Purchasing solid and liquid fuel(9) is a strategic activity for the Group, since it plays a leading role in guaranteeing the security and continuity of thermoelectric energy production.
The selection of fuel suppliers is done by assessing economic and financial aspects of the counterparties and the possession of the technical and commercial prerequisites.
Suitable counterparties are subsequently included in specific Vendor Lists. Purchase contracts signed with such suppliers are subject to the rules adopted by the Group regarding the Code of Ethics and the Zero Tolerance of Corruption Plan, to which suppliers must adhere.
In relation to purchases by sea from the international market, a check is made that suppliers are not on specific blacklists of the UN, European Union and the US Office of Foreign Assets Control, lists which respectively identify individuals or organizations connected with terrorist organizations, organizations subject to financial sanctions by the EU and so-called SDN (Specially Designated Nationals) organizations which are subject to sanctions by the United States for accusations, among other things, of terrorism or drug-trafficking.
Finally, in order to mitigate the risks from fuel transport by sea, Enel has adopted a tool to assess and select the transporters used, known as vetting. Vetting is a recognized industry standard for oil transport, but for some years Enel and a small number of operators have started to apply the same methodology also in the sector of dry bulk transport (minerals, coal, cereals).
In 2015 the total amount of fuel purchases was around 7.5 billion euro.
Fuel purchases (m. euro)
*Coal, lignite and biomass
(9) Information referring to solid and liquid fuel, unless otherwise indicated.