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% |
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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.