Endesa (NYSE:ELE)
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ENDESA (NYSE:ELE) has awarded the consortium made up of Banesto and BNP
Paribas the exclusive securitization of the collection rights on the
revenue shortfall in connection with the remuneration for regulated
activities generated in fiscal 2005. As of 31 December, 2005, the
portion of said shortfall corresponding to ENDESA amounted to a total of
Euro 1.683 billion.
The mechanism for reimbursing the moneys owed to the electric utilities
for their regulated activities in 2005 was set in June of this year in
Royal Decree 809/2006. This piece of legislation provides for the
recovery of the 2005 tariff deficit –which
amounts to Euro 3.811 billion for the overall sector- by means of its
inclusion in the regulated electricity tariff, divided on a
straight-line basis over the next 14.5 years.
The contract governing the transfer of the collection rights is expected
to be formalised in November, when the Company will also receive the
funds, with the corresponding impact on ENDESA’s
financial debt, since the collection rights will be monetised in fiscal
2006 rather than over the next 14.5 years.
In 2006, the revenue shortfall in remunerating regulated activities
performed between 1 January, 2006 and 31 August, 2006 and financed by
certain electric utilities amounted to Euro 2.172 billion.
* This document may contain certain forward-looking statements regarding
anticipated financial and operating results and statistics that are
subject to risks and uncertainties as well as to material risks, changes
and other factors which may be difficult to predict, including, without
limitation, those factors described in the Documento de Registro de
Acciones of Endesa filed within the Comisión
Nacional del Mercado de Valores and in the Form 20-F of Endesa filed
within the Securities and Exchange Commission, both for the fiscal year
ended December 31, 2005. For all of these forward-looking statements, we
claim the protection of the safe harbour for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
ENDESA (NYSE:ELE) has awarded the consortium made up of Banesto
and BNP Paribas the exclusive securitization of the collection rights
on the revenue shortfall in connection with the remuneration for
regulated activities generated in fiscal 2005. As of 31 December,
2005, the portion of said shortfall corresponding to ENDESA amounted
to a total of Euro 1.683 billion.
The mechanism for reimbursing the moneys owed to the electric
utilities for their regulated activities in 2005 was set in June of
this year in Royal Decree 809/2006. This piece of legislation provides
for the recovery of the 2005 tariff deficit -which amounts to Euro
3.811 billion for the overall sector- by means of its inclusion in the
regulated electricity tariff, divided on a straight-line basis over
the next 14.5 years.
The contract governing the transfer of the collection rights is
expected to be formalised in November, when the Company will also
receive the funds, with the corresponding impact on ENDESA's financial
debt, since the collection rights will be monetised in fiscal 2006
rather than over the next 14.5 years.
In 2006, the revenue shortfall in remunerating regulated
activities performed between 1 January, 2006 and 31 August, 2006 and
financed by certain electric utilities amounted to Euro 2.172 billion.
* This document may contain certain forward-looking statements
regarding anticipated financial and operating results and statistics
that are subject to risks and uncertainties as well as to material
risks, changes and other factors which may be difficult to predict,
including, without limitation, those factors described in the
Documento de Registro de Acciones of Endesa filed within the Comision
Nacional del Mercado de Valores and in the Form 20-F of Endesa filed
within the Securities and Exchange Commission, both for the fiscal
year ended December 31, 2005. For all of these forward-looking
statements, we claim the protection of the safe harbour for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.