Operations
Electricity distribution and transport networks
2019 | 2018 | Change | ||
Electricity transported on Enel’s network(1) | 504,027 | 484,377 | 19,650 | 4.1% |
- of which Italy | 224,587 | 226,460 | (1,873) | -0.8% |
- I of which beria | 126,454 | 124,865 | 1,589 | 1.3% |
137,295 | 117,412 | 19,883 | 16.9% | |
15,691 | 15,640 | 51 | 0.3% | |
End users (no.) | 73,258,840 | 72,945,664 | 313,176 | 0.4% |
End users with active smart meters (no.) | 44,668,538 | 43,770,085 | 898,453 | 2.1% |
(1) The figure for 2018 reflects a more accurate measurement of amounts transported.
The increase in energy transported on the network is mainly attributable to:
- Latin America (+16.9%) following the acquisition of Enel Distribuição São Paulo, a Brazilian electricity distribution company, on June 7, 2018;
- Romania (+0.3%), where the increase was mainly due to new connections of business customers (+21.4 GWh), which was partially offset by a decrease for residential customers (-21.1 GWh);
- Italy (-0.8%), where electricity distributed to end users totaled 224.58 TWh, a slight decrease from the previous year’s figure of 226.46 TWh. This reduction reflects declining demand among medium-voltage (-1.2 TWh) and high-voltage customers (-1 TWh). Demand was stable among low-voltage customers;
- Iberia (+1.3%), where the increase was due essentially to an increase in electricity transported by Edistribución Redes Digitales SL.
Average frequency of interruptions per customer
2019 | 2018 | Change | ||
SAIFI (average no.) | ||||
Italy | 1.9 | 1.8 | 0.1 | 5.6% |
Iberia | 1.4 | 1.6 | (0.2) | -12.5% |
Argentina | 6.0 | 6.7 | (0.7) | -10.4% |
Brazil | 5.8 | 6.2 | (0.4) | -6.5% |
Chile | 1.6 | 1.5 | 0.1 | 6.7% |
Colombia | 6.8 | 9.0 | (2.2) | -24.4% |
Peru | 2.8 | 2.8 | - | - |
Romania | 4.1 | 3.8 | 0.3 | 7.9% |
Average duration of interruptions per customer
2019 | 2018 | Change | ||
SAIDI (average min.) | ||||
Italy | 48.5 | 47.2 | 1.3 | 2.8% |
Iberia | 75.8 | 79.5 | (3.7) | -4.7% |
Argentina | 1,214.1 | 1,485.4 | (271.3) | -18.3% |
Brazil | 728.8 | 716.8 | 12.0 | 1.7% |
Chile | 184.1 | 178.0 | 6.1 | 3.4% |
Colombia | 666.6 | 710.0 | (43.4) | -6.1% |
Peru | 418.9 | 436.0 | (17.1) | -3.9% |
Romania | 169.6 | 173.8 | (4.2) | -2.4% |
As indicated in the tables, the most significant service interruptions occurred in Argentina, due in particular to faults in high-voltage transmission systems not operated by the Group.
2019 | 2018 | Change | ||
Network losses (avg. %) | ||||
Italy | 4.7 | 4.7 | - | - |
Iberia | 7.5 | 7.5 | - | - |
Argentina | 15.5 | 14.9 | 0.6 | 4.0% |
Brazil | 12.8 | 12.4 | 0.4 | 3.2% |
Chile | 5.0 | 5.0 | - | - |
Colombia | 7.7 | 7.7 | - | - |
Peru | 8.2 | 7.9 | 0.3 | 3.8% |
Romania | 9.7 | 9.8 | (0.1) | -1.0% |
Performance
Millions of euro | ||||
2019 | 2018 | Change | ||
Revenue | 21,789 | 19,968 | 1,821 | 9.1% |
Gross operating margin | 8,278 | 7,539 | 739 | 9.8% |
Operating income | 5,277 | 4,787 | 490 | 10.2% |
Capital expenditure | 3,905 | 3,830 | 75 | 2.0% |
The following tables shows a breakdown of performance by country in 2019.
Revenue
Millions of euro | ||||
2019 | 2018 | Change | ||
Italy | 7,647 | 7,672 | (25) | -0.3% |
Iberia | 2,724 | 2,671 | 53 | 2.0% |
Latin America | 11,033 | 9,275 | 1,758 | 19.0% |
- of which Argentina | 1,166 | 1,033 | 133 | 12.9% |
- of which Brazil | 6,946 | 5,629 | 1,317 | 23.4% |
- of which Chile | 1,467 | 1,348 | 119 | 8.8% |
- of which Colombia | 641 | 533 | 108 | 20.3% |
- of which Peru | 813 | 732 | 81 | 11.1% |
Europe and Euro-Mediterranean Affairs | 386 | 385 | 1 | 0.3% |
Other | 60 | 43 | 17 | 39.5% |
Eliminations and adjustments | (61) | (78) | 17 | 21.8% |
Total | 21,789 | 19,968 | 1,821 | 9.1% |
Gross operating margin
Millions of euro | ||||
2019 | 2018 | Change | ||
Italy | 3,906 | 3,679 | 227 | 6.2% |
Iberia | 2,025 | 1,965 | 60 | 3.1% |
Latin America | 2,259 | 1,763 | 496 | 28.1% |
- of which Argentina | 271 | 173 | 98 | 56.6% |
- of which Brazil | 1,144 | 815 | 329 | 40.4% |
- of which Chile | 222 | 228 | (6) | -2.6% |
- of which Colombia | 399 | 364 | 35 | 9.6% |
- of which Peru | 223 | 183 | 40 | 21.9% |
Europe and Euro-Mediterranean Affairs | 107 | 152 | (45) | -29.6% |
Other | (19) | (20) | 1 | 5.0% |
Total | 8,278 | 7,539 | 739 | 9.8% |
The gross operating margin increased as a result of:
- an increase of €496 million in the margin in Latin America despite the effects of adverse exchange rate developments of €133 million, an increase that is mainly attributable to:
- in Brazil, the consolidation of Enel Distribuição São Paulo (€313 million);
- in Argentina, the Edesur agreement with the government resolving mutual pending issues arising during the period from 2006 to 2016 in the amount of €209 million. This increase was partially offset by a reduction in sales revenue following a decrease in quantities transported;
- in increase in the gross operating margin in Italy following a reduction in costs for the purchase of energy efficiency certificates due to both a decrease in purchase prices and in volumes purchased (€191 million) and a reduction in personnel costs due essentially to actuarial gains in application of Article 4 of Law 92/2012 (€31 million). It should also be noted that, in 2019, e-distribuzione recognized an additional indemnity of €50 million related to the sale of Enel Rete Gas to F2i, following the indemnity of €128 million recognized in 2018;
- an increase in the margin in Iberia due mainly to an increase in electricity-transport revenue (€56 million) and a gain on the sale of the right to use the fiber-optic network (€24 million). These effects were partially offset by a decrease in revenue from services provided to third-party end users;
- a decrease in the gross operating margin of Europe and Euro-Mediterranean Affairs due to an increase in costs in Romania, mainly for personnel (€12 million), services (€12 million) and electricity purchases (€16 million).
Operating income
Millions of euro | ||||
2019 | 2018 | Change | ||
Italy | 2,647 | 2,508 | 139 | 5.5% |
Iberia | 1,288 | 1,220 | 68 | 5.6% |
Latin America | 1,349 | 1,025 | 324 | 31.6% |
- of which Argentina | 240 | 98 | 142 | - |
- of which Brazil | 487 | 362 | 125 | 34.5% |
- of which Chile | 173 | 178 | (5) | -2.8% |
- of which Colombia | 292 | 261 | 31 | 11.9% |
- of which Peru | 157 | 126 | 31 | 24.6% |
Europe and Euro-Mediterranean Affairs | 13 | 54 | (41) | -75.9% |
Other | (20) | (20) | - | - |
Total | 5,277 | 4,787 | 490 | 10.2% |
The increase in operating income in 2019 was due to the increase in gross operating margin, which was only partially offset by an increase of €249 million in depreciation, amortization and impairment losses. More specifically, the increase in depreciation, amortization and impairment mainly concerned:
- an increase of €172 million in depreciation, amortization and impairment in Latin America, which was essentially due to the change in the scope of consolidation with the addition of Enel Distribuição São Paulo and the recognition in Brazil of the writedown of the Funac fund in the amount of €96 million, which became necessary after the repeal by the state of Goiás of the obligation to meet the liabilities, even if not recognized, resulting from the administrative and judicial dispute of Enel Distribuição Goiás;
- an increase of €88 million in depreciation, amortization and impairment in Italy due to an increase in capital expenditure and to the application of IFRS 16 (€38 million).
Capital expenditure
Millions of euro | ||||
2019 | 2018 | Change | ||
Italy | 1,753 | 1,685 | 68 | 4.0% |
Iberia | 647 | 668 | (21) | -3.1% |
Latin America | 1,335 | 1,315 | 20 | 1.5% |
Europe and Euro-Mediterranean Affairs | 169 | 159 | 10 | 6.3% |
Other | 1 | 3 | (2) | -66.7% |
Total | 3,905 | 3,830 | 75 | 2.0% |
The increase in capital expenditure is mainly attributable to:
- Italy and capital expenditure for low-voltage plants; > Iberia and the reduction in capital expenditure for the distribution network and for software applications, an effect which was partially offset by an increase in capital expenditure for substations, transformers, and the replacement of metering equipment;
- Latin America, and Argentina specifically, in order to improve the quality of service provided to users through works aimed at strengthening the low-, medium- and high-voltage networks.