Other revenues and income totaled 638 million euros. A breakdown is as follows:
|(in millions of euros)||2010||2009||Change||% change|
|Income from CIP 6/92 contracts early termination||173||-||173||n.m.|
|Margin on trading activities||11||11||-||-|
|Recovery of fuel costs from Edipower's Tollers||93||162||(69)||(42.6%)|
|Recovery of costs from partners in hydrocarbon exploration projects||23||16||7||43.8%|
|Reversals in earnings of provisions for risks on receivables and other risks||22||3||19||n.m.|
|Gains on the sale of property, plant and equipment||2||26||(24)||(92.3%)|
|Total for the Group||638||517||121||23.4%|
Income from CIP 6/92 contracts early termination, for 173 million euros, generated by the early termination, pursuant to Ministry Decree of August 2, 2010, of CIP 6/92 contracts for Jesi, Milazzo, Porcari and Porto Viro thermoelectric power plants.
The increase in income from commodity derivatives, which should be analyzed together with raw materials and services used (which decreased from 239 million euros to 65 million euros), reflects primarily the results of Brent and foreign exchange hedges executed to mitigate the risk of fluctuation in the cost of natural gas used for the production and sale of electric power and of the gas earmarked for outright sale. This positive performance is due to a different scenario effect on the hedged physical commodity: in 2010, a spike in the prices of petroleum products drove natural gas costs higher, with a negative scenario effect on the hedged physical commodity, offset by the positive results shown as net income from commodity derivatives.
The decrease in recovery of fuel costs from Edipower’s Tollers, which should be analyzed in conjunction with purchases of oil and fuel (down from 326 million euros to 187 million euros), reflects a reduction in output by Edipower’s thermoelectric power plants that use these raw materials.
Out-of-period income, which amounted to 74 million euros, includes 5 million euros for refunds of costs incurred in 2008 for CO2 emissions rights attributable to some CIP 6/92 power plants and, for 10 million euros, a refund for the utilization of strategic storage capacity in 2005 and 2006. In 2009, this item reflected the positive impacts of AEEG Resolution No. 30/09, concerning the criteria for reimbursement of the costs incurred to purchase green certificates, and the contractual penalty payments received for late deliveries of some components of a thermoelectric power plant.
The gains on the sale of property, plant and equipment (2 million euros) were generated by the sale of some lands and building held as investment property and equipment parts.
Sundry items include insurance settlements totaling 22 million euros for past accidents that occurred at thermoelectric power plants.
Margin on Trading Activities
The table below, which is provided for the sake of greater clarity, shows the results from trading in physical and financial energy commodity contracts held in Trading Portfolios included in sales revenues and in other revenues and income:
|(in millions of euros)||See note||2010||2009||Change|
|Margin on physical contracts included in trading portfolios||
|Raw materials and services used||
|Total included in sales revenues||1||39||12||27|
|Margin on financial contracts included in trading portfolios||
|Other revenues and income||
|Raw materials and services used||
|Total included in other revenues and income||2||11||11||-|
|Total margin on trading activities||
In 2010, the Group began physical trading of natural gas. However, the margins generated at December 31, 2010 did not represent a material amount (4 million euros).