The Infrastructure and Networks Division is responsible for operating the electricity and gas distribution networks.
The activities are carried out by:
Enel Distribuzione and Deval (the operations of the latter are limited to the >
Valle d’Aosta region) for the distribution of electricity; Enel Rete Gas for the distribution of gas;
>
Enel Sole for public and artistic lighting. >
Operations
traNsPOrt OF electrIcIty aND Natural Gas
3rd Quarter first nine months
2008 2007 Change 2008 2007 Change
65,808 64,009 1,799 2.8%
electricity transported on enel’s
distribution network (millions of kWh) (1) 194,321 192,615 1,706 0.9%
Gas transported (millions of cubic meters):
236 242 (6) -2.5% for enel Group companies 1,949 1,752 197 11.2%
126 108 18 16.7% for third parties 464 435 29 6.7%
362 350 12 3.4% total gas transported 2,413 2,187 226 10.3%
(1) the figure for 2007 has been updated to take account of the more accurate calculation of amounts transported.
The volume of electricity transported in the first nine months of 2008 rose by 0.9% compared with the same period of 2007, which is in line with the trend in demand for electricity on the domestic grid, which rose most sharply in the 3rd Quarter. The increase in the volume of gas transported, around 10.3%, is ascribable to increased demand from end users, which in part reflected the different climatic conditions in Italy in the early months of 2008, during which average temperatures fell with respect to the same period of the previous year.
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Performance
3rd Quarter millions of euro first nine months
2008 2007 Change 2008 2007 Change
electricity
1,574 1,348 226 Revenues 4,722 3,920 802
876 963 (87) Gross operating margin 2,802 2,646 156
661 772 (111) operating income 2,165 2,080 85
Gas
36 44 (8) Revenues 190 213 (23)
- 12 (12) Gross operating margin 82 111 (29)
(24) (11) (13) operating income 11 43 (32)
total
1,610 1,392 218 Revenues 4,912 4,133 779
876 975 (99) Gross operating margin 2,884 2,757 127
637 761 (124) operating income 2,176 2,123 53
operating assets 19,540 17,611(1) 1,929
operating liabilities 5,653 4,319(1) 1,334
employees at period-end (no.) 21,973 22,710(1) (737)
Capital expenditure 1,032 1,001 31
(1) at december 31, 2007.
Performance in the 3rd Quarter
Revenues in the 3rd Quarter of 2008 totaled €1,610 million, an increase of €218
million compared with the corresponding period of 2007 (up 15.7%) due to the following factors:
an increase of
> €226 million in revenues from the electricity network, €235 million of which resulting from new regulations on the transmission of electricity introduced by Decree Law 73/07 and related measures subsequently issued by the Authority for Electricity and Gas, under which the cost component for transport activities is to be paid to distribution companies;
a decrease of
> €8 million in revenues from the gas distribution network, essentially associated with the recognition in the 3rd Quarter of 2007 of capital gains from the sale of a number of local gas distribution networks.
The gross operating margin totaled €876 million, a decrease of €99 million or 10.2% due to:
a decline of
> €87 million in the margin on the electricity network, of which a decrease of €59 million in the margin on transport, largely reflecting the effects of the recognition in the 3rd Quarter of 2007 of €51 million for electricity metering services, as well as an increase in other operating costs; a decrease of
> €12 million in the margin of the gas distribution network due primarily to the same factors mentioned above in relation to revenues.
Operating income, net of depreciation, amortization and impairment losses
totaling €239 million (€214 million in the 3rd Quarter of 2007), amounted to €637 million, a decrease of €124 million or 16.3% with respect to the same period of 2007.
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Performance in the first nine monthsRevenues in the first nine months of 2008 totaled €4,912 million, an increase of
€779 million compared with the corresponding period of 2007 (up 18.8%) due to the following factors:
an increase of
> €802 million in revenues from the electricity network, most of which (€700 million) relate to the new rules for the transmission of electricity already mentioned in the note on revenues for the 3rd Quarter, a rise in the volumes transported (up 1.7 TWh) and the positive contribution of prior-year items referring to transport in previous financial years;
a decline of
> €23 million in revenues from the gas distribution network, essentially a reflection of the recognition in the 1st Half of 2007 of positive prior-year items referring to transport for the 2004-2006 period (€35 million), the effects of which were partially offset by the increase in volumes transported and the unit transport rates. Another factor was the capital gain recognized in the 3rd Quarter of 2007 on the sale of a number of local gas distribution networks. The gross operating margin totaled €2,884 million, an increase of €127 million or 4.6% due to:
an improvement of
> €156 million from the electricity network, essentially composed of an increase of €8 million in the electricity margin, mainly attributable to an increase in the volumes transported, a recalculation of electricity items for 2005 and 2006 following the realignment of withdrawal points on the high-voltage network (€134 million), and a reduction in operating costs mainly attributable to human resource management; a decrease of
> €29 million in the margin of the gas distribution network, due primarily to the effect of prior-year items related to transport for 2004, 2005 and 2006 and capital gains made on the sale of a number of local gas distribution networks as already mentioned in the section on revenues, which was partially offset by the increase in the margin associated with the rise in quantities transported.
Total operating income, after depreciation, amortization and impairment losses in the amount of €708 million (€634 million for the first nine months of 2007, the increase being attributable to the higher depreciation costs of the electricity distribution networks), came to €2,176 million, an increase of €53 million over the same months of 2007 (up 2.5%).
Capital expenditure
Capital expenditure in the first nine months of 2008 amounted to €1,032 million, which includes €856 million related to work on the electricity distribution network aimed primarily at enhancing service quality, and €58 million in investments for the natural gas distribution network.