Glossary

E

  • EBIT
    Earnings Before Interest and Taxes. Net operating profit, after depreciation and amortization.
    Spanish: EBIT
  • EBITDA
    Earnings Before Interest, Taxes, Depreciation and Amortization. Gross operating profit.
    Spanish: EBITDA
  • EFR Certification
    The Family-Responsible Company (Empresa Familiarmente Responsable) certificate is awarded by the +Familia Foundation for compliance with the 1000-1 standard supported by the Ministry of Labour and Social Affairs. Recognises organisations that have most contributed to the conciliation of personal and working lives, through the evaluation of different factors such as stability in employment, flexibility of hours and support for integration, for the family and for equal opportunities, as well as initiatives of the Company in favour of gender equality, with a progressive incorporation of women in positions of responsibility. In 2006, the companies, IBERDROLA S.A., IBERDROLA GENERACIÓN S.A. and IBERDROLA DISTRIBUCIÓN ELÉCTRICA S.A., obtained this certificate. In 2007, IBERDROLA RENOVABLES S.A. and IBERDROLA OPERACIÓN Y MANTENIMIENTO S.A. acquired the certification, and in 2008 it was obtained by IBERDROLA INGENIERÍA Y CONSTRUCCIÓN S.A. All certified companies renew the certification annually.
    Spanish: Certificación EFR
  • Early action
    Early action is a criterion to be considered when assigning emission allowances, such as within the EU ETS scheme. This criterion establishes the importance of taking into account the allocation of emission allowances, not only historical emissions or the mitigation potentials of each installation or sector, but also past mitigation efforts. As established by the European Commission (COM 2003, 830 final), recognition of Early Action when allocating rights means that: "The accommodation of early action (in a national allocation plan for emission allowances) is considered as desirable from a fairness point of view. Those installations that have already reduced greenhouse gas emissions in the absence of or beyond legal mandates should not be disadvantaged vis-à-vis other installations that have not undertaken such efforts. The application of this criterion necessarily implies fewer allowances available for installations that have not undertaken early action".
    Spanish: Acción temprana
  • Earnings per share
    The result of dividing net profits by the number of outstanding shares.
    Spanish: Beneficio por acción
  • Ecosystem
    An ecosystem is a community of organisms and its physical environment; i.e. the interaction between a community of different species - plants, animals and microorganisms - and other inorganic factors, such as atmospheric gases, temperature and light. When an ecosystem's balance shifts, through the introduction of new elements or a major increase in one or more of these, the normal functioning of the ecosystem may become interrupted. Thus, Ecology is the science that studies the relationships between living organisms and their environment.
    Spanish: Ecosistema
  • Electromagnetic fields
    Combination of invisible fields of electrical and magnetic force. Exist since the Earth was formed as solar radiation and static fields, and are necessary for human life. Without them, life would disappear. Added to these natural electromagnetic fields are electromagnetic fields generated artificially by, for example, electricity installations and distribution networks, and any kind of machine and household electrical appliance that operates with electrical energy.
    Spanish: Campo electromagnético
  • Electronic shareholders' forum
    Electronic tool provided in order to facilitate communication among the shareholders of the Company through its website www.iberdrola.com on occasion of the call to and until the holding of each General Shareholders' Meeting. See "Regulations for the Electronic Shareholders' Forum".
    Spanish: Foro Electrónico de Accionistas
  • Emission Trading Scheme (ETS)
    A market instrument creating economic incentives and disincentives in the pursuit of environmental benefits, whereby a body of industrial plants collectively reduces pollutant gases emitted to the atmosphere. There are currently emissions markets operating in different countries and which affect different gases. The European Union launched the most ambitious CO2 market to date on 1 January 2005, which is regulated by Directive 2003/87/CE and impacts globally upon more than 10,000 installations and over two billion tonnes of CO2, around 45% of the EU's greenhouse gases. In Spain, the trade in emissions allowances is regulated by Act 1/2005, of 9 March. In the electricity sector, the entry into force of the emissions trading scheme has meant an important change in the management of companies, since it implies the consideration of a new cost for the by-products of electricity generation. The main financial consequence is that, at the end of each year, and within periods of several years (2005-2007 and 2008-2012), the Company has to present its emission allowances alongside the emissions actually produced by its power stations in Spain and the United Kingdom.
    Spanish: Comercio de derechos de emisión
  • Emission reduction units
    In accordance with the Join Implementation mechanism, a country listed in Annex I may undertake an emission reduction project or a project that facilitates absorption by carbon sinks within the territory of another Annex I country and use the resulting emission reduction units (ERUs) to meet its own Kyoto target. Every JI project must have the approval of both parties and involves a reduction in emissions by sources, or a greater reduction by way of carbon sinks, and which must be in addition to the reduction that would occur if the project were not undertaken.
    Spanish: Unidades de reducción de emisiones
  • Energy efficiency
    Series of actions allowing the optimisation of the relationship between the quantity of energy consumed and the end product or service. Improving energy efficiency has become a key objective of the European Union's energy policy. IBERDROLA is working in favour of energy efficiency through a series of actions that can be seen from a triple perspective: (1) as an electricity company, incorporating clean, advanced and efficient technologies in production and distribution; (2) as a commercial company, offering efficient solutions to customers; (3) as a consumer of energy, ensuring the continuous improvement in the energy efficiency of work centres, buildings and vehicles, developing mobility plans and sensitizing employees.
    Spanish: Eficiencia energética
  • Energy saving
    Reduction of the amount of energy for industrial and domestic uses, in order to cut its abusive or unnecessary use.
    Spanish: Ahorro de energía
  • Environment
    According to the United Nations, the environment is the ?joint group of physical, chemical, biological and social components capable of causing direct and indirect effects, on the short or long term, on living beings and human activity?. In general terms, the concept of environment encompasses the surrounding which affects and determines the circumstances of life of people or society as a whole. It includes the set of natural, social and cultural values that exist at a specific place and time and which influence the lives of people and future generations. It not only involves the space in which life occurs but also encompasses living beings, objects, water, soil, air and the relationships between them, as well as such intangible elements as culture.
    Spanish: Medioambiente
  • Environmental damage
    Environmental damage means a measurable adverse change in a natural resource or measurable impairment of a natural resource service which may occur directly or indirectly. Specific environmental damage can effect people, both present and future generations (in the form of negative socio-economic impacts, negative impacts on health, landscape degradation, etc.), as well as the ecosystem (damage to food chains, the extinction of species, etc.). According to Spain's Act 26/2007 on Environmental Responsibility, the following types fall within the concept of environmental damage: - Damage to wild species and their habitats, i.e. any damage that causes major adverse effects jeopardizing the chance of achieving or maintaining a favourable state of conservation of such habitats or species. - Water damage, which is any damage that significantly adversely affects the ecological, chemical and/or quantitative status of bodies of surface water or groundwater and/or ecological potential of heavily modified and artificial bodies of water. - Damage to the coastline and estuaries, which is any damage that causes significant adverse impacts on their physical integrity and adequate conservation, as well as damage that impedes or prevents their adequate levels of quality from being achieved or maintained. - Soil damage, which is any soil contamination that implies a significant risk of adverse effects on human health or the environment due to depositing, spilling or direct or indirect introduction of substances, preparations, organisms or microorganisms in the soil or subsoil.
    Spanish: Daño ambiental
  • Environmental externality
    Generally speaking, an external effect, or externality, is said to occur when the decisions of one agent unintentionally affect another and the first offers no compensation to the second. External effects may arise from consumption or production, and the unintentional affect may be beneficial or harmful. Externalities may also be public or private. An environmental externality is that which manifests itself on a variable linked to the environment, such as the concentration of a specific chemical compound in the air or water. When individuals cannot bear the consequences arising from their decisions, it is fair to expect that their decisions are not efficient. Let us consider the following example, in which there is a single negative externality in production. Imagine that good X is produced by one company and good Y by another. Apart from using capital and labour, each producer also uses the atmosphere, an environmental resource, as a production factor, but pays nothing for the use of this resource. Let us also imagine that the production of Y creates atmospheric pollution. Such pollution generates a negative externality, which adversely affects the production of X, but not that of Y.In a competitive market economy, each company maximises profit independently. However, in this case, resources are not being assigned efficiently: there are potential earnings that are not being exploited as individual competitive behaviour does not maximise overall profits. More specifically, competitive balance leads to excessive production of good Y along with excessive emission levels. The efficient solution would be to maximise the joint profits of both companies.
    Spanish: Externalidad ambiental
  • Environmental quality
    Environmental quality refers to the amount of pollutants present at a specific place. Pollutants mean any material or substance, combinations or compounds thereof, chemical or biological derivatives, as well as all forms of thermal energy, ionising radiation, vibrations or noise which, upon entering or interacting with the atmosphere, water, soil, flora, fauna or any environmental element, alter or modify their composition or affect human health. The term is used to refer to the state of the natural environment in a broad sense. It includes the notion of surroundings and other variables such as the scenic and aesthetic quality of the environment.
    Spanish: Calidad del medio ambiente
  • Equivalent Time Interruption of Installed Power (TIEPI)
    Represents the average annual time when supply to users was interrupted.
    Spanish: TIEPI
  • Executive Committee
    Permanent representative decision-making body of the Board of Directors, vested with all the powers of the Board of Directors except for those that may not be delegated pursuant to law or the By-Laws.
    Spanish: Comisión Ejecutiva Delegada
  • Executive director
    Director who performs senior management duties and who may or may not be an employee of the Company or its Group.
    Spanish: Consejero ejecutivo
  • External independent director
    Director who, having been appointed because of his personal and professional qualities, may carry out his duties without being dependent upon relationships with the Company or the significant shareholders or managers thereof.
    Spanish: Consejero externo independiente
  • External proprietary director
    Director who owns a shareholding interest that is equal to or greater than that legally regarded as significant at any time; or who has been appointed owing to his status as shareholder, although his shareholding interest does not reach such amount; or whose appointment has been proposed to the Company by any of the aforementioned shareholders.
    Spanish: Consejero externo dominical
  • Extraordinary General Shareholders' Meeting
    Meeting of the shareholders of the Company that is not considered to be an Annual General Shareholders' Meeting. An Extraordinary General Shareholders' Meeting may be held at any time, when circumstances so advise and once it has been called as provided in the regulations.
    Spanish: Junta General Extraordinaria
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