EDF / 2018 Reference document

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

Electricity volumes on the Enedis network In TWh

Injections by decentralised producers

400 Injections by decentralised producers

400

374.7

374.7

376.2

376.2

24.9

24.5

Losses

Losses

42.9

49.6

300

300

Injections by RTE

200

200

Injections by RTE

325.1

333.3

350.2

351.3

Deliveries

Deliveries

100

100

0

0

Injections

Withdrawals

Injections

Withdrawals

2018

2017

France, now Engie, led them to spin out their distribution network. Enedis and GRDF share a “common service” pursuant to the legal framework (see section 1.4.4.2.3 “Service shared by Enedis and GRDF”). Pursuant to the Law of 9 August 2004, the business of public electricity distribution network operator was turned into a subsidiary in 2007. The Supervisory Board of Enedis comprises fifteen members, of which eight are appointed by the Ordinary Shareholders’ Meeting, five are representatives of the employees elected in accordance with the conditions set out in Law no. 83–675 dated 26 July 1983 relating to the democratisation of the public sector, one member is appointed by the French State by virtue of Articles 4 or 6 of Ordinance no. 2014-948 dated 20 August 2014, and one, representing the organising authorities for the public electricity distribution network, is appointed by decree in application of Article 153 of Law no. 2015-992 relating to energy transition for green growth. In 2017, the Enedis Executive Board was made up of five members who performed their work under the supervision of the Supervisory Board. With effect from 11 January 2018, a new Enedis Executive Board was set up and is composed of two members. In application of the possibility offered by Ordinance no. 2014-948 dated 20 August 2014 (Article 15) and in compliance with Decree no. 2015-38 dated 19 January 2015, the French State appointed by a Decree dated 4 February 2015 a Government Commissioner for the purposes of attending the meetings of the Supervisory Board of Enedis. A new Government Commissioner was appointed by Decree on 25 October 2018. On 1 June 2016, the business name of the public distribution network operator was changed to Enedis, as a replacement for ERDF. This new name reflects the company’s strong commitment to the energy transition in the wake of COP 21. It will also raise the profile of the network operator and clarify its purpose, as the CRE recommended.

Electrical losses are inherent to the functioning of the distribution network and mainly result from physical effects which are directly dependent on the amount of electricity delivered. Enedis must compensate these losses to complete the amount of energy delivered to the final customers. The volume of losses in 2018 stood at 24.5TWh (see Electricity report above), i.e. a rate of 6.3% (1) . Losses recognised in the accounts, including restatements of prior financial years amount to €1,100 million. To compensate these losses, Enedis buys the corresponding electricity from the wholesale market, either through organised market platforms, or through calls for tender open to around 20 qualified suppliers. Technical specifications: the distribution network for which Enedis is the concession holder (see section 1.4.4.2.2 “Distribution activities”) is, at 31 December 2018, made up of around: 644,901 kilometres of A-type high-voltage (HVA) lines of 20,000 volts; ■ 721,000 kilometres of low-voltage (LV) lines of 400 volts; ■

2,242 HVB/HVA source substations; ■ 787,492 HVA/LV transformer stations. ■ Organisation of Enedis 1.4.4.2.1

Distribution activities on French soil are, pursuant to the legal framework, almost exclusively conducted by Enedis, a French public limited company (société anonyme) with an Executive Board and a Supervisory Board responsible for the management of the public electricity distribution network. Pursuant to Directive no. 2003/54/EC, the principles of which are applied in Directive no. 2009/72/EC of 13 July 2009, when the public distribution network operator is part of a vertically integrated company, its organisation and decision-making must be legally independent from other activities not related to distribution. Within this framework, the principle adopted by EDF and Gaz de

This rate is now calculated as a ratio of losses for the year to gross inflows before deducting backflows to the transmission network. (1)

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I Reference Document 2018