target and growth strategy

In 2012, gross total demand for electric power from the Italian grid totaled 325.3 TWh or 2.8% less than in the previous year. On a seasonally adjusted basis (i.e., eliminating the impact of changes in average temperature and the number of business days), demand was down 3.1%.

Italian demand for natural gas contracted by 4.1% in 2012 compared with the previous year to a total of about 74.2 billion cubic meters, for an overall reduction of about 3.2 billion cubic meters. This decrease is attributable mainly to lower consumption by thermoelectric users,  offset in part by minor gains in consumption by residential customers (+0.1 billion cubic meters; +0.4%) and industrial users (+0.5%).

Despite the tough scenario challenges, Edison intends to confirm its role of primary Italian energy company and to take advantage of the international growth opportunities achievable within the EdF Group.

The Company’s specific goals are to:

• consolidate its competitive position in the Italian electric power generation market and strengthen its role as the second-largest operator in the natural gas procurement sector;
• increase its E&P activities by fully exploiting the Abu Qir reserves, and also diversify its portfolio particularly in other Mediterranean areas and in Norway;
• focus its commercial strategy on increasing its penetration in the small business-SOHO and residential segments, leveraging on its ability to supply both power and natural gas in order to confirm Edison as first national player on the free market (target of 2 million clients);  
• compensate for the gradual reduction of the regulated margins generated by CIP6 electric power production with relevant capital expenditures in order to increase its gas storage capacity;
• participate, over the long term and consistently with the macroeconomic evolution, in the development of natural gas import pipelines relevant for the European market also within the EdF plans.

The growth pace of the Group will be modulated to ensure that the level of investments reflects the changing trends in energy demand; Edison will also comply with the financial sustainability of the investments but also leveraging on the flexibility deriving from the parent company's financial support.