn interest at an annual
equal installments until 2020;
rate of Libor +1%.
27.4 Current financial assets included in debt - €5,489 million
Millions of euro
Short-term portion of long-term financial
receivables
Receivables for factoring advances
Securities:
- securities available for sale
Financial receivables and cash collateral
Other financial receivables
Total
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
2,977
263
17
1,720
512
5,489
5,318
288
42
1,402
521
7,571
(2,341)
(25)
(25)
318
(9)
(2,082)
-44.0%
-8.7%
-59.5%
22.7%
-1.7%
-27.5%
“Short-term portion of long-term financial receivables” con-
the effects of reimbursements in respect of extra-peninsular
sists of the financial receivable in respect of the Spanish elec-
generation, of which €3,541 million through the assignment
tricity system deficit in the amount of €1,648 million (€4,839
of the receivables to the special securitization fund as estab-
million at December 31, 2012). The change for the period
lished by the Spanish government).
essentially reflects new receivables accrued in 2013 (€3,165
million including new receivables for extra-peninsular gen-
For a summary of the fair value balances, broken down by
eration) and collections received (€4,858 million including
measurement criteria, please see note 7.
27.5 Cash and cash equivalents - €8,030 million
Cash and cash equivalents, detailed in the table below, are
(€194 million at December 31, 2012) primarily in respect of
not restricted by any encumbrances, apart from €195 million
deposits pledged to secure transactions.
Millions of euro
Bank and post office deposits
Cash and cash equivalents on hand
Total
224
at Dec. 31,
2013
6,965
1,065
8,030
at Dec. 31,
2012
restated
8,864
1,027
9,891
Change
(1,899)
38
(1,861)
-21.4%
3.7%
-18.8%
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
28. Assets and liabilities held for sale -
€241 million and €20 million
Changes in assets held for sale during the year are reported in the following table:
Millions of euro
Property, plant and equipment
Intangible assets
Deferred tax assets
Equity investments accounted for using
the equity method
Non-current financial assets
Cash and cash equivalents
Inventories, trade receivables and other
current assets
Total
at Dec. 31, 2012
restated
Reclassification
from/to current and
non-current assets
Disposals and
change in scope of
consolidation
Other changes
at Dec. 31, 2013
214
-
11
-
89
-
3
317
12
2
-
395
2
12
7
430
-
-
-
(391)
(86)
-
-
(477)
(15)
(1)
(11)
(3)
(1)
(2)
4
(29)
211
1
-
1
4
10
14
241
“Assets held for sale” amounted to €241 million at December
The change for the period also reflects the disposal of the in-
31, 2013. They essentially include the assets of Marcinelle En-
terest in Medgaz in the 1st Half of the year.
ergie and other assets of smaller companies. Other material
changes mainly regard the interests held in SeverEnergia and
“Liabilities held for sale” amounted to €20 million at Decem-
Enel Rete Gas, which, after being reclassified to this account
ber 31, 2013. They comprise the liabilities of Marcinelle Ener-
during the year, were sold in the final quarter of 2013.
gie and other certain liabilities of smaller companies.
Changes in liabilities held for sale during the year are as follows:
Millions of euro
Deferred tax liabilities
Trade payables and other current liabilities
Total
at Dec. 31, 2012
restated
Reclassification from
current and non-
current liabilities
Disposals and
change in scope of
consolidation
Other changes
at Dec. 31, 2013
7
1
8
-
10
10
-
-
-
-
2
2
7
13
20
The decrease in all items of assets and liabilities held for sale
For a summary of the fair value balances, broken down by
compared with December 31, 2012 essentially reflects the
measurement criteria, please see note 7 of IFRS 13 disclosures.
disposals carried out in 2013 noted above.
225
29. Shareholders’ equity - €52,839 million
29.1 Equity pertaining to the shareholders of the Parent
Company - €35,941 million
Share capital - €9,403 million
At December 31, 2013 (as at December 31, 2012), the share
pursuant to Article 120 of Legislative Decree 58 of February 24,
capital of Enel SpA – considering that no options were ex-
1998, as well as other available information, no shareholders
ercised as part of stock option plans in 2013 – amounted to
held more than 2% of the total share capital, apart from the
€9,403,357,795 fully subscribed and paid up, represented by
Ministry for the Economy and Finance, which holds 31.24%,
9,403,357,795 ordinary shares with a par value of €1.00 each.
and Natixis SA, which holds a 2.64% stake, held as June 27,
At the same date, based on the shareholders register and the
2013 for asset management purposes.
notices submitted to CONSOB and received by the Company
Other reserves - €7,084 million
Share premium reserve - €5,292 million
Legal reserve - €1,881 million
The legal reserve is formed of the part of net income that,
pursuant to Article 2430 of the Italian Civil Code, cannot be
distributed as dividends.
Other reserves - €2,262 million
These include €2,215 million related to the remaining por-
tion of the value adjustments carried out when Enel was
transformed from a public entity to a joint-stock company.
Pursuant to Article 47 of the Uniform Tax Code, this amount
does not constitute taxable income when distributed.
Reserve from translation of financial statements
in currencies other than euro - €(1,100) million
The further decrease in this aggregate for the year is attrib-
utable to the net depreciation of the functional currency
against the foreign currencies used by subsidiaries.
Reserve from measurement of financial in-
struments - €(1,490) million
This item includes net losses recognized directly in equity re-
sulting from the measurement of cash flow hedging deriva-
tives, as well as net unrealized losses arising in respect of the
fair value measurement of financial assets.
Reserve from disposal of equity interests
without loss of control - €721 million
This item reports the gain posted on the public offering of
226
Enel Green Power shares, net of expenses associated with
the disposal and the related taxation. The change for the
period reflects the sale of minority interests recognized as a
result of the Enersis capital increase.
Reserve from transactions in non-controlling
interests - €62 million
The reserve reports the amount by which equity acquired
following purchases by third parties of additional stakes in
companies already controlled in Latin America (Ampla Ener-
gia e Serviços, Ampla Investimentos e Serviços and Eléctrica
Cabo Blanco) exceeds the purchase prices. On June 17, 2013
the agreement for the sale of the entire share capital of Enel.
si by Enel Green Power to Enel Energia was ratified. Accord-
ingly, the change for the period largely regards the difference
between the disposal price acquired by third parties of Enel
Green Power and the associated share of equity of Enel.si.
Reserve from equity investments accounted
for using the equity method - €(16) million
The reserve reports the share of comprehensive income to
be recognized directly in income for companies accounted
for using the equity method.
Reserve for employee benefits - €(528) million
Following application as from January 1, 2013 of IAS 19 Re-
vised, the reserve includes all actuarial gains and losses, net
of tax effects. The change is attributable to the increase in
actuarial gains recognized during the period.
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts The table below shows the changes in gains and losses recognized directly in other comprehensive income, including non-
controlling interests, with specific reporting of the related tax effects.
Millions of euro
Reserve from
translation
of financial
statements in
currencies
other than euro
Reserve from
measurement
of financial
instruments
Share of OCI
of equity
investments
accounted
for using the
equity method
Remeasure-
ment of net
liabilities (as-
sets) for
defined-bene-
fit plans
Total
gains/(losses)
recognized
in equity
at Dec. 31, 2012 restated
Change
at Dec. 31, 2013
Of which
share-
holders
of Parent
Company
Of which
non-
controlling
interests
Gains/
(Losses)
recognized
in equity for
the year
Total
Released
to income
statement Taxes
Total
Of which
share-
holders
of Parent
Company
Of which
non-
controlling
interests
Of which
share-
holders
of Parent
Company
Of which
non-
controlling
interests
Total
682
92
590
(3,197)
-
-
(3,197)
(1,290)
(1,907) (2,515)
(1,198)
(1,317)
(1,350)
(1,253)
(97)
(697)
499
(81)
(279)
(237)
(42) (1,629)
(1,490)
(139)
8
8
-
(29)
-
-
(29)
(24)
(5)
(21)
(16)
(5)
(440)
(362)
(78)
(262)
-
74
(188)
(170)
(18)
(628)
(532)
(96)
(1,100)
(1,515)
415
(4,185)
499
(7)
(3,693)
(1,721)
(1,972) (4,793)
(3,236)
(1,557)
227
Capital management
The Group’s objectives for managing capital comprise
In this context, the Group manages its capital structure
safeguarding the business as a going concern, creating
and adjusts that structure when changes in economic con-
value for stakeholders and supporting the development
ditions so require. There were no substantive changes in
of the Group. In particular, the Group seeks to maintain
objectives, policies or processes in 2013.
an adequate capitalization that enables it to achieve a
To this end, the Group constantly monitors developments
satisfactory return for shareholders and ensure access to
in the level of its debt in relation to equity. The situation
external sources of financing, in part by maintaining an
at December 31, 2013 and 2012 is summarized in the fol-
adequate rating.
lowing table.
Millions of euro
Non-current financial position
Net current financial position
Non-current financial receivables and long-term securities
Net financial debt
Equity pertaining to the shareholders of the Parent Company
Non-controlling interests
Shareholders’ equity
Debt/Equity ratio
at Dec. 31, 2013
at Dec. 31, 2012
restated
51,113
(6,300)
(4,951)
39,862
35,941
16,898
52,839
0.75
55,959
(9,435)
(3,576)
42,948
35,775
16,312
52,087
0.82
29.2 Non-controlling interests - €16,898 million
The following table reports the composition of non-controlling interests by division.
Millions of euro
Millions of euro
Iberia and Latin America
International
Renewable Energy
Generation and Energy Management
Total
at Dec. 31, 2013
at Dec. 31, 2012
restated
12,017
2,361
2,306
214
16,898
11,690
2,257
2,161
204
16,312
Change
(4,846)
3,135
(1,375)
(3,086)
166
586
752
(0.07)
Change
327
104
145
10
586
228
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 30. Post-employment and other employee benefits -
€3,696 million
The Group provides its employees with a variety of benefits,
employees opted to participate and as a significant num-
including termination benefits, additional months’ pay for ha-
ber of those entitled subsequently elected to participate
ving reached age limits or eligibility for old-age pension, loyalty
in the plan provided for in the agreements reached under
bonuses for achievement of seniority milestones, supplemen-
the provisions of Article 4 of Law 92/2012. For the foreign
tal retirement and healthcare plans, residential electricity di-
companies, the item reports post-employment benefits;
scounts (which for companies in Italy only regard certain reti-
> the item “electricity discount” comprises, for the Italian
red employees) and similar benefits. More specifically:
companies, a number of benefits regarding residential
> for Italy, the item “pension benefits” regards estimated
electricity supply. Until 2011 the discount was granted
accruals made to cover benefits due under the supple-
to current and retired employees, but, following an
mental retirement schemes of retired executives and the
agreement with the unions, has now been replaced by
benefits due to personnel under law or contract at the
other forms of remuneration for current employees and
time the employment relationship is terminated. As from
therefore remains in effect only for retired employees;
December 2012, the item also includes the benefit plan in-
> the item “health insurance” reports benefits for current or
troduced in December 2012. The plan is dependent on fu-
retired employees covering medical expenses;
ture service to be performed and provides for benefits for
> “other benefits” comprise liabilities in respect of de-
a maximum of 48 months as from termination of the em-
fined-benefit plans and other benefits not included in
ployment relationship. That plan was terminated by the
the previous items.
Group in 2013, as discussed in greater detail below, as no
The table below reports changes in post-employment and
at December 31, 2013), net of plan assets (€21 million at
other employee benefits at December 31, 2013 and 2012
December 31, 2013), with the actuarial defined-benefit
and the reconciliation of that obligation (€3,696 million
obligation.
Millions of euro
2013
2012 restated
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Total
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Total
Actuarial defined-benefit
obligation at January 1
Assets not recognized in
accounts
Accounting defined-
benefit obligation at
January 1
Changes through profit
or loss
Changes through other
comprehensive income
Contributions/Benefits
paid
Other changes
Accounting defined-
benefit obligation at
December 31
Assets not recognized in
accounts
Actuarial defined-benefit
obligation at December 31
2,330
1,683
236
246
4,495
1,225
1,500
250
190
3,165
47
-
-
-
47
27
-
-
-
27
2,377
1,683
236
246
4,542
1,252
1,500
250
190
3,192
(924)
63
14
94
(753)
1,065
73
18
74
1,230
(4)
205
(16)
77
262
169
194
(27)
23
359
(158)
(40)
(96)
2
(15)
(13)
(49)
(7)
(318)
(58)
(130)
21
(88)
4
(16)
11
(42)
(276)
1
37
1,251
1,857
206
361
3,675
2,377
1,683
236
246
4,542
(58)
-
-
-
(58)
(47)
-
-
-
(47)
1,193
1,857
206
361
3,617
2,330
1,683
236
246
4,495
229
Millions of euro
2013
2012 restated
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Changes through profit or loss:
Service cost
Net interest cost
Other changes
Total
(993)
69
-
(924)
6
57
-
63
2
12
-
14
96
10
(12)
94
Changes through other comprehensive income:
Total
(889)
148
(12)
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Total
998
68
(1)
5
68
-
73
1
17
-
18
63
10
1
74
1,067
163
-
1,230
(753)
1,065
(Gains)/Losses from
changes in demographic
assumptions
(Gains)/Losses from
changes in demographic
assumptions
(Gains)/Losses from
changes in demographic
assumptions
(Gains)/Losses from
changes in financial
assumptions
Change in asset ceiling/
IFRIC 14
Total
3
(1)
1
30
33
80
-
6
7
93
(104)
177
(13)
(7)
53
24
(57)
(12)
-
(45)
(6)
29
(4)
54
73
217
251
(21)
16
463
84
19
(4)
-
-
-
-
-
-
205
(16)
77
84
(172)
19
262
20
169
-
-
-
-
-
-
194
(27)
23
(172)
20
359
The pension benefit obligation at December 31, 2012 re-
termination of the 2012 plan led to the reversal of the asso-
ports the charge (€970 million) in respect of past service cost
ciated liability at the termination date in the total amount of
recognized following the introduction at the end of 2012
€1,028 million, of which €970 million in respect of the rever-
of the transition-to-retirement plan, which provided for the
sal of the initial provision and €58 million in current service
payment of post-employment benefits to the employees
costs and interest costs accrued in the period. In addition,
of the wholly-owned Italian subsidiaries of the Group who,
the application of a number of supplementary provisions of
having met specific requirements, opted to terminate their
the union agreements implementing Article 4 led to the ad-
employment four years before the statutory retirement age
justment of the liabilities of other employee benefit plans,
set out in current labor legislation.
with a positive impact of €38 million.
As discussed in note 4, that obligation was recognized in full
The employees of the foreign companies included in the frame-
following the entry into force of the new IAS 19, which elim-
work agreement of October 25, 2000 in Spain participate in a
inated the possibility of deferring recognition of the past
specific defined-contribution pension plan and, in cases of dis-
service cost of new employee benefit plans. This prompted
ability or death of employees in service, a defined-benefit plan
the restatement of the comparative figures in the 2012 in-
which is covered by appropriate insurance policies. In addition,
come statement.
the company has certain obligations to retired ex-workers,
During 2013, the Group terminated the transition-to-retire-
mainly concerning the supply of electricity. Outside Spain, de-
ment plan after virtually no employees opted to participate
fined-benefit pension plans are also in force, notably in Brazil.
and a significant number of those entitled to participate
The obligation recognized at the end of the year is report-
in that plan instead opted to participate in the mechanism
ed net of the fair value of the plan assets (where this is not
provided for under Article 4, paragraphs 1-7-ter, of the Law
greater than that of the related liabilities), which are attrib-
92/2012, as the latter offers better financial and organiza-
utable entirely to Endesa, in the amount of €1,185 million at
tional conditions, making the earlier plan unattractive. The
December 31, 2013. The plan assets break down as follows.
230
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts Millions of euro
2013
2012
Shares
Fixed-income securities
Property
Assets held by insurance companies
Other
Total
Spain
Brazil
Total
-
-
-
128
612
740
73
321
34
-
17
73
321
34
128
629
445
1,185
Spain
183
449
-
-
48
680
Brazil
84
469
47
-
27
627
Total
267
918
47
-
75
1,307
At December 31, 2013, shares and fixed-income securities
The main actuarial assumptions used to calculate the li-
included shares or bonds issued by Endesa Group compa-
abilities in respect of employee benefits and the plan assets,
nies in the amount of €6 million (€7 million at December
which are consistent with those used the previous year, are
31, 2012).
set out in the following table.
Italy
Iberian
peninsula
Latin
America
Other
Italy
Iberian
peninsula
Latin
America
Other
2013
2012
Discount rate
0.75%-3.00% 1.72%-3.64% 5.40%-2.43% 3.15%-7.90% 1.60%-3.20% 1.22%-3.74% 5.50%-9.80% 4.20%-7.00%
Rate of wage increases
2.00%-4.00%
2.30% 0.00%-7.61% 2.00%-6.00% 2.00%-4.00%
2.30% 0.00%-7.61% 3.00%-6.00%
Rate of increase in
healthcare costs
Expected rate of return on
plan assets
3.00%
3.50% 4.50% - 1.57%
-
3.61% 5.40%-2.43%
-
-
3.00%
3.50%
4.50%-
11.57%
-
3.74%
9.98%
-
-
The following table reports the outcome of a sensitivity analysis that demonstrates the effects on the defined-benefit
obligation as a result of changes reasonably possible at the end of the year in the individual actuarial assumptions used in
estimating the obligation.
Millions of euros
Pension benefits
Electricity discount
Health insurance
Other benefits
A decrease of 0.5% in discount rate
An increase of 0.5% in discount rate
An increase of 0.5% in inflation rate
An increase of 0.5% in remuneration
An increase of 0.5% in pensions currently being paid
An increase of 1% in healthcare costs
An increase of 1 year in life expectancy of active
and retired employees
145
(115)
46
25
19
19
55
102
(135)
39
(23)
(23)
(23)
64
11
(13)
(5)
7
7
24
7
13
(7)
7
12
5
5
9
The sensitivity analysis used an approach that extrapolates
able changes in an individual assumption, leaving the other
the effect on the net defined-benefit obligation of reason-
assumptions unchanged.
The contributions expected to be paid into defined-benefit plans in the subsequent year amount to €16 million.
The following table reports expected benefit payments in the coming years for employee benefits.
Millions of euro
Within 12 months
In 2–5 years
More than 5 years
2013
397
1,066
1,527
231
31. Provisions for risks and charges - €8,047 million
Millions of euro
Taken to income
statement
Utilization
at Dec. 31, 2012
restated
Provision for litigation, risks and other charges:
- nuclear decommissioning
- non-nuclear plant retirement and site restoration
- litigation
- environmental certificates charges
- taxes and duties
- other
Total
Provision for early-retirement incentives
TOTAL
3,538
615
1,142
363
411
1,273
7,342
1,306
8,648
(23)
(2)
115
290
14
422
816
958
1,774
at Dec. 31, 2013
of which
short term
(821)
(20)
(174)
(356)
(37)
(450)
(1,858)
(517)
(2,375)
2,694
593
1,083
297
388
1,245
6,300
1,747
8,047
52
3
46
164
7
633
905
588
1,493
Nuclear decommissioning provision
The nuclear decommissioning provision includes the following:
> €2,175 million (€2,511 million at December 31, 2012) for the
V1 and V2 plants at Jasklovske Bohunice and the EMO 1 and
2 plants at Mochovce, and also includes the provision for
nuclear waste disposal in the amount of €114 million (same
amount at December 31, 2012), the provision for spent nu-
clear fuel disposal in the amount of €1,296 million (€1,542
million at December 31, 2012) and the provision for nuclear
plant retirement in the amount of €765 million (€855 mil-
lion at December 31, 2012). The estimated timing of the
outlays described above takes account of current knowl-
edge of environmental regulations, the operating time used
in estimating the costs, and the difficulties presented by the
extremely long time span over which such costs could arise.
The charges covered by the provisions are reported at their
present value using discount rates of between 4.15% and
4.55%. The net decrease in 2013 amounted to €336 million,
reflecting the change in the estimates of prices and quanti-
ties of certain types of radioactive waste and a new assess-
ment of the estimated useful lives of certain components of
the costs that will be incurred at the time of decommis-
sioning of nuclear plants by Enresa, a Spanish public en-
terprise responsible for such activities in accordance with
Royal Decree 1349/03 and Law 24/2005. Quantification
of the costs is based on the standard contract between
Enresa and the electricity companies approved by the Min-
istry for the Economy in September 2001, which regulates
the retirement and closing of nuclear power plants. The
time horizon envisaged, three years, corresponds to the
period from the termination of power generation to the
transfer of plant management to Enresa (post-operational
costs). The change for 2013, recognized as a decrease in
the assets as provided for under IFRIC 1, reflects regula-
tory changes in Spain following the introduction of Law
16/2013, which modified the mechanism established the
previous year with Law 15/2012, which had increased the
burden on generators operating nuclear power plants.
Non-nuclear plant retirement and site
restoration provision
the Jasklovske Bohunice and Mochovce plants. The decline
The provision for “non-nuclear plant retirement and site res-
was also affected by the adoption of a new decommission-
toration” represents the present value of the estimated cost
ing strategy, approved by the government on January 15,
for the retirement and removal of non-nuclear plants where
2014, which provides for a more conservative approach
there is a legal or constructive obligation to do so.
that pays closer attention to technical, financial and safety
issues, with the consequent discounting of the liability over
a longer period;
Litigation provision
> €519 million (€1,027 million at December 31, 2012) for
The “litigation” provision covers contingent liabilities in re-
232
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts spect of pending litigation and other disputes. It includes an
the liability for such taxes, both for the purposes of quanti-
estimate of the potential liability relating to disputes that
fying the probable risk associated with pending litigation
arose during the period, as well as revised estimates of the
and generating a reasonable valuation of probable future
potential costs associated with disputes initiated in prior pe-
charges on positions that have not yet been assessed by
riods. The estimates are based on the opinions of internal
Land Agency offices and municipalities.
and external legal counsel.
Other provisions
Provision for early-retirement
incentives
Other provisions cover various risks and charges, mainly in
The provision for early-retirement incentives includes the
connection with regulatory disputes and disputes with lo-
estimated charges related to binding agreements for the
cal authorities regarding various duties and fees. In partic-
voluntary termination of employment contracts in re-
ular, as regard current and potential disputes concerning
sponse to organizational needs. In addition to uses essen-
local property tax (whether the Imposta Comunale sugli
tially associated with the early retirement provision (ERE) in
Immobili or “ICI” or the new Imposta Municipale Unica or
Spain, the change for the year also reflects the liability of
“IMU”) in Italy, the Group has taken due account of the cri-
€800 million recognized at December 31, 2013 in respect
teria introduced with circular 6 of the Public Land Agency
of the union agreements signed on September 6, 2013, im-
(which resolved interpretive issues concerning the valua-
plementing, for a number of Italian companies, the mecha-
tion methods for movable assets considered relevant for
nism provided for under Article 4, paragraphs 1-7-ter, of
property registry purposes, including certain assets typi-
Law 92/2012 (the Fornero Act).
cal to generation plants, such as turbines) in estimating
32. Non-current financial liabilities - €2,257 million
The item reports the fair value of derivatives only. For more information, please see note 6.3.
33. Other non-current liabilities - €1,266 million
Millions of euro
at Dec. 31, 2013
at Dec. 31, 2012
restated
Accrued operating expenses and deferred income
Other items
Total
956
310
1,266
910
241
Change
46
69
5.1%
28.6%
1,151
115
10.0%
At December 31, 2013, this item essentially consisted of revenues for electricity and gas connections and grants received for
specific assets.
34. Trade payables - €13,004 million
The item, which amounts to €13,004 million, includes payables in respect of energy supplies, fuel, materials, equipment associ-
ated with tenders and other services.
Trade payables break down by maturity at December 31, 2013 as follows.
233
Millions of euro
By June 30, 2014
Between July 1 and December 31, 2014
Beyond
Total at December 31, 2013
11,320
1,137
547
13,004
In a number of residual cases with no material impact on
against trade receivables where permitted under contrac-
the financial statements, trade payables have been netted
tual and statutory provisions.
35. Current financial liabilities - €3,640 million
Millions of euro
Deferred financial liabilities
Derivative contracts
Other items
Total
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
978
2,535
127
3,640
921
2,028
189
3,138
57
507
(62)
502
6.2%
25.0%
-32.8%
16.0%
Fore more on “derivative contracts”, please see note 6.4.
36. Other current liabilities - €9,834 million
Millions of euro
Payables due to customers
Payables due to Electricity Equalization Fund and
similar bodies
Payables due to employees
Other tax payables
Payables due to social security institutions
Payables for put options granted to minority
shareholders
Payables for acquisition of equity investments
Other
Total
at Dec. 31, 2013
at Dec. 31, 2012
restated
Change
1,563
3,312
453
976
216
801
37
2,476
9,834
1,637
3,371
519
945
226
814
81
2,338
9,931
(74)
(59)
(66)
31
(10)
(13)
(44)
138
(97)
-4.5%
-1.8%
-12.7%
3.3%
-4.4%
-1.6%
-54.3%
5.9%
-1.0%
“Payables due to customers” include €1,090 million (€1,101
“Payables due to Electricity Equalization Fund and similar
million at December 31, 2012) in security deposits related
bodies” mainly include payables arising from the applica-
to amounts received from customers as part of electricity
tion of equalization mechanisms to electricity purchases
and gas supply contracts. Following the finalization of the
on the Italian market amounting to €1,922 million (€1,862
contract, deposits for electricity sales, the use of which is
million at December 31, 2012) and on the Spanish market
not restricted in any way, are classified as current liabilities
amounting to €1,390 million (€1,491 million at December
given that the Company does not have an unconditional
31, 2012).
right to defer repayment beyond 12 months.
The item “Payables for put options granted to minority
234
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts shareholders” at December 31, 2013 includes the liability
America in the amount of €37 million.
to Enel Distributie Muntenia and Enel Energie Muntenia in
“Other” payables include €76 million in respect of the li-
the total amount of €778 million (unchanged on Decem-
ability associated with the application of the union agree-
ber 31, 2012) and that in respect of Renovables de Guate-
ments to implement the provisions of Article 4 of the
mala and Maicor Wind in the amount of €23 million.
Fornero Act with regard to other forms of incentive award-
“Payables for acquisition of equity investments” regard
ed under those agreements for persons who at December
the purchase in 2013 of a number of companies in North
31, 2013 were no longer employed with Enel.
37. Related parties
As an operator in the field of generation, distribution,
directly or indirectly controlled by the Italian State, the
transport and sale of electricity and the sale of natural gas,
Group’s controlling shareholder.
Enel carries out transactions with a number of companies
The table below summarizes the main types of transactions carried out with such counterparties.
Related party
Single Buyer
Relationship
Fully controlled (indirectly) by the
Ministry for the Economy and Finance
Nature of main transactions
Purchase of electricity for the enhanced
protection market
Sale of electricity for own use
EMO - Energy Markets Operator
Fully controlled (indirectly) by the
Ministry for the Economy and Finance
ESO - Energy Services Operator
Fully controlled (directly) by the
Ministry for the Economy and Finance
Sale of electricity on the Power Exchange
Purchase of electricity on the Power Exchange
for pumping and plant planning
Sale of electricity for own use
Sale of subsidized electricity
Payment of A3 component for renewable
resource incentives
Sale of electricity for own use
Sale of electricity on the Ancillary Services
Market
Purchase of transport, dispatching and
metering services
Sale of electricity for own use
Sale of electricity transport services
Purchase of fuels for generation plants, storage
services and natural gas distribution
Sale of electricity for own use
Indirectly controlled by the
Ministry for the Economy and Finance
Directly controlled by the Ministry
for the Economy and Finance
Terna
Eni Group
Finmeccanica Group
Poste Italiane Group
Directly controlled by the Ministry
for the Economy and Finance
Purchase of IT services and supply of goods
Sale of electricity for own use
Fully controlled (directly) by the
Ministry for the Economy and Finance
Purchase of postal services
Sale of electricity for own use
Finally, Enel also maintains relationships with the pension
All transactions with related parties were carried out on
funds FOPEN and Fondenel, Fondazione Enel and Enel Cu-
normal market terms and conditions, which in some cases
ore, an Enel non-profit company devoted to providing so-
are determined by the Authority for Electricity and Gas.
cial and healthcare assistance.
235
1
18
19
46
91
53
-
-
-
-
-
-
-
-
-
-
3
-
-
-
-
-
-
-
-
-
-
-
-
-
33
1
-
295
1
12
17
1
-
-
-
-
-
-
-
-
-
-
-
-
-
4
15
32
4
8
-
4
3
50
37
9
21
22
1
-
35
1
Total balance-
6,401
837
11,533
7,877
2,562
1,266
13,004
3,640
9,834
41,612
15,551
2,837
(378)
2,453
5,266
4
15
1,268
4
152
3,647
2
4
24
10,266
2,510
30
78
35
4
4
15
34
4
26
-
81
4
3
116
10
112
387
2
-
35
4
0.1%
1.8%
11.0%
0.1%
5.9%
0.2%
28.0%
0.1%
0.2%
24.7%
16.1%
1.1%
-20.6%
1.4%
0.1%
8,753
77,258
11.3%
401
3,277
12.2%
The following table summarizes transactions with related parties and with associated companies outstanding at December
31, 2013 and carried out during the period, respectively.
Related parties
Associated companies
Millions of euro
Single Buyer
EMO
Terna
ENI
ESO Poste Italiane
Other
Total
GNL Chile
Enel Rete Gas
CESI
Other
Total
Overall total
sheet item
% of total
Balance sheet
Non-current financial
assets
Other non-current assets
Trade receivables
Current financial assets
Other current assets
Other non-current
liabilities
Trade payables
Current financial liabilities
Other current liabilities
Income statement
Revenues from sales
Other revenues and
income
Raw materials and
consumables
Services
Other operating expenses
Net income from
commodity risk
management
Financial income
Financial expense
-
-
491
-
29
-
538
-
21
-
-
3
-
-
-
-
-
453
-
-
-
885
515
-
-
-
-
-
-
5,135
4,451
-
2
(22)
-
-
75
7
-
-
-
198
1,814
9
100
-
-
-
-
209
-
9
-
-
-
19
-
88
-
-
-
-
-
-
-
247
1,269
72
-
-
-
355
89
2
-
-
-
-
-
102
297
1
3
-
-
-
-
-
-
-
-
-
113
-
-
-
-
6,523
1,316
658
74
16
-
-
59
-
-
2
40
-
-
38
4
14
29
8
-
-
-
-
-
1,234
-
126
2
3,566
-
21
8,637
391
10,154
2,123
28
78
-
-
In November 2010, the Board of Directors of Enel SpA appro-
parties. It was adopted in implementation of the provisions of
ved a procedure governing the approval and execution of tran-
Article 2391-bis of the Italian Civil Code and the implementing
sactions with related parties carried out by Enel SpA directly or
regulations issued by CONSOB. In 2013, no transactions were
through subsidiaries. The procedure (available at http://www.
carried out for which it was necessary to make the disclosures
enel.com/en-GB/group/governance/rules/related_parties/)
required in the rules on transactions with related parties adop-
sets out rules designed to ensure the transparency and pro-
ted with CONSOB Resolution 17221 of March 12, 2010, as
cedural and substantive propriety of transactions with related
amended with Resolution 17389 of June 23, 2010.
236
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
The following table summarizes transactions with related parties and with associated companies outstanding at December
31, 2013 and carried out during the period, respectively.
Trade receivables
3
453
491
209
59
1,234
Balance sheet
Non-current financial
assets
Other non-current assets
Current financial assets
Other current assets
Other non-current
liabilities
Trade payables
Current financial liabilities
Other current liabilities
Income statement
Revenues from sales
Other revenues and
income
Raw materials and
consumables
Services
Net income from
commodity risk
management
Financial income
Financial expense
Other operating expenses
29
9
885
515
538
247
1,269
72
-
-
-
-
-
-
-
-
-
-
74
75
7
-
-
-
-
-
21
16
198
1,814
9
100
-
-
-
-
-
-
-
-
-
-
-
-
355
89
2
6,523
1,316
658
5,135
4,451
-
-
-
-
-
-
-
-
-
-
-
-
2
(22)
19
88
-
-
-
-
-
-
102
297
1
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
113
-
-
-
-
-
-
2
40
38
4
14
29
8
-
-
-
-
-
-
126
3,566
2
-
21
8,637
391
10,154
2,123
28
78
-
-
Related parties
Associated companies
Millions of euro
Single Buyer
EMO
Terna
ENI
ESO Poste Italiane
Other
Total
GNL Chile
Enel Rete Gas
CESI
Other
Total
Overall total
Total balance-
sheet item
% of total
-
-
1
-
18
-
19
-
-
46
-
91
53
-
-
-
3
-
-
-
-
-
-
-
-
-
33
1
-
295
-
-
-
-
-
-
1
-
-
-
12
-
-
-
-
-
17
1
-
-
-
4
15
32
4
8
-
50
4
3
37
9
21
22
1
-
35
1
4
15
34
4
26
-
81
4
3
116
10
112
387
2
-
35
4
4
15
1,268
4
152
2
3,647
4
24
6,401
837
11,533
7,877
2,562
1,266
13,004
3,640
9,834
0.1%
1.8%
11.0%
0.1%
5.9%
0.2%
28.0%
0.1%
0.2%
8,753
77,258
11.3%
401
3,277
12.2%
10,266
2,510
30
78
35
4
41,612
15,551
2,837
(378)
2,453
5,266
24.7%
16.1%
1.1%
-20.6%
1.4%
0.1%
237
38. Contractual commitments and guarantees
The commitments entered into by the Enel Group and the guarantees given to third parties are shown below.
Millions of euro
Guarantees given:
- sureties and other guarantees granted to third
parties
Commitments to suppliers for:
- electricity purchases
- fuel purchases
- various supplies
- tenders
- other
Total
TOTAL
at Dec. 31, 2013
at Dec. 31, 2012
Change
5,685
42,181
55,789
2,176
2,001
2,696
104,843
110,528
5,586
50,634
62,576
2,120
1,922
2,315
119,567
125,153
99
(8,453)
(6,787)
56
79
381
(14,724)
(14,625)
Guarantees granted to third parties amounted to €5,685
The expected cash flow of the operating lease contracts of
million, an increase of €99 million on 2012. The item inclu-
Endesa is as follows:
des commitments relating to the sale of real estate assets,
> 2014: €50 million;
in connection with the regulations that govern the termina-
> 2015-2016: €87 million;
tion of leases and the related payments, for a period of six
> 2017 and beyond: €232 million.
years and six months renewable from July 2004. The value
Commitments for electricity amounted to €42,181 million at
of such guarantees (€438 million at December 31, 2013) is
December 31, 2013, of which €23,296 million refer to the
reduced annually by a specified amount.
period 2014-2018, €8,401 million to the period 2019-2023,
The expected cash flow of the lease contracts, including fo-
€3,651 million to the period 2024-2028 and the remaining
recast inflation, is as follows:
€6,833 million beyond 2028. Commitments for the purcha-
> 2014: €46 million;
> 2015: €47 million;
> 2016: €47 million;
> 2017: €48 million;
> 2018: €49 million.
se of fuels are determined with reference to the contrac-
tual parameters and exchange rates applicable at the end
of the period (given that fuel prices vary and are mainly set
in foreign currencies). The total at December 31, 2013 was
€55,789 million, of which €33,459 million refer to the period
2014-2018, €14,467 million to the period 2019-2023, €4,621
million to the period 2024-2028 and the remaining €3,242
million beyond 2028.
238
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 39. Contingent liabilities and assets
Porto Tolle thermal plant
- Air pollution - Criminal
proceedings against Enel
directors and employees
damages
requested for economic and environmental losses
is about €100 million, which Enel has contested.
During 2013, an agreement was reached – with no admis-
sion of liability by Enel/Enel Produzione – with the public
entities of Emilia Romagna to express social solidarity in line
with the general sustainability policies of the Group. The
The Court of Adria, in a ruling issued March 31, 2006, convict-
suits with the Ministry and private parties (individuals and
ed former directors and employees of Enel for a number of
environmental associations) remain open. At the hearing of
incidents of air pollution caused by emissions from the Porto
January 8, 2014, the suit was taken for decision, with the es-
Tolle thermoelectric plant. The decision held the defendants
tablishment of the time limits for filing briefs.
and Enel (as a civilly liable party) jointly liable for the payment
of damages for harm to multiple parties, both natural per-
In August 2011, the Public Prosecutor’s Office of Rovigo asked
sons and public authorities. Damages for a number of mainly
that a number of directors, former directors, officers, former of-
private parties (individuals and environmental associations),
ficers and employees of Enel and Enel Produzione be remanded
were set at the amount of €367,000. The calculation of the
for trial on the charge of willful omission to take precautionary
amount of damages owed to certain public entities (Ministry
actions to prevent a disaster in respect of the alleged emissions
for the Environment, a number of public entities of Veneto
from the Porto Tolle plant. Subsequently, the public prosecu-
and Emilia Romagna, including the area’s park agencies) was
tor filed charges of willfully causing a disaster. During 2012,
postponed to a later civil trial, although a “provisional award”
the pre-trial hearing judge of Rovigo, granting the request of
of about €2.5 million was immediately due.
the Public Prosecutor’s Office of Rovigo, ordered the commit-
An appeal was lodged against the ruling of the Court of
tal for trial of all of the accused for both offences. The Ministry
Adria and, on March 12, 2009, the Court of Appeal of Venice
for the Environment, the Ministry of Health and other actors,
partially reversed the lower court decision. It found that the
mainly local authorities in Emilia Romagna and Veneto, as well
former directors had not committed a crime and that there
as the park agencies of the area, joined the case as injured par-
was no environmental damage and therefore ordered recov-
ties, seeking unspecified damages from the above individuals,
ery of the provisional award already paid. The prosecutors
without citing Enel or Enel Produzione as liable parties. Evi-
and the civil claimants lodged an appeal against the ruling
dence was submitted during 2013. During the year, as part of
with the Court of Cassation. In a ruling on January 11, 2011,
the agreement mentioned earlier, most of the public entities
the Court of Cassation granted the appeal, overturning the
withdrew their suits.
decision of the Venice Court of Appeal, and referred the case
At the hearing of March 31, 2014, the Court sitting en banc
to the civil section of the Venice Court of Appeal to rule as
issued its ruling of first instance, acquitting all of the accused
regards payment of damages and the division of such dam-
of the charge of willful omission to take precautionary safety
ages among the accused. As regards amounts paid to a num-
measures. The Court also acquitted all of the accused of the
ber of public entities in Veneto, Enel has already made pay-
charge of willfully causing a disaster, with the exception of the
ment under a settlement agreement reached in 2008. With
two former Chief Executive Officers of Enel SpA (although the
a suit lodged in 2011, the Ministry for the Environment, the
Court did not grant the request for recognition of aggravating
public entities of Emilia Romagna and the private actors who
circumstances as provided for when the disaster actually oc-
had already participated as injured parties in the criminal
curs). The former Chief Executive Officers were then ordered to
case asked the Venice Court of Appeal to order Enel SpA and
pay unspecified damages in a separate civil action, with a total
Enel Produzione to pay civil damages for harm caused by the
provisional ruling of €410,000 and payment of court costs for
emissions from the Porto Tolle power station. The amount of
the remaining civil parties to the action.
239
Brindisi Sud thermal
generation plant -
Criminal proceedings
against Enel employees
Distribuzione The Court of Cassation has also consistently
ruled in favor of Enel Distribuzione. At December 31, 2013
pending cases numbered about 28,000 as a result of ad-
ditional appeals filed despite the abandonment of suits by
the plaintiffs and/or joinder of proceedings. In addition, in
view of the rulings in Enel’s favor by both the courts of ap-
A criminal proceeding is under way before the Court of
peal and the Court of Cassation, the flow of new claims has
Brindisi concerning the Brindisi Sud thermal plant. A number
come to a halt. Beginning in 2012, a number of actions for
of employees of Enel Produzione – cited as a liable party in
recovery were initiated and settlements reached to obtain
civil litigation – have been accused of causing criminal dam-
repayment of amounts paid by Enel in execution of the rul-
age and dumping of hazardous substances with regard to the
ings in the courts of first instance.
alleged contamination of land adjacent to the plant with coal
In May 2008, Enel served its insurance company (Cattoli-
dust between 1999 and 2011. At the end of 2013, the accusa-
ca) a summons to ascertain its right to reimbursement of
tions were extended to cover 2012 and 2013. As part of the
amounts paid in settlement of unfavorable rulings. The
proceeding, injured parties, including the Province and City
case also involved a number of reinsurance companies in
of Brindisi, have submitted claims for total damages of about
the proceedings, which have challenged Enel’s claim. In
€1.3 billion. The argument phase has begun and hearings of
a ruling of October 21, 2013, the Court of Rome granted
witnesses are under way.
Enel’s petition, finding the insurance coverage to be valid
Criminal proceedings are also under way before the Courts
companies, to hold Enel harmless in respect of amounts
of Reggio Calabria and Vibo Valentia against a number of
paid or to be paid to users and their legal counsel as well
employees of Enel Produzione for the offense of illegal waste
as, within the limits established by the policies, to pay de-
and ordering Cattolica, and consequently the reinsurance
disposal in connection with alleged violations concerning the
fense costs.
disposal of waste from the Brindisi plant. Enel Produzione has
not been cited as a liable party for civil damages.
Mass litigation
The following mass litigation is currently pending.
Out-of-court disputes and
litigation connected with the
blackout of September 28,
2003
Litigation concerning free bill
payment procedures
In its ruling 2507/2010 of May 3, 2010, the Council of State
granted the appeal of the Authority for Electricity and Gas
(the Authority) against ruling 321/2008 of February 13, 2008
with which the Lombardy Regional Court had voided Resolu-
tion 66/2007. With the latter, the Authority had fined Enel
Distribuzione €11.7 million for violation of the provisions of
Resolution 55/2000 concerning the transparency of invoices.
Enel Distribuzione lodged an appeal with the Council of State
asking for it to revoke the ruling but the appeal was denied
on February 24, 2011.
In the wake of the blackout that occurred on September 28,
The appeal lodged on October 29, 2010 with the European
2003, numerous claims were filed against Enel Distribuzione
Court of Human Rights in Strasbourg is still pending. The ap-
for automatic and other indemnities for losses. These
peal seeks a judgment against the Italian State and damages
claims gave rise to substantial litigation before justices
equal to the amount paid with the fine. In Enel’s view, with
of the peace, mainly in the regions of Calabria, Campania
the ruling the Council of State adopted an interpretation of
and Basilicata, with a total of some 120,000 proceedings.
the legal concept of legality that differs from that usually
Charges in respect of such indemnities could be recovered
adopted in the case law of the European court.
in part under existing insurance policies. Most of the ini-
Since the end of 2006, Enel has been sued by numerous cus-
tial rulings by these judges found in favor of the plaintiffs,
tomers, especially in Campania and Calabria (with the support
while appellate courts have nearly all found in favor of Enel
of a number of consumer associations), alleging violations of
240
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts a number of Authority Resolutions (200/1999, 55/2000 and
tachment of receivables) to conserve any receivables of
66/2007) concerning the requirement to provide at least one
Enel SpA in respect of Enel France. JP Morgan Bank Lux-
free method for paying invoices and to publicize that method
embourg SA was also served with an analogous order in
in invoices themselves. In the civil suits, the customers have
respect of any receivables of Enel SpA.
requested restitution of amounts paid for postal expenses
Albania BEG Ambient Shpk subsequently sued Enel SpA
and, often, further damages.
and Enelpower SpA in the state of New York seeking rec-
At December 31, 2013, pending cases numbered about
ognition of the Albanian sentence in the state of New
47,900, but the number of new suits is declining, especially
York. Pending the first hearing, the judge enjoined the
following the judgment of the Court of Cassation in 2011
two companies from disposing of their assets up to the
that the rule set out in Authority Resolution 200/1999 did
amount of $597,493,543.
not have supplementary validity for existing supply contracts,
Enel SpA and Enelpower SpA will contest all aspects of the
thereby finding the action for non-performance of contract
foundation of the plaintiff’s case, taking all steps avail-
advanced by customers to be unfounded, because it was
able to them to defend their interests. Furthermore, pro-
based on a non-existent clause.
BEG litigation
Following an arbitration proceeding initiated by BEG SpA in
Italy, Enelpower obtained a ruling in its favor in 2002, which
was upheld by the Court of Cassation in 2010, which entire-
ly rejected the complaint with regard to alleged breach by
Enelpower of an agreement concerning the construction of
a hydroelectric power station in Albania.
ceedings continue in the suit lodged by Enelpower SpA
and Enel SpA with the Court of Rome asking the Court to
ascertain the liability of BEG SpA for having evaded com-
pliance with the arbitration ruling issued in Italy in favor
of Enelpower, through the legal action taken by Albania
BEG Ambient Shpk in Albania. With this action, Enelpow-
er and Enel are asking the Court to find BEG liable and or-
der it to pay damages in the amount that one or the other
could be required to pay to Albania BEG Ambient Shpk
in the event of the enforcement of the sentence issued
by the Albanian courts. The next hearing is scheduled for
Subsequently, BEG, acting through its subsidiary Albania
March 12, 2015.
BEG Ambient Shpk, filed suit against Enelpower and Enel
SpA in Albania concerning the matter, obtaining a ruling,
upheld by the Albanian Supreme Court of Appeal, order-
ing Enelpower and Enel to pay tortious damages of about
€25 million for 2004 as well as an unspecified amount of
tortious damages for subsequent years. Following the rul-
Violations of Legislative
Decree 231/2001
ing, Albania BEG Ambient Shpk demanded payment of
The following four cases for alleged violation of Legislative
more than €430 million.
Decree 231/2001 concerning the administrative liability of le-
As the Albanian Court of Cassation upheld the ruling of the
gal persons are pending. Three involve Enel Produzione and
court of first instance, Enelpower SpA and Enel SpA then
one involves Enel Distribuzione, for omission of accident pre-
filed an appeal with the European Court of Human Rights
vention measures:
for violation of the right to a fair trial and the rule of law,
> for a fatal accident involving an employee of a subcontrac-
asking the Court to order the Republic of Albania to pay
tor at the Enel Federico II plant at Brindisi in 2008, Enel Pro-
damages for financial and non-financial losses incurred by
duzione has been charged with administrative liability for
Enel SpA and Enelpower SpA. That suit is pending.
manslaughter;
In addition, in February 2012, Albania BEG Ambient Shpk
> for an accident involving an employee of a subcontractor
filed suit against Enel and Enelpower with the Tribunal de
at the Enel Federico II plant at Brindisi in 2009, Enel Pro-
Grande Instance in Paris in order to render the ruling of the
duzione has been charged with administrative liability for
Albanian court enforceable in France. Enel and Enelpower
negligent personal injury;
have challenged the suit. The proceeding is still under way.
> for a fatal accident involving an employee of a subcontrac-
Subsequently, again at the initiative of Albania BEG Am-
tor at the Enel plant at Termini Imerese in 2008, Enel Pro-
bient Shpk, Enel France was served with two “Saise Con-
duzione has been charged with administrative liability for
servatoire de Créances” (orders for the precautionary at-
manslaughter;
241
> for a fatal accident involving an employee of a subcon-
tractor in Palermo in 2008, Enel Distribuzione has been
CIEN litigation - Brazil
charged with administrative liability for manslaughter.
The above proceedings are still in the argument phase.
Josel litigation - Spain
In 1998 the Brazilian company CIEN signed an agreement
with Tractebel for the delivery of electricity from Argentina
through its Argentina-Brazil interconnection line. As a re-
sult of Argentine regulatory changes introduced as a conse-
quence of the economic crisis in 2002, CIEN was unable to
make the electricity available to Tractebel. In October 2009,
In March 2009, Josel SL sued Endesa Distribución Eléctrica SL
Tractebel sued CIEN, which submitted its defense. CIEN cited
to withdraw from the contract for the sale of several buildings
force majeure as a result of the Argentine crisis as the main
due to changes in their zoning status, requesting the restitu-
argument in its defense. As part of the dispute, Tractebel has
tion of about €85 million plus interest. Endesa Distribución
expressed its intention to acquire 30% of the transmission
Eléctrica SL opposed the request for withdrawal. On May 9,
line involved. The case is continuing. The amount involved in
2011, the court granted the request to permit withdrawal from
the dispute is estimated at about R$118 million (about €36
the contract and ordered Endesa to repay the amounts paid
million), plus unspecified damages.
for the sale plus interest and costs. Endesa has appealed the
For analogous reasons in May 2010 the company Furnas also
ruling. On February 13, 2012, the Audiencia Provincial de Palma
filed suit against CIEN for failure to deliver electricity, request-
de Mallorca overturned the initial ruling. The latter judgment
ing payment of about R$520 million (about €160 million), in
was appealed by Josel with the Tribunal Supremo on March 19,
addition to unspecified damages.
2012. Endesa Distribución Eléctrica SL opposed the appeal in a
brief of December 14, 2012.
In alleging non-performance by CIEN, Furnas is also seeking
to acquire ownership (in this case 70%) of the interconnec-
Basilus litigation
(formerly Meridional) -
Brazil
The Brazilian construction company Basilus S/A Serviço,
Emprendimiento y Participações (formerly Meridional)
tion line.
CIEN’s defense is similar to the earlier case. The evidentiary
stage of the trial has been completed and the ruling at first
instance is pending.
Bocamina II arbitration -
Chile
held a contract for civil works with the Brazilian company
Litigation is under way concerning the contract for the con-
CELF (owned by the State of Rio de Janeiro), which with-
struction of the second unit of the Bocamina thermal plant
drew from the contract. As part of its privatization, CELF
(“Bocamina II”). The contract was agreed in 2007 by Endesa
transferred its assets to Ampla Energia e Serviços (Ampla).
Chile with a consortium made up of Ingeniería y Construc-
In 1998, Basilus filed suit against Ampla, arguing that the
ción Tecnimont Chile Compañía Limitada, Tecnimont SpA,
transfer had infringed its rights and that it had been de-
Tecnimont do Brasil Construção and Administração de Pro-
frauded.
jetos Ltda (together, “Tecnimont”), Slovenske Energeticke
In March 2009, the Brazilian court granted the complaint, and
Strojarne AS and Ingeniería y Construcción SES Chile Limitada
Ampla and the State of Rio de Janeiro filed appeals against
(together “SES”). On October 16, 2012, following substantial
the decision, which were granted in December 2009 by the
violations of contractual undertakings by the consortium (in-
Tribunal de Justiça Estadual. Following that decision, Basilus
cluding the failure to complete the works on time), Endesa
lodged a further appeal (Mandado de segurança) in June
Chile sought execution of the guarantees securing its posi-
2011. That request was denied. Subsequently Basilus lodged
tion. In any event, the guarantees of SES have not yet been
a new appeals with the Tribunal Superior de Justiça, some of
collected pending resolution of a number of precautionary
which are still pending.
proceedings initiated by SES in Slovakia. On October 17, 2012
The amount involved in the dispute is about R$1,052 million
Endesa Chile submitted a request for arbitration before the
(about €322 million).
International Chamber of Commerce in Paris, citing the non-
242
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts performance of the consortium and claiming damages (sub-
Enel transferred the entire capital of the two companies to
sequently quantified in the amount of about $373 million, or
Enel Investment Holding BV (EIH).
about €270 million).
On July 5, 2013, Electrica notified Enel SpA, Enel Invest-
During the arbitration proceedings, the consortium filed a
ment Holding, EMS and EEM (limited to a number of
counterclaim against Endesa Chile in the amount of about
claims) of a request for arbitration before the Internation-
$1,300 million – about €940 million (most of which in the
al Chamber of Commerce in Paris, claiming damages for
form of damages for the alleged harm to the image of Tec-
alleged violations of the Privatization Agreement.
nimont following the execution of the bank guarantees by
More specifically, the plaintiff claimed payment of penal-
Endesa Chile). In April 2013, the parties agreed to join the
ties of about €800 million, plus interest and additional un-
proceedings with another arbitration proceeding brought
specified damages. The proceeding is under way.
by SES against Endesa Chile before the International
Chamber of Commerce in Paris. The arbitration proceeding
is under way and in December 2013 the parties filed their
first briefs.
Bocamina power plant -
Chile
A number of environmental issues have arisen with regard
to the Bocamina power plant. In August 2013, the Superin-
tendencia de Medio Ambiente (SMA) notified Endesa Chile
that it had initiated proceedings against it for alleged vio-
lations of environmental rules. In December 2013, Endesa
Chile submitted its defense and is awaiting a decision by the
SMA. In addition, various opponents of the plant (e.g. fisher-
men) have submitted three “Recursos de Protección” against
the operation of the plant. During the second of those ap-
peals, in December 2013, the Supreme Court, in reversing
LaGeo arbitration
In October 2008, Enel Produzione (which Enel Green Power
succeeded as a result of the spin-off of 2008) undertook
arbitration action before the International Chamber of
Commerce in Paris, against Comisión Ejecutiva Hidroeléc-
trica del Río Lempa (“CEL”), wholly owned by the Republic
of El Salvador, and Inversiones Energéticas SA de Cv (“INE”),
wholly owned by CEL, for breach of a number of provisions
of the shareholders’ agreement between Enel Produzione
and INE of June 4, 2002, regarding the management of La-
Geo. More specifically, the shareholders’ agreement gave
Enel Produzione the right to finance the investments of
LaGeo to build geothermal plants in El Salvador, treating
those payments as capital increases. The agreement also
required LaGeo to distribute all its net income.
After complying with the agreement during the initial phase,
LaGeo stopped complying with the shareholders’ agree-
the earlier decision of the Court of Appeal, granted the
ment, no longer allowing Enel Produzione (and then Enel
precautionary measures requested by the plaintiffs, order-
Green Power) to finance the investments approved and, con-
ing the shutdown of unit II of the Bocamina plant, which is
sequently, to subscribe any further capital increases.
therefore currently halted pending a decision on the appeal.
Enel Produzione therefore asked the arbitration board to
Electrica arbitration -
Romania
order INE and CEL (i) to perform the specific obligations
provided for under the shareholders’ agreement and to pay
damages of $30 million plus interest, duties and legal costs
or, alternatively, (ii) pay total damages of $264.2 million plus
interest, duties and legal costs.
INE joined the proceedings, asking that CEL be excluded and
June 11, 2007, Enel SpA entered into a Privatization Agree-
requesting damages for alleged losses caused by the poor
ment with SC Electrica SA for the privatization of Electrica
execution of the works by Enel Green Power.
Muntenia Sud (EMS). The accord provided for the sale to
The arbitration board then ruled on the dispute, issuing
Enel of 67.5% of the Romanian company. In accordance
its decision in July 2011, granting all of Enel Green Power’s
with the unbundling rules, in September 2008 the distri-
claims and denying those submitted by INE, recognizing:
bution and electricity sales operations were transferred to
> Enel Green Power’s right to participate in a capital increase
two new companies, Enel Distributie Muntenia (formerly
of the company, subscribing about 9 million shares with a
EMS) and Enel Energie Muntenia (EEM). In December 2009,
value of about $127 million;
243
> LaGeo’s duty to distribute profits earned in 2008 and 2009.
Following the arbitration ruling, two civil court cases began:
The Paris Court of Appeal (on January 8, 2013) upheld the
> the first appeal was lodged by MADE with the Tribunal
arbitration ruling. The ruling on the appeal of INE before
Judicial de Primera Instancia asking for the arbitration rul-
the Court of Cassation is still pending.
ing to be voided. The case is still pending with the court
In July 2013, the Salvadoran parliament passed a law ap-
of first instance following referral by the Court of Appeal
proving the withdrawal of El Salvador from the Washing-
(subsequently confirmed by the Supreme Court of Appeal
ton Convention of 1965, which allowed foreign investors
on September 26, 2013), which granted Enel Green Power
to bring claims against a state before the International
España’s appeal of the admission of briefs;
Center for Settlement of Investment Disputes (ICSID). Be-
> the second appeal was lodged by Energia XXI on May 9,
fore that law took effect, Enel Green Power had initiated a
2006, with the Civil Court of Lisbon, with which Energia
proceeding before the ICSID to preserve its rights against
XXI asked for Enel Green Power España to be ordered to
the interference of the Salvadoran government in Enel
pay the amount determined in the 2000 arbitration rul-
Green Power’s relations with CEL.
ing (the losses for which Energia XXI now puts at €546
In November 2013, the attorney general of El Salvador filed
million). Enel Green Power España considers the claim to
the findings of an investigation into the events that led to the
be unfounded. Acting on a petition by Enel Green Power
acquisition of LaGeo by the Enel Group in 2002. Once the en-
España, the court has so far suspended the case pending
quiry was closed, the attorney general summoned Enel Green
resolution of the first suit.
Power El Salvador as a liable party to a hearing of charges of
corruption against numerous public officials, two former em-
ployees of Enel Green Power and the lawyer who handled the
formation and the sale of interests in the LaGeo.
Tax litigation in Brazil
The reconstruction of the events advanced by the attorney
> In 1998, Ampla Energia e Serviços SA financed the acqui-
general’s office is essentially the same as that presented by
sition of Coelce with the issue of bonds in the amount
INE during arbitration, where it was ruled unfounded.
of $350 million (“Fixed Rate Notes” - FRN) subscribed by
The judge in the first phase of the proceedings did not find any
its Panamanian subsidiary, which had been established
certain or grave violations and therefore rejected the attorney
to raise funds abroad. Under the special rules then in
general’s request for precautionary measures.
force, subject to maintaining the bond until 2008, the
Dispute between Energia
XXI Energias Renováveis e
Consultoria Limitada and
Enel Green Power España
interest paid by Ampla to its subsidiary was not subject
to withholding tax in Brazil. However, the financial crisis
of 1998 forced the Panamanian company to refinance
itself with its Brazilian parent, which for that purpose
obtained loans from local banks. The tax authorities
considered this financing to be the equivalent of the
early extinguishment of the bond, with the consequent
loss of entitlement to the exemption from withhold-
ing tax. In December 2005, Ampla Energía e Serviços
In 1999 Energia XXI filed for arbitration against MADE (now
SA carried out a spin-off in favor of Ampla Investimen-
Enel Green Power España) for alleged losses incurred due
tos e Serviços SA that involved the transfer of the resid-
to the early termination of an agency contract for the sale
ual FRN debt and the associated rights and obligations.
of wind generators and wind farms of Enel Green Power Es-
On November 6, 2012, the Camara Superior de Recursos
paña in Portugal and Brazil. With its ruling of November 21,
Fiscales (the highest level of administrative courts) issued
2000, the arbitration board found that the termination of
a ruling against Ampla, for which the company promptly
the contract by MADE was illegitimate and ordered it to pay:
asked that body for clarifications. On October 15, 2013,
(i) legal costs; (ii) the fixed portion of the monthly fee for the
Ampla was notified of the denial of the request for clari-
period from July 21, 1999 (date of termination of contract)
fication (“Embargo de Declaración”), thereby upholding
to October 9, 2000 (expiration date of the contract), equal
the previous adverse decision. The company provided
to about €50,000; (iii) as well as lost profits to be deter-
security for the debt and intends to continue litigation
mined in respect of contracts for at least 15 MW of capacity.
before the ordinary courts (“Tribunal Superior de Justiça”).
244
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts
The amount involved in the dispute at December 31, 2013
de demora”). Ampla appealed the measure (the high-
was about €260 million.
est level of the administrative courts), arguing that the
> In 2002, the State of Rio de Janeiro changed the dead-
penalties imposed were not due owing to the applica-
lines for payment of the ICMS (Imposto sobre Circulação
tion of a number of amnesties granted between 2004
de Mercadorias e Serviços) by withholding agents (to
and 2006. In the event of an adverse ruling, the com-
the 10th, 20th and 30th of each month - Ley Benedicta).
pany will continue litigation before the ordinary courts.
Owing to liquidity problems, between September 2002
While the outcome of the final administrative pro-
and February 2005, Ampla Energia e Serviços SA con-
ceedings is not yet known, following the registration
tinued to pay the lCMS in compliance with the previous
of the claim in the Public Registry of the state of Rio
system (the 5th day of the subsequent month). Despite
de Janeiro, Ampla was required to provide security.
an informal agreement, the Brazilian tax authorities is-
The amount involved in the dispute at December 31, 2013
sued an assessment for late payment of the ICMS (“multa
was about €71 million.
40. Subsequent events
Issue of hybrid financial
instruments
spread of 408.9 basis points and interest rate step-ups
of 25 basis points from September 15, 2026 and an
additional 75 basis points from September 15, 2041.
On January 8, 2014, Enel launched a multi-tranche issue
The offering was led by a syndicate of banks comprising,
of non-convertible bonds for institutional investors on the
for the euro tranche: Banca Imi, Banco Bilbao Vizcaya Ar-
international market in the form of subordinated hybrid
gentaria SA, BNP Paribas, Crédit Agricole-CIB, Deutsche
instruments with an average maturity of about 61 years,
Bank, ING, JP Morgan, Mediobanca, Natixis, Société Gé-
denominated in euros and pounds sterling, in the total
nérale Corporate & Investment Banking, and UniCredit
amount of about €1.6 billion. The issue was carried out
Bank, and, for the sterling tranche: Barclays, BNP Paribas,
in execution of the resolution of the Board of Directors of
Deutsche Bank, HSBC, JP Morgan, The Royal Bank of Scot-
Enel of May 7, 2013.
land, Santander Global Banking & Markets and UBS Invest-
The issue forms part of the measures to strengthen the
ment Bank.
financial structure of the Enel Group set out in the busi-
ness plan presented to the financial community on March
13, 2013.
The transaction is structured in the following two tranches:
> €1,000 million maturing on January 15, 2075, issued at
a price of 99.368 with an annual fixed coupon of 5%
until the first early redemption date set for January 15,
2020. As from that date and until maturity, the rate will
be equal to the 5-year euro swap rate plus a spread
Agreement for
development of
geothermal power and
smart grids in Mexico
of 364.8 basis points and interest step-ups of 25 ba-
On January 13, 2014, Enel and the Instituto de Investiga-
sis points from January 15, 2025 and a further 75 basis
ciones Eléctricas, the Mexican electricity research body,
points from January 15, 2040;
signed an agreement for cooperation in geothermal gener-
> £500 million maturing on September 15, 2076, issued
ation and smart grids. With the agreement, the two parties
at a price of 99.317 with an annual fixed coupon of
will cooperate to exchange information and experience in
6.625% (swapped into euros at a rate of about 5.60%)
smart grids and geothermal generation by means of pilot
until the first early redemption date set for Septem-
projects, training programmes and technology transfers in
ber 15, 2021. As from that date and until maturity, the
the respective areas of interest.
rate will be equal to the 5-year GBP swap rate plus a
The Mexican government is seeking to implement smart
245
grid projects in the country to improve efficiency and ser-
quired 15.13% of Coelce on Brazil’s Bovespa exchange, for
vice quality. Another goal is diversification in power gen-
about $242 million (€176 million). For ordinary shares, in
eration, a key strengthening the security of supply by in-
accordance with Brazilian law, the offer will remain open
creasing the contribution of renewables to the country’s
for a further 90 days in order to give shareholders who did
energy mix.
not take up the offer in the previous 33 days the time they
need to decide
Acquisition of an
additional 15.13%
of Coelce
Price adjustment in
disposal of Artic Russia
On January 15, 2014, Eni announced the sale of its 60%
As part of the reorganization of equity investments in Latin
stake in Artic Russia, held through Eni International, to the
America following the Enersis capital increase in 2013, on
Russian company Yamal Development. Considering the
January 14, 2014, Enersis, the Chilean subsidiary of the
agreements signed by Itera and the Enel Group prior to the
Enel Group, launched a friendly tender offer for about 42%
completion of the sale of Enel’s 40% stake in Artic Russia,
of Companhia Energética do Ceará (Coelce), which oper-
the Group asked Itera to adjust the price of Artic Russia by
ates in the electricity distribution sector in Brazil, of which
around $112 million.
it already indirectly holds about 58%. After the conclusion
of the offering period, on February 17, 2014, Enersis ac-
246
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts 41. Stock incentive plans
Between 2000 and 2008, Enel implemented stock incen-
tive plans (stock option plans and restricted share units
Exercise conditions
plans) each year in order to give the Enel Group – in line
The right to subscribe the shares was subordinate to the
with international business practice and the leading Ital-
condition that the executives concerned remain employed
ian listed companies – a means for fostering management
within the Group, with a few exceptions (such as, for exam-
motivation and loyalty, strengthening a sense of corpo-
ple, termination of employment because of retirement or
rate team spirit in our key personnel, and ensuring their
permanent invalidity, exit from the Group of the company
enduring and constant effort to create value, thus creat-
at which the executive is employed, and succession mortis
ing a convergence of interests between shareholders and
causa) specifically governed by the Regulations.
management.
The vesting of the options is subject to achievement of two
The remainder of this section describes the features of the
operational objectives, both calculated on a consolidated,
stock incentive plans adopted by Enel and still in place in 2013.
three-year basis: (i) earnings per share (EPS, equal to Group
2008 stock option plan
The 2008 plan provides for the grant of personal, non-
transferable inter vivos options to subscribe a corresponding
number of newly issued ordinary Enel shares to senior man-
agers selected by the Board of Directors. The main features
of the 2008 plan are discussed below.
Beneficiaries
The beneficiaries of the plan – who include the CEO of
Enel is his capacity as General Manager – comprise the
small number of managers who represent the first re-
porting line of top management. The head of the Infra-
structure and Networks Division does not participate but
has received other incentives linked to specific objectives
regarding the Division’s business area. The exclusion was
motivated by the obligation for Enel – connected with the
full liberalization of the electricity sector as from July 1,
2007 – to implement administrative and accounting un-
bundling so as to separate the activities included in the
Infrastructure and Networks Division from those of the
Group’s other business areas. The beneficiaries have been
divided into two brackets (the first includes only the CEO
of Enel in his capacity as General Manager) and the basic
number of options granted to each has been determined
on the basis of their gross annual compensation and the
strategic importance of their positions, as well as the
price of Enel shares at the start of the period covered by
the plan (January 2, 2008).
net income divided by the number of Enel shares in circula-
tion) for the 2008-2010 period, determined on the basis of
the amounts specified in the budgets for those years and (ii)
the return on average capital employed (ROACE, equal to
the ratio between operating income and average net capi-
tal employed) for the 2008-2010 period, also determined on
the basis of the amounts specified in the budgets for those
years. Depending on the degree to which the objectives are
achieved, the number of options that can actually be exer-
cised by each beneficiary is determined on the basis of a per-
formance scale established by the Enel Board of Directors
and may vary up or down with respect to the basic option
grant by a percentage amount of between 0% and 120%.
Exercise procedures
Once achievement of the operational objectives has been
verified, the options can be exercised as from the third year
after the grant year and up to the sixth year as from the grant
year. The options can be exercised at any time, with the ex-
ception of two blocking periods lasting about one month be-
fore the approval of the draft annual financial statements of
Enel SpA and the half-year report by the Board of Directors.
Strike price
The strike price was originally set at €8.075, equal to the
reference price for Enel shares observed on the electronic
stock exchange of Borsa Italiana on January 2, 2008. The
strike price was modified by the Board of Directors on July
9, 2009 – which set it at €7.118 – in order to take account
of the capital increase completed by Enel that month and
the impact that it had on the market price of Enel shares.
247
Subscription of the shares is charged entirely to the beneficiar-
ies, as the plan does not provide for any facilitated terms to be
granted in this respect.
Developments in the 2008
stock option plan
Shares serving the plan
The Board of Directors has determined that in the 2008-
2010 period both EPS and ROACE exceeded the levels
In June 2008, the Extraordinary Shareholders’ Meeting granted
set out in the budgets for those years, thereby enabling
the Board of Directors a five-year authorization to carry out a
the options to vest in an amount equal to 120% of those
paid capital increase in the maximum amount of €9,623,735.
originally granted to the beneficiaries, in application of
The Board of Directors has not implemented the capital in-
the performance scale established by the Enel Board of
crease in the light of developments in the Enel stock price.
Directors.
The following table reports developments in the 2008 stock option plan:
Total options
granted
8,019,779 (1)
Number of
beneficiaries
16 Group
executives
Strike price
Verification of
plan conditions
Options exercised
at Dec. 31, 2012
Options lapsed at
Dec. 31, 2012
Options lapsed in
2013
Options
outstanding at
Dec. 31, 2013
€8.075 (2)
Rights vested
None
None
None
9,623,735
(1) Following the review conducted by the Enel Board of Directors on the occasion of the approval of the Enel Group’s consolidated financial statements for 2010
to determine the degree to which the two operational targets (EPS and ROACE) had been achieved, a total of 9,623,735 options have vested.
(2) The strike price was changed to €7.118 as from July 9, 2009 in order to take account of the impact of the capital increase completed by Enel that month on the
market price of Enel shares.
Payment of a bonus
connected with the portion
of the dividends
attributable to asset
disposals, to be made in
conjunction with the exercise
of stock options
In March 2004, the Board of Directors voted to grant a special
bonus, beginning in 2004, to the beneficiaries of the various
stock option plans who exercise the options granted to them,
establishing that the amount is to be determined each time
by the Board itself when it adopts resolutions concerning
the allocation of earnings and is based on the portion of the
“disposal dividends” (as defined below) distributed after the
granting of the options.
The rationale underlying this initiative is that the portion of
dividends attributable to extraordinary transactions regard-
ing the disposal of property and/or financial assets (“disposal
dividends”) should be considered a form of return to share-
holders of part of the value of the Company, and as such ca-
pable of affecting the performance of the shares.
The beneficiaries of the bonus are thus the beneficiaries of
the stock option plans who – either because they choose to
do so or because of the restrictions imposed by the exercise
conditions or the vesting periods – exercise their options after
the ex-dividend date of the “disposal dividends” and there-
fore could be penalized. The bonus is not paid, however, for
the portion of other kinds of dividends, such as those gener-
ated by ordinary business activities or reimbursements associ-
ated with regulatory measures.
Essentially, when beneficiaries of the stock option plans have
exercised the options granted to them, as from 2004 they
have been entitled to receive a sum equal to the “disposal
dividends” distributed by Enel after the options have been
granted but before they have been exercised. The bonus will
be paid by the company of the Group that employs the ben-
eficiary and is subject to ordinary taxation as income from
employment.
Under these rules, to date the Board of Directors has ap-
proved: (i) a bonus amounting to €0.08 per option exercised,
with regard to the dividend (for 2003) of €0.36 per share pay-
able as from June 24, 2004; (ii) a bonus amounting to €0.33
248
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts per option exercised, with regard to the interim dividend (for
It should be noted that the overall dilution of share capital
2004) of the same amount per share payable as from Novem-
as at December 31, 2013 attributable to the exercise of the
ber 25, 2004; (iii) a bonus amounting to €0.02 per option ex-
stock options granted under the various plans amounts to
ercised, with regard to the balance of the dividend (for 2004)
1.31% and that further developments in the plans could, in
of €0.36 per share payable as from June 23, 2005; and (iv) a
theory, increase the dilution up to a maximum of 1.41%.
bonus amounting to €0.19 per option exercised, with regard
to the interim dividend (for 2005) of the same amount per
share payable as from November 24, 2005.
The following table summarizes developments over the course of 2011, 2012 and 2013 in the Enel stock option plans, detail-
ing the main assumptions used in calculating their fair value.
Developments in stock option plans
Number of options
Options granted at December 31, 2011
Options exercised at December 31, 2011
Options lapsed at December 31, 2011
Options outstanding at December 31, 2011
Options lapsed in 2012
Options outstanding at December 31, 2012
Options lapsed in 2013
Options outstanding at December 31, 2013
Fair value at grant date (euro)
Volatility
Option expiry
2008 plan
9,623,735 (1)
9,623,735 (1)
-
9,623,735 (1)
-
9,623,735 (1)
0.17
21%
December 2014
(1) Following the review conducted by the Enel SpA Board of Directors on the occasion of the approval of the Enel Group’s consolidated financial statements for
2010 to determine the degree to which the two operational targets (EPS and ROACE) set for the 2008 plan had been achieved, a total of 9,623,735 options
have vested (120% of the 8,019,779 options originally granted).
Restricted share units
plan 2008
performance of Enel shares – differs from the stock option
plans in that it does not involve the issue of new shares
and therefore has no diluting effect on share capital. It
grants the beneficiaries rights to receive the payment of a
In June 2008 Enel’s Ordinary Shareholders’ Meeting ap-
sum equal to the product of the number of units exercised
proved an additional incentive mechanism, a restricted
and the average value of Enel shares in the month preced-
share units plan. The plan – which is also linked to the
ing the exercise of the units.
249
Beneficiaries
basis – for the period from January 1, 2008 to Decem-
ber 31, 2010 – between the performance of ordinary
The plan covers the management of the Enel Group (includ-
Enel shares on the electronic stock exchange of Borsa
ing the managers already participating in the 2008 stock
Italiana SpA and the benchmark index calculated as
option plan, which includes the Enel CEO in his capacity
the average of the performance of the MIBTEL index
as General Manager), with the exception of the managers
(weight: 50%) – replaced in 2009 with the FTSE Italia
of the Infrastructure and Networks Division for the reasons
All Share index as indicated above – and the Bloomberg
discussed with the 2008 stock option plan. The beneficiar-
World Electric Index (weight: 50%).
ies have been divided into brackets and the basic number
The number that can be exercised may vary up or down
of units granted to each has been determined on the basis
with respect to the basic unit grant by a percentage
of the average gross annual compensation of the bracket,
amount of between 0% and 120% as determined on the
as well as the price of Enel shares at the start of the period
basis of a specific performance scale.
covered by the plan (January 2, 2008).
If the hurdle target is not achieved in the first two-year pe-
Exercise conditions
riod, the first tranche of 50% of the units granted may be
recovered if the same hurdle target is achieved over the
longer three-year period indicated above. It is also possi-
Exercise of the units – and the consequent receipt of the
ble to extend the validity of the performance level regis-
payment – is subordinate to the condition that the execu-
tered in the 2008-2010 period to the 2008-2009 period,
tives concerned remain employed within the Group, with
where performance was higher in the longer period, with
a few exceptions (such as, for example, termination of em-
the consequent recovery of units that did not actually vest
ployment because of retirement or permanent invalidity,
in the first two-year period because of the lower perfor-
exit of the company at which the beneficiary is employed
mance level and on the condition that the first 50% of the
from the Group or succession mortis causa) specifically gov-
basic unit grant has not yet been exercised.
erned by the Regulations. As regards other exercise con-
ditions, the plan first establishes a suspensory operational
objective (a “hurdle target”): (i) for the first 50% of the ba-
Exercise procedures
sic number of units granted, Group EBITDA for 2008-2009,
Once achievement of the hurdle target and the perfor-
calculated on the basis of the amounts specified in the
mance objectives has been verified, of the total number of
budgets for those years; and (ii) for the remaining 50% of
units granted, 50% may be exercised as from the second
the basic number of units granted, Group EBITDA for 2008-
year subsequent to the grant year and the remaining 50%
2010, calculated on the basis of the amounts specified in
as from the third year subsequent to the grant year, with the
the budgets for those years.
deadline for exercising all the units being the sixth year sub-
If the hurdle target is achieved, the actual number of units
sequent to the grant year. In any event, each year the units
that can be exercised by each beneficiary is determined on
can only be exercised during four time windows of ten busi-
the basis of a performance objective represented by:
ness days each (to be announced by Enel over the course of
> for the first 50% of the basic number of units granted,
the plan) in the months of January, April, July and October.
a comparison on a total shareholders’ return basis – for
the period from January 1, 2008 to December 31, 2009
– between the performance of ordinary Enel shares on
the electronic stock exchange of Borsa Italiana SpA and
Developments in the 2008
restricted share units plan
that of a specific benchmark index calculated as the av-
erage of the performance of the MIBTEL index (weight:
50%) – replaced with the FTSE Italia All Share index af-
ter an analogous substitution by Borsa Italiana in 2009
– and the Bloomberg World Electric Index (weight:
50%); and
> for the remaining 50% of the basic number of units
granted, a comparison on a total shareholders’ return
The review conducted by the Board of Directors to verify
satisfaction of the exercise conditions found the following.
For the first 50% of the basic units granted, in 2008-2009
the hurdle target for Group EBITDA had been achieved
and Enel shares had slightly outperformed the benchmark
index, meaning that according to the performance scale
100% of the units originally granted had vested. For the
remaining 50% of the basic grant awarded, in 2008-2010
250
EnEl AnnuAl REpoRt 2013 ConsolidAtEd finAnCiAl stAtEmEnts the hurdle target for Group EBITDA had been achieved and
Enel shares significantly outperformed the benchmark in-
dex, meaning that according to the performance scale an
amount equal to 120% of the units originally granted had
vested. In view of the fact that the level of achievement of
the performance targets over the 2008-2010 period was
higher than that achieved in 2008-2009, it is therefore pos-
sible to recover the units that did not vest in 2008-2009 as
a result of the lower level of achievement of the perfor-
mance targets for beneficiaries who had not yet exercised
the first 50% of the basic units granted before achieve-
ment of the targets for 2008-2010 had been ascertained.
The following table reports developments in the 2008 re-
stricted share units plan.
Number of RSU
RSU outstanding at December 31, 2011
of which vested at December 31, 2011
RSU lapsed in 2012
RSU exercised in 2012
RSU outstanding at December 31, 2012
of which vested at December 31, 2012
RSU lapsed in 2013
RSU exercised in 2013
RSU outstanding at December 31, 2013
of which vested at December 31, 2013
Fair value at the grant date (euro)
Fair value at December 31, 2013 (euro)
2008 plan
357,746
357,746
-
103,432
254,314
254,314
-
24,540
229,774
229,774
3.16
3.72
Expiry of the restricted share units
December 2014
251
Corporate
governance
Report on corporate governance
and ownership structure
The corporate governance structure of Enel SpA and of its
adequacy of the organizational structure, the internal
corporate group complies with the principles set forth in the
control system and the administrative-accounting system
edition of the Corporate Governance Code for listed compa-
of the Company; (iii) the statutory auditing of the annual
nies1, adopted by the Company. Furthermore, the aforemen-
accounts and the consolidated accounts, as well as the in-
tioned corporate governance structure is inspired by CON-
dependence of the statutory audit firm; and (iv) the man-
SOB’s recommendations on this matter and, more generally,
ner in which the corporate governance rules set out in the
international best practice.
Corporate Governance Code are actually implemented;
The corporate governance system adopted by Enel and the
> a Shareholders’ Meeting, which is competent to take deci-
Group is essentially aimed at creating value for the sharehol-
sions concerning, among other issues – in ordinary or ex-
ders over the medium-long term, taking into account the so-
traordinary session: (i) the appointment and termination
cial importance of the Group’s business operations and the
of members of the Board of Directors and the Board of Au-
consequent need, in conducting such operations, to adequa-
ditors and their compensation and responsibilities; (ii) the
tely consider all the interests involved.
approval of the financial statements and allocation of net
In compliance with the provision of Italian law governing
income; (iii) the purchase and sale of treasury shares; (iv)
companies with listed shares, the Company’s organization is
stock-based compensation plans; (v) amendments of the
characterized by:
bylaws; and (vi) the issue of convertible bonds.
> a Board of Directors charged with managing the Company;
The statutory auditing of the accounts is performed by a spe-
> a Board of Auditors charged with monitoring: (i) complian-
cialized firm entered in the appropriate official register. It was
ce with the law and the bylaws, and with the principles
engaged by the Shareholders’ Meeting on the basis of a reaso-
of sound administration in the performance of Company
ned proposal of the Board of Auditors.
business; (ii) the financial reporting process, as well as the
(1) The various editions of the Code are available on the website of Borsa Italiana (http://www.borsaitaliana.it).
Paolo A. Colombo (C 3)
Fulvio Conti (CEO/GM)
Alessandro Banchi (2,4)
Lorenzo Codogno (1,3)
Mauro Miccio (1,3)
Fernando Napolitano (2,3)
Pedro Solbes Mira (2,4)
Angelo Taraborrelli (1,3)
Gianfranco Tosi (1,4)
Shareholders’
meeting
Independent
auditors
Ernst & Young
Board of
Directors
Board of
Auditors
Sergio Duca (C)
Lidia D’Alessio
Gennaro Mariconda
Control & Risk
Committee1
Compensation
Committee2
Nomination &
Corporate
Governance
Committee3
Related Parties
Committee4
For more detailed information on the corporate governance system, please see the Report on Corporate Governance and Ow-
nership Structure of Enel, which has been published on the Company’s website (www.enel.com, in the “Governance” section).
253
Declaration
of the Chief Executive Officer
and the officer responsible
for the preparation
of corporate financial reports
of the Enel Group at December 31, 2012, pursuant
to the provisions of Article 154-bis, paragraph 5,
of Legislative Decree 58 of February 24, 1998 and
Article 81-ter of CONSOB Regulation
11971 of May 14, 1999
254
EnEl AnnuAl REpoRt 2013DEclARAtion of thE chiEf ExEcutivE officER AnD thE officER REsponsiblE 1.
The undersigned Fulvio Conti and Luigi Ferraris, in their respective capacities as Chief Executive Officer
and officer responsible for the preparation of the financial reports of Enel SpA, hereby certify, taking
account of the provisions of Article 154-bis, paragraphs 3 and 4, of Legislative Decree 58 of February
24, 1998:
a. the appropriateness with respect to the characteristics of the Enel Group and
b. the effective adoption of the administrative and accounting procedures for the preparation of the
consolidated financial statements of the Enel Group in the period between January 1, 2013 and
December 31, 2013.
2.
In this regard, we report that:
a.
the appropriateness of the administrative and accounting procedures used in the preparation of
the consolidated financial statements of the Enel Group has been verified in an assessment of the
internal control system for financial reporting. The assessment was carried out on the basis of the
guidelines set out in the “Internal Controls - Integrated Framework” issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO);
b. the assessment of the internal control system for financial reporting did not identify any material issues.
3.
In addition, we certify that consolidated financial statements of the Enel Group at December 31, 2013:
a.
have been prepared in compliance with the international accounting standards recognized in the
European Union pursuant to Regulation 1606/2002/EC of the European Parliament and of the
Council of July 19, 2002;
b. correspond to the information in the books and other accounting records;
c.
provide a true and fair representation of the performance and financial position of the issuer and
the companies included in the scope of consolidation.
4.
Finally, we certify that the report on operations accompanying the financial statements of the Enel
Group at December 31, 2013 contains a reliable analysis of operations and performance, as well as
the situation of the issuer and the companies included in the scope of consolidation, together with a
description of the main risks and uncertainties to which they are exposed.
Rome, March 11, 2014
Fulvio Conti
Luigi Ferraris
Chief Executive Officer of Enel SpA
Officer responsible for the preparation of the
financial reports of Enel SpA
255
256
EnEl AnnuAl REpoRt 2013AttAchmEnts Attachments
257
Subsidiaries, associates and other
significant equity investments of the
Enel Group at December 31, 2013
In compliance with CONSOB Notice DEM/6064293 of July 28,
2006 and Article 126 of CONSOB Resolution 11971 of May
14, 1999, a list of subsidiaries and associates of Enel SpA at
December 31, 2012, pursuant to Article 2359 of the Italian
Civil Code, and of other significant equity investments is
provided below. Enel has full title to all investments.
The following information is included for each company:
name, registered office, share capital, currency in which share
capital is denominated, activity, method of consolidation,
Group companies that have a stake in the company and
their respective ownership share, and the Group’s ownership
share.
258
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Consolidation
method
Held by
% holding
Parent Company
Enel SpA
Subsidiaries
Rome
Italy
9,403,357,795.00 EUR
Holding company
(Cataldo) Hydro
Power Associates
New York
(New York)
USA
- USD
Electricity generation
from renewable
resources
3SUN SRL
Catania
Italy
180,030,000.00 EUR
Adams Solar PV Project
Two (Pty) Limited
Cape Town
South Africa
- ZAR
Adria Link Srl
Gorizia
Italy
500,000.00 EUR
Aes Distribuidores
Salvadorenos Ltda de Cv
Colonia Escalon
El Salvador
200,000.00 SVC
Aes Distribuidores
Salvadorenos Y Compania
S En C de Cv
Colonia Escalon
El Salvador
200,000.00 SVC
Agassiz Beach LLC
Minneapolis
(Minnesota)
USA
- USD
Agatos Green Power
Trino
Rome
Italy
10,000.00 EUR
Development, design,
construction and
operation of solar panel
manufacturing plants
Electricity generation
from renewable
resources
Design, construction and
operation of merchant
lines
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Agrupación Acefhat AIE Barcelona
Spain
793,340.00 EUR
Design and services
-
Aguas Santiago Poniente
SA
Santiago
Chile
6,601,120,747.00 CLP
Water services
Line-by-line
Group %
holding
100.00%
Line-by-line
Chi Black River Inc.
50.00%
68.29%
Hydro
Development
Group Inc.
Enel Green Power
SpA
50.00%
33.33%
22.76%
Proportionate
Line-by-line
Enel Green Power
South Africa
100.00%
68.29%
Proportionate
Enel Produzione
SpA
33.33%
33.33%
Equity
Equity
Line-by-line
Proportionate
Enel Green Power
El Salvador SA
de CV
Enel Green Power
El Salvador SA
de CV
Chi Minnesota
Wind LLC
Enel Green Power
& Sharp Solar
Energy Srl
Endesa Distribución
Eléctrica SL
Construcciones
Y Proyectos los
Maitenes SA
20.00%
13.66%
20.00%
13.66%
51.00%
34.83%
80.00%
27.32%
16.67%
15.35%
53.06%
30.70%
Inmobiliaria Manso
de Velasco Ltda
25.82%
Line-by-line
Enel Green Power
España SL
51.00%
39.68%
Line-by-line
Enel Green Power
Chile Ltda
100.00%
68.23%
Line-by-line
Enel Green Power
España SL
100.00%
77.80%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Management and
maintenance of power
plants
Aguilon 20 SA
Zaragoza
Spain
2,682,000.00 EUR
Almeyda Solar SpA
Santiago
Chile
1,736,965,000.00 CLP
Almussafes Servicios
Energéticos SL
Valencia
Spain
3,010.00 EUR
Alpe Adria Energia SpA Udine
Italy
450,000.00 EUR
Altomonte Fv Srl
Cosenza
Italy
100,000.00 EUR
Alvorada Energia SA
Rio de Janeiro
Brazil
17,117,415.92 BRL
Ampla Energía e
Serviços SA
Rio de Janeiro
Brazil
129,823.00 BRL
Design, construction and
operation of merchant
lines
Equity
Proportionate
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
and sale
Electricity
generation,
transmission and
distribution
Andorra Desarrollo SA
Teruel
Spain
901,520.00 EUR
Regional development
Line-by-line
Apamea 2000 SL
Madrid
Spain
3,010.00 EUR
Services
Line-by-line
Endesa SA
100.00%
92.06%
Apiacàs Energia SA
Rio de Janeiro
Brazil
21,216,846.33 BRL
Electricity generation
Line-by-line
Aquenergy Systems Inc. Greenville (South
USA
10,500.00 USD
Carolina)
Las Palmas de
Gran Canaria
Spain
Teruel
Spain
Aquilae Solar SL
Aragonesa de
Actividades Energéticas
SA
Electricity generation
from renewable
resources
Line-by-line
3,008.00 EUR
Photovoltaic plants
Proportionate
60,100.00 EUR
Electricity generation
Line-by-line
Enel Produzione
SpA
40.50%
40.50%
Enel Green Power
& Sharp Solar
Energy Srl
Enel Brasil
Participações Ltda
Chilectra Inversud
SA
Chilectra SA
Endesa Brasil SA
Enersis SA
Endesa Generación
SA
100.00%
34.14%
100.00%
68.29%
21.02%
51.14%
10.34%
46.89%
21.38%
100.00%
92.06%
Enel Brasil
Participações Ltda
Consolidated
Hydro Southeast
Inc.
Endesa Ingeniería
SLU
Endesa Generación
SA
100.00%
68.29%
100.00%
68.29%
50.00%
46.03%
100.00%
92.06%
259
Company name
Headquarters
Country
Share capital Currency Activity
Asociación Nuclear Ascó-
Vandellós II AIE
Tarragona
Spain
19,232,400.00 EUR
Management and
maintenance of power
plants
Consolidation
method
Proportionate
Held by
% holding
Group %
holding
Endesa Generación
SA
85.41%
78.63%
Atacama Finance Co
Cayman Islands Cayman
6,300,000.00 USD
Holding company
Proportionate
Islands
Atelgen - Produção de
Energia ACE
Barcelos
Portugal
- EUR
Electricity generation
Held for sale
Inversiones
Gasatacama
Holding Ltda
99.90%
17.16%
Gas Atacama SA
0.10%
Tp - Sociedade
Térmica
Portuguesa SA
51.00%
39.68%
Athonet Smartgrid Srl
Bolzano
Autumn Hills LLC
Minneapolis
(Minnesota)
Italy
USA
10,001.00 EUR
- USD
Research, development
and design
Electricity generation
from renewable
resources
Proportionate
Enel Servizi Srl
0.01%
0.01%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
34.83%
Ayesa Advanced
Technologies SA
Seville
Spain
663,520.00 EUR
IT services
Equity
Endesa Servicios SL
22.00%
20.25%
Aysén Energía SA
Santiago
Chile
4,900,100.00 CLP
Electricity
Proportionate
Aysén Transmisión SA
Santiago
Chile
22,368,000.00 CLP
Electricity generation
and sale
Proportionate
Barnet Hydro Company Burlington
(Vermont)
USA
- USD
Electricity generation
from renewable
resources
Line-by-line
Beaver Falls Water Power
Company
Philadelphia
(Pennsylvania)
Beaver Valley Holdings
Ltd
Philadelphia
(Pennsylvania)
Beaver Valley Power
Company
Philadelphia
(Pennsylvania)
USA
USA
USA
- USD
2.00 USD
30.00 USD
Biowatt - Recursos
Energéticos Lda
Porto
Portugal
5,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Marketing of projects
for electricity generation
from renewable
resources
Empresa Nacional
de Electricidad SA
Centrales
Hidroeléctricas de
Aysén SA
Empresa Nacional
de Electricidad SA
Centrales
Hidroeléctricas de
Aysén SA
Enel Green Power
North America Inc.
Sweetwater
Hydroelectric Inc.
Beaver Valley
Holdings Ltd
Hydro
Development
Group Inc
Hydro
Development
Group Inc
Finerge-Gestão
de Projectos
Energéticos SA
0.51%
17.07%
99.00%
0.51%
17.07%
99.00%
10.00%
68.29%
90.00%
67.50%
46.09%
100.00%
68.29%
100.00%
68.29%
51.00%
39.68%
Black River Hydro
Associates
New York (New
York)
USA
- USD
Blue Line Valea Nucarilor
Srl
Bucharest
Romania
400,000,600.00 RON
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
(Cataldo) Hydro
Power Associates
75.00%
51.22%
Line-by-line
Enel Green Power
Romania Srl
100.00%
68.29%
Bosmat SA
Oficina 1508
Uruguay
400,000.00 UYU
Boiro Energia SA
Boiro
Bolonia Real Estate SL Madrid
Boott Field LLC
Wilmington
(Delaware)
Spain
Spain
USA
Boott Hydropower Inc.
Boston
(Massachusetts)
USA
Boott Sheldon Holdings
LLC
Wilmington
(Delaware)
USA
Bp Hydro Associates
Boise (Idaho)
USA
Bp Hydro Finance
Partnership
Salt Lake City
(Utah)
USA
Braila Power SA
Buffalo Dunes Wind
Project LLC
Sat Chiscani,
Comuna Chiscani
Romania
Topeka (Kansas) USA
260
601,010.00 EUR
Electricity generation
from renewable resources
Proportionate
Enel Green Power
España SL
40.00%
31.12%
3,008.00 EUR
Real estate
Line-by-line
Endesa SA
100.00%
92.06%
Electricity generation
from renewable resources
Line-by-line
Boott Hydropower
Inc.
100.00%
68.29%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Boott Sheldon
Holdings LLC
100.00%
68.29%
Line-by-line
Line-by-line
Hydro Finance
Holding Company
Inc.
Enel Green Power
Latin America Ltda
100.00%
68.29%
100.00%
68.23%
Line-by-line
Enel Green Power
North America Inc.
32.00%
68.29%
- USD
- USD
- USD
- USD
- USD
Electricity generation
from renewable
resources
Line-by-line
1,900,000.00 RON
Electricity generation
Proportionate
- USD
Electricity generation
from renewable
resources
Equity
Chi Idaho Inc.
Bp Hydro
Associates
Fulcrum Inc.
Enel Investment
Holding BV
EGPNA
Development
Holdings LLC
68.00%
75.92%
24.08%
29.93%
68.29%
29.93%
49.00%
33.46%
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Business Venture
Investments 1468 (PTY)
LTD
Lombardy east
South Africa
1,000.00 ZAR
Bypass Ltd
Boise (Idaho)
USA
- USD
Bypass Power Company Los Angeles
USA
1.00 USD
(California)
CalBatt Srl
Rende (Cosenza) Italy
10,001.00 EUR
Calizas Elycar SL
Huesca
Spain
1,803,000.00 EUR
Camposgen - Energia
Lda
Oeiras
Portugal
5,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Research, development
and design
Combined-cycle
generation plants
Electricity generation
from renewable
resources
Canastota Wind Power
LLC
Wilmington
(Delaware)
USA
Caney River Wind Project
LLC
Topeka (Kansas) USA
- USD
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
South Africa
100.00%
68.29%
Line-by-line
Northwest Hydro
Inc.
69.35%
68.29%
Chi West Inc.
29.65%
El Dorado Hydro
1.00%
Line-by-line
Chi West Inc.
100.00%
68.29%
Proportionate
Enel Servizi Srl
0.01%
0.01%
Equity
Enel Green Power
España SL
25.00%
19.45%
Line-by-line
Pp - Co-Geração SA
20.00%
77.80%
TP - Sociedade
Térmica
Portuguesa SA
80.00%
Line-by-line
Essex Company
100.00%
68.29%
Line-by-line
Rocky Caney Wind
LLC
100.00%
68.29%
Carboex SA
Madrid
Spain
24,040,480.00 EUR
Fuel supply
Line-by-line
Carbopego -
Abastecimientos e
Combustiveis SA
Carvemagere -
Manutençao e Energias
Renováveis Lda
Castle Rock Ridge Ltd
Partnership
Abrantes
Portugal
50,000.00 EUR
Fuel supply
Proportionate
Barcelos
Portugal
84,700.00 EUR
Calgary (Alberta) Canada
- CAD
Cogeneration of
electricity and heat
Held for sale
Electricity generation
from renewable
resources
Line-by-line
Cefeidas Desarrollo
Solar SL
Centrais Elétricas
Cachoeira Dourada SA
Puerto del
Rosario
Goiania
Spain
Brazil
3,008.00 EUR
Photovoltaic plants
Proportionate
289,340,000.00 BRL
Endesa Generación
SA
Endesa Generación
Portugal SA
100.00%
92.06%
0.01%
46.03%
Endesa Generación
SA
49.99%
Finerge-Gestão
de Projectos
Energéticos SA
Enel Alberta Wind
Inc.
Chi Hydroelectric
Company Inc.
Endesa Ingeniería
SLU
65.00%
50.57%
0.10%
68.29%
99.90%
50.00%
46.03%
Central Dock Sud SA
Buenos Aires
Argentina
35,595,178,229.00 ARS
Central Eólica Canela SA Santiago
Chile
12,284,740,000.00 CLP
Central Geradora
Termelétrica Fortaleza SA
Central Hidráulica
Güejar-Sierra SL
Central Térmica de
Anllares AIE
Central Vuelta de
Obligado SA
Caucaia
Brazil
151,940,000.00 BRL
Seville
Spain
364,210.00 EUR
Madrid
Spain
595,000.00 EUR
Buenos Aires
Argentina
500,000.00 ARS
Line-by-line
Endesa Brasil SA
99.75%
46.50%
Line-by-line
Line-by-line
Inversora Dock
Sud SA (formerly
Sociedad Inversora
Dock Sud SA)
Compañía Eléctrica
Tarapacá SA
69.99%
22.32%
75.00%
25.74%
Line-by-line
Endesa Brasil SA
100.00%
46.62%
Electricity generation
and sale
Electricity generation,
transmission and
distribution
Electricity generation
from renewable
resources
Thermal generation
plants
Operation of hydro-
electric plants
Equity
Management of thermal
plants
Equity
Electrical facilities
construction
Proportionate
Enel Green Power
España SL
Endesa Generación
SA
Hidroeléctrica El
Chocón SA
Central Dock
Sud SA
Endesa Costanera
SA
Empresa Nacional
de Electricidad SA
33.30%
25.91%
33.33%
30.68%
33.20%
9.02%
6.40%
1.30%
51.00%
17.07%
Santiago
Chile
158,975,665,182.00 CLP
Design
Proportionate
Centrales Hidroeléctricas
de Aysén SA
Centrales Nucleares
Almaraz-Trillo AIE
Madrid
Spain
- EUR
Management of
nuclear plants
Equity
Nuclenor SA
0.69%
22.02%
Centrum Pre Vedu a
Vyskum Sro
Kalná nad
Hronom
Mochovce 6
Slovakia
6,639.00 EUR
Milan
Italy
8,550,000.00 EUR
CESI - Centro
Elettrotecnico
Sperimentale Italiano
Giacinto Motta SpA
Endesa Generación
SA
23.57%
Line-by-line
Slovenskè
Elektrárne AS
100.00%
66.00%
Equity
Enel SpA
42.70%
42.70%
Research and
development on
natural sciences and
engineering
Research and testing
services
Chepei Desarollo Solar L Las Palmas de
Spain
3,008.00 EUR
Photovoltaic plants
Proportionate
Gran Canaria
Endesa Ingeniería
SLU
50.00%
46.03%
261
Company name
Headquarters
Country
Share capital Currency Activity
Chi Black River Inc.
Wilmington
(Delaware)
USA
100.00 USD
Chi Hydroelectric
Company Inc.
St. John
(Newfoundland)
Canada
223,727,429.00 CAD
Chi Idaho Inc.
Wilmington
(Delaware)
USA
100.00 USD
Chi Minnesota Wind LLC Wilmington
USA
- USD
Chi Operations Inc.
Chi Power Inc.
(Delaware)
Wilmington
(Delaware)
Wilmington
(Delaware)
USA
USA
100.00 USD
100.00 USD
Chi Power Marketing Inc. Wilmington
USA
100.00 USD
Chi S F LP
(Delaware)
Montreal
(Quebec)
Canada
- CAD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
Canada Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Alberta Wind
Inc.
Enel Green Power
Canada Inc.
Enel Green Power
North America Inc.
1.00%
68.29%
99.00%
100.00%
68.29%
Chi West Inc.
Wilmington
(Delaware)
Chilectra Inversud SA
Santiago
Chilectra SA
Santiago
USA
Chile
Chile
100.00 USD
Electricity generation
from renewable
resources
Line-by-line
569,020,000.00 USD
Holding company
Line-by-line
Chilectra SA
100.00%
55.30%
36,792,868,194.00 CLP
Holding company.
Electricity distribution
Line-by-line
Enersis SA
99.08%
55.30%
Chinango SAC
Lima
Peru
294,249,298.00 PEN
Chisholm View Wind
Project LLC
Oklahoma City -
Oklahoma
USA
- USD
Electricity generation,
sale and transmission
Electricity generation
from renewable
resources
Inmobiliaria Manso
de Velasco Ltda
0.01%
Line-by-line
Edegel SA
80.00%
16.73%
Line-by-line
Enel Kansas LLC
75.00%
51.22%
Chladiace Veze Bohunice
Spol Sro
Bohunice
Slovakia
16,598.00 EUR
Engineering and
construction
Equity
Slovenskè
elektrárne AS
35.00%
23.10%
Codensa SA ESP
Bogotá DC
Colombia
13,209,330,000.00 COP
Electricity distribution
and sale
Line-by-line
Enersis SA
39.13%
27.01%
Cogeneración El Salto SL
(in liquidation)
Zaragoza
Spain
36,000.00 EUR
Cogeneration of
electricity and heat
-
Cogeneración Lipsa SL
Barcelona
Spain
720,000.00 EUR
Rome
Italy
19,622,000.00 EUR
Fortaleza
Brazil
442,950,000.00 BRL
Chilectra SA
9.35%
Enel Green Power
España SL
Enel Green Power
España SL
Enel Produzione
SpA
20.00%
15.56%
20.00%
15.56%
25.00%
25.00%
Line-by-line
Endesa Brasil SA
58.87%
27.44%
Equity
Equity
Cogeneration of
electricity and heat
Construction of port
infrastructure
Electricity generation,
transmission and
distribution
Paços De BrandãoPortugal
- EUR
Electricity generation
Equity
Alcochete
Portugal
- EUR
Electricity generation
Held for sale
Barreiro
Portugal
- EUR
Electricity generation
Line-by-line
Riba De Ave
Portugal
- EUR
Electricity generation
-
Tp - Sociedade
Térmica
Portuguesa SA
Tp - Sociedade
Térmica
Portuguesa SA
Tp - Sociedade
Térmica
Portuguesa SA
Tp - Sociedade
Térmica
Portuguesa SA
30.00%
23.34%
60.00%
46.68%
95.00%
73.91%
95.00%
73.91%
Compagnia Porto Di
Civitavecchia SpA
Companhia Energética
do Ceará SA
Companhia Térmica do
Serrado ACE
Companhia Térmica
Hectare ACE
Companhia Térmica
Lusol ACE
Companhia Térmica
Oliveira Ferreira ACE (in
liquidation)
Companhia Térmica
Ribeira Velha ACE
São Paio de
Oleiros
Portugal
- EUR
Electricity generation
Line-by-line
Pp - Co-Geração SA
49.00%
77.80%
Algés
Portugal
5,000.00 EUR
Electricity generation
Held for sale
TP - Sociedade
Térmica
Portuguesa SA
Tp - Sociedade
Térmica
Portuguesa SA
51.00%
95.00%
73.91%
Rio se Janeiro
Brazil
285,050,000.00 BRL
Buenos Aires
Argentina
14,175,999.00 ARS
Electricity generation,
transmission and
distribution
Electricity generation,
transmission and
distribution
Line-by-line
Endesa Brasil SA
100.00%
46.62%
Line-by-line
Compañía de
Interconexión
Energética SA
100.00%
46.62%
Companhia Térmica
Tagol Lda
Compañía de
Interconexión Energética
SA
Compañía de
Transmisión del
Mercosur SA
262
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Santiago
Chile
331,815,034,140.00 CLP
Electricity generation,
transmission and
distribution
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Enersis SA
3.78%
34.32%
Empresa Nacional
de Electricidad SA
96.21%
Lima
Peru
2,886,000.00 PEN
Hydroelectric project
Line-by-line
Generalima SA
100.00%
55.81%
Compañía Eléctrica
Tarapacá SA
Compañía Energética
Veracruz SAC
Compañía Eólica Tierras
Altas SA
Soria
Compañía Transportista
de Gas de Canarias SA
Las Palmas de
Gran Canaria
Spain
Spain
13,222,000.00 EUR
Wind plants
Equity
800,003.00 EUR
Natural gas transport
Equity
Enel Green Power
España SL
Unión Eléctrica
de Canarias
Generación SAU
35.63%
27.72%
47.18%
43.43%
Compostilla Re SA
Luxembourg
Luxembourg
12,000,000.00 EUR
Reinsurance
Line-by-line
Enel Insurance NV
100.00%
96.03%
Concert Srl
Rome
Italy
10,000.00 EUR
Product, plant and
equipment certification
Line-by-line
Enel Produzione
SpA
51.00%
100.00%
Coneross Power
Corporation Inc.
Greenville (South
Carolina)
USA
110,000.00 USD
Consolidated Hydro New
Hampshire Inc.
Wilmington
(Delaware)
Consolidated Hydro New
York Inc.
Wilmington
(Delaware)
Consolidated Hydro
Southeast Inc.
Wilmington
(Delaware)
USA
USA
USA
Consolidated Pumped
Storage Inc.
Wilmington
(Delaware)
USA
Consorcio Ara-Ingendesa
Ltda
Santiago
Consorcio Eólico Marino
Cabo de Trafalgar SL
Cadiz
Chile
Spain
130.00 USD
200.00 USD
100.00 USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Enel Ingegneria
e Ricerca SpA
49.00%
Line-by-line
Aquenergy Systems
Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
95.00%
68.29%
Gauley River Power
Partners LP
5.00%
550,000.00 USD
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
North America Inc.
81.82%
55.87%
1,000,000.00 CLP
Design and consulting
services
Proportionate
200,000.00 EUR
Wind plants
Equity
Compañía Eléctrica
Tarapacá SA
Enel Green Power
España SL
Inmobiliaria Manso
De Velasco Ltda
Enel Green Power
North America Inc.
Hydro
Development
Group Inc.
Enel Green Power
España SL
50.00%
17.16%
50.00%
38.90%
55.00%
30.69%
50.00%
68.29%
50.00%
25.00%
19.45%
Construcciones Y
Proyectos Los Maitenes
SA
Santiago
Chile
41,742,265,201.00 CLP
Engineering and
construction
Line-by-line
Copenhagen Associates New York (New
USA
York)
- USD
Electricity generation
from renewable
resources
Line-by-line
Equity
Corporación Eólica
de Zaragoza SL
Zaragoza
Spain
1,021,600.00 EUR
Courtenay Wind Farm
LLC
Bismarck (North
Dakota)
USA
- USD
Cte - Central Termica do
Estuário Lda
Porto
Portugal
563,910.00 EUR
De Rock’l Srl
Bucharest
Romania
5,629,000.00 RON
Depuracion Destilacion
Reciclaje SL
Boiro
Spain
600,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Cogeneration of
electricity and heat
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Kansas LLC
100.00%
68.29%
Held for sale
Line-by-line
Finerge-Gestao
de Projectos
Energéticos SA
Enel Green Power
Romania
100.00%
77.80%
100.00%
68.29%
Proportionate
Enel Green Power
España SL
40.00%
31.12%
Desarollo Photosolar SL
Desarrollo de Fuerzas
Renovables Srl de Cv
Las Palmas de
Gran Canaria
Spain
Mexico DF
Mexico
3,008.00 EUR
Photovoltaic plants
Proportionate
3,000.00 MXN
Electricity generation
from renewable
resources
Line-by-line
Dioflash (Pty) Ltd
Houghton
South Africa
1,000.00 ZAR
Line-by-line
Electricity
generation from
renewable
resources
Endesa Ingeniería
SLU
Enel Green Power
México Srl de Cv
Energia Nueva
Energia Limpia
Mexico Srl e Cv
Enel Green Power
South Africa
50.00%
46.03%
99.99%
68.29%
0.01%
100.00%
68.29%
Valencia
Spain
578,000.00 EUR
Photovoltaic plants
-
Endesa Servicios SL
14.39%
13.25%
Diseño de Sistemas en
silicio SA (in liquidation
Amministrazione in
Concordato)
263
Company name
Headquarters
Country
Share capital Currency Activity
Distribuidora de Energía
Eléctrica del Bages SA
Distribuidora Eléctrica de
Cundinamarca SA ESP
Distribuidora Eléctrica
del Puerto de La Cruz SA
Barcelona
Spain
108,240.00 EUR
Bogotá DC
Colombia
1,000,000.00 COP
Tenerife
Spain
12,621,210.00 EUR
Electricity distribution
and sale
Electricity distribution
and sale
Electricity purchase,
transmission and
distribution
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Endesa Red SA
55.00%
92.06%
Hidroeléctrica de
Catalunya SL
45.00%
Proportionate
Codensa SA ESP
49.00%
13.23%
Line-by-line
Endesa Red SA
100.00%
92.06%
Distrilec Inversora SA
Buenos Aires
Argentina
497,610,000.00 ARS
Holding company
Line-by-line
Enersis SA
27.19%
28.42%
Dominica Energía Limpia,
Srl de CV
Colonia
Guadalupe Inn
Mexico
13,252,205.00 MXN
Electricity generation
from renewable
resources
Line-by-line
Edegel SA
Lima
Peru
2,064,301,735.00 PEN
Electricity generation,
distribution and sale
Line-by-line
Eed - Empreendimentos
Eólicos do Douro SA
Porto
Portugal
50,000.00 EUR
Eevm - Empreendimentos
Eólicos do Vale do
Minho SA
Porto
Portugal
200,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Equity
1,000.00 USD
Holding company
Line-by-line
Line-by-line
Chilectra SA
23.42%
Empresa Nacional
de Electricidad SA
Enel Green Power
México Srl de Cv
Enel Green Power
Guatemala SA
Generandes Perú
SA
0.89%
99.99%
68.29%
0.01%
54.20%
20.91%
Empresa Nacional
de Electricidad SA
29.40%
Finerge-Gestao
de Projectos
Energéticos SA
Eol Verde Energia
Eólica SA
Enel Green Power
North America Inc.
Padoma Wind
Power LLC
100.00%
77.80%
50.00%
29.17%
100.00%
68.29%
100.00%
68.29%
EGP Geronimo Holding
Company Inc.
Wilmington
(Delaware)
EGP Jewel Valley LLC
EGP Solar 1 LLC
Wilmington
(Delaware)
Wilmington
(Delaware)
USA
USA
USA
EGP Stillwater Solar LLC Wilmington
USA
(Delaware)
EGP Timber Hills Project
LLC
Los Angeles
(California)
EGPNA Development
Holdings LLC
Wilmington
(Delaware)
El Dorado Hydro
Los Angeles
(California)
USA
USA
USA
- USD
- USD
- USD
- USD
- USD
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Padoma Wind
Power LLC
100.00%
68.29%
Line-by-line
Line-by-line
Enel Green Power
North America
Development LLC
Northwest Hydro
Inc.
100.00%
68.29%
17.50%
68.29%
Chi West Inc.
82.50%
Elcogas SA
Puertollano
Spain
20,242.26 EUR
Electricity generation
Equity
Enel SpA
4.32%
42.06%
Elcomex Eol Srl
Cernavoda
Romania
1,000,000.00 RON
Elcomex Solar Energy Srl Constanta
Romania
4,590,000.00 RON
Elecgas SA
Santarem (Pego) Portugal
50,000.00 EUR
Electra Capital (Pty) Ltd Cape Town
South Africa
755,000.00 ZAR
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Combined-cycle
generation
Electricity generation
from renewable
resources
Line-by-line
Proportionate
Line-by-line
Endesa Generación
SA
40.99%
Enel Green Power
International BV
Enel Green Power
Romania Srl
Enel Green Power
Romania Srl
0.10%
68.29%
99.90%
100.00%
68.29%
Endesa Generación
Portugal SA
Enel Green Power
South Africa
50.00%
45.99%
100.00%
68.29%
Lima
Peru
46,508,170.00 PEN
Holding company
Line-by-line
Enersis SA
80.00%
55.81%
Eléctrica de Jafre SA
Girona
Spain
165,880.00 EUR
Electricity distribution
and sale
Equity
Generalima SA
Hidroeléctrica de
Catalunya SL
20.00%
47.46%
43.69%
Eléctrica de Lijar SL
Cadiz
Electricidad de Puerto
Real SA
Cadiz
Spain
Spain
1,081,820.00 EUR
Electricity transmission
and distribution
Proportionate
Endesa Red SA
50.00%
46.03%
6,611,130.00 EUR
Electricity distribution
and supply
Equity
Endesa
Distribución
Eléctrica SL
50.00%
46.03%
264
Electrica Cabo Blanco
SA (formerly Empresa
Electrica Cabo Blanco SA)
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Consolidation
method
Held by
% holding
Group %
holding
Electrogas SA
Santiago
Chile
61,832,327.00 USD
Holding company
Equity
Empresa Nacional
de Electricidad SA
42.50%
14.23%
Emgesa Panama SA
Paciudad de
Panana
Panama
10,000.00 USD
Electricity trading
Line-by-line
Emgesa SA ESP
100.00%
21.05%
Emgesa SA ESP
Bogotá DC
Colombia
655,222,310,000.00 COP
Electricity generation
and sale
Line-by-line
Enersis SA
21.61%
21.05%
Empresa
Nacional de
Electricidad SA
26.87%
Emittente Titoli SpA
Milan
Italy
5,200,000.00 EUR
-
-
Enel SpA
10.00%
10.00%
Empreendimento Eólico
de Rego Lda
Porto
Portugal
5,000.00 EUR
Empreendimentos
Eólicos da Serra do
Sicó SA
Porto
Portugal
50,000.00 EUR
Empreendimentos Eólicos
de Viade Lda
Porto
Portugal
5,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Finerge-Gestão
de Projectos
Energéticos SA
Tp - Sociedade
Térmica
Portuguesa SA
Finerge-Gestão
de Projectos
Energéticos SA
51.00%
39.68%
52.38%
40.75%
80.00%
62.24%
Empresa Carbonífera del
Sur SA
Empresa de Distribución
Eléctrica de Lima Norte
SAA
Empresa de Energía
Cundinamarca SA ESP
Madrid
Spain
18,030,000.00 EUR
Mining
Line-by-line
Endesa Generación
SA
100.00%
92.06%
Lima
Peru
638,560,000.00 PEN
Electricity distribution
and sale
Line-by-line
Enersis SA
24.00%
42.16%
Bogotá DC
Colombia
39,699,630,000.00 COP
Electricity distribution
and sale
Proportionate
51.68%
82.34%
10.90%
Inversiones
Distrilima SA
Distribuidora
Eléctrica de
Cundinamarca
SA ESP
Empresa Distribuidora
Sur SA
Buenos Aires
Argentina
898,590,000.00 ARS
Electricity distribution
and sale
Line-by-line
Enersis SA
22.24%
39.96%
Santiago
Chile
82,222,000.00 CLP
Electricity generation,
transmission and
distribution
Line-by-line
Chilectra SA
100.00%
55.30%
Chilectra SA
20.85%
Distrilec Inversora
SA
56.36%
Lima
Peru
73,982,594.00 PEN
Electricity generation
Line-by-line
Empresa Eléctrica de
Colina Ltda
Empresa Eléctrica de
Piura SA
Empresa Eléctrica
Panguipulli SA
Santiago
Chile
21,919,629,030.00 CLP
Electricity generation
from renewable
resources
Line-by-line
Empresa Eléctrica
Pehuenche SA
Empresa Eléctrica
Puyehue SA
Empresa Nacional de
Electricidad SA
Empresa Nacional de
Geotermia SA
Empresa Propietaria de
La Red SA
En-Brasil Comercio e
Serviços SA
Santiago
Chile
200,319,020.73 CLP
Santiago
Chile
14,395,879,488.00 CLP
Electricity generation,
transmission and
distribution
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Santiago
Chile
1,331,714,090,000.00 CLP
Santiago
Chile
12,647,752,517.00 CLP
Electricity generation,
transmission and
distribution
Electricity generation
from renewable
resources
Line-by-line
Panama
Panama
58,500,000.00 USD
Electricity transmission
and distribution
-
Rio de Janeiro
Brazil
1,000,000.00 BRL
Electricity
Line-by-line
Electrica Cabo
Blanco SA
(formerly
Empresa
Electrica Cabo
Blanco SA)
Generalima SA
Enel Green
Power Chile
Ltda
Enel Green Power
Latin America
Ltda
Empresa Nacional
de Electricidad SA
Enel Green
Power Chile
Ltda
60.00%
53.85%
36.50%
99.99%
68.23%
0.01%
92.65%
31.01%
99.90%
68.17%
Enel Green
Power Chile
Ltda
Endesa
Latinoamerica SA
Central Geradora
Termelétrica
Fortaleza SA
51.00%
34.80%
11.11%
10.23%
0.01%
46.62%
Endesa Brasil SA
99.99%
265
Enel Green Power
Latin America
Ltda
0.01%
Line-by-line
Enersis SA
59.98%
33.47%
Company name
Headquarters
Country
Share capital Currency Activity
Consolidation
method
Held by
% holding
Group %
holding
Endesa Argentina SA
Buenos Aires
Argentina
514,530,000.00 ARS
Holding company
Line-by-line
Endesa Brasil SA
Rio de Janeiro
Brazil
1,028,760,000.00 BRL
Holding company
Line-by-line
Endesa Capital Finance
LLC
Wilmington
(Delaware)
USA
100.00 USD
Finance company
Line-by-line
Compañía Eléctrica
Tarapacá SA
0.34%
33.48%
Empresa
Nacional de
Electricidad SA
Chilectra Inversud
SA
Chilectra SA
Edegel SA
Empresa Nacional
de Electricidad SA
99.66%
5.94%
46.62%
5.33%
4.00%
34.64%
Enersis SA
50.09%
International
Endesa BV
100.00%
92.06%
Endesa Capital SA
Madrid
Spain
60,200.00 EUR
Finance company
Line-by-line
Endesa SA
100.00%
92.06%
Endesa Cemsa SA
Buenos Aires
Argentina
14,010,014.00 ARS
Energy trading
Line-by-line
Enersis SA
55.00%
45.76%
Endesa Comercializaçao
de Energia SA
Porto
Portugal
250,000.00 EUR
Endesa Costanera SA
Buenos Aires
Argentina
701,988,378.00 ARS
Electricity generation
and sale
Electricity generation
and sale
Endesa Argentina
SA
45.00%
Line-by-line
Endesa Energía SA
100.00%
92.06%
Line-by-line
Southern Cone
Power Argentina
SA
1.15%
25.33%
Empresa Nacional
de Electricidad SA
24.85%
Endesa Argentina
SA
49.68%
Endesa Distribución
Eléctrica SL
Barcelona
Spain
1,204,540,060.00 EUR
Electricity distribution
Line-by-line
Endesa Red SA
100.00%
92.06%
Endesa Energía SA
Madrid
Spain
12,981,860.00 EUR
Endesa Energía XXI SL Madrid
Spain
2,000,000.00 EUR
Marketing of energy
products
Marketing and energy-
related services
Line-by-line
Endesa SA
100.00%
92.06%
Line-by-line
Endesa Energía SA
100.00%
92.06%
Endesa Financiación
Filiales SA
Madrid
Spain
462,100,301,000.00 EUR
Finance company
Line-by-line
Endesa SA
100.00%
92.06%
Endesa Gas SAU
Zaragoza
Spain
45,261,350.00 EUR
Gas production,
transmission and
distribution
Line-by-line
Endesa Red SA
100.00%
92.06%
Endesa Generación II SA Seville
Seville
Endesa Generacion
Nuclear
Endesa Generación
Portugal SA
Spain
Spain
63,107.00 EUR
Electricity generation
Line-by-line
Endesa SA
100.00%
92.06%
60,000.00 EUR
Subholding company in
the nuclear sector
Line-by-line
Endesa Generación
SA
100.00%
92.06%
Paço De Arcos
Portugal
50,000.00 EUR
Electricity generation
Line-by-line
Finerge-Gestão
de Projectos
Energéticos SA
0.20%
91.97%
Endesa Energía SA
0.20%
Endesa Generación
SA
99.20%
Enel Green Power
España SL
0.20%
Energías de Aragón
II SL
0.20%
Endesa Generación SA
Seville
Spain
1,945,329,830.00 EUR
Endesa Ingeniería SLU
Seville
Spain
1,000,000.00 EUR
Electricity generation
and sale
Consulting and
engineering services
Line-by-line
Endesa SA
100.00%
92.06%
Line-by-line
Endesa Red SA
100.00%
92.06%
Endesa Latinoamerica SA Madrid
Endesa Operaciones y
Servicios Comerciales SL
Barcelona
Endesa Power Trading
Ltd
London
Endesa Red SA
Barcelona
Endesa SA
Madrid
Spain
Spain
United
Kingdom
Spain
Spain
796,683,058.00 EUR
Holding company
Line-by-line
Endesa SA
100.00%
92.06%
10,138,580.00 EUR
Services
Line-by-line
Endesa Energía SA
100.00%
92.06%
2.00 GBP
Trading
Line-by-line
Endesa SA
100.00%
92.06%
714,985,850.00 EUR
Electricity distribution
Line-by-line
Endesa SA
100.00%
92.06%
1,270,502,540.40 EUR
Holding company
Line-by-line
Enel Energy Europe
SL
92.06%
92.06%
Endesa Servicios SL
Madrid
Spain
89,999,790.00 EUR
Services
Line-by-line
Endesa SA
100.00%
92.06%
266
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Consolidation
method
Held by
% holding
Group %
holding
Enel Albania Shpk (in
liquidation)
Tirana
Albania
73,230,000.00 ALL
Enel Alberta Wind Inc.
Calgary (Alberta) Canada
16,251,021.00 CAD
-
Plant construction,
operation and
maintenance. Electricity
generation and trading
Enel Investment
Holding BV
100.00%
100.00%
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Canada Inc.
100.00%
68.29%
Enel Atlantic
Canada LP
St. John
(Newfoundland)
Canada
- CAD
Wind
Line-by-line
Newind Group Inc.
0.10%
68.29%
Enel Brasil
Participações Ltda
Rio de Janeiro
Brazil
1,008,224,172.92 BRL
Holding company
Line-by-line
Enel Cove Fort II LLC
Enel Cove Fort LLC
Wilmington
(Delaware)
Wilmington
(Delaware)
USA
USA
- USD
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Enel Distributie Banat SA Timisoara
Romania
382,158,580.00 RON
Electricity distribution
Line-by-line
Enel Distributie
Dobrogea SA
Costanza
Romania
280,285,560.00 RON
Electricity distribution
Line-by-line
Enel Distributie Muntenia
SA (formerly Electrica
Muntenia Sud SA)
Bucharest
Enel Distribuzione SpA Rome
Enel Energia SpA
Rome
Romania
271,635,250.00 RON
Electricity distribution
Line-by-line
Italy
Italy
2,600,000,000.00 EUR
Electricity distribution
Line-by-line
302,039.00 EUR
Electricity and gas sales Line-by-line
Bucharest
Romania
37,004,350.00 RON
Electricity sales
Line-by-line
Enel Energie Muntenia
SA (formerly Electrica
Furnizare Muntenia
Sud SA)
Enel Energie SA
Bucharest
Romania
140,000,000.00 RON
Electricity sales
Line-by-line
Chi Hydroelectric
Company Inc.
Enel Green Power
Canada Inc.
Enel Green Power
International BV
Enel Green Power
Latin America Ltda
Enel Geothermal
LLC
EGPNA
Development
Holdings LLC
Enel Investment
Holding BV
Enel Investment
Holding BV
Enel Investment
Holding BV
Enel SpA
Enel SpA
Enel Investment
Holding BV
82.05%
17.85%
99.99%
68.29%
0.01%
100.00%
68.29%
100.00%
68.29%
51.00%
51.00%
51.00%
51.00%
64.43%
64.43%
100.00%
100.00%
100.00%
100.00%
64.43%
64.43%
Enel Investment
Holding BV
51.00%
51.00%
Enel Energy Europe SL Madrid
Spain
500,000,000.00 EUR
Holding company
Line-by-line
Enel SpA
100.00%
100.00%
Enel Esn Energo LLC
St. Petersburg
Enel Esn Management BVAmsterdam
Enel Finance
International NV
Amsterdam
Russian
Federation
The
Netherlands
The
Netherlands
2,700,000.00 RUB
Operation and
maintenance of
electricity generation
plants
Line-by-line
Enel Esn
Management BV
100.00%
75.00%
18,000.00 EUR
Holding company
Line-by-line
Enel Produzione
SpA
75.00%
75.00%
1,478,810,370.00 EUR
Holding company
Line-by-line
Enel SpA
100.00%
100.00%
Enel Fortuna SA
Panama
Panama
100,000,000.00 USD
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Panama SA
50.06%
34.18%
Enel France Sas
Parigi
France
34,937,000.00 EUR
Holding company
Line-by-line
Enel Gas Rus LLC
Mosca
Enel Geothermal LLC
Wilmington
(Delaware)
Russian
Federation
USA
350,000.00 RUB
Energy services
Line-by-line
- USD
Enel Green Power &
Sharp Solar Energy Srl
Enel Green Power
Bulgaria EAD
Enel Green Power
Cabeça de Boi SA
Enel Green Power CAI
Agroenergy Srl
Enel Green Power
Calabria Srl
Rome
Italy
10,000.00 EUR
Sofia
Bulgaria
35,231,000.00 BGN
Rio de Janeiro
Brazil
19,017,956.00 BRL
Rome
Italy
100,000.00 EUR
Rome
Italy
10,000.00 EUR
Enel Green Power
Canada Inc.
Montreal
(Quebec)
Canada
85,681,857.00 CAD
Enel Green Power
Canaro Srl
Rome
Italy
10,400.00 EUR
Enel Investment
Holding BV
Enel Investment
Holding BV
100.00%
100.00%
100.00%
100.00%
Electricity generation
from renewable
resources
Design, construction
and maintenance of
photovoltaic plants
(holding company)
Plant construction,
operation and
maintenance
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Essex Company
100.00%
68.29%
Proportionate
Enel Green Power
SpA
50.00%
34.14%
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Enel Green Power
International BV
Enel Brasil
Participações Ltda
Enel Green Power
SpA
Enel Green Power
SpA
100.00%
68.29%
100.00%
68.29%
51.00%
34.83%
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
SpA
100.00%
68.29%
267
Company name
Headquarters
Country
Share capital Currency Activity
Enel Green Power Chile
Ltda
Santiago
Chile
15,649,360,000.00 CLP
Enel Green Power
Colombia
Enel Green Power Costa
Rica
Enel Green Power Cristal
Eolica SA
Bogotá DC
Colombia
10,000.00 COP
San José
Costa Rica
27,500,000.00 USD
Rio de Janeiro
Brazil
100,000,000.00 BRL
Enel Green Power
Cutro srl
Enel Green Power
Damascena Eólica SA
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Dois Riachos Eólica
SA
Enel Green Power
El Salvador SA de C.V.
Enel Green Power
Emiliana Eólica
SA
Cutro
Italy
10,000.00 EUR
Rio de Janeiro
Brazil
1,000,000.00 BRL
Rio de Janeiro
Brazil
13,900,297.00 BRL
Rio de Janeiro
Brazil
1,000.00 BRL
San Salvador
El Salvador
3,448,800.00 SVC
Rio de Janeiro
Brazil
13,509,360.00 BRL
Enel Green Power
España SL
Madrid
Spain
11,152.74 EUR
Enel Green Power
Esperança Eólica SA
Rio de Janeiro
Brazil
1,000,000.00 BRL
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Hydromac Energy
BV
0.01%
68.23%
Enel Green Power
Latin America Ltda
99.99%
Line-by-line
Enel Green Power
International BV
100.00%
68.29%
Line-by-line
Enel Green Power
International BV
100.00%
68.29%
Line-by-line
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações
Enel Green Power
SpA
1.00%
68.29%
99.00%
100.00%
68.29%
Line-by-line
Parque Eólico
Serra Azul Ltda
1.00%
68.29%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sales from
renewable resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Enel Brasil
Participações Ltda
Enel Brasil
Participações Ltda
99.00%
99.99%
68.29%
Enel Green Power
Latin America Ltda
0.01%
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
International BV
Parque Eólico
Curva dos
Ventos Ltda
Enel Brasil
Participações Ltda
Enel Green Power
International BV
100.00%
68.29%
100.00%
68.29%
1.00%
68.29%
99.00%
60.00%
77.80%
Endesa Generación
SA
40.00%
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Brasil
Participações Ltda
1.00%
68.29%
99.00%
100.00%
68.29%
Rio de Janeiro
Brazil
12,834,623.00 BRL
Rome
Italy
10,000,000.00 EUR
Lyon
France
98,200,000.00 EUR
Tenerife
Spain
3,012.00 EUR
Guatemala
Guatemala
5,000.00 GTQ
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
SpA
70.00%
47.80%
Line-by-line
Enel Green Power
International BV
100.00%
68.29%
Line-by-line
Enel Green Power
España SL
65.00%
50.57%
Line-by-line
Enel Green Power
International BV
98.00%
68.29%
Maroussi
Greece
7,687,850.00 EUR
Holding company,
Energy services
Line-by-line
Amsterdam
The
Netherlands
244,532,298.00 EUR
Holding company
Line-by-line
Istanbul
Turkey
50,000.00 TRY
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Latin America Ltda
2.00%
Enel Green Power
International BV
Enel Green Power
SpA
Enel Green Power
International BV
100.00%
68.29%
100.00%
68.29%
98.99%
67.60%
Enel Green Power
Fazenda SA
Enel Green Power
Finale Emilia Srl
Enel Green Power
France Sas
Enel Green Power
Granadilla S.L.
Enel Green Power
Guatemala SA
Enel Green Power
Hellas SA
Enel Green Power
International BV
Enel Green Power
Jeotermal Enerji
Yatirimlari A?
268
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Enel Green Power
Joana Eólica SA
Rio de Janeiro
Brazil
13,067,280.00 BRL
Electricity generation
from renewable
resources
Consolidation
method
Line-by-line
Enel Green Power Latin
America Ltda
Santiago
Chile
1,000,000.00 CLP
Holding company
Line-by-line
Held by
% holding
Group %
holding
Parque Eólico
Curva dos
Ventos Ltda
Enel Brasil
Participações Ltda
Enel Green Power
International BV
1.00%
68.29%
99.00%
0.01%
68.23%
Hydromac
Energy BV
99.90%
Enel Green Power
Maniçoba Eólica SA
Rio de Janeiro
Brazil
1,000,000.00 BRL
Electricity generation
from renewable
resources
Line-by-line
Parque Eólico Serra
Azul Ltda
1.00%
68.29%
Mexico City
Mexico
308,628,665.00 MXN
Holding company
Line-by-line
Enel Brasil
Participações Ltda
Enel Green Power
International BV
99.00%
99.99%
68.29%
Enel Green Power
Latin America Ltda
0.01%
Enel Green Power
México Srl de Cv
Enel Green Power
Modelo I Eólica SA
Enel Green Power
Modelo II Eólica SA
Rio de Janeiro
Brazil
5,125,000.00 BRL
Rio de Janeiro
Brazil
5,125,000.00 BRL
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Endesa Brasil SA
1.00%
68.07%
Enel Brasil
Participações Ltda
99.00%
Line-by-line
Endesa Brasil SA
1.00%
68.07%
Line-by-line
Enel Brasil
Participações Ltda
Enel Green Power
International BV
99.00%
100.00%
68.29%
Line-by-line
Enel Green Power
International BV
100.00%
68.29%
Enel Green Power North
America Development,
LLC
Wilmington
(Delaware)
Enel Green Power North
America Inc.
Wilmington
(Delaware)
USA
USA
- USD
50.00 USD
Enel Green Power
Panama SA
Panama
Panama
3,000.00 USD
Holding company
Line-by-line
Enel Green Power
Partecipazioni Speciali Srl
Rome
Italy
10,000.00 EUR
Enel Green Power
Pau Ferro Eólica
SA
Enel Green Power
Pedra do Gerônimo
Eólica SA
Enel Green Power
Perù SA
Enel Green Power
Primavera Eolica SA
Rio De Janeiro
Brazil
14,520,000.00 BRL
Rio de Janeiro
Brazil
13,998,000.00 BRL
Lima
Peru
1,000.00 PEN
Rio de Janeiro
Brazil
100,000,000.00 BRL
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
and sales from
renewable resources
Line-by-line
Enel Green Power
International BV
Enel Green Power
SpA
Parque Eólico
Fontes dos
Ventos Ltda
Enel Brasil
Participações Ltda
Parque Eólico
Fontes dos Ventos
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
International BV
Enel Green Power
Latin America Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
SpA
100.00%
68.29%
100.00%
68.29%
1.00%
68.28%
99.00%
1.00%
68.28%
99.00%
99.90%
68.23%
0.01%
1.00%
68.29%
99.00%
100.00%
68.29%
Enel Green Power
Puglia Srl
Rome
Italy
1,000,000.00 EUR
Enel Green Power
Romania Srl
Sat Rusu de Sus
Nuseni
Romania
890,000,500.00 RON
Enel Green Power RSA
(Pty) Ltd
Johannesburg
South Africa
1,000.00 ZAR
Enel Green Power
Salto Apiacás SA
São Domingos -
Niterói - RJ
Brazil
14,412,120.00 BRL
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Enel Green Power
International BV
100.00%
68.29%
Line-by-line
Enel Green Power
South Africa
100.00%
68.29%
Line-by-line
Parque Eólico
Serra Azul Ltda
1.00%
68.29%
Enel Green Power San
Gillio Srl
Rome
Italy
10,000.00 EUR
Electricity generation
from renewable
resources
Line-by-line
Enel Brasil
Participações Ltda
Enel Green Power
SpA
99.00%
80.00%
54.63%
269
Company name
Headquarters
Country
Share capital Currency Activity
Enel Green Power SAO
Judas Eolica SA
Rio de Janeiro
Brazil
100,000,000.00 BRL
Enel Green Power South
Africa
Amsterdam
The
Netherlands
18,000.00 EUR
Enel Green Power SpA
Rome
Italy
1,000,000,000.00 EUR
Enel Green Power
Strambino Solar Srl
Enel Green Power
Tacaicó Eólica
SA
Torino
Italy
250,000.00 EUR
Rio De Janeiro
Brazil
8,972,400.00 BRL
Enel Green Power TSS Srl Rome
Italy
1,000,000.00 EUR
Enel Green Power
Villoresi Srl
Rome
Italy
200,000.00 EUR
Enel Ingegneria e Ricerca
SpA
Rome
Italy
30,000,000.00 EUR
Electricity generation
and sales from
renewable resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Analysis, design,
construction and
maintenance of
engineering works
Consolidation
method
Line-by-line
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
International BV
1.00%
68.29%
99.00%
100.00%
68.29%
Line-by-line
Enel SpA
68.29%
68.29%
Line-by-line
Enel Green Power
SpA
60.00%
40.97%
Line-by-line
Line-by-line
Parque Eólico
Fontes dos Ventos
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
Puglia Srl
1.00%
68.28%
99.00%
100.00%
68.29%
Proportionate
Enel Green Power
SpA
51.00%
34.83%
Line-by-line
Enel SpA
100.00%
100.00%
Enel Insurance NV
Amsterdam
The
Netherlands
60,000.00 EUR
Holding company
Line-by-line
Endesa SA
50.00%
96.03%
1,593,050,000.00 EUR
Holding company
Line-by-line
Enel SpA
100.00%
100.00%
Enel Investment
Holding BV
50.00%
Enel Investment Holding
BV
Amsterdam
The
Netherlands
Enel Kansas LLC
Wilmington
(Delaware)
USA
- USD
Enel Lease Eurl (formerly
Société du Parc Eolien
Grandes Terres Est Eurl)
Enel Longanesi
Developments Srl
Lyon
France
500,000.00 EUR
Rome
Italy
10,000,000.00 EUR
Enel M@P Srl
Rome
Italy
100,000.00 EUR
Enel Nevkan Inc.
Wilmington
(Delaware)
USA
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Prospecting and
development of
hydrocarbon fields
Metering, remote
control and connectivity
services via power line
communication
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel France Sas
100.00%
100.00%
Line-by-line
Enel Trade SpA
100.00%
100.00%
Line-by-line
Enel Distribuzione
SpA
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Enel OGK-5 OJSC
(formerly OGK-5 OJSC)
Ekaterinburg
Russian
Federation
35,371,898,370.00 RUB
Electricity generation
Line-by-line
Enel Productie Srl
(formerly Global Power
Investment Srl)
Bucharest
Romania
20,210,200.00 RON
Electricity generation
Line-by-line
Enel Investment
Holding BV
Enel Investment
Holding BV
56.43%
56.43%
100.00%
100.00%
Enel Produzione SpA
Rome
Italy
1,800,000,000.00 EUR
Electricity generation
Line-by-line
Enel SpA
100.00%
100.00%
Enel Romania Srl
(formerly Enel Servicii Srl)
Enel Salt Wells LLC
Judetul Ilfov
Romania
200,000.00 RON
Business services
Line-by-line
Wilmington
(Delaware)
USA
- USD
Electricity generation
from renewable
resources
Line-by-line
Enel Servicii Comune SA Bucharest
Romania
33,000,000.00 RON
Energy services
Line-by-line
Enel Investment
Holding BV
Enel Geothermal
LLC
Enel Distributie
Banat SA
Enel Distributie
Dobrogea SA
100.00%
100.00%
100.00%
68.29%
50.00%
51.00%
50.00%
Enel Servizi Srl
Rome
Italy
50,000,000.00 EUR
Line-by-line
Enel SpA
100.00%
100.00%
Personnel
administration activities,
information technology
and business services
Enel Servizio Elettrico
SpA
Rome
Enel Sole Srl
Rome
Italy
Italy
10,000,000.00 EUR
Electricity sales
Line-by-line
Enel SpA
100.00%
100.00%
4,600,000.00 EUR
Public lighting systems
Line-by-line
Enel SpA
100.00%
100.00%
270
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Enel Soluções
Energéticas
Ltda
São Domingos -
Niterói - RJ
Brazil
1,000,000.00 BRL
Electricity generation
from renewable
resources
Consolidation
method
Line-by-line
Enel Stillwater LLC
Wilmington
(Delaware)
USA
- USD
Electricity generation
from renewable
resources
Line-by-line
Enel Stoccaggi Srl
Rome
Italy
3,030,000.00 EUR
Line-by-line
Construction and
operation of storage
fields. Storage of natural
gas
Held by
% holding
Group %
holding
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Geothermal
LLC
0.01%
68.29%
99.99%
100.00%
68.29%
Enel Trade SpA
100.00%
100.00%
Enel Surprise Valley LLC Wilmington
USA
(Delaware)
Enel Texkan Inc.
Wilmington
(Delaware)
USA
- USD
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Geothermal
LLC
100.00%
68.29%
Line-by-line
Chi Power Inc.
100.00%
68.29%
Enel Trade d.o.o.
Zagabria
Croatia
2,240,000.00 HRK
Electricity trading
Line-by-line
Enel Trade SpA
100.00%
100.00%
Enel Trade Romania Srl
Bucharest
Romania
21,250,000.00 RON
Electricity sourcing and
trading
Line-by-line
Enel Trade SpA
100.00%
100.00%
Enel Trade Serbia d.o.o. Belgrado
Enel Trade SpA
Rome
Enel.Factor SpA
Enel.Newhydro Srl
Enel.si Srl
Rome
Rome
Rome
Serbia
Italy
Italy
Italy
Italy
Enelco SA
Athens
Greece
60,108.80 EUR
Riyadh
Saudi Arabia
5,000,000.00 SAR
Enelpower Contractor
and Development
Saudi Arabia Ltd
Enelpower do Brasil
Ltda
300,000.00 EUR
Electricity trading
Line-by-line
Enel Trade SpA
100.00%
100.00%
90,885,000.00 EUR
Fuel trading and logistics
- Electricity sales
Line-by-line
Enel SpA
100.00%
100.00%
12,500,000.00 EUR
Factoring
1,000,000.00 EUR
5,000,000.00 EUR
Line-by-line
Line-by-line
Enel SpA
Enel SpA
100.00%
100.00%
100.00%
100.00%
Line-by-line
Enel Energia SpA
100.00%
100.00%
Line-by-line
Enel Investment
Holding BV
75.00%
75.00%
Line-by-line
Enelpower SpA
51.00%
51.00%
Engineering and water
systems
Plant engineering and
energy services
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Rio de Janeiro
Brazil
1,242,000.00 BRL
Electrical engineering
Line-by-line
Enel Brasil
Participações Ltda
99.99%
68.29%
Enel Green Power
Latin America Ltda
0.01%
Line-by-line
Enel SpA
100.00%
100.00%
Enelpower Spa
Milan
Italy
2,000,000.00 EUR
ENEOP-Eólicas de
Portugal SA
Paço de Arcos
Portugal
50,000.00 EUR
Engineering and
construction
Electricity generation
from renewable
resources
Equity
Enercampo - Produçao
de Energia Lda
Enercor - Produção de
Energia ACE
Porto
Portugal
249,400.00 EUR
Cogeneration of
electricity and heat
Line-by-line
Montijo
Portugal
- EUR
Electricity generation
Line-by-line
Pp - Co-Geração SA
30.00%
77.80%
Energética de Rosselló
AIE
Barcelona
Spain
3,606,060.00 EUR
Cogeneration of
electricity and heat
Equity
Energex Co
Cayman Islands Cayman
10,000.00 USD
Holding company
Proportionate
Energía de La Loma SA Jean
Islands
Spain
4,450,000.00 EUR
Bio-mass
Equity
Energia Eolica Srl
Rome
Italy
4,840,000.00 EUR
Energia Global de
Mexico (Enermex) SA
de Cv
Energia Global
Operaciones SA
Energia Nueva de Iggu
Srl de Cv
Mexico City
Mexico
50,000.00 MXN
San José
Costa Rica
10,000.00 CRC
Mexico City
Mexico
10,003,000.00 MXN
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Finerge - Gestão
de Projectos
Energéticos SA
TP - Sociedade
Térmica
Portuguesa SA
Finerge-Gestão
de Projectos
Energéticos SA
17.98%
27.98%
17.98%
100.00%
77.80%
TP - Sociedade
Térmica
Portuguesa SA
Enel Green Power
España SL
Gas Atacama
Chile SA
Enel Green Power
España SL
Enel Green Power
SpA
70.00%
27.00%
21.01%
100.00%
17.16%
40.00%
31.12%
51.00%
34.83%
Line-by-line
Enel Green Power
International BV
99.00%
67.61%
Line-by-line
Enel Green Power
Costa Rica
100.00%
68.29%
Line-by-line
Enel Green Power
México Srl de Cv
99.90%
68.23%
Energía Nueva
Energía Limpia
México Srl de Cv
0.01%
271
Company name
Headquarters
Country
Share capital Currency Activity
Energia Nueva Energia
Limpia Mexico Srl de Cv
Mexico City
Mexico
5,339,650.00 MXN
Electricity generation
from renewable
resources
Consolidation
method
Line-by-line
Energías Alternativas
del Sur SL
Las Palmas de
Gran Canaria
Spain
601,000.00 EUR
Electricity generation
from renewable
resources
Proportionate
Held by
% holding
Group %
holding
Enel Green Power
International BV
Enel Green Power
Guatemala SA
Enel Green Power
España SL
99.96%
68.29%
0.04%
50.00%
38.90%
Energías de Aragón I SL Zaragoza
Spain
3,200,000.00 EUR
Electricity transmission,
distribution and sale
Line-by-line
Endesa Generación
SA
100.00%
92.06%
Energías de Aragón II SL Zaragoza
Spain
18,500,000.00 EUR
Electricity generation
Line-by-line
Energías de Graus SL
Barcelona
Spain
1,298,160.00 EUR
Hydroelectric plants
Line-by-line
Energías de La Mancha
SA
Villarta de San
Juan (Ciudad
Real)
Spain
279,500.00 EUR
Bio-mass
Line-by-line
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
100.00%
77.80%
66.67%
51.87%
68.42%
53.23%
La Coruña
Spain
270,450.00 EUR
Madrid
Spain
963,300.00 EUR
Madrid
Spain
1,722,600.00 EUR
Torre del Bierzo Spain
1,635,000.00 EUR
Mexico DF
Mexico
656,615,400.00 MXN
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
España SL
77.00%
59.90%
Line-by-line
Enel Green Power
España SL
80.00%
62.24%
Line-by-line
Enel Green Power
España SL
100.00%
77.80%
Proportionate
Enel Green Power
España SL
50.00%
38.90%
Line-by-line
Energias Especiales de
Careon SA
Energias Especiales de
Pena Armada SA
Energias Especiales del
Alto Ulla SA
Energias Especiales del
Bierzo SA
Energias Renovables La
Mata SAPI de Cv
Energie Electrique de
Tahaddart SA
Energosluzby AS (in
liquidation)
Tangeri
Morocco
750,400,000.00 MAD
Combined-cycle
generation plants
Proportionate
Trnava
Slovakia
33,194.00 EUR
Business services
-
Energía Nueva de
Iggu Srl de Cv
Enel Green Power
México Srl de Cv
Endesa Generación
SA
Slovenskè
elektrárne AS
Slovenskè
elektrárne AS
Enel Produzione
SpA
Enel Green Power
España SL
0.01%
68.29%
99.99%
32.00%
29.46%
100.00%
66.00%
20.00%
13.20%
51.00%
51.00%
45.00%
35.01%
Operation of optical
fiber network
Electricity purchases
and sales
Equity
Line-by-line
Electricity generation
from renewable
resources
-
Electricity generation
from renewable
resources
Combined-cycle
generation plants
Electricity generation
and distribution
Electricity generation
from renewable
resources
Water treatment and
distribution
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Wind plant
development
Line-by-line
Maicor Wind Srl
100.00%
40.97%
Held for sale
Finerge-Gestão
de Projectos
Energéticos SA
Tp - Sociedade
Térmica
Portuguesa SA
50.00%
77.80%
50.00%
Line-by-line
Endesa SA
20.30%
55.81%
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Endesa
Latinoamerica SA
Enel Green Power
Hellas SA
Finerge-Gestão
de Projectos
Energéticos SA
Finerge-Gestão
de Projectos
Energéticos SA
Finerge-Gestão
de Projectos
Energéticos SA
Enel Green Power
España SL
Enel Green Power
España SL
40.32%
88.80%
60.64%
75.00%
58.35%
51.00%
39.68%
51.00%
39.68%
51.00%
39.68%
40.00%
31.12%
Energotel AS
Bratislava
Slovakia
2,191,200.00 EUR
ENergy Hydro Piave Srl
Soverzene
Italy
800,000.00 EUR
Enerlasa SA (in
liquidation)
Madrid
Spain
1,021,700.58 EUR
Enerlive Srl
Rome
Italy
6,520,000.00 EUR
Enerlousado Lda
Porto
Portugal
5,000.00 EUR
Enersis SA
Santiago
Chile
5,669,280.72 CLP
Enexon Hellas SA
Maroussi
Greece
18,771,500.00 EUR
Eol Verde Energia Eólica
SA
Porto
Portugal
50,000.00 EUR
Eolcinf - Produçao de
Energia Eólica Lda
Eolflor - Produçao de
Energia Eólica Lda
Porto
Portugal
5,000.00 EUR
Porto
Portugal
5,000.00 EUR
Eólica del Noroeste SL
La Coruña
Spain
36,100.00 EUR
Eólica del Principado
SAU
Eólica Fazenda
Nova - Generaçao e
Comercializaçao de
Energia SA
272
Oviedo
Spain
90,000.00 EUR
Electricity generation
from renewable
resources
Equity
Rio Grande do
Norte
Brazil
1,839,000.00 BRL
Wind plants
Line-by-line
Endesa Brasil SA
99.95%
46.59%
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Eólica Valle del Ebro SA Zaragoza
Spain
5,559,340.00 EUR
Eólica Zopiloapan SAPI
de CV
Mexico DF
Mexico
1,877,201,538.00 MXN
Eólicas de Agaete SL
Las Palmas de
Gran Canaria
Spain
Eólicas de Fuencaliente
SA
Las Palmas de
Gran Canaria
Spain
Eólicas de Fuerteventura
AIE
Fuerteventura -
Las Palmas
Spain
240,400.00 EUR
216,360.00 EUR
- EUR
Eólicas de La Patagonia
SA
Buenos Aires
Argentina
480,930.00 ARS
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Line-by-line
Line-by-line
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
España SL
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
México Srl de Cv
Enel Green Power
España SL
50.50%
39.29%
39.50%
65.88%
56.98%
80.00%
62.24%
Line-by-line
Enel Green Power
España SL
55.00%
42.79%
Equity
Enel Green Power
España SL
40.00%
31.12%
Proportionate
Enel Green Power
España SL
50.00%
38.90%
Eólicas de Lanzarote SL
Eólicas de Tenerife AIE
Las Palmas de
Gran Canaria
Santa Cruz de
Tenerife
Spain
Spain
Eólicas de Tirajana AIE
Las Palmas de
Gran Canaria
Spain
1,758,000.00 EUR
Electricity generation
and distribution
Equity
Proportionate
Enel Green Power
España SL
Enel Green Power
España SL
40.00%
31.12%
50.00%
38.90%
420,708.40 EUR
- EUR
Erecosalz SL (in
liquidation)
Zaragoza
Spain
18,000.00 EUR
Erfei AIE (n liquidation)
Tarragona
Spain
720,000.00 EUR
Essex Company
Boston
(Massachusetts)
USA
100.00 USD
Zaragoza
Spain
3,505,000.00 EUR
Teruel
Spain
3,230,000.00 EUR
Zaragoza
Spain
5,488,500.00 EUR
Zaragoza
Spain
8,046,800.00 EUR
Zaragoza
Spain
4,200,000.00 EUR
Explotaciones Eólicas de
Escucha SA
Explotaciones Eólicas El
Puerto SA
Explotaciones Eólicas
Saso Plano SA
Explotaciones Eólicas
Sierra Costera SA
Explotaciones Eólicas
Sierra La Virgen SA
Fábrica do Arco -
Recursos Energéticos SA
Feneralt - Produção de
Energia ACE
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Cogeneration of
electricity and heat
Cogeneration of
electricity and heat
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
España SL
60.00%
46.68%
-
-
Line-by-line
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
North America Inc.
33.00%
25.67%
42.00%
32.67%
100.00%
68.29%
Line-by-line
Enel Green Power
España SL
70.00%
54.46%
Line-by-line
Enel Green Power
España SL
73.60%
57.26%
Line-by-line
Enel Green Power
España SL
65.00%
50.57%
Line-by-line
Enel Green Power
España SL
90.00%
70.02%
Line-by-line
Enel Green Power
España SL
90.00%
70.02%
Finerge-Gestão
De Projectos
Energéticos SA
Tp - Sociedade
Térmica
Portuguesa SA
Enel Green Power
España SL
50.00%
38.90%
25.00%
19.45%
100.00%
77.80%
Santo Tirso
Portugal
500,000.00 EUR
Electricity generation
Proportionate
Barcelos
Portugal
- EUR
Electricity generation
Equity
Finerge-Gestão de
Projectos Energéticos SA
Porto
Portugal
750,000.00 EUR
Line-by-line
Cogeneration
of electricity and
heat and
generation
from renewable
resources
Florence Hills LLC
Minneapolis
(Minnesota)
USA
Fotovoltaica Insular SL
Las Palmas de
Gran Canaria
Spain
Fulcrum Inc.
Boise (Idaho)
USA
1,002.50 USD
Futuresolar Srl
Bucharest
Romania
30,100,000.00 RON
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
- USD
Electricity generation
from renewable
resources
Line-by-line
Chi Minnesota
Wind LLC
51.00%
34.83%
3,008.00 EUR
Photovoltaic plants
Proportionate
Line-by-line
Endesa Ingeniería
SLU
Enel Green Power
North America Inc.
50.00%
46.03%
100.00%
68.29%
Line-by-line
Enel Green Power
Romania Srl
100.00%
68.29%
Gas Atacama Chile SA
Santiago
Chile
185,025,186.00 USD
Electricity generation
Proportionate
Gas Atacama SA
99.90%
17.16%
Compañía
Eléctrica Tarapacá
SA
0.05%
273
Company name
Headquarters
Country
Share capital Currency Activity
Consolidation
method
Held by
% holding
Group %
holding
Gas Atacama SA
Santiago
Chile
291,484,088.00 USD
Holding company
Proportionate
Gas y Electricidad
Generación SAU
Palma De
Mallorca
Gasificadora Regional
Canaria SA
Las Palmas de
Gran Canaria
Spain
Spain
213,775,700.00 EUR
Electricity generation
Line-by-line
240,000.00 EUR
Gas distribution
Line-by-line
Inversiones
Gasatacama
Holding Ltda
Endesa
Generación SA
Endesa
Generación
Portugal SA
Endesa Gas SAU
100.00%
17.16%
100.00%
92.06%
28.00%
92.04%
72.00%
Santiago
Chile
208,173,124.00 USD
Natural gas transport
Proportionate
Energex Co
42.71%
17.16%
Gasoducto Atacama
Argentina SA
Gasoducto Atacama
Argentina SA Sucursal
Argentina
Buenos Aires
Argentina
- ARS
Natural gas transport
Proportionate
Gasoducto Taltal SA
Santiago
Chile
18,638.52 CLP
Natural gas transport
Proportionate
Gauley Hydro LLC
Gauley River
Management
Corporation
Wilmington
(Delaware)
Willison
(Vermont)
Gauley River Power
Partners LP
Willison
(Vermont)
USA
USA
USA
- USD
1.00 USD
- USD
Generadora de
Occidente Ltda
Guatemala
Guatemala
16,261,697.33 GTQ
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Generadora Montecristo
SA
Guatemala
Guatemala
3,820,000.00 GTQ
Electricity generation
from renewable
resources
Line-by-line
Geotermica del Norte SA Santiago
Chile
64,779,811,451.00 CLP
Geotermica
Nicaraguense SA
Managua
Nicaragua
63,161,750.00 NIO
Geronimo Huron Wind
Farm LLC
Michigan
USA
Geronimo Wind Energy
LLC
Minneapolis
(Minnesota)
USA
- USD
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Gnl Chile SA
Santiago
Chile
3,026,160.00 USD
Design and LNG supply Equity
Gnl Norte SA
Santiago
Chile
1,000,000.00 CLP
Electricity generation
Proportionate
Gnl Quintero SA
Santiago
Chile
114,057,353.00 USD
Design and LNG supply Equity
Compañía Eléctrica
Tarapacá SA
0.03%
Gas Atacama SA
57.23%
Gasoducto
Atacama Argentina
SA
Gasoducto
Atacama Argentina
SA
100.00%
17.16%
0.12%
17.16%
Gas Atacama
Chile SA
99.88%
Line-by-line
Essex Company
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Gauley River
Management
Corporation
Enel Green Power
International BV
Enel Green Power
Guatemala SA
Enel Green Power
International BV
100.00%
68.29%
99.00%
68.29%
1.00%
99.99%
68.29%
Enel Green Power
Guatemala SA
0.01%
Line-by-line
Empresa Nacional
De Electricidad SA
Enel Green Power
Chile Ltda
61.00%
20.42%
51.00%
34.80%
Line-by-line
Enel Green Power
SpA
60.00%
40.97%
Line-by-line
Enel Kansas LLC
100.00%
68.29%
Egp Geronimo
Holding Company
Inc.
Empresa Nacional
de Electricidad SA
Gasoducto Taltal
SA
Gas Atacama
Chile SA
Empresa Nacional
de Electricidad SA
49.20%
33.60%
33.33%
11.16%
50.00%
17.16%
50.00%
20.00%
6.69%
Generalima SA
Generandes Perú SA
Lima
Lima
Peru
Peru
146,534,335.00 PEN
Holding company
Line-by-line
Enersis SA
100.00%
55.81%
853,429,020.00 PEN
Holding company
Line-by-line
Goodwell Wind Project,
LLC
Wilmington
(Delaware)
USA
- USD
Electricity generation
from renewable
resources
Line-by-line
Enel Kansas LLC
100.00%
68.29%
Gorona del Viento El
Hierro SA
Valverde de El
Hierro
Spain
23,936,710.00 EUR
Madrid
Spain
1,717,049.55 EUR
Development and
maintenance of El Hierro
generation plant
Equity
Electricity generation
from renewable
resources
-
Unión Eléctrica
de Canarias
Generación SAU
Enel Green Power
España SL
30.00%
27.62%
24.24%
18.86%
Mentana (Rome) Italy
14,001.00 EUR
Design and research
Proportionate
Enel Servizi Srl
0.01%
0.01%
Green Fuel Corporacion,
SA (in liquidation)
GreenLab Engineering
Srl
Guadarranque Solar 4 SL
Unipersonal
Seville
Spain
3,006.00 EUR
Electricity generation
from renewable
resources
Line-by-line
Endesa Generación
II SA
100.00%
92.06%
274
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
GV Energie Rigenerabili
ITAL-RO Srl
Bucharest
Romania
675,400.00 RON
Hadley Ridge LLC
Minneapolis
(Minnesota)
USA
- USD
Hidroeléctrica de
Catalunya SL
Barcelona
Spain
126,210.00 EUR
Hidroeléctrica de Ourol
SL
Lugo
Spain
1,608,200.00 EUR
Hidroeléctrica El Chocón
SA
Buenos Aires
Argentina
298,584,050.00 ARS
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity transmission
and distribution
Electricity generation
from renewable
resources
Electricity generation
and sale
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
Romania Srl
100.00%
68.29%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
34.83%
Line-by-line
Endesa Red SA
100.00%
92.06%
Equity
Enel Green Power
España SL
30.00%
23.34%
Line-by-line
Empresa Nacional
de Electricidad SA
2.48%
21.88%
Endesa Argentina
SA
6.19%
Hidroinvest SA
Enel Green Power
México Srl de Cv
Hidroeléctrica De
Catalunya SL
Empresa Nacional
de Electricidad SA
Endesa Argentina
SA
Endesa Generación
Portugal SA
Endesa Generación
SA
Enel Green Power
North America Inc.
59.00%
99.99%
68.28%
75.00%
69.05%
41.94%
32.17%
54.15%
10.00%
92.05%
90.00%
100.00%
68.29%
Hidroelectricidad del
Pacifico Srl de Cv
Mexico DF
Mexico
30,891,536.00 MXN
Hidroflamicell SL
Barcelona
Spain
78,120.00 EUR
Electricity generation
from renewable
resources
Electricity distribution
and sale
Line-by-line
Line-by-line
Hidroinvest SA
Buenos Aires
Argentina
55,312,093.00 ARS
Holding company
Line-by-line
Hidromondego -
Hidroelectrica do
Mondego Lda
Lisbon
Portugal
3,000.00 EUR
Hydroelectric power
Line-by-line
Highfalls Hydro
Company Inc.
Wilmington
(Delaware)
USA
- USD
Line-by-line
Colonia Escalon El Salvador
404,930.00 SVC
Hipotecaria de Santa
Ana Ltda de Cv
Hispano Generación de
Energía Solar SL
Hope Creek LLC
Jerez de los
Caballeros
(Badajoz)
Minneapolis
(Minnesota)
Hydro Development
Group Inc.
Albany (New
York)
Hydro Dolomiti Enel Srl
Trento
Hydro Energies
Corporation
Willison
(Vermont)
Hydro Finance Holding
Company Inc.
Wilmington
(Delaware)
Hydrogen Park-Marghera
per l’idrogeno Scrl
Venice
Spain
3,500.00 EUR
USA
USA
Italy
USA
USA
Italy
- USD
12.25 USD
3,000,000.00 EUR
5,000.00 USD
100.00 USD
245,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation,
purchases and sales
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Enel Green Power El
Salvador SA de CV
20.00%
13.66%
Line-by-line
Enel Green Power
España SL
51.00%
39.68%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
34.83%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Proportionate
Line-by-line
Enel Produzione
SpA
Enel Green Power
North America Inc.
49.00%
49.00%
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Development of studies
and projects for the use
of hydrogen
Line-by-line
Enel Produzione
SpA
60.00%
60.00%
Enel Green Power
International BV
100.00%
68.29%
1.00%
0.01%
0.01%
1.10%
68.29%
98.90%
99.00%
34.31%
Enel Green Power
International BV
Enel Green Power
Romania Srl
Compañía Eléctrica
Tarapacá SA
Hydromac Energy BV
Amsterdam
The
Netherlands
18,000.00 EUR
Holding company
Line-by-line
Ict Servicios
Informáticos Ltda
Santiago
Chile
500,000,000.00 CLP
ICT services
Line-by-line
Enersis SA
99.00%
55.80%
I-EM Srl
Turin
Italy
10,001.00 EUR
IMA Engineering
Solutions. Srl
Prahova
Romania
90,000.00 RON
Design and
development
Electricity generation
from renewable
resources
Line-by-line
Chilectra SA
Proportionate
Enel Servizi Srl
Ingendesa do Brasil Ltda Rio de Janeiro
Brazil
500,000.00 BRL
Design, engineering and
consulting
Line-by-line
Inkolan Informacion y
Coordinacion de Obras
AIE
Inmobiliaria Manso de
Velasco Ltda
Bilbao
Spain
84,140.00 EUR
Information on
infrastructure of Inkolan
associates
Equity
Endesa
Distribución
Eléctrica SL
14.29%
13.16%
Santiago
Chile
25,916,800,510.00 CLP
Engineering and
construction
Line-by-line
Enersis SA
100.00%
55.81%
Empresa Nacional
De Electricidad SA
1.00%
275
Company name
Headquarters
Country
Share capital Currency Activity
Consolidation
method
Held by
% holding
Group %
holding
International Endesa BV Amsterdam
The
Netherlands
15,428,520.00 EUR
Holding company
Line-by-line
Endesa SA
100.00%
92.06%
International Eolian of
Grammatiko SA
International Eolian of
Korinthia SA
International Eolian of
Peloponnisos 1 SA
International Eolian of
Peloponnisos 2 SA
International Eolian of
Peloponnisos 3 SA
International Eolian of
Peloponnisos 4 SA
International Eolian of
Peloponnisos 5 SA
International Eolian of
Peloponnisos 6 SA
International Eolian of
Peloponnisos 7 SA
International Eolian of
Peloponnisos 8 SA
International Eolian of
Skopelos SA
Maroussi
Greece
436,000.00 EUR
Maroussi
Greece
6,471,798.00 EUR
Maroussi
Greece
418,000.00 EUR
Maroussi
Greece
514,000.00 EUR
Maroussi
Greece
423,000.00 EUR
Maroussi
Greece
465,000.00 EUR
Maroussi
Greece
509,500.00 EUR
Maroussi
Greece
447,000.00 EUR
Maroussi
Greece
418,000.00 EUR
Maroussi
Greece
418,000.00 EUR
Maroussi
Greece
224,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Enel Green Power
Hellas SA
30.00%
20.49%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
International Multimedia
University Srl
Rome
Italy
24,000.00 EUR
Long-distance learning -
Enel Servizi Srl
13.04%
13.04%
International Wind Parks
of Achaia SA
Maroussi
Greece
10,346,310.00 EUR
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Hellas SA
100.00%
68.29%
Inversiones Distrilima SA Lima
Peru
287,837,245.00 PEN
Holding company
Line-by-line
Enersis SA
69.85%
55.65%
Inversiones Gasatacama
Holding Ltda
Santiago
Chile
333,520,000.00 USD
Natural gas transport
Proportionate
Chilectra SA
Compañía Eléctrica
Tarapacá SA
30.15%
50.00%
17.16%
Inversora Codensa Sas
Bogotá DC
Colombia
5,000,000.00 COP
Electricity transmission
and distribution
Line-by-line
Codensa SA ESP
100.00%
27.01%
Inversora Dock Sud
SA (formerly Sociedad
Inversora Dock Sud SA)
Buenos Aires
Argentina
241,490,000.00 ARS
Holding company
Line-by-line
Enersis SA
57.14%
31.89%
Isamu Ikeda Energia SA Rio de Janeiro
Brazil
61,474,475.77 BRL
Italgest Energy (Pty) Ltd Lombardy east
South Africa
1,000.00 ZAR
Jack River LLC
Jessica Mills LLC
Julia Hills LLC
Minneapolis
(Minnesota)
Minneapolis
(Minnesota)
Minneapolis
(Minnesota)
USA
USA
USA
- USD
- USD
- USD
Kalenta Ltd
Maroussi
Greece
2,367,000.00 EUR
Electricity generation
and sale
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Enel Brasil
Participações Ltda
Enel Green Power
South Africa
100.00%
68.29%
100.00%
68.29%
Chi Minnesota
Wind LLC
Chi Minnesota
Wind LLC
Chi Minnesota
Wind LLC
51.00%
34.83%
51.00%
34.83%
51.00%
34.83%
Proportionate
Line-by-line
Enel Green Power
& Sharp Solar
Energy Srl
Enel Green Power
North America Inc.
100.00%
34.14%
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Equity
Equity
Line-by-line
Endesa Gas SAU
27.93%
25.71%
Endesa Generación
SA
Enel Green Power
North America Inc.
33.33%
30.68%
100.00%
68.29%
100.00 USD
100.00 USD
657,000.00 EUR
Services
224,286.00 EUR
Services
100.00 USD
Electricity generation
from renewable
resources
Kings River Hydro
Company Inc.
Wilmington
(Delaware)
Kinneytown Hydro
Company Inc.
Wilmington
(Delaware)
Kromschroeder SA
Barcelona
La Pereda Co2 AIE
Oviedo
LaChute Hydro Company
Inc.
Wilmington
(Delaware)
USA
USA
Spain
Spain
USA
276
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
LaGeo SA de Cv
Ahuachapan
El Salvador
2,562,826,700.00 SVC
Lawrence Hydroelectric
Associates LP
Boston
(Massachusetts)
USA
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Equity
Held by
% holding
Group %
holding
Enel Green Power
SpA
36.20%
24.72%
Line-by-line
Enel Green Power
North America Inc.
7.50%
68.29%
Essex Company
92.50%
Lipetskenergosbyt LLC
Lipetskaya Oblast Russian
7,500.00 RUB
Electricity sales
Proportionate
RusEnergosbyt C LLC
75.00%
18.93%
Federation
Little Elk Wind Project
LLC
Oklahoma City -
Oklahoma
USA
Littleville Power
Company Inc
Boston
(Massachusetts)
USA
Lower Saranac
Corporation
New York (New
York)
USA
Lower Saranac Hydro
Partners LP
Wilmington
(Delaware)
USA
- USD
1.00 USD
1.00 USD
- USD
Luz Andes Ltda
Santiago
Chile
1,224,348.00 CLP
Maicor Wind Srl
Rome
Italy
20,850,000.00 EUR
Management Buildings
Company Srl
Podari
Romania
14,000.00 RON
Marcinelle Energie SA
Charleroi
Belgium
110,061,500.00 EUR
Marko PV Energy SA
Maroussi
Greece
420,000.00 EUR
Mascoma Hydro
Corporation
Concord (New
Hampshire)
USA
Mason Mountain Wind
Project LLC
Wilmington
(Delaware)
USA
1.00 USD
- USD
Matrigenix
(Pty) Ltd
Houghton
South Africa
120.00 ZAR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity and fuel
transport, distribution
and sale
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation,
transport, sale and
trading
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Kansas LLC
100.00%
68.29%
Line-by-line
Line-by-line
Line-by-line
Hydro
Development
Group Inc.
Twin Saranac
Holdings LLC
Twin Saranac
Holdings LLC
Lower Saranac
Corporation
100.00%
68.29%
100.00%
68.29%
99.00%
68.29%
1.00%
Line-by-line
Enersis SA
0.10%
55.30%
Line-by-line
Line-by-line
Held for sale
Proportionate
Line-by-line
Chilectra SA
Enel Green Power
SpA
99.90%
60.00%
40.97%
Enel Green Power
International BV
Enel Green Power
Romania Srl
Enel Investment
Holding BV
Enel Green Power
& Sharp Solar
Energy Srl
Enel Green Power
North America Inc.
0.71%
68.29%
99.29%
100.00%
100.00%
100.00%
34.14%
100.00%
68.29%
Line-by-line
Padoma Wind
Power LLC
100.00%
68.29%
Line-by-line
Enel Green Power
South Africa
100.00%
68.29%
Medidas Ambientales SL Medina de Pomar
Spain
60,100.00 EUR
Environmental studies
Proportionate
Nuclenor SA
50.00%
23.02%
Metro Wind LLC
Mexicana de
Hidroelectricidad
Mexhidro Srl De Cv
Midway Farms Wind
Project LLC
(Burgos)
Minneapolis
(Minnesota)
USA
- USD
Mexico City
Mexico
181,728,601.00 MXN
Dallas (Texas)
USA
- USD
Mill Shoals Hydro
Company Inc.
Wilmington
(Delaware)
USA
100.00 USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Chi Minnesota
Wind LLC
51.00%
34.83%
Line-by-line
Line-by-line
Enel Green Power
México S de RL
de Cv
Trade Wind Energy
LLC
99.99%
68.28%
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Minas de Estercuel SA Madrid
Minas Gargallo SL
Madrid
Spain
Spain
93,160.00 EUR
Mineral deposits
Line-by-line
Minas Gargallo SL
99.65%
91.66%
150,000.00 EUR
Mineral deposits
Line-by-line
Minicentrales del Canal
de Las Bárdenas AIE
Minicentrales del Canal
Imperial-Gallur SL
Zaragoza
Spain
1,202,000.00 EUR
Hydroelectric plants
-
Zaragoza
Spain
1,820,000.00 EUR
Hydroelectric plants
Equity
Missisquoi Associates GP Los Angeles
USA
(California)
- USD
Electricity generation
from renewable
resources
Line-by-line
Molinos de Viento del
Arenal SA
San Josè
Costa Rica
9,709,200.00 USD
Electricity generation
from renewable
resources
Line-by-line
Endesa Generación
SA
Enel Green Power
España SL
Enel Green Power
España SL
Sheldon Springs
Hydro Associates
LP
Sheldon Vermont
Hydro Company
Inc.
Enel Green Power
Costa Rica
99.91%
91.98%
15.00%
11.67%
36.50%
28.40%
99.00%
68.29%
1.00%
49.00%
33.46%
277
Company name
Headquarters
Country
Share capital Currency Activity
Mustang Run Wind
Project LLC
Oklahoma City -
Oklahoma
USA
- USD
Myrini Energiaki SA
Maroussi
Greece
420,000.00 EUR
Nevkan Renewables LLC Wilmington
USA
(Delaware)
Newbury Hydro
Company
Burlington
(Vermont)
USA
- USD
- USD
Newind Group Inc.
St. John
(Newfoundland)
Canada
578,192.00 CAD
Northwest Hydro Inc.
Wilmington
(Delaware)
Notch Butte Hydro
Company Inc.
Wilmington
(Delaware)
USA
USA
100.00 USD
100.00 USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Enel Kansas LLC
100.00%
68.29%
Proportionate
Enel Green Power
& Sharp Solar
Energy Srl
100.00%
34.14%
Line-by-line
Enel Nevkan Inc.
100.00%
68.29%
Line-by-line
Line-by-line
Enel Green Power
North America Inc.
Sweetwater
Hydroelectric Inc.
Enel Green Power
Canada Inc.
99.00%
68.29%
1.00%
100.00%
68.29%
Line-by-line
Chi West Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Nuclenor SA
Burgos
Spain
102,000,000.00 EUR
Nuclear plant
Proportionate
Endesa Generación
SA
50.00%
46.03%
Madrid
Spain
3,010.00 EUR
Electricity generation
Line-by-line
Endesa SA
100.00%
92.06%
Madrid
Spain
3,200.00 EUR
Real estate
Line-by-line
Endesa SA
60.00%
55.24%
Nueva Compañía
de Distribución
Eléctrica 4 SL
Nueva Marina
Real Estate SL
(Amministrazione in
Concordato)
Nuove Energie Srl
Porto Empedocle Italy
54,410,000.00 EUR
Line-by-line
Enel Trade SpA
100.00%
100.00%
Construction and
management of
LNG regasification
infrastructure
Ochrana A Bezpecnost
Se AS
Odell Wind Farm LLC
Oficina de Cambios de
Suministrador SA
Mochovce
Slovakia
33,193.92 EUR
Security services
Line-by-line
Slovenskè
Elektrárne AS
100.00%
66.00%
Minneapolis
(Minnesota)
USA
- USD
Electricity generation
from renewable
resources
Line-by-line
Enel Kansas LLC
100.00%
68.29%
Madrid
Spain
70,000.00 EUR
Services associated with
the marketing of energy
products
-
Endesa
Distribución
Eléctrica SL
5.19%
18.41%
OGK-5 Finance LLC
Moscow
Russian
Federation
10,000,000.00 RUB
Finance
Line-by-line
Operacion y
Mantenimiento Tierras
Morenas SA
San José
Costa Rica
30,000.00 CRC
Origin Wind Energy LLC Wilmington
USA
- USD
(Delaware)
Ottauquechee Hydro
Company Inc.
Wilmington
(Delaware)
USA
100.00 USD
Oxagesa AIE
Teruel
Spain
6,010.00 EUR
Padoma Wind Power LLC Los Angeles
USA
- USD
(California)
Paravento SL
Lugo
Spain
3,006.00 EUR
Parc Eolic Els Aligars SL
Barcelona
Spain
1,313,100.00 EUR
Parc Eolic La Tossa-La
Mola D’en Pascual SL
Barcelona
Spain
1,183,100.00 EUR
Parc Eolien de Bouville
Sasu
Lyon
Parc Eolien de Coulours
SARL
Lyon
France
France
88,800.00 EUR
1,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Cogeneration of
electricity and heat
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
278
Line-by-line
Line-by-line
Line-by-line
Equity
Line-by-line
Line-by-line
Equity
Equity
Endesa Energía SA
11.50%
Endesa Energía
XXI SL
2.96%
Endesa Gas SAU
0.35%
Enel OGK-5 OJSC
(Formerly OGK-5
OJSC)
Enel Green Power
Costa Rica
Enel Green Power
North America Inc.
Enel Green Power
North America Inc.
Enel Green Power
España SL
Enel Green Power
North America Inc.
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
100.00%
56.43%
85.00%
58.05%
100.00%
68.29%
100.00%
68.29%
33.33%
25.93%
100.00%
68.29%
90.00%
70.02%
30.00%
23.34%
30.00%
23.34%
Line-by-line
Enel Green Power
France Sas
100.00%
68.29%
Line-by-line
Enel Green Power
France Sas
100.00%
68.29%
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Parc Eolien de La Grande
Epine Sasu
Lyon
Parc Eolien des Ramiers
Sasu
Lyon
France
France
Parque Eólico a
Capelada AIE
Santiago de
Compostela
Spain
Parque Eólico Carretera
de Arinaga SA
Las Palmas de
Gran Canaria
Spain
37,000.00 EUR
88,800.00 EUR
5,857,586.40 EUR
1,603,000.00 EUR
Parque Eólico Curva
dos Ventos Ltda
Bahia
Brazil
420,000.00 BRL
Parque Eólico
de Aragón AIE
Parque Eólico
de Barbanza SA
Parque eolico
de Belmonte SA
Parque Eólico
de Gevancas SA
Parque Eólico
de San Andrés SA
Zaragoza
Spain
601,000.00 EUR
La Coruña
Spain
3,606,000.00 EUR
Madrid
Spain
120,400.00 EUR
Porto
Portugal
50,000.00 EUR
La Coruña
Spain
552,920.00 EUR
Parque Eólico
de Santa Lucía SA
Las Palmas de
Gran Canaria
Spain
901,500.00 EUR
Parque Eólico
do Alto da Vaca Lda
Parque Eólico
do Vale do Abade Lda
Parque Eólico
Engenho Geradora
de Energia Ltda
Porto
Portugal
125,000.00 EUR
Porto
Portugal
5,000.00 EUR
Fortaleza
Brazil
685,423.00 BRL
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
France Sas
100.00%
68.29%
Line-by-line
Enel Green Power
France Sas
100.00%
68.29%
Line-by-line
Enel Green Power
España SL
100.00%
77.80%
Line-by-line
Enel Green Power
España SL
80.00%
62.24%
Line-by-line
Line-by-line
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
España SL
1.00%
68.29%
99.00%
80.00%
62.24%
Line-by-line
Enel Green Power
España SL
75.00%
58.35%
Line-by-line
Enel Green Power
España SL
50.16%
39.02%
Line-by-line
Line-by-line
Finerge-Gestão
de Projectos
Energéticos SA
Enel Green Power
España SL
100.00%
77.80%
82.00%
63.79%
Line-by-line
Enel Green Power
España SL
65.67%
51.09%
Line-by-line
Line-by-line
Line-by-line
Parque Eólico Finca de
Mogán SA
Las Palmas de
Gran Canaria
Spain
3,810,340.00 EUR
Construction and
operation of wind plants
Line-by-line
Parque Eólico
Fontes dos Ventos
Ltda
Parque Eólico
Montes de Las Navas SA
Parque Eólico
Ouroventos Ltda
Parque Eólico Punta
de Teno SA
Parque Eólico
Serra Azul Ltda
Recife
Brazil
5,091,945.30 BRL
Madrid
Spain
6,540,000.00 EUR
Bahia
Brazil
566,347.00 BRL
Tenerife
Spain
528,880.00 EUR
Bahia
Brazil
940,567.00 BRL
Electricity generation
from renewable
resources
Line-by-line
Construction and
operation of wind plants
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Parque Eólico
Serra da Capucha SA
Porto
Portugal
50,000.00 EUR
Electricity generation
from renewable
resources
Line-by-line
Finerge-Gestão
de Projectos
Energéticos SA
Finerge-Gestão
de Projectos
Energéticos SA
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
España SL
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
España SL
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
España SL
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Finerge - Gestão
de Projectos
Energéticos SA
TP - Sociedade
Térmica
Portuguesa SA
75.00%
58.35%
51.00%
39.68%
1.00%
68.29%
99.00%
90.00%
70.02%
0.04%
67.63%
99.00%
75.50%
58.74%
1.00%
68.29%
99.00%
52.00%
40.45%
1.00%
68.29%
99.00%
50.00%
77.80%
50.00%
279
Company name
Headquarters
Country
Share capital Currency Activity
Parque Eólico Sierra del
Madero SA
Soria
Spain
7,193,970.00 EUR
Parque Eólico
Taltal SA
Santiago
Chile
20,878,010,000.00 CLP
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Line-by-line
Line-by-line
Parque Eólico
Valle de los Vientos SA
Santiago
Chile
566,096,564.00 CLP
Fortaleza
Brazil
440,267.00 BRL
Santiago
Chile
66,092,165,171.00 CLP
Parque Eólico
Ventania Geradora
de Energia Ltda
Parque Talinay
Oriente SA
Pegop - Energia
Eléctrica SA
Abrantes
Portugal
50,000.00 EUR
Electricity generation
Proportionate
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Pelzer Hydro Company
Inc.
Wilmington
(Delaware)
USA
100.00 USD
Pereda Power SL
PH Chucas SA
La Pereda
(Mieres)
San José
Spain
5,000.00 EUR
Costa Rica
100,000.00 CRC
Electricity generation
from renewable
resources
Development of
generation activities
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
España SL
Enel Green Power
Chile Ltda
Enel Green Power
Latin America Ltda
Enel Green Power
Chile Ltda
Enel Green Power
Latin America Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Brasil
Participações Ltda
Enel Green Power
SpA
58.00%
45.12%
99.99%
68.23%
0.01%
99.99%
68.23%
0.01%
1.00%
68.29%
99.00%
34.57%
65.17%
Enel Green Power
Chile Ltda
Endesa Generación
Portugal SA
60.92%
0.02%
46.03%
Endesa Generación
SA
49.98%
Consolidated
Hydro Southeast
Inc.
Endesa Generación
II SA
Enel Green Power
Costa Rica
Enel Green Power
SpA
Enel Green Power
Costa Rica
100.00%
68.29%
70.00%
64.44%
40.31%
42.67%
22.17%
33.44%
22.84%
PH Don Pedro SA
San José
Costa Rica
100,001.00 CRC
PH Guacimo SA
San José
Costa Rica
50,000.00 CRC
PH Rio Volcan SA
San José
Costa Rica
100,001.00 CRC
Planta Eólica Europea SA Seville
Spain
1,198,530.00 EUR
Powercer - Sociedade de
Cogeraçao de Vialonga
SA
Loures
Portugal
50,000.00 EUR
Powercrop Srl
Bologna
Italy
4,000,000.00 EUR
Pp - Co-Geração SA
São Paio de
Oleiros
Portugal
50,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Cogeneration of
electricity and heat
Electricity generation
from renewable
resources
Cogeneration of
electricity and heat
Pragma Energy SA (in
liquidation)
Lugano
Switzerland
4,000,000.00 CHF
Coal trading
-
Prairie Rose Transmission,
LLC
Minneapolis
(Minnesota)
USA
Prairie Rose Wind
Project LLC
New York (New
York)
USA
- USD
- USD
Primavera Energia SA
Rio de Janeiro
Brazil
36,965,444.64 BRL
Valladolid
Spain
88,398.00 EUR
Valladolid
Spain
710,500.00 EUR
Productor Regional de
Energía Renovable III SA
Productor Regional de
Energia Renovable SA
Productora de Energías
SA
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale
Development and
construction of wind
plants
Development and
construction of wind
plants
Barcelona
Spain
30,050.00 EUR
Hydroelectric plants
Equity
Prof-Energo LLC
Sredneuralsk
Russian
Federation
10,000.00 RUB
Energy services
Line-by-line
280
Line-by-line
Line-by-line
Enel Green Power
Costa Rica
65.00%
44.39%
Line-by-line
Enel Green Power
Costa Rica
34.32%
23.44%
Line-by-line
Enel Green Power
España SL
56.12%
43.66%
Equity
Proportionate
Line-by-line
Line-by-line
Finerge-Gestão
de Projectos
Energéticos SA
Enel Green Power
SpA
Tp - Sociedade
Térmica
Portuguesa SA
Enel Investment
Holding BV
Prairie Rose Wind
Project LLC
30.00%
23.34%
50.00%
34.14%
100.00%
77.80%
100.00%
100.00%
100.00%
51.22%
Line-by-line
Enel Kansas LLC
75.00%
51.22%
Line-by-line
Line-by-line
Enel Brasil
Participações Ltda
Enel Green Power
España SL
100.00%
68.29%
82.89%
64.49%
Line-by-line
Enel Green Power
España SL
85.00%
66.13%
Enel Green Power
España SL
Sanatorium-
Preventorium
Energetik LLC
30.00%
23.34%
100.00%
56.43%
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Consolidation
method
Held by
% holding
Group %
holding
Progas SA
Santiago
Chile
1,526,000.00 CLP
Gas distribution
Proportionate
Gas Atacama SA
0.10%
17.16%
Gas Atacama
Chile SA
Enel Green Power
España SL
Bolonia Real
Estate SL
99.90%
100.00%
77.80%
45.00%
41.43%
Promociones Energeticas
del Bierzo SL
Ponferrada
Spain
12,020.00 EUR
Electricity generation
from renewable
resources
Line-by-line
Madrid
Spain
6,000.00 EUR
Real estate
Equity
Promociones y
Desarrollo Sector
Levante SL
Proveedora de
Electricidad de
Occidente Srl de Cv
Proyecto Almería
Mediterraneo SA
Proyectos
Universitarios de
Energias Renovables SL
PT Bayan
Resources Tbk
Puignerel AIE (in
liquidation)
Pulida Energy
(Pty) Ltd
Mexico City
Mexico
89,708,335.00 MXN
Madrid
Spain
601,000.00 EUR
Alicante
Spain
180,000.00 EUR
Electricity generation
from renewable
resources
Desalinization and
water supply
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
México Srl de Cv
99.99%
68.28%
Equity
Endesa SA
45.00%
41.43%
Proportionate
Enel Green Power
España SL
33.33%
25.93%
Jakarta
Indonesia
333,333,350,000.00 IDR
Energy
Barcelona
Spain
11,299,000.00 EUR
Houghton
South Africa
1,000.00 ZAR
Pyrites Associates
GP
New York (New
York)
USA
- USD
-
-
Line-by-line
Enel Investment
Holding BV
Enel Green Power
España SL
Enel Green Power
South Africa
10.00%
10.00%
25.00%
19.45%
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
50.00%
68.29%
Cogeneration of
electricity and heat
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Quatiara Energia SA
Rio de Janeiro
Brazil
16,566,510.61 BRL
Electricity generation
Line-by-line
Reaktortest Sro
Trnava
Slovakia
66,389.00 EUR
Nuclear power research Equity
Red Centroamericana
de Telecomunicaciones
SA
Panama
Panama
9.00 USD
Telecommunications
-
Hydro
Development
Group Inc.
Enel Brasil
Participações Ltda
Slovenskè
Elektrárne AS
Endesa
Latinoamerica SA
50.00%
100.00%
68.29%
49.00%
32.34%
11.11%
10.23%
Rattlesnake Creek Wind
Project LLC
Lincoln
(Nebraska)
USA
- USD
Renovables de
Guatemala SA
Guatemala
Guatemala
1,924,465,600.00 GTQ
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Kansas LLC
100.00%
68.29%
Line-by-line
Enel Green Power
International BV
42.83%
64.08%
Enel Green Power
Guatemala SA
0.01%
Enel Green Power
SpA
Enel Investment
Holding BV
Northwest Hydro
Inc.
51.00%
49.50%
49.50%
17.50%
68.29%
18,000.00 EUR
Holding company
Proportionate
Electricity generation
from renewable
resources
Line-by-line
- USD
- USD
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Chi West Inc.
82.50%
Line-by-line
Enel Kansas LLC
100.00%
68.29%
Line-by-line
Rocky Caney Wind
LLC
100.00%
68.29%
Held for sale
Pp - Co-Geração SA
10.00%
77.80%
TP - Sociedade
Térmica
Portuguesa SA
90.00%
5,100.00 RUB
Electricity sales
Proportionate
RusEnergosbyt LLC
51.00%
25.25%
2,760,000.00 RUB
Electricity trading
Proportionate
Res Holdings BV
100.00%
49.50%
4,600,000.00 RUB
Electricity sales
Proportionate
RusEnergosbyt LLC
50.00%
24.75%
100,000.00 RUB
Electricity sales
Proportionate
RusEnergosbyt LLC
50.00%
24.75%
Ronfegen- Recursos
Energeticos, Lda
Oeiras
Portugal
5,000.00 EUR
Res Holdings BV
Amsterdam
Rock Creek Limited
Partnership
Los Angeles
(California)
The
Netherlands
USA
Rocky Caney Wind LLC New York (New
USA
York)
Rocky Ridge Wind
Project LLC
Oklahoma City -
Oklahoma
USA
RusEnergosbyt C LLC
Khanty-
Mansiyskiy
RusEnergosbyt LLC
Moskow
RusEnergosbyt Siberia
LLC
Krasnoyarskiy
Kray
RusEnergosbyt Yaroslavl Yaroslavl
Ruthton Ridge LLC
Minneapolis
(Minnesota)
Russian
Federation
Russian
Federation
Russian
Federation
Russian
Federation
USA
Sacme SA
Buenos Aires
Argentina
12,000.00 ARS
Monitoring of electricity
system
Proportionate
- USD
Electricity generation
from renewable
resources
Line-by-line
Chi Minnesota
Wind LLC
Empresa
Distribuidora
Sur SA
51.00%
34.83%
50.00%
19.98%
281
Company name
Headquarters
Country
Share capital Currency Activity
Consolidation
method
Held by
% holding
Group %
holding
Salto de San Rafael SL
Seville
Spain
461,410.00 EUR
Hydroelectric plants
Proportionate
San Juan Mesa Wind
Project II LLC
Wilmington
(Delaware)
USA
Sanatorium-
Preventorium Energetik
LLC
Nevinnomyssk
Russian
Federation
- USD
Electricity generation
from renewable
resources.
Line-by-line
10,571,300.00 RUB
Energy services
Line-by-line
OGK-5 Finance LLC
0.01%
56.43%
Enel Green Power
España SL
Padoma Wind
Power LLC
50.00%
38.90%
100.00%
68.29%
Enel OGK-5 OJSC
(formerly OGK-5
OJSC)
Enel Green Power
España SL
Bypass Power
Company
Chi West Inc.
Enel Produzione
SpA
Slovenskè
elektrárne AS
Finerge-Gestão
de Projectos
Energéticos SA
Enel Green Power
España SL
Enel Green Power
México Srl de Cv
Energía Nueva
Energía Limpia
México Srl de Cv
Enel Produzione
SpA
Sheldon Vermont
Hydro Company
Inc.
Boott Sheldon
Holdings LLC
99.99%
45.00%
35.01%
1.00%
68.29%
99.00%
40.00%
40.00%
100.00%
66.00%
100.00%
77.80%
100.00%
77.80%
99.99%
68.29%
0.01%
33.33%
33.33%
100.00%
68.29%
100.00%
68.29%
Santo Rostro
Cogeneración SA (in
liquidation)
Se Hazelton A LP
Seville
Spain
207,000.00 EUR
Cogeneration of
electricity and heat
-
Los Angeles
(California)
USA
- USD
Electricity generation
from renewable
resources
Line-by-line
Se Hydropower Srl
Bolzano
Italy
30,000,000.00 EUR
Generation, purchase
and sale of hydroelectric
power
Line-by-line
Se Predaj Sro
Bratislava
Slovakia
4,505,000.00 EUR
Electricity supply
Line-by-line
Sealve - Sociedade
Eléctrica De Alvaiázere
SA
Serra do Moncoso
Cambas SL
Servicio de Operación
y Mantenimiento para
Energías Renovables,
Srl de Cv
Porto
Portugal
50,000.00 EUR
La Coruña
Spain
3,125.00 EUR
Mexico DF
Mexico
3,000.00 MXN
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
SF Energy Srl
Rovereto
Italy
7,500,000.00 EUR
Electricity generation
Proportionate
Sheldon Springs Hydro
Associates LP
Wilmington
(Delaware)
Sheldon Vermont Hydro
Company Inc.
Wilmington
(Delaware)
USA
USA
- USD
- USD
Line-by-line
Line-by-line
SIET - Società
Informazioni Esperienze
Termoidrauliche SpA
Sisconer - Exploraçao de
Sistemas de Conversao
de Energia Lda
Sistema de Gestión
Energética
en la Nube SL
Sistema Eléctrico de
Conexión Montes
Orientales SL
Sistema Eléctrico de
Conexión Valcaire SL
Sistemas Energeticos
Mañón Ortigueira SA
Piacenza
Italy
697,820.00 EUR
Porto
Portugal
5,000.00 EUR
Madrid
Spain
3,461.00 EUR
Equity
Enel.Newhydro Srl
41.55%
41.55%
Line-by-line
Finerge-Gestão
de Projectos
Energéticos SA
55.00%
42.79%
Proportionate
Enel Servizi Srl
0.03%
0.03%
Granada
Spain
44,900.00 EUR
Electricity generation
Equity
Madrid
Spain
175,200.00 EUR
Electricity generation
Equity
La Coruña
Spain
2,007,750.00 EUR
Line-by-line
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
16.70%
12.99%
28.13%
21.88%
96.00%
74.69%
Slate Creek Hydro
Associates LP
Los Angeles
(California)
Slate Creek Hydro
Company Inc.
Wilmington
(Delaware)
USA
USA
- USD
100.00 USD
Line-by-line
Slate Creek Hydro
Company Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Slovenskè Elektrárne AS Bratislava
Slovakia
1,269,295,724.66 EUR
Electricity generation
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Analysis, design and
research in thermal
technology
Electricity generation
from renewable
resources
Research, design and
development
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
18,200.00 EUR
Finance
Line-by-line
2,184,000.00 EUR
Services
-
Enel Produzione
SpA
Slovenskè
elektrárne AS
Enel Servizio
Elettrico SpA
66.00%
66.00%
100.00%
66.00%
10.00%
10.00%
10,201.00 EUR
- USD
- USD
Research, design and
development
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Proportionate
Enel Servizi Srl
0.01%
0.01%
Line-by-line
Texkan Wind LLC
100.00%
68.29%
Line-by-line
Nevkan
Renewables LLC
100.00%
68.29%
Slovenské Elektrárne
Finance BV
Rotterdam
The
Netherlands
Smart P@Per SPA
Potenza
SMART-I Srl
Rome
Italy
Italy
Smoky Hills Wind Farm
LLC
Topeka (Kansas) USA
Smoky Hills Wind Project
II LLC
Topeka (Kansas) USA
282
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Snyder Wind Farm LLC
Dallas (Texas)
USA
- USD
Socibe Energia SA
Rio de Janeiro
Brazil
19,969,032.25 BRL
Electricity generation
from renewable
resources
Electricity generation
and sale
Line-by-line
Sociedad Agrícola de
Cameros Ltda
Sociedad Concesionaria
Túnel El Melón SA
Santiago
Chile
5,738,046,495.00 CLP
Financial investment
Line-by-line
Santiago
Chile
19,028,480,104.00 CLP
Engineering
Line-by-line
Sociedad Eólica de
Andalucía SA
Sociedad Eólica El
Puntal SL
Seville
Seville
Spain
Spain
4,507,590.78 EUR
Electricity generation
Line-by-line
1,643,000.00 EUR
Proportionate
Consolidation
method
Held by
% holding
Group %
holding
Line-by-line
Texkan Wind LLC
100.00%
68.29%
Enel Brasil
Participações Ltda
Inmobiliaria Manso
de Velasco Ltda
Compañía Eléctrica
Tarapacá SA
Empresa Nacional
de Electricidad SA
Enel Green Power
España SL
Enel Green Power
España SL
100.00%
68.29%
57.50%
32.09%
0.01%
33.47%
99.99%
64.74%
50.37%
50.00%
38.90%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Construction and
management of port
infrastructure
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
España SL
60.00%
46.68%
Line-by-line
Inversora Codensa
Sas
4.90%
21.31%
Emgesa SA ESP
94.95%
Proportionate
Agatos Green
Power Trino
100.00%
27.32%
Sociedad Eólica Los
Lances SA
Sociedad Portuaria
Central Cartagena SA
Cadiz
Spain
2,404,040.00 EUR
Bogotá DC
Colombia
5,800,000.00 COP
Società Agricola Trino Milan
Italy
50,000.00 EUR
Milan
Società di sviluppo,
realizzazione e gestione
del gasdotto Algeria-Italia
via Sardegna SpA” in
breve Galsi SpA”
Italy
37,419,179.00 EUR
Engineering in energy
and infrastructure sector
-
Enel Produzione
SpA
15.62%
15.62%
Société du Parc Eolien
Grandes Terres Ouest
Eurl
Lyon
France
21,000.00 EUR
Electricity generation
from renewable
resources
Line-by-line
Enel France Sas
100.00%
100.00%
Sol de Media Noche
Fotovoltaica SL
Las Palmas de
Gran Canaria
Spain
3,008.00 EUR
Photovoltaic plants
Proportionate
Solar Morea Energiaki SA Maroussi
Greece
4,000,890.00 EUR
Soliloquoy Ridge LLC
Minneapolis
(Minnesota)
Somersworth Hydro
Company Inc.
Wilmington
(Delaware)
USA
USA
Sotavento Galicia SA
Santiago de
Compostela
Spain
- USD
100.00 USD
601,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Endesa Ingeniería
SLU
Enel Green Power
Hellas SA
50.00%
46.03%
100.00%
68.29%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
34.83%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Equity
Enel Green Power
España SL
36.00%
28.01%
Soternix - Produção de
Energia ACE
Southern Cone Power
Argentina SA
Barcelos
Portugal
- EUR
Electricity generation
Held for sale
Buenos Aires
Argentina
19,874,798.00 ARS
Holding company
Line-by-line
Tp - Sociedade
Térmica
Portuguesa SA
Compañía Eléctrica
Tarapacá SA
51.00%
39.68%
1.97%
33.49%
Empresa Nacional
de Electricidad SA
98.03%
Line-by-line
Enel Kansas LLC
100.00%
68.29%
South Fork Wind LLC
Minneapolis
(Minnesota)
Southwest Transmission
LLC
Minneapolis
(Minnesota)
Spartan Hills LLC
Stipa Nayaá SA de Cv
Minneapolis
(Minnesota)
Colonia
Cuauhtémoc
USA
USA
USA
- USD
- USD
- USD
Mexico
1,811,016,348.00 MXN
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Sublunary Trading (RF)
Proprietary Ltd
Johannesburg
South Africa
10,000.00 ZAR
Suministradora Eléctrica
de Cádiz SA
Cadiz
Spain
12,020,240.00 EUR
Electricity generation
from renewable
resources
Proportionate
Electricity distribution
and sale
Equity
Suministro de Luz Y
Fuerza SL
Torroella de
Montgri (Girona)
Spain
2,800,000.00 EUR
Electricity distribution
Line-by-line
Chi Minnesota
Wind LLC
Chi Minnesota
Wind LLC
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
México Srl de Cv
Enel Green Power
& Sharp Solar
Energy Srl
Endesa
Distribución
Eléctrica SL
Hidroeléctrica de
Catalunya SL
51.00%
34.83%
51.00%
34.83%
40.16%
65.13%
55.21%
57.00%
19.46%
33.50%
30.84%
60.00%
55.24%
283
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
North America Inc.
75.00%
51.22%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
34.83%
Line-by-line
Enel Ingegneria e
Ricerca SpA
100.00%
100.00%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
SpA
51.00%
34.83%
Line-by-line
Enel Green Power
International BV
Enel Green Power
Romania Srl
Endesa Generación
SA
Enel Green Power
International BV
0.10%
68.29%
99.90%
45.00%
41.43%
75.00%
51.22%
Proportionate
Endesa Generación
SA
38.89%
35.80%
Company name
Headquarters
Country
Share capital Currency Activity
Summit Energy Storage
Inc.
Wilmington
(Delaware)
Sun River LLC
Minneapolis
(Minnesota)
USA
USA
2,050,000.00 USD
- USD
Sviluppo Nucleare
Italia Srl
Rome
Italy
200,000.00 EUR
Sweetwater
Hydroelectric Inc.
Concord (New
Hampshire)
USA
250.00 USD
Taranto Solar Srl
Rome
Italy
100,000.00 EUR
Targusor Wind Farm Srl Cernavoda
Romania
90,000.00 RON
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Development,
construction and
operation of EPRs
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Tecnatom SA
Madrid
Spain
4,025,700.00 EUR
Electricity generation e
Services
Equity
Tecnoguat SA
Guatemala
Guatemala
30,948,000.00 GTQ
Tejo Energía Produçao e
Distribuçao de Energia
Electrica SA
Paço de Arcos
Portugal
5,025,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation,
transmission and
distribution
Line-by-line
Termoeléctrica José de
San Martín SA
Buenos Aires
Argentina
500,000.00 ARS
Construction and
management of a
combined-cycle plant
Equity
Termoeléctrica Manuel
Belgrano SA
Buenos Aires
Argentina
500,000.00 ARS
Construction and
management of a
combined-cycle plant
Equity
Teploprogress OJSC
Sredneuralsk
Russian
Federation
128,000,000.00 RUB
Electricity sales
Line-by-line
OGK-5 Finance LLC
60.00%
33.86%
Hidroeléctrica El
Chocón SA
Central Dock
Sud SA
Endesa Costanera
SA
Hidroeléctrica El
Chocón SA
Central Dock
Sud SA
Endesa Costanera
SA
Enel Green Power
España SL
Enel Green Power
SpA
18.85%
6.71%
5.32%
5.51%
18.85%
6.71%
5.32%
5.51%
45.00%
35.01%
20.00%
13.66%
Termotec Energía AIE
(in liquidation)
TERRAE Iniziative
per lo sviluppo
agroindustriale SpA
Texkan Wind LLC
Tirme SA
Tko Power Inc.
Valencia
Spain
481,000.00 EUR
Cogeneration of
electricity and heat
-
Rome
Italy
19,060,811.37 EUR
Agro-industrial activities Equity
Wilmington
(Delaware)
USA
Palma de
Mallorca
Los Angeles
(California)
Spain
USA
- USD
7,662,750.00 EUR
1.00 USD
Line-by-line
Enel Texkan Inc.
100.00%
68.29%
Equity
Enel Green Power
España SL
40.00%
31.12%
Line-by-line
Chi West Inc.
100.00%
68.29%
Electricity generation
from renewable
resources
Waste treatment and
disposal
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Tobivox (Pty) Ltd
Houghton
South Africa
120.00 ZAR
Line-by-line
Toledo Pv AEIE
Madrid
Spain
26,890.00 EUR
Photovoltaic plants
Equity
Total Electric SA
Buzau
Romania
3,190,600.00 RON
Tp - Sociedade Térmica
Portuguesa SA
Lisbon
Portugal
3,750,000.00 EUR
Trade Wind Energy LLC New York (New
USA
- USD
York)
Tradewind Energy Inc. Wilmington
USA
200,000.00 USD
(Delaware)
Transmisora de Energia
Renovable SA
Guatemala
Guatemala
5,000.00 GTQ
Electricity generation
from renewable
resources
Cogeneration of
electricity and heat
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
Transmisora Eléctrica de
Quillota Ltda
Santiago
Chile
440,644,600.00 CLP
Electricity transmission
and distribution
Proportionate
284
Enel Green Power
South Africa
Enel Green Power
España SL
Enel Green Power
Romania Srl
Finerge-Gestão
de Projectos
Energéticos SA
100.00%
68.29%
33.33%
25.93%
100.00%
68.29%
100.00%
77.80%
Chi Power Inc.
Enel Kansas LLC
1.00%
19.90%
13.59%
Enel Green Power
International BV
Enel Green Power
Guatemala SA
Compañía Eléctrica
Tarapacá SA
99.99%
68.29%
0.01%
50.00%
17.16%
Line-by-line
Enel Kansas LLC
99.00%
68.29%
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
Buenos Aires
Argentina
55,512,000.00 ARS
Electricity generation,
transmission and
distribution
Girona
Spain
72,120.00 EUR
Electricity transmission Line-by-line
Transportadora de
Energía SA
Transportes y
Distribuciones Eléctricas
SA
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Compañía de
Interconexión
Energética SA
Endesa
Distribución
Eléctrica SL
100.00%
46.62%
73.33%
67.51%
Triton Power Company New York (New
USA
York)
- USD
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
North America Inc.
2.00%
68.29%
Tsar Nicholas LLC
Minneapolis
(Minnesota)
Twin Falls Hydro
Associates
Seattle
(Washington)
Twin Falls Hydro
Company Inc.
Wilmington
(Delaware)
Twin Lake Hills LLC
Minneapolis
(Minnesota)
Twin Saranac Holdings
LLC
Wilmington
(Delaware)
USA
USA
USA
USA
USA
- USD
- USD
10.00 USD
- USD
- USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Highfalls Hydro
Company Inc.
Chi Minnesota
Wind LLC
98.00%
51.00%
34.83%
Line-by-line
Twin Falls Hydro
Company Inc.
51.00%
34.83%
Line-by-line
Line-by-line
Twin Saranac
Holdings LLC
Chi Minnesota
Wind LLC
100.00%
68.29%
51.00%
34.83%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Ufefys SL (in liquidation) Aranjuez
Spain
304,150.00 EUR
Ukuqala Solar (Pty) Ltd Gauteng
South Africa
- ZAR
Electricity generation
from renewable
resources
-
Electricity generation
from renewable
resources
Line-by-line
Unión Eléctrica de
Canarias Generación SAU
Las Palmas de
Gran Canaria
Spain
190,171,520.00 EUR
Electricity generation
Line-by-line
Upington Solar (Pty) Ltd Lombardy east
South Africa
1,000.00 ZAR
Electricity generation
from renewable
resources
Line-by-line
Ustav Jaderného
Výzkumu Rez AS
Rez
Varokub Green Energy
Srl
Prahova
Czech
Republic
Romania
524,139,000.00 CZK
Nuclear power research
and development
Equity
90,000.00 RON
Electricity generation
from renewable
resources
Line-by-line
Vektör Enerji Üretim
Anonim Şirketi
Istanbul
Turkey
500,000.00 TRY
Western New York Wind
Corporation
Albany (New
York)
Willimantic Power
Corporation
Hartford
(Connecticut)
USA
USA
300.00 USD
1,000.00 USD
Wind Park Kouloukonas
SA
Maroussi
Greece
2,700,018.00 EUR
Wind Park of Koryfao SA Maroussi
Greece
60,000.00 EUR
Wind Park of West
Ktenias SA
Wind Parks of Anatoli-
Prinia SA
Maroussi
Greece
70,000.00 EUR
Maroussi
Greece
1,110,400.00 EUR
Wind Parks of Bolibas SA Maroussi
Greece
551,500.00 EUR
Wind Parks of Distomos
SA
Wind Parks of
Drimonakia SA
Maroussi
Greece
556,500.00 EUR
Maroussi
Greece
736,500.00 EUR
Wind Parks of Folia SA Maroussi
Greece
424,000.00 EUR
Wind Parks of Gagari SA Maroussi
Greece
389,000.00 EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Enel Green Power
España SL
Enel Green Power
South Africa
40.00%
31.12%
100.00%
68.29%
Endesa Generación
SA
Enel Green Power
South Africa
100.00%
92.06%
100.00%
68.29%
Slovenskè
elektrárne AS
Enel Green Power
International BV
Enel Green Power
Romania Srl
Enel Green Power
International BV
27.77%
18.33%
0.10%
68.29%
99.90%
100.00%
68.29%
Line-by-line
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Enel Green Power
North America Inc.
100.00%
68.29%
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Equity
Equity
Equity
Equity
Equity
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
100.00%
68.29%
100.00%
68.29%
100.00%
68.29%
80.00%
54.63%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
285
Company name
Headquarters
Country
Share capital Currency Activity
Wind Parks of Goraki SA Maroussi
Greece
551,500.00 EUR
Wind Parks of Gourles SA Maroussi
Greece
555,000.00 EUR
Wind Parks of Kafoutsi
SA
Wind Parks of Kathara
SA
Wind Parks of Kerasia
SA
Wind Parks of Korinthia
SA
Wind Parks of
Makrilakoma SA
Maroussi
Greece
551,500.00 EUR
Maroussi
Greece
296,500.00 EUR
Maroussi
Greece
252,000.00 EUR
Maroussi
Greece
3,504,500.00 EUR
Maroussi
Greece
614,000.00 EUR
Wind Parks of Milia SA Maroussi
Greece
399,000.00 EUR
Wind Parks of Mirovigli
SA
Maroussi
Greece
225,000.00 EUR
Wind Parks of Mitika SA Maroussi
Greece
255,500.00 EUR
Wind Parks of
Paliopirgos SA
Maroussi
Greece
200,000.00 EUR
Wind Parks of Pelagia SA Maroussi
Greece
653,500.00 EUR
Wind Parks of Petalo SA Maroussi
Greece
575,000.00 EUR
Wind Parks of Platanos
SA
Maroussi
Greece
179,000.00 EUR
Wind Parks of Sagias SA Maroussi
Greece
601,000.00 EUR
Wind Parks of Skoubi SA Maroussi
Greece
472,000.00 EUR
Wind Parks of Spilia SA Maroussi
Greece
496,100.00 EUR
Wind Parks of
Strouboulas SA
Wind Parks of Trikorfo
SA
Maroussi
Greece
576,500.00 EUR
Maroussi
Greece
260,000.00 EUR
Wind Parks of Vitalio SA Maroussi
Greece
361,000.00 EUR
Wind Parks of Vourlas
SA
Maroussi
Greece
554,000.00 EUR
Winter’s Spawn LLC
Minneapolis
(Minnesota)
USA
- USD
WP Bulgaria 1 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 10 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 11 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 12 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 13 EOOD
Sofia
Bulgaria
5,000.00 BGN
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Consolidation
method
Equity
Equity
Equity
Held by
% holding
Group %
holding
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
30.00%
20.49%
30.00%
20.49%
30.00%
20.49%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Equity
Enel Green Power
Hellas SA
30.00%
20.49%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Equity
Enel Green Power
Hellas SA
30.00%
20.49%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Equity
Equity
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
30.00%
20.49%
30.00%
20.49%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Equity
Equity
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
30.00%
20.49%
30.00%
20.49%
Line-by-line
Enel Green Power
Hellas SA
80.00%
54.63%
Equity
Equity
Equity
Equity
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
30.00%
20.49%
29.25%
19.97%
30.00%
20.49%
30.00%
20.49%
Line-by-line
Chi Minnesota
Wind LLC
51.00%
34.83%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
286
EnEl AnnuAl REpoRt 2013AttAchmEnts Company name
Headquarters
Country
Share capital Currency Activity
WP Bulgaria 14 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 15 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 19 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 21 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 26 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 3 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 6 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 8 EOOD
Sofia
Bulgaria
5,000.00 BGN
WP Bulgaria 9 EOOD
Sofia
Bulgaria
5,000.00 BGN
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Consolidation
method
Line-by-line
Held by
% holding
Group %
holding
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00%
68.29%
WP France 3 SAS
Lyon
France
1,000.00 EUR
Electricity generation
from renewable
resources
Held for sale
Enel Green Power
France Sas
100.00%
68.29%
Yacylec SA
Buenos Aires
Argentina
20,000,000.00 ARS
Electricity transmission Equity
Enersis SA
22.22%
12.40%
Yedesa-Cogeneración SA
(in liquidation)
Almería
Spain
234,000.00 EUR
Zitsa Solar SA
Maroussi
Greece
252,000.00 EUR
Cogeneration of
electricity and heat
-
Electricity generation
from renewable
resources
Proportionate
Enel Green Power
España SL
Enel Green Power
& Sharp Solar
Energy Srl
40.00%
31.12%
100.00%
34.14%
287
Glossary
The following glossary defines selected technical terms used in the consolidated financial statements. Unless otherwise speci-
fied, the terms have the following meanings.
Authority for Electricity
The Authority for Electricity and Gas (the Authority) is a formally independent authority
and Gas
charged with fostering the development of competitive markets in the electricity and
natural gas industries, primarily through the regulation of tariffs, access to networks and
market operations, as well as safeguarding end users.
Under the law establishing the Authority in 1995, its function is essentially that of
“guaranteeing the promotion of competition and efficiency in the public utilities sector,
ensuring the uniform availability and distribution of services throughout the country,
establishing a transparent and reliable tariff system based on pre-defined criteria and
promoting the interests of users and consumers”. In pursuing the objective of ensuring
competitive markets, the Authority develops comments and recommendations for the
Government and Parliament. It has regulatory powers, sets tariffs (and in particular the
general system costs component), ensures the publicity and transparency of service terms
and conditions, ensures equal access to energy networks, exercises quality control and
monitoring powers over service providers and assesses complaints and reports submitted
by users and consumers. In addition, the Authority was recently assigned functions
concerning the quality, rates and costs of integrated water services, which had originally
been assigned to the national water regulator and supervisor.
Biomass
Organic non-fossil material of biological origin, part of which can be used to produce
energy. The various forms of energy produced from biomass are always renewable, but
in different ways. They depend on daily or seasonal cycles, the amount of solar radiation,
changes in climate, agricultural techniques, plant growth cycles and intensive exploitation.
CIP
Interministerial Price Committee.
Combined cycle
Technology used in power generation plants, comprising one or more gas turbine sets
whose exhaust heats a boiler, which may also be heated with an additional fuel. The
steam produced by the boiler is used to drive a steam turbine coupled with a generator
(CCGT).
Decommissioning
The phase of deactivation, decontamination and dismantling of plant installations and
site restoration, The ultimate goal is to achieve: (i) the complete demolition of a nuclear
power plant; (ii) the removal of any restriction imposed by the presence of radioactive
materials; (iii) the return of the site for other uses.
Distribution
The transport and transformation of electricity on medium and low-voltage grids for
delivery to end users.
Electricity consumption
Electricity consumption for a given period is equal to the sum of electricity invoiced by
utilities (Enel, municipal electric companies, other companies) and the amount consumed
by self-generators. It is equal to electricity demand net of grid losses.
288
EnEl AnnuAl REpoRt 2013AttAchmEnts Electricity demand
The quantity of electricity to make available on the grid. It is equal to the sum of user
consumption and grid losses.
EMO
Energy Markets Operator, the company established by the ESO to operate the financial
side of the electricity market on a transparent and objective basis, with a view to fostering
competition among generators and ensuring the availability of adequate reserve capacity.
Enhanced protection service
The supply of electricity on the basis of prices and contractual terms set by the Authority
for Electricity and Gas. The enhanced protection service serves residential customers and
small companies (those with fewer than 50 employees and an annual turnover of less
than €10 million with low-voltage supply) that have never changed supplier or who have
requested to return to the service after having contracted for service on the free market
with other suppliers (the enhanced protection service conditions also apply to residential
customers and small companies that find themselves without an electricity supplier).
ESO
Energy Services Operator (formerly GRTN), established pursuant to Article 3 of the Bersani
Decree, the company, wholly owned by the Ministry for the Economy and Finance,
distributes incentives for the generation of electricity from renewable and equivalent
resources. It also certifies plants and their output as renewable.
European Pressurized Reactor (EPR) The European pressurized water reactor, more commonly referred to as an EPR (European
Pressurized Reactor or Evolutionary Power Reactor), is a generation III+ nuclear fission
reactor in which the core is cooled and the neutrons are moderated with ordinary water
(sometimes called light water to distinguish it from heavy water).
Generation
The production of electricity, however generated.
Gigawatt or GW
Unit of measure equal to 1 billion watts (1,000 MW).
Gigawatt-hour or GWh
Unit of measure equal to 1 million Kilowatt-hours.
Green certificates
These are the certificates provided for under Article 5 of the Ministerial Decree of
November 11, 1999, that certify the generation of electricity from renewable resources.
Green certificates are issued by the ESO for the first fifteen years of operation of a plant
and can be traded directly or on the market organized by the ESO. Demand is supported
by the requirement for generation companies and importers to deliver a portion of their
annual output in the form of power generated from renewable resources.
Gross generation
The total amount of electricity (including that generated subject to pumping) produced
by all the generator units concerned (primary heat engine and one or more mechanically
coupled electricity generators), as measured at the output terminals of the main
generators.
Kilowatt or kW
A unit of measure equal to 1,000 watts.
Kilowatt-hour or kWh
A unit of measure that represents 1,000 watts of electricity supplied or demanded in an
hour.
Mass-market customers
Residential and micro-business customers.
Megawatt or MW
Unit of measure equal to 1 million watts.
289
Megawatt-hour or MWh
Unit of measure that represents 1,000,000 watts of electricity supplied or demanded in
an hour.
Micro-business customers
Customers with a VAT registration number with annual electricity consumption of less
than 50,000 kWh.
Natural gas
Gas mainly composed of methane (from 88% to 98%), with the remainder accounted for
by other hydrocarbons such as ethane, propane, butane, etc.
Net efficient power (in MW)
The maximum amount of electric power that can be continuously produced over a
sufficiently long given period of operation, assuming that all the parts of the plant are
functioning, as measured at the point of delivery to the grid; that is, net of the power used
by the plant itself and the power lost in the transformers required to raise the voltage to
the grid level.
Net generation
Gross electricity production net of the electricity used by auxiliary generation services and
losses in main transformers.
NTN
The Italian national electricity transmission network, composed of the transformer
stations and high and very-high voltage power lines in Italy.
Power Exchange
The electricity market organized and operated by the ESO through an electronic platform.
Participants include generation companies, wholesalers, the Single Buyer and certain end
users. The market equilibrium prices is obtained through the matching of the electricity
demand of and electricity supply from the participants.
Rating
Assessment of the quality of a company or its issues of debt securities on the basis of
the financial soundness of the company and its outlook. The assessment is performed by
specialized agencies.
Remote meter operation
A system of interconnected electronic meters (also called smart meters) used to implement
an integrated system for meter reading, communication and management of electricity
supply contracts remotely, using the low-voltage power grid as the data transmission
infrastructure.
Renewable resources
The sun, wind, water, geothermal resources, tides, waves, biomass and organic waste.
Residential customers
Customers who consume electricity for home use, as defined by Article 2.2, letter A, of
the Integrated Transport Regulations published by the Authority for Electricity and Gas.
Single Buyer
Acquirente Unico SpA (the Single Buyer) is a company established by the ESO pursuant to
Article 4, paragraph 1 of the Bersani Decree. It is charged with ensuring the availability of
sufficient electricity to meet the demand of all customers in the “enhanced protection”
market, by purchasing the necessary power and selling it to distributors on non-
discriminatory terms that enable the application of a single national rate for customers.
For this purpose, the Single Buyer can purchase electricity on the Power Exchange or
through bilateral contracts.
Station
An electricity transformation or switching facility.
290
EnEl AnnuAl REpoRt 2013AttAchmEnts Stranded costs
Costs generated by contractual commitments and investment decisions that electric
companies undertook in response to government economic policy decisions in a non-
competitive market that could have been recovered under a monopoly.
Tax equity partnership
An agreement governed by US tax law, which permits the assignment of the tax benefits
granted in the United States to companies that generate electricity from renewable
resources to a third-party entity (the so-called “tax equity investor”) under certain
conditions and specific circumstances.
Terawatt or TW
Unit of measure equal to 1 billion kW.
Terawatt-hour or TWh
1 billion kWh.
Transmission
The transport and transformation of electricity from generation plants or imported power
over the interconnected high- and very-high-voltage grid to end users connected to that
Watt
Unit of measure of electric power.
grid and to distributors.
291
Reports
Report of the independent auditors on the 2013
consolidated financial statements of the Enel Group
294
EnEl AnnuAl REpoRt 2013REpoRts
295
296
EnEl AnnuAl REpoRt 2013REpoRts Concept design
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Printed in June 2014
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Edited by
Enel External Relations Department
This Report issued in Italian has been translated
into English solely for the convenience
of international readers.
This publication is an integral part
of the annual financial report referred
to in Article 154-ter, paragraph 1, of the
Consolidated Law on Financial Intermediation
(Legislative Decree 58 of February 24, 1998)
Enel
Società per azioni
Registered Office
137 Viale Regina Margherita, Rome
Share capital €9,403,357,795 fully paid-up
Tax I.D. and Companies Register
of Rome: no. 00811720580
R.E.A. of Rome no. 756032
VAT Code no. 00934061003