Wednesday, March 9, 2011

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The donkey economic: the CEO of Enel

It seems that the seat is unsafe, the CEO of Enel Fulvio Conti could soon give way to a man appointed by the Northern League. And so it seems nell'attore become a commercial in favor of nuclear power, with long-term forecasts that make you smile .

Conti said this morning (I attach at the bottom of the statements made by msdowjones.it) that if all goes well (and it is doubtful) the first nuclear power plant becomes operational in 2020. Enel aims to build 4 in collaboration with France's EDF and, against an expenditure of 18 billion, to create 3500 jobs for each central . All of then with strong socio-economic impact on the climate (nuclear power plants do not produce CO 2 ), research and development, etc. (the full statement found in the country).

laugh.

In Finland, Olkiluoto (see here) , the central building, similar to those perviste in Italy, will cost 50% more than expected ( 1.7 billion more than the € 3, € 2 billion set by the contract) and a delay of 3 years after 3 years of work . We therefore believe that it will build the first nuclear power plant in 2020 and the estimated cost?

And what are the important consequences for Italy? Enel and the government figures seem to shoot at random on the role of nuclear power. For the government aims to cover 25% of the electricity needs for the Enel half.

If he is right and if Enel-to-energy hypothesis nuclear power would cost one third less than the average of the other forms of energy, the discount on the bills would be 5%. Between 15-20 years, when plants come into operation.

So the statements of accounts make you smile. Anyone who knows economics knows that it is very difficult to predict such long-term, especially in a sector like power generation where technology can change everything in a short time .

Over the next 20 years will be amended
existing plants, new technologies will arrive that will reduce consumption of oil or coal for the same energy and develop new technologies that produce alternative energy and more efficient.

What accounts seems a tricky spot , such as the nuclear forum recently rejected by the Code of Advertising Practice (see here) , drawn up without any knowledge economy.




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"On nuclear we are not out of time, our engineers are continuing to work." It says to. D. Enel, Fulvio Conti, speaking in the House hearing.

"If this year will be 'completed the administrative part and was able to have full functionality' Agency for Nuclear Safety, said Conti-will 'still possible to have the first centrale entro il 2020, come previsto". Per rispettare l'obiettivo 2020, ha aggiunto Conti, "entro il prossimo anno dovrebbe partire il processo di richiesta delle autorizzazioni per i siti".

Quello che serve all'Italia, ha aggiunto ancora Conti, e' un mix bilanciato di fonti, con "un po' di nucleare. Il Governo dice il 25%, noi con EdF ci prefiggiamo il 12,5%, ma se riusciremo a fare di piu', sara' anche meglio. Quello che serve e' avere la certezza sui tempi, il riconoscimento degli stranded cost - per cui se cambia il Governo e si decide che il nucleare non si fa piu' c'e' bisogno di qualcun altro che paghi per questo, perche' nel frattempo noi abbiamo fatto gli investimenti - e quindi a logic of long-term. "

On the cost side, Conti said that the first unit 'of € 5 billion will be used for the second 4.7 billion, 4.3 billion for the third and fourth 4 billion, for a total of 18 billion euro. Each unit 'expected impact on employment for about 3,500 people. Exit the nuclear plant was "a strategic mistake, politically and economically, with tragic and costly consequences", the return to nuclear power, however, leads the country system "significant socio-economic impact" in terms of competitiveness ', security of supply and climate change, and providing "a strong impetus to employment, training specialist and the university'."

Conti has also made the point about the contribution made by Enel Italy: Enel in the period 1999-2010 has made a contribution estimated at 180 billion € for the development of the country. The manager referred, inter alia, to 34 billion of dividends distributed to over 28 billion in income taxes and social security contributions and about 33 billion arising from the privatization of Enel.

Fulvio Conti has also highlighted the growth of the company, explaining that "we are indebted to allow the proper development." Enel has "used the leverage of debt and how to 'right that is when you are processing operations of this type and we also used the leverage own with the capital increase and that 'was a great success so that the size of the company were more' than doubled. We have a debt ratio of 2.6 times EBITDA and, under most companies' celebrated, that instead of our worst performance "

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