8.b Other income - €2,961 million

Millions of euro

   
 

2019

2018

Change

Operating grants

19

20

(1)

-5.0%

Grants for environmental certificates

475

664

(189)

-28.5%

Capital grants (electricity and gas business)

25

22

3

13.6%

Sundry reimbursements

521

353

168

47.6%

Gains on disposal of subsidiaries, associates, joint ventures, joint operations and non-current assets held for sale

325

287

38

13.2%

Gains on the disposal of property, plant and equipment, and intangible assets

79

61

18

29.5%

Service continuity bonuses

32

44

(12)

-27.3%

Other income

1,485

1,087

398

36.6%

Total

2,961

2,538

423

16.7%

Grants for environmental certificates amounted to €475 million, a decrease of €189 million from the previous year due essentially to a reduction in grants on energy efficiency certificates obtained on distribution in Italy.

Sundry reimbursements increased by €168 million, attributable mainly to Enel Generación Chile for the indemnity received from the customer Anglo American for early withdrawal from a long-term electricity supply agreement totaling €160 million, of which €80 million related to Thermal Generation and Trading Business Line and €80 million related to the Enel Green Power Business Line.

Gains on the disposal of entities came to €325 million in 2019, an increase of €38 million, and mainly include:

  • the gain on the sale of Mercure Srl, a special-purpose vehicle to which Enel Produzione had previously transferred the Valle del Mercure biomass plant (€108 million);
  • the negative goodwill (of €181 million) resulting from the definitive allocation of the purchase price of (i) a number of companies sold by Enel Green Power North America Renewable Energy Partners LLC (€106 million) and (ii) Tradewind, which transitioned from being an associated company to a wholly-owned subsidiary (negative goodwill of €75 million);
  • the gains of €42 million on the disposals of Gratiot and Outlaw, two renewable energy projects developed by Tradewind. 

In 2018, this item mainly included: 

  • the gain on the sale, with loss of control, of eight project companies in Mexico at the end of September 2018 and the associated re-measurement at fair value of the 20% stake retained by the Group in the companies sold (€190 million); 
  • the gain on the sale of EF Solare Italia (€65 million); 
  • the gain on the sale of a number of companies within the Enel Green Power Business Line in Uruguay (€18 million). 

The aggregate “Other income” increased by €398 million in 2019, essentially attributable to:

  • an increase in revenue in Argentina following the Edesur agreement with the local authorities resolving reciprocal pending issues arising during the 2006-2016 period (€233 million); 
  • the adjustment to the amount paid for the acquisition of eMotorWerks in 2017 in application of certain contract clauses (€98 million); 
  • the €50 million payment under the agreement that e-distribuzione reached with F2i and 2i Rete Gas for the early, lump-sum settlement of the second indemnity connected with the sale, in 2009, of e-distribuzione’s share held in Enel Rete Gas. 

In 2018, this aggregate mainly included the €128 million indemnity related to the e-distribuzione agreement for the sale of Enel Rete Gas in 2009.

The following table shows a breakdown of total revenue from sales and services by business area based on the approach used by management to monitor the Group’s performance during the two years being compared.

Millions of euro

2019

 

Thermal Generation and Trading

Enel Green Power

Infrastructure and Networks

End-user Markets

Enel X

Services

Other, eliminations and adjustments

Total

Revenue from sales and services

31,744

7,173

20,599

32,042

1,011

1,946

(17,149)

77,366

Other income

307

560

1,190

502

119

35

248

2,961

Total revenue

32,051

7,733

21,789

32,544

1,130

1,981

(16,901)

80,327

 

2018 (1)

Revenue from sales and services

27,412

7,650

18,805

33,444

964

1,958

(17,196)

73,037

Other income

195

406

1,163

327

42

(20)

425

2,538

Total revenue

27,607

8,056

19,968

33,771

1,006

1,938

(16,771)

75,575

(1)The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).