EDF / 2018 Reference document

THE GROUP’S PERFORMANCE IN 2018 AND FINANCIAL OUTLOOK Operating and financial review

Forward electricity prices in Europe (1) 5.1.2.1.2

United Kingdom Italy Germany Belgium

France

Average forward baseload price under the 2019 annual contract for 2018 (€/MWh) Variation in average forward baseload price under the annual contracts, 2018/2017 Forward baseload price under the 2019 annual contract at 31 December 2018 (€/MWh) Average forward peakload price under the 2019 annual contract for 2018 (€/MWh) Variation in average forward peakload price under the annual contracts, 2018/2017 Forward peakload price under the 2019 annual contract at 31 December 2018 (€/MWh) Annual contract prices for baseload and peakload electricity in Europe were higher on average than in 2017, due to increases in commodity prices (coal, gas and CO 2 ). In France, the average annual contract baseload price for next-year delivery was €48.9/MWh, up by 27.9% from 2017. This increase is principally explained by rising fuel and CO 2 prices: the average coal price increased by 18%, the average gas price by 22% and the average CO 2 price practically tripled between 2017 and 2018. The “Calendar N+1” contract price ended the year 2018 at €61.6/MWh. In the United Kingdom, the April Ahead contract baseload price for 1 April Y+1 to 31 March Y+2 increased by 20.1% from 2017 to an average €60.1/MWh for 2018, due to a rise between the two years in CO 2 prices but also gas prices, which make a significant contribution to the formation of British electricity prices. In Italy, the annual contract baseload price for next-year delivery also rose to an average €59.0/MWh in 2018, 26.7% higher than in 2017. This increase was driven

48.9

60.1

59.0

44.1

51.0

+27.9% +20.1% +26.7% +36.1% +36.9%

61.6

65.3

66.8

55.8

60.9

62.1

65.8

66.8

54.2

63.7

+24.3% +18.2% +26.6% +33.8% +33.0%

75.6

71.1

75.7

67.8

73.3

by the significant increase in gas and CO 2

prices, which are a major factor in Italian

electricity prices.

5.

In Germany, the average annual contract baseload price for next-year delivery was up by 36.1% from 2017, at €44.1/MWh in 2018. This increase resulted from year-on-year rises in fuel and CO 2 prices, since coal-fired facilities still make a significant contribution to the formation of German electricity prices, and are more strongly affected than gas-fired facilities by higher CO 2 prices. In Belgium, the annual contract baseload price for next-year delivery was nearly 37% higher in 2018 than in 2017 at an average €51.0/MWh, due to higher coal and CO 2 prices. Another factor in this increase was the announcement that Tihange reactors 2 and 3 were to be shut down in late 2018: this pushed prices up from 21 September, before they fell back in mid-October following announcements of measures introduced to ensure secure power supplies for Belgium during the winter.

France and Germany: average year-ahead EEX price; (1) Belgium and Italy: average year-ahead EDF Trading price; United Kingdom: average ICE annual contract prices, April 2018 then April 2019 (in the UK, annual contract deliveries take place from 1 April to 31 March).

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EDF I Reference Document 2018