Annual Report 2010 - Enel.com

the free market, which benefited from the positive effect
of lower provisioning costs (€102 million), partially
offset by the decline in quantities sold;
> a €26 million increase in the margin on the sale of natural
gas to end users;
> €12 million in respect of the fine levied by the Authority
for Electricity and Gas with Resolution no. 66/07;
> an increase of €93 million in overheads, mainly due to
the rise in the number of customers on the free market.
2 Generation
and Energy Management
The Generation and Energy Management Division operates
in the field of electricity generation and energy products.
The main activities of the Division are as follows:
> the generation and sale of electricity:
- thermal and schedulable hydroelectric power plants
in Italy through Enel Produzione, Hydro Dolomiti Enel
(in the Province of Trento) and SE Hydro Power (in the
Province of Bolzano);
- trading on international and domestic markets, primarily
through Enel Trade, Enel Trade Hungary and
Enel Trade Romania;
Operations
Net electricity generation
Operating income for 2010, after depreciation, amortization
and impairment losses in the amount of €425 million
(€383 million in 2009), amounted to €58 million, up €48
million compared with 2009. The increase in depreciation,
amortization and impairment losses was related mainly to
the increase in provisions for doubtful accounts.
Capital expenditure
Capital expenditure totaled €62 million, down €18 million
compared with 2009.
> the supply and sale of energy products through Enel
Trade:
- provisioning for all of the Group’s needs;
- the sale of natural gas to distributors;
> the development of:
- nuclear power plants, through Sviluppo Nucleare
Italia;
- natural gas extraction projects, through Enel Longanesi
Development;
- natural gas regasification and storage plants, through
Nuove Energie and Enel Stoccaggi.
Millions of kWh
2010 2009 2010-2009
Thermal 47,744 50,186 (2,442) -4.9%
Hydroelectric 21,633 22,099 (466) -2.1%
Other resources 5 2 3 150.0%
Total net generation 69,382 72,287 (2,905) -4.0%
Net electricity generation in 2010 amounted to 69,382
million kWh, a decrease of 4.0% on 2009. More specifically,
the decrease in hydroelectric generation (466
million kWh) due to lower output from pumping, was
accompanied by a decline in thermal generation totaling
2,442 million kWh, mainly attributable to the reduction in
generation from fuel oil.
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