Edison (company)

Edison S.p.A.
Company type	Subsidiary
Industry	Electric utility
Founded	1 January 1884; 142 years ago in Milan, Italy
Founder	Giuseppe Colombo
Headquarters	Milan, Italy
Area served	Europe, North Africa, Middle East
Key people	Luc Rémont (Chairman), Nicola Monti (CEO)
Products	Electricity generation and distribution, natural gas exploration and production, crude oil exploration and production
Number of employees	5000+
Parent	Electricité de France

Edison S.p.A. is an Italian company specializing in electric utility services, with its main office located in Milan. Founded in 1884, it became part of Electricité de France in 2012. The company employs more than 5,000 individuals throughout Europe, North Africa, and the Middle East. The chairman is Luc Rémont, who also serves as CEO of EDF, while Nicola Monti holds the position of CEO at Edison.

Founding and Early Development (1884-1966)

The company was established in Milan in 1884 by Giuseppe Colombo under the name "Società generale italiana di elettricità sistema Edison," introducing Thomas Edison's inventions to Italy. Colombo obtained exclusive rights to several of Edison's patents and recruited some of his collaborators. Edison managed the Santa Radegonda power station, notable as the first power plant in Europe. Over subsequent decades, the company expanded significantly, particularly in the field of hydroelectric power, dominating much of northern Italy’s electricity distribution network.

In 1962, the Italian government nationalized the electricity sector to break up the oligopoly held by four major companies. Following compensation from the state, Edison—then under Giorgio Valerio’s leadership—diversified into petrochemicals and acquired the Standa supermarket chain, limiting electricity generation to internal consumption. However, competition remained fierce against state-owned Enrico Mattei's Eni and private chemical leader Montecatini. In 1965, Edison merged with Montecatini to create Montedison, which became Italy’s largest chemical firm.

Montedison Period (1966-2001)

Initially, Montedison controlled approximately 80% of Italy’s chemical market and 15% within the European Community. The 1973 oil crisis, however, compelled the company to seek government support to avoid insolvency. By the mid-1970s, the Italian state had acquired around 17% ownership in Montedison, becoming its principal shareholder and exerting further influence via state-controlled banks. The company increasingly emphasized job preservation over profitability, aligning with governmental social objectives.

In 1980, Mario Schimberni assumed the chairmanship and facilitated selling state-owned shares to Gemina—a consortium comprising banks and private enterprises—thereby diminishing government control. Schimberni introduced cost reduction strategies and established joint ventures with Mitsui and Hercules Inc., transforming Montedison from an unprofitable producer of commodity chemicals and plastics into a diversified holding company generating profits.

By 1985, agribusiness magnate Raul Gardini acquired a 40% stake in Montedison, gaining control and replacing Schimberni. Gardini sought to incorporate Montedison into his sugar and fertilizer business empire but accumulated substantial debt that threatened the company's financial stability, leading him to request state assistance. In 1988, Montedison formed Enimont through a joint venture with Eni; both firms held 40% stakes each while 20% remained publicly traded. By 1990, Eni purchased Montedison’s shares in Enimont, prompting Montedison’s withdrawal from the chemical sector to concentrate on energy.

In 1991, Montedison reintroduced the Edison brand for SELM, its energy division spin-off. The liberalization of Italy’s electricity market began with the 1999 Bersani decree, followed by the Letta decree that opened up the natural gas market. These regulatory changes allowed Edison to supply electricity to qualified customers and expand its downstream natural gas activities.

Edison S.p.A. Era (2002–Present)

In 2001, Italenergia SpA—a consortium formed by Fiat, Electricité de France, Sanpaolo IMI, and Banca Intesa—successfully executed a hostile takeover of Montedison, the parent company of Edison. After this acquisition, Montedison proceeded to sell off all assets unrelated to the energy sector. By 2002, Montedison merged with Edison, Sondel, and Fiat Energia, consolidating under the new entity Edison SpA. In 2005, Transalpina di Energia—a joint venture between Electricité de France and A2A—purchased a 63.3% stake in Edison’s common shares from Italenergia. Electricité de France increased its ownership to 99.5% by 2012 and subsequently removed Edison from trading on the Milan Stock Exchange.

Operations

Edison specializes in the generation and distribution of electricity and natural gas, with operations spanning Europe, Africa, and the Middle East.

Ranking as Italy’s second-largest electricity producer, Edison contributes roughly 15% of the country’s total power generation. Through its subsidiary Elpedison—a 50/50 partnership with Hellenic Petroleum—it commands about 12% of the Greek energy market. Additionally, Edison partners with DEPA on the strategic Greece–Italy gas pipeline initiative.

In the hydrocarbons sector, Edison is involved in exploration, production, and distribution activities for natural gas and crude oil. As of 2010, it held 80 hydrocarbon concessions and permits, encompassing reserves totaling .

Financial Performance

Amount in million €	2014	2013	2012	2011	2010	2009	2008
Gross revenue	12,325	12,335	12,014	12,097	10,446	8,867	10,064
EBITDA	814	1,009	1,103	1,003	1,369	1,471	1,643
Net revenue	40	96	81	871	21	240	346

Electricité de France remains the dominant shareholder of Edison with a controlling interest of 99.4%. On July 19, 2016, Edison introduced an internal whistleblowing system designed to enable employees to report unethical conduct and help prevent corruption within the company.