EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Other information

for fluoration: a contract covering the period 2019-2030; ■ for enrichment of natural uranium into uranium 235: an Orano Cycle contract for ■ the period 2019-2030. As part of the plan to construct two EPRs in the United Kingdom at the Hinkley Point site, on 29 September 2016 EDF and Orano signed a uranium contract with Orano Mining, and a conversion contract and enrichment contract with Orano Cycle. Back-end of the cycle: Relations between EDF and Orano concerning transportation, processing and recycling of spent fuels are described in note 28.

Relations with public sector entities 39.2.2 EDF’s relations with public sector entities mainly concern the two entities belonging to the former AREVA group (Orano and AREVA SA). Transactions with Orano concern: the front-end of the nuclear fuel cycle (uranium supplies, conversion and ■ enrichment services); the back-end of the nuclear fuel cycle (transportation, storage, processing and ■ recycling services for spent fuel). Front-end of the cycle: Several important agreements were negotiated between EDF and Orano: for supplies of natural uranium: Orano Mining contracts covering the ■ period 2021-2030; RIGHTS In ratifying the Kyoto Protocol, Europe made a commitment to reduce its greenhouse gas emissions. EU Directive 2003/87/EC set up a greenhouse gas emission quota system for the European Union which has been in operation since 1 January 2005. This system was incorporated into national laws. Among other things it requires obligated actors, which is the case of EDF, to surrender to the State a number of greenhouse gas emission credits each year, corresponding to their emissions for the year. This Directive came into effect in 2005 for an initial three-year period, followed by a second period from 2008 to 2012, with progressive reduction of the emission rights allocated. One of the main features of the third phase, running from 2013 to 2020, is the discontinuation of free allocation of emission rights in certain countries, including France. The volume of emissions at 31 December 2018 stood at 7 million tonnes (11 million tonnes at 31 December 2017). In 2018, EDF surrendered 11 million tonnes in respect of emissions generated in 2017. In 2017, EDF surrendered 8 million tonnes in respect of emissions generated in 2016. ENVIRONMENT NOTE 40 GREENHOUSE GAS EMISSION 40.1

ENERGY SAVINGS CERTIFICATES 40.2 The French Law of 13 July 2005 introduced a system of energy savings certificates. Suppliers of energy (electricity, gas, heat, cold, domestic fuel oil and fuel for vehicles) with sales above a certain level are subject to energy savings obligations for a three-year period. They fulfil these obligations by making direct or indirect energy savings rewarded by certificates, or by purchasing energy savings certificates. At the end of the set period, the entities concerned must provide evidence of compliance with obligations by surrendering the certificates, or pay a fine to the Treasury. In application of Article 30 of the Law of 17 August 2015 on the energy transition for green growth, a new additional energy savings obligation for 2016-2017 applies from 1 January 2016, for the benefit of households in a situation of energy poverty. This new obligation is added to the energy savings obligations for the third period. The annual volume of the obligation is proportional to the annual energy savings obligation. A fourth three-year period of energy savings obligations will begin on 1 January 2018 (see note 3.7).

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EDF I Reference Document 2018