Unbundling – Financial Statements and Notes of Edison Spa
As required under Decree No. 79/99 (the so-called Bersani Decree), the Italian Electric Power and Natural Gas Authority (abbreviated AEEG in Italian), in Resolutions No. 61/99 of May 14, 1999 and No. 310/01 of March 11, 2002, set forth the rules that electric power companies must follow in effecting the accounting and administrative separation of their operations.
Specifically, Resolutions 61/99 and 310/01 require that the Balance Sheet and Statement of Income be prepared in accordance with the requirements of Articles 2424 and 2425 of the Italian Civil Code, providing a breakdown of different activities, areas of business, common services and shared departments, according to the format provided in the applicable statute. These financial statements and their notes must be included in the Report on Operations (Annex 1) and forwarded to AEEG (Annexes 2 and 3).
Identification of Activities, Areas of Business
and Common Services
The first step is to identify the "activities," "areas of business" and "common services," as required under Articles 4, 5 and 7 of Resolution No. 310/01, which should be consulted for more detailed information.
For unbundling purpose, Edison constitutes a multiactivity industrial company with the following structure:
Activity Area of Business
Production ii.) Cogenerating power plants
iv.) Facility using renewable energy sources
Natural gas operations
Other operations
Common services
More specifically:
  • the production activity includes all property, plant and equipment and intangibles, revenues and expenses and other items related primarily to the operation of hydroelectric and cogeneration facilities;
  • as explained in Article 4.9 of Resolution No. 310/01, the natural gas activity includes all of the operations listed in Article 4, Section 4.1, Letters a), b), and c), but excluding Items i and iv, of Resolution No. 311/01 which will be explained in another document;
  • the common services include all the economic and financial activities listed in the abovementioned Resolution, except for telecommunications services (j), which are not operated by Edison Spa.
The Resolution requires that balance sheet items be allocated to the common services, except for the following items, which must be listed in the Non-attributable column:
  • receivables from stockholders;
  • the components of stockholders' equity;
  • items of a financial nature and those related to equity investments listed among the assets, respectively, under B.III.1/3/4 and C.III) and C.IV). By way of analogy, the financial items listed under B.III.2) that refer to the management of equity investments are also listed;
  • items related to borrowings listed among the liabilities under "D";
  • only the financial components of accruals and deferrals (listed under item "D" on the asset side and under "E" on the liabilities side);
  • all of the items that appear in the Statement of Income after Net Production Value;
  • the "Non attributable" colum also include the unallocated godwill.
Identification and Allocation of Costs to Common Services
and Shared Operational Departments
The remaining costs that cannot be analytically allocated to individual activities or cannot be listed as Non-attributable are allocated to common services and shared operational departments.
Costs allocated to common services under the two groupings (a-d; e-k) provided in Annex 1 are determined analytically because they represent the aggregate costs of several cost centers. However, when a cost center is shared by several services, the allocation of costs to the individual services is made by prorating the item in question in accordance with drivers defined specifically for each type of activity.
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In order to allow a comparison with the data of the Financial Statements, the figures related to transactions of goods and services occurred among activities of Edison Spa have been eliminated in the comum headed "Adjustments".
The balance sheet and statement of income that must be included in Annex 1 pursuant to Resolution No. 61/99, as amended, appear on the following pages. They have been prepared in accordance with the explanations provided above.