Enel_nuovi Regolamenti Per Distribuzione e Misurazione Energia

7/31/2019 Enel_nuovi Regolamenti Per Distribuzione e Misurazione Energia

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Enel SpA

Investor Relations

2012-2015: new regulatory period for electricitydistribution and metering

January 16, 2012


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Investor Relations

Index

The new regulatory framework

Key metrics

Closing remarks

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Investor Relations


verv ew

ncrease at . vs. .

RAB defined according to company-specific values, in line

199/11with previous regulatory period

Higher remuneration for new investments

Profit sharing balanced by other regulatory items

A rewarding regulatory framework to foster servicequality and customer satisfaction

21. Old regulatory framework 2008-2011


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The new regulatory frameworka n ea ures

Impact on regulated

revenues

Slight increase (2012 vs 2011)

Final figure, still to be defined1

Profit sharing

ec s a ance y o er regu a ory ems

o WACC increase

o Price cap on depreciation removal

o Deflator effect on RAB & depreciation

X-factor In line with mechanism already established in the

previous regulatory framework

31. By April the 30th, 2012


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Enel SpA

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The new regulatory frameworkar e n on or s r u on ac v es

--OldNew

Defined according to

&depreciation

company-spec c va ues

o Parametric RAB ante 2007(1)

o RAB post 2007 based on specificcompanys investments2

Defined according tosector-wide values

Opex

sector-wide values

sector-wide values

Higher transparency and predictabilityof com an s revenues

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1. Based on previous period companies revenues; parametrical depreciation path published by AEEG2. Including MV/LV substations RAB ante 20073. Including equalization mechanism effects


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Index


Key metrics

Closing remarks

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Key metricsverv ew

2008-2011Old

2012-2015New

Starting RAB ~ 20.6 bn1,2~ 21.5 bn1

Base WACC3,4 7.03%7.60%

X-factor4 2.2%2.9%

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1. RAB for distribution and metering, excluding commercial activities (~0.4 bn)2. Pro-forma net of HV grid RAB3. Real pre-tax4. Weighted average of distribution and metering


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Enel SpA

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Key metricsase componen s

2012-2015New

2008-2011Old

D/E

Risk-free rate

80%

4.45%

80%

5.24%

Equity risk premium 4.00%

levered 0.60 0.67 (1)

4.00%

0.61

Debt spread

Tax shield

0.45%

33.0%

0.45%

27.5%

Tax rate

Inflation

40.0%

1.7%

35.7%

1.8%

WACC

7.60% 7.03%(2)

71. Beta levered 0.60 for distribution and 0.67 for metering2. Weighted average of distribution (7%) and metering (7.2%)3. Risk-free rate will be updated according to the usual methodology (previous 12 months 10yrs. BTP average gross yields)

- erm rev s on n ovem er


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Key metricsew nves men s

--

OldNew

Regulatory lagcompensation

+1% WACC for newinvestments No compensation

investments

depreciation

depreciation1

81. RAB of year n calculated gross of the allowed depreciation of year n


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Key metricsncen va e

BaseWACC

WACC(regulatory lag)

WACC(specific investments)

Total WACCnew

Tota l W ACC

o ld

Smart grid pilot projects 7.6% +1.0%+2.0%

For 12 years10.6% 9 %

Replacement of MV/LV transformers

Energy storage systems pilot projects

7.6%

7.6%

+1.0%

+1.0%

+1.5%

+2.0%For 12 years

10.1%

10.6%

9 %

-

w ow osses ones

Reinforcement of MV grids in cities

historical centres7.6% +1.0%

+1.5%For 12 years

10.1% 7 %

Reinforcement of transformation

stations in critical areas1

7.6% +1.0%+1.5%

For 12 years

-

10.1% 7 %

. . .

Distribution network confirmed as a strategic

91. Critical areas: areas with high concentration of generation connected at MV/LV level (14 provinces and over 600 municipalities in other provinces in Italy)

p ar or e sys em


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Key metrics- ac or an pro s ar ng

Distribution Cumulated X - factorDistribution

New OldConfirmed old X-factor:

1.9% lasting 4 yrsNew X-factor:

0.9% lasting 8 yrs2.8%

(2)

1.9%

Meterin Meterin Cumulated X - factor

Confirmed old X-factor: New X-factor:7.1%

New

5.0%

Old

. .

10

Weighted average X-factor of 2.9% for the period 2012-151. Breakdown of new cumulated X-factor calculated on a pro-forma basis2. Applied to distribution-opex net of distribution commercial activities-opex

E l S A


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Index


Key metrics

Closing remarks

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Enel SpA


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Fostering regulated cash flow as a protection vis a vis

market volatility and sovereign risks

Enhancing the strategic role of investments in

infrastructures and networks activities

Long-term visibility on RAB evolution

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Enel SpA


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Investor Relations

This presentation may contain certain statements that are neither reportedfinancial results nor other historical information (forward-lookingstatements). These forward-looking statements are based on Enel S.p.A.s

forward-looking statements are subject to risks and uncertainties, actual futureresults may differ materially from those expressed in or implied by thesestatements due to any number of different factors, many of which are beyond

. . . ,

the regulatory environment, future market developments, fluctuations in theprice and availability of fuel and other risks. You are cautioned not to placeundue reliance on the forward-looking statements contained herein, which arema e on y as o e a e o s presen a on. ne .p. . oes no un er a eany obligation to publicly release any revisions to any forward-looking

statements to reflect events or circumstances after the date of this presentation.ursuan o ar . - , par. , o e n e nanc a c o e ruary ,

1998, the executive in charge of preparing the corporate accounting documentsat Enel, Luigi Ferraris, declares that the accounting information contained hereincorrespond to document results, books and accounting records.

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Enel SpA


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Enel SpA

Investor Relations

Investor Relations Team ([email protected])

Luca Torchia (Head of IR)

Pedro Caamero (Equity IR)

+39 06 83053437

+39 06 83055292

+39 06 83053437

+39 06 83055292

Elisabetta Ghezzi (Fixed income IR) +39 06 83052708+39 06 83052708

Visit our website at:

www.enel.com (Investor Relations)

Visit our website at:

www.enel.com (Investor Relations)

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Enel_nuovi Regolamenti Per Distribuzione e Misurazione Energia