notes to the statutory financial statements
at December 31, 2005
Content and Form of the Financial Statements
Dear Shareholders:
We submit for your approval the financial statements at December 31, 2005, which include the Balance Sheet, the Statement of Income and the respective Notes.
The financial statements have been prepared in accordance with current statutory requirements, as set forth in Articles 2423 and following of the Italian Civil Code. They also provide the additional disclosures recommended by the Consob and required by Legislative Decree No. 58/98 and its implementation decrees.
The financial statements are presented in accordance with the format provided in Articles 2424 and 2425 of the Italian Civil Code. Line items identified with Arabic numerals in the abovementioned form that have a zero balance both for the current and the previous year have been omitted.
The Notes to the Financial Statements are supplemented by the schedules required by the provisions of the relevant statutes.
The special schedules required pursuant to Resolution No. 61/99, as amended, and Resolutions No. 310 and No. 311 of 2001, with which the Electric Power and Gas Authority ordered the accounting and administrative separation of the electric power operations (the so-called unbundling), are annexed to the Report on Operations.
The statutory financial statements were audited by PriceWaterhouseCoopers, in accordance with the three-year (2005-2007) assignment it had received pursuant to a resolution of the Shareholders' Meeting of April 19, 2005.