Enel braced for drop in turnover

5 February 2004 – Enel, the Italian electricity group, has estimated that the turnover of its electricity-distribution division will fall by 4.3 per cent this year as a result of the Italian energy authority’s decision to cut electricity tariffs for 2004-2007.

The planned reduction should have no impact, in contrast, on the revenues of Terna, the company which owns Enel’s electricity grid. It is still expected to achieve a turnover of around € 780m in 2004.

The 2004-2007 tariff schedule, which was decided on Saturday by the Italian electricity regulator, is intended to pave the way for the privatization of Enel’s transmission activities and the merger of Terna and its subsidiary, GRTN. Terna is due to be listed in late July.