49. Related parties

 

As an operator in the field of generation, distribution, transport and sale of electricity and the sale of natural gas, Enel carries out transactions with a number of companies directly or indirectly controlled by the Italian State, the Group’s controlling shareholder.

The table below summarizes the main types of transactions carried out with such counterparties.

 

Related party

Relationship

Nature of main transactions

Single Buyer

Fully controlled (indirectly) by the Ministry for the Economy and Finance

Purchase of electricity for the enhanced protection market

Cassa Depositi e Prestiti Group

Directly controlled by the Ministry for the Economy and Finance

Sale of electricity on the Ancillary Services Market (Terna)

Sale of electricity transport services (Eni Group)

Purchase of transport, dispatching and metering services (Terna)

Purchase of postal services (Poste Italiane)

Purchase of fuels for generation plants and natural gas storage and distribution services (Eni Group)

ESO - Energy Services Operator

Fully controlled (directly) by the Ministry for the Economy and Finance

Sale of subsidized electricity

Payment of A3 component for renewable resource incentives

EMO - Energy Markets Operator

Fully controlled (indirectly) by the

Ministry for the Economy and Finance

Sale of electricity on the Power Exchange (EMO)

Purchase of electricity on the Power Exchange for pumping and plant planning (EMO)

Leonardo Group

Directly controlled by the Ministry for the Economy and Finance

Purchase of IT services and supply of goods

 

In addition, the Group conducts essentially commercial transactions with associated companies or companies in which it holds minority interests.
Finally, Enel also maintains relationships with the pension funds FOPEN and FONDENEL, as well as Fondazione Enel and Enel Cuore, an Enel non-profit company devoted to providing 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 Regulatory Authority for Energy, Networks and the Environment.
Finally, note that within the framework of the Corporate Governance rules that the Enel Group has adopted, which are discussed in detail in the report on corporate governance and ownership structure available on the Company’s website (www.enel.com), procedures have been implemented to ensure the transparency and procedural and substantive propriety of transactions with related parties.

     

The following tables summarize transactions with related parties, associated companies and joint arrangements outstanding at December 31, 2019 and December 31, 2018 and carried out during the period.

 

Millions of euro

           
 

Single Buyer

EMO

Cassa Depositi e Prestiti Group

ESO

Other

Key management personnel

Total 2019

Associates and joint arrangements

Overall total 2019

Total in financial statements

% of total

Income statement

           

Revenue from sales and services

-

1,320

2,733

255

183

-

4,491

313

4,804

77,366

6.2%

Other revenue and income

-

-

1

5

-

-

6

10

16

2,961

0.5%

Financial income

-

-

1

-

-

-

1

87

88

1,637

5.4%

Purchases of electricity, gas and fuel

2,661

3,009

1,372

4

-

-

7,046

143

7,189

33,755

21.3%

Costs for services and other materials

-

54

2,338

4

70

-

2,466

151

2,617

18,580

14.1%

Other operating expenses

3

182

4

1

-

-

190

45

235

7,276

3.2%

Net income/(expense) from commodity risk management

-

-

11

-

-

-

11

-

11

(733)

-1.5%

Financial expense

-

-

14

1

-

-

15

31

46

4,518

1.0%

     

.

Millions of euro

           
 

Single Buyer

EMO

Cassa Depositi e Prestiti Group

ESO

Other

Key management personnel

Total at Dec. 31, 2019

Associates and joint arrangements

Overall total at Dec. 31, 2019

Total in financial statements

% of total

Balance sheet

           

Non-current derivative assets

-

-

-

-

-

-

-

15

15

1,383

1.1%

Trade receivables

-

45

573

15

13

-

646

250

896

13,083

6.8%

Current derivative assets

-

-

-

-

-

-

-

8

8

4.065

0.2%

Other current financial assets

-

-

-

-

-

-

-

27

27

4,305

0.6%

Other current assets

-

23

69

89

1

-

182

1

183

3,115

5.9%

Long-term borrowings

-

-

715

-

-

-

715

-

715

54,174

1.3%

Non-current contract liabilities

-

-

2

-

6

-

8

143

151

6,301

2.4%

Current portion of long-term borrowings

-

-

89

-

-

-

89

-

89

3,409

2.6%

Trade payables

601

92

726

793

18

-

2,230

61

2,291

12,960

17.7%

Current derivative liabilities

-

-

-

-

-

-

-

8

8

3.554

0.2%

Current contract liabilities

-

-

-

-

1

-

1

38

39

1,328

2.9%

Other current liabilities

-

-

16

-

9

-

25

5

30

13,161

0.2%

Other information

           

Guarantees issued

-

250

354

-

164

-

768

-

768

  

Guarantees received

-

-

125

-

35

-

160

-

160

  

Commitments

-

-

9

-

4

-

13

-

13

  

     

Millions of euro

           
 

Single Buyer

EMO

Cassa Depositi e Prestiti Group

ESO

Other

Key management personnel

Total 2018

Associates and joint arrangements

Overall total 2018

Total in financial statements

% of total

Income statement

           

Revenue from sales and services

-

1,952

2,622

389

222

-

5,185

202

5,387

73,037

7.4%

Other revenue and income

-

-

6

7

3

-

16

22

38

2,538

1.5%

Other financial income

-

-

1

-

-

-

1

58

59

1,715

3.4%

Purchases of electricity, gas and fuel

3,228

3,234

1,136

-

-

-

7,598

139

7,737

37,264

20.8%

Costs for services and other materials

-

52

2,299

3

163

-

2,517

127

2,644

18,406

14.4%

Other operating expenses

6

262

4

-

-

-

272

-

272

1.769

15.4%

Net income/(expense) from commodity risk management

-

-

1

-

-

-

1

9

10

532

1.9%

Financial expense

-

-

16

8

-

-

24

31

55

4,392

1.3%

     

Millions of euro

           
 

Single Buyer

EMO

Cassa Depositi e Prestiti Group

ESO

Other

Key management personnel

Total at Dec. 31, 2018

Associates and joint arrangements

Overall total at Dec. 31, 2018

Total in financial statements

% of total

Balance sheet

           

Trade receivables

-

120

717

20

36

-

893

192

1,085

13,587

8.0%

Derivative assets

-

-

-

-

-

-

-

52

52

3,914

1.3%

Other current financial assets

-

-

-

-

-

-

-

21

21

5,160

0.4%

Other current assets

-

8

10

146

-

-

164

1

165

2,983

5.5%

Long-term borrowings

-

-

804

-

-

-

804

-

804

48,983

1.6%

Other non-current liabilities

-

-

-

-

6

-

6

80

86

1,901

4.5%

Current portion of long-term borrowings

-

-

89

-

-

-

89

-

89

3,367

2.6%

Trade payables

871

160

983

833

19

-

2,866

58

2,924

13,387

21.8%

Current derivative liabilities

-

-

-

-

-

-

-

35

35

4,343

0.8%

Current contract liabilities

-

-

11

-

14

-

25

-

25

1,095

2.3%

Other current liabilities

-

2

7

-

-

-

9

60

69

12,107

0.6%

Other information

           

Guarantees issued

-

250

354

-

132

-

736

-

736

  

Guarantees received

-

-

135

-

16

-

151

-

151

  

Commitments

-

-

29

-

7

-

36

-

36

  

       

In November 2010, the Board of Directors of Enel SpA approved a procedure governing the approval and execution of transactions with related parties carried out by Enel SpA directly or through subsidiaries. The procedure (available at https://www.enel.com/investors/bylaws-rules-and-policies/ transactions-with-related-parties/) sets out rules designed to ensure the transparency and procedural and substantive propriety of transactions with related parties. It was adopted in implementation of the provisions of Article 2391-bis of the Italian Civil Code and the implementing regulations issued by CONSOB. In 2019, no transactions were carried out for which it was necessary to make the disclosures required in the rules on transactions with related parties adopted with CONSOB Resolution no. 17221 of March 12, 2010, as amended.