EDF / 2018 Reference document

5.

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

Natural gas and oil prices

90

28

85

26

80

24

75

70

22

65

20

60

Brent in US$/bbl

Natural gas in €/MWhg

55

18

50

16

45

Change in gas year

Change in gas year

40

14

Jul-17

Jul-18

Jan-17

Jan-18

Jun-17

Jun-18

Oct-18

Oct-17

Feb-17

Feb-18

Apr-17

Apr-18

Dec-18

Dec-17

Mar-17

Nov-18

Nov-17

Mar-18

Aug-17

Aug-18

May-17

May-18

Sept-17

Sept-18

Brent prices in US$/bbl (ICE)

Natural gas - Gas year ahead PEG Nord contract in €/MWhg (Powernext)

Electricity and gas consumption in Italy 5.1.2.2.2 In Italy (3) , electricity consumption was practically stable between 2017 and 2018 (+0.4%). The lower levels of thermal and solar power generation were counterbalanced by higher hydropower generation and net imports. In Italy, domestic demand for natural gas (4) decreased by 3.4% due to exceptionally high temperatures during the final quarter of 2018, which resulted in lower consumption by the residential market and thermal power generation. Electricity and natural gas sales tariffs 5.1.2.3 In France, the regulated tariffs changed as follows: the “blue” tariffs were raised by +0.7% for residential customers and +1.6% for ■ non-residential customers from 1 February 2018; the “blue” tariffs were reduced by -0.5% for residential customers and raised by ■ +1.1% for non-residential customers from 1 August 2018.

Electricity and gas consumption 5.1.2.2 Electricity and gas consumption in France 5.1.2.2.1 Electricity consumption in France (1) reached 478.2TWh in 2018, slightly less (-0.8%) than in 2017. 2018 was a warmer year, registering an annual average temperature of 13.4°C compared to 12.8°C in 2017. The first quarter of 2018 was a period of sharp contrasts. After a very mild January (+3.0°C above normal), February and March were very cold (respectively -3.5°C and -1.1° C below normal). After correction for weather effects, electricity consumption in France was down slightly compared to 2017 (-0.3%). Estimated natural gas consumption in France (2) declined by -4.7% between 2017 and 2018 to 470.0TWh. In February and March, colder year-on-year temperatures resulted in significantly higher demand for heating. Nonetheless, consumption was down overall in 2018, due to lower use of gas-fired plants for electricity generation throughout the year (-11TWh), and milder weather, especially in January and December, which led to a general reduction in the demand for heating.

ources for France : unadjusted data and data adjusted for weather effects provided by RTE. (1) Sources for France : unadjusted data provided by Smart GRTgaz. (2) Sources for Italy : unadjusted data and data provided by Terna, the Italian national grid operator and adjusted by Edison. (3) Sources for Italy : Ministry for Economic Development (MSE), Snam Rete Gas data adjusted by Edison on the basis of 1Bcm = 10.76TWh. (4)

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EDF I Reference Document 2018