Annual Report 2010 - Enel.com

Transactions with related
parties
As an operator in the field of generation, transport, distribution
and sale of electricity, Enel provides services to
a number of companies controlled by the Italian State,
Enel’s controlling shareholder. In the current regulatory
framework, Enel concludes transactions with Terna - Rete
Elettrica Nazionale (Terna), the Single Buyer, the Energy
Services Operator, and the Energy Markets Operator (each
of which is controlled either directly or indirectly by the
Ministry for the Economy and Finance).
Fees for the transport of electricity payable to Terna and
certain charges paid to the Energy Markets Operator are
determined by the Authority for Electricity and Gas.
Transactions relating to purchases and sales of electricity
concluded with the Energy Markets Operator on the
Power Exchange and with the Single Buyer are settled at
market prices.
In particular, companies of the Sales Division acquire electricity
from the Single Buyer and settle the contracts for
differences related to the allocation of CIP 6 energy with
the Energy Services Operator, in addition to paying Terna
fees for the use of the national transmission network.
Companies that are a part of the Generation and Energy
Management Division, in addition to paying fees for the
use of the national transmission network to Terna, carry
out electricity transactions with the Energy Markets Operator
on the Power Exchange and sell electricity to the
Single Buyer. The company of the Renewable Energy Division
that operates in Italy sells electricity to the Energy
Markets Operator on the Power Exchange.
Enel also acquires fuel for generation and gas for distribution
and sale from Eni, a company controlled by the Ministry
for the Economy and Finance. All transactions with
related parties are concluded on normal market terms and
conditions.
142 Enel Annual Report 2010 Report on operations
In November 2010, the Board of Directors of Enel SpA approved
a procedure governing the approval and execution
of transactions with related parties undertaken by Enel
SpA either directly or indirectly through its subsidiaries.
The procedure (which can be found at http://www.enel.
com/it-IT/group/governance/principles/related_parts/)
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 rules established by CONSOB. It replaces,
with effect from January 1, 2011, the rules governing
transactions with related parties approved by the Board of
Directors of Enel SpA on December 19, 2006 in implementation
of the recommendations of the Corporate Governance
Code for listed companies, the provisions of which
were in effect until December 31, 2010.
For more details on transactions with related parties,
please see the discussion in note 39 to these consolidated
financial statements.