Annual Report 2010 - Enel.com

information on customers who have failed to make payments
for the purposes of possibly suspending deliveries
to such customers.
Credit risk mitigation
With Resolution ARG/elt no. 33/10, the Authority set out
the mechanism for settling receivables remaining on the
books of operators that temporarily provided safeguard
services in the period from July 1, 2007 to April 30, 2008.
More specifically, the Authority established that such receivables
shall be recognized net of the margins earned
by the individual operators during the same period. Under
the provisions of Resolution no. 190/10, on December 31,
2010, Enel Servizio Elettrico received a payment on account
of €91.1 million, subject to adjustment to be settled
following the process of quantifying the margin, which is
expected to take place in 2011.
With Resolution ARG/elt no. 219/10, the Authority set
out the general criteria and operating arrangements of an
innovative Indemnity System (IS) introduced with Resolution
ARG/elt no. 191/09 to counter customer default
following switching. More specifically the IS ensures that
out-going sellers – in the event they are unable to collect
payment of final invoices from low-voltage customers that
have switched – will be indemnified in an amount equal to
the estimated cost of two months of supply. The indemnity
will be levied by the new seller to the final customer
who accrued the original payable, thereby discouraging
opportunistic behavior. The IS, which will be in full operation
in 2012, will be introduced as from January 2011 with
simplified operating procedures.
A decree of the Minister for Economic Development of October
21, 2010 established a mechanism for reimbursing
unrecoverable costs incurred by safeguard service operators
in respect of unpaid invoices by end users who cannot
be disconnected.
The Authority, with Resolution ARG/elt no. 182/10, initiated
a proceeding to define the operating arrangements
and access criteria for the reimbursement mechanism. It is
scheduled to be completed by September 30, 2011.
Rate and rate updates
With Resolutions ARG/elt no. 205/09 and ARG/com no.
211/09, the Authority set the rates for the enhanced protection
service for the 1st Quarter of 2010. The final rate
for average residential customers was set at €162.6/MWh,
a reduction of 2.2% from the previous quarter. More
specifically, the PED component (covering sourcing and
dispatching costs) was reduced by about €0.6/MWh; the
PPE component (covering imbalances in the equalization
system for 2008) was reduced by €3.7/MWh; and the A4
component (used to finance special rate mechanisms) was
reduced by €0.3/MWh. These reductions were partially
offset by an increase in the UC1 component (covering
deficits in the equalization system for years prior to 2008)
of €1.5/MWh and an increase in the A3 component (incentives
for renewable and comparable sources) of €0.8/
MWh.
With Resolutions ARG/elt no. 41/10 and ARG/com no.
44/10, the Authority set the rates for the enhanced protection
service for the 2nd Quarter of 2010. The final rate
for the average residential customer was set at €157.7/
MWh, a decrease of 3.1% on the previous quarter. More
specifically, the PED was reduced by €0.5/MWh, the A4
component was reduced by €0.14/MWh and the PPE and
UC1 components were set at zero, partially offset by a further
increase in the A3 component (€1.5/MWh).
With Resolution ARG/elt no. 41/10, the Authority also updated,
as from April 1, 2010, the RCV component covering
sales costs incurred by enhanced protection service operators,
ensuring annual revenues in line with those for the
previous year.
With Resolutions ARG/com no. 93/10 and ARG/elt no.
94/10, the Authority set the rates for the enhanced protection
service for the 3rd Quarter of 2010. The final rate
for the average residential customer was set at €156.8/
MWh, a decrease of 0.5% on the previous quarter, mainly
attributable to a decrease of €1.8/MWh in the PED component,
offset by a further increase in the A3 component
of €1.1/MWh.
With Resolutions ARG/com no. 151/10 and ARG/elt no.
152/10, the Authority set the rates for the enhanced protection
service for the 4th Quarter of 2010. The final rate
for the average residential customer was set at €155.9/
MWh, a decrease of 0.5% on the previous quarter, again
attributable to changes in the PED (-€1.5/MWh) and A3
(+€0.4 /MWh) components.
As a result, in 2010 the rate for the average residential
customer fell by €6.7 euro/MWh, a decrease of 4.1%.
The reduction was mainly attributable to the overall
reduction of €8.8/MWh in the rate components
regarding the purchase and sale of energy (PED, PPE,
UC1 and marketing) for enhanced protection service
operators, equal to a reduction of 8.7%, partially offset
by the steady increase in the A3 component, which
is intended to finance incentives for renewable and
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