ELE Endesa SA Ads

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 Comisi�n 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.