|Millions of euro|
|Fair value gain/(loss) on contracts for purchase of electricity and gas (IFRS 9)||(340)||4,327||(4,667)||-|
(1) The 2019 figures have been adjusted to take account of the reclassification of the fair value gain/(loss) on contracts for the purchase of commodities with physical settlement (IFRS 9) from “Other operating costs”.
Costs for the purchase of “electricity” mainly decreased due to a decline in volumes purchased in an environment of decreasing average prices, mainly attributable to the effects of the COVID-19 pandemic.
The decrease in costs for the purchase of “gas” reflects the decline in quantities handled, mainly due to a reduction in generation, as well as the fall in the cost of gas. In particular, the latter factor also reflected the financial benefit of the finalization of the agreement with NLNG on the price review applied to Nigerian supplies.
Purchases from contracts with physical settlement (IFRS 9) and the gain/(loss) from the fair value measurement of such contracts showed a decrease of €4,667 million compared with the previous year, mainly attributable to gas (€4,279 million).
The reduction in “other fuels” is mainly attributable to the decline in the volume of thermal generation. and includes the write-down of fuel inventories connected with coal-fired plants in Italy and Spain as a result of the energy transition process.