Enel SpA (ENEL.MI) expects to receive about EUR1 billion as the first reimbursement installment from Spain's so-called tariff deficit program by the end of 2010, the company's Chief Financial Officer Luigi Ferraris said Thursday.

Enel estimates that by the end of the year a total of EUR2 billion-EUR3 billion will be released and the company's share is about EUR1 billion, Ferraris told Dow Jones Newswires in Rome.

Enel, through Spanish utility Endesa SA (ELE.MC) it controls, boasts a credit of several billion euros under the program.

The tariff deficit is the difference between the regulated price Spanish consumers pay for electricity and the cost of producing it. Spanish utilities are set to receive their credits through state-guaranteed bonds.

"From a regulatory point of view all is set to start [to sell these bonds], what is needed is to find the right time to go to the market," Ferraris said.

Even if the tariff deficit bond sale program doesn't occur this year, Ferraris said this wouldn't have an impact on the utility's 2010 dividend.

There was concern that higher Spanish government bond yields, as was evident from Tuesday's sale of six-month Treasury-bills, would result in reducing the possible proceeds from the sale of the tariff deficit security, or to ultimately scrap the sale this year.

Ireland's bailout plan has put pressure on government securities in the euro zone's peripheral nations, which include Spain, and are identified as those with a weaker fiscal situation.

According to credit agency Fitch Rating, Endesa's total tariff deficit securitization amounted to EUR8.3 billion at the end of September.

CFO Ferraris confirmed Enel estimates 2010 net profit to "exceed" the earlier EUR4 billion target. He declined to be more specific.

Enel's dividend policy is to pay out 60% of its net profit, excluding extraordinary gains. Its dividend is one of the most generous in the sector.

At 1333 GMT, Enel share dropped EUR0.05, or 1.3%, at EUR3.73, slightly underperforming Italy's benchmark FTSE MIB Index.