Annual Report - EDP

notes to the consolidated EDP - and Energias company de Portugal, financial S.A. statementsfor the Notes years to the ended Consolidated 31 december and Company 2012 Financial and Statements 2011for the years ended 31 December 2012 and 2011Additionally, the caption Electricity includes on a consolidated basis 474,575 thousands of Euros (31 December 2011: 237,032 thousands of Euros) related to theContractual Stability Compensation (CMEC) as a result of the Power Purchase Agreements (PPA) termination.Following the revision of the Commercial Relations Code, from 1 January 2012 onwards, EDP Serviço Universal began to sell in the market all the electric power of thespecial regime production acquired under the applicable legislation, buying in the market all the electricity needed to supply its customers. Following this amendment,from 1 january 2012 onward the electricity purchases from special regime producers and the respective sales in the market are accounted under cost of electricity andturnover by its gross amounts, respectively, resulting in an increase in these captions in relation to prior periods. As at 31 December 2012, the electricity from specialregime producers sold in the market amounts to 837,773 thousands of Euros.Cost of electricity and gas and Changes in inventories and cost of raw materials and consumables used are analysed as follows:GroupCompanyThousands of Euros Dec 2012 Dec 2011 Dec 2012 Dec 2011Cost of electricity 8,392,199 7,320,373 1,733,128 1,817,445Cost of gas 1,375,841 1,328,068 - -Changes in inventories and cost of raw materials and consumables used:Fuel, steam and ashes 497,340 418,130 - -Gas 493,792 491,413 316,730 342,756Cost of consumables used 16,552 33,603 - -CO 2 licenses 48,394 5,680 51,991 163,623Own work capitalised -87,808 -80,523 - -Other 175,377 167,632 8 11,143,647 1,035,935 368,729 506,38010,911,687 9,684,376 2,101,857 2,323,825On a company basis, Cost of electricity includes costs of 908,895 thousands of Euros (31 December 2011: 991,867 thousands of Euros) with the purchase of energyunder the agreement for management, purchase and resale of energy signed between EDP, S.A. and EDP Gestão da Produção de Energia, S.A.7. REVENUE FROM ASSETS ASSIGNED TO CONCESSIONSUnder the terms of concession contracts of EDP Group to which IFRIC 12 is applicable, the construction activities are outsourced to external specialised entities.Therefore, EDP Group has no margin in the construction of assets assigned to concessions. The revenue and the expenditure with the acquisition of these assets haveequal amounts, being analysed as follows:GroupThousands of Euros Dec 2012 Dec 2011Revenue from assets assigned to concessions 433,661 440,546Expenditure with assets assigned to concessionsSubcontracts and other materials -336,283 -338,432Personnel costs capitalised (see note 10) -85,775 -88,192Capitalised interest expense from financial debt (see note 15) -11,603 -13,922-433,661 -440,546- -The Revenue from assets assigned to concessions by geographical market is analysed as follows:Dec 2012Dec 2011Thousands of Euros Portugal Brazil Total Portugal Brazil TotalRevenue from assets assigned to concessions 336,135 97,526 433,661 301,465 139,081 440,546Expenditure with assets assigned to concessions -336,135 -97,526 -433,661 -301,465 -139,081 -440,546- - - - - -8. OTHER OPERATING INCOMEOther operating income is analysed as follows:GroupCompanyThousands of Euros Dec 2012 Dec 2011 Dec 2012 Dec 2011Gains on fixed assets 10,940 38,227 1,264 1,416Reversal of adjustments 40,985 33,301 24 -Customers contributions 40,071 53,609 - -Income arising from institutional partnerships - EDPR NA 127,350 111,610 - -Gains on business combinations (badwill) 32,393 51,695 - -Gains on sale of electricity transmission assets in Brazil 12,478 - - -Remeasurement of IFRIC 12 indemnization amount in Brazil concessions 40,838 - - -Other operating income 84,912 125,900 13,000 11,597389,967 414,342 14,288 13,013The caption Reversal of Adjustments includes 35,859 thousands of Euros (31 December 2011: 28,470 thousands of Euros) related to impairment for trade receivablesand 5,126 thousands of Euros (31 December 2011: 4,831 thousands of Euros) impairment for Debtors and other assets from commercial activities (see notes 25 and 26).196A World Full Of Energy