Edison reports 10% power sales rise and 47% gas sales rise for 2003
Edison, Italy’s second largest power producer, reported its 2003 results late on Thursday, with a 10.4% rise in electricity revenues to EUR 3.9 billion and a 47.3% rise in gas revenues to EUR 2.1 billion.
The company attributed the rises in electricity sales to a 3.3% rise in unit sales to 45.03 billion kWh and an 8.6% rise in average tariffs to EUR 76.02/MWh. Edison said this in return is largely the result of an increase in eligible customers due to deregulation of the Italian market. Similarly, gas sales were up on a 54% rise in unit sales to EUR 1.8 billion, as well as a rise in demand from eligible customers. Gas prices also played a role with a 10% rise to EUR 0.1969 per cubic metre.
Edison continues to grow its core business, with construction started on a 400MW power plant in Candela and an 800MW plant in Torviscosa. Construction of the 800MW plant in Altomonte also continues according to schedule. All three are expected to go on stream in 2005. Edison has also applied for planning permission for an additional combined-cycle thermoelectric plant in Simeri Crichi. Edison also signed to purchase 50% of power produced by its affiliate Edipower, which is currently expanding installed capacity to 8,000MW by 2008.
The company said it has taken top spot in the deregulated market, with customer base of 60 major users and 111 consortia who consume more than 1 million kWh, and 600 businesses businesses that consume over 100,000 kWh. It added that it has fully prepared to trade on the Electric Power Exchange.
In its gas activities, Edison is continuing planning of liquefied natural gas regasification terminals in the Upper Adriatic and in Rosignano. Construction of the former is imminent as all relevant permissions have been granted, said the company. It will enable the importation 4.6 billion cubic metres of gas a year for 25 years, and construction is expected to be complete by 2008. The latter terminal is planned to be a 3 BCM a year facility.
To further develop its import portfolio, Edison also acquired a 20% interest in Galsi, a newly established company carrying out a feasibility study on a new Algeria- Sardinia-Italy gas pipeline.
Going forward, Edison Group plans to increase installed electric capacity to 10,000MW in 2004. This will be achieved through combined-cycle generation and a wind energy program. Together with the purchase of Edipower electricity, Edison’s portfolio will consists of 14,000MW. Edison will also implement a gas purchase agreement signed with Libya in 2002, to expand the company’s gas supply from 10 BCM in 2003 to 17 BCM by 2008. GD
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