Infrastructure and Networks

Operations

Electricity distribution and transport networks

Millions of kWh

   
 

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%

of which Latin America

137,295

117,412

19,883

16.9%

of which Europe and Euro-Mediterranean Affairs

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.