EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

implement energy efficiency actions and promote the insertion of renewable ■ energies onto the network; ensure the monitoring of the load sharing perimeters; ■ be the guarantor for the distribution and accounting for the energy flows ■ between the network user players, and the fair compensation of losses on these networks; provide services for the LDCs, distributors and organising authorities mentioned ■ respectively in sections III and IV of Article L. 2 224-31 of the French Local Authorities Code. Distribution activities 1.4.4.2.2 Enedis’ business is based on a number of activities: manage, in its capacity as the concession holder, the assets under concession; run and maintain the network in such a way as to ensure the continuity of supply; carry out work on the network (in particular, network connection, reinforcement and renewal work); provide access to the network to all users in the framework of contractual provisions in force; and manage the meter fleet, as well as obtaining, processing and transmitting data on network user consumption. Change in investments In 2018, Enedis invested €3,998 million, of which €1,464 million were mainly devoted to connections for new customers and producers, as well as to the reinforcement of the network. In addition, the contracting authorities invested €705 million in 2018. In all, almost €4.7 billion were invested on the distribution networks in 2018 in mainland France.

Enedis’ missions in France Enedis, pursuant to the conditions set by law and the concession contracts signed with each of the public electricity distribution contracting authorities (see section 1.4.4.2.2 “Distribution activities”), performs its missions as the public distribution network operator in mainland France. These missions are: define and implement operational, investment and development policies in ■ relation to the electricity distribution network; provide connection and access for users to these networks under objective, ■ transparent and non-discriminatory conditions, as well as inter-connection with other networks; provide users with the information needed to access the network efficiently ■ (information protected by regulations or law excepted); oversee relations with the energy regulation authorities (Ministry of Energy, the ■ Energy Regulation Commission (CRE), public distribution contracting authorities) in line with its activities; oversee relations with local authorities; ■ negotiate, conclude and manage concession contracts; ■ operate, maintain and repair the electricity distribution networks; ■ design and build infrastructure, as well as manage work on the networks; ■ carry out metering activities for users connected to the networks, particularly as ■ regards supply, installation, meter inspection, maintenance and renewal of metering devices, as well as managing data activities and any other missions relating to its work as a whole;

1.

ROSS INVESTMENTS MADE BY ENEDIS (in millions of euros)

2018

2017

Connections and reinforcement

1,464

1,411

Regulatory, safety and transmission channel obligations

415 347

402 363

Work instruments and operational resources

Network modernisation (1)

1,772 3,998

1,591 3,767

TOTAL INVESTMENTS OF ENEDIS

705

721

WORK ALLOWANCES BY THIRD PARTIES AND LOCAL AUTHORITIES (2)

4,703

4,488

TOTAL NETWORK INVESTMENTS

Of which Linky: €792 million in 2018 and €612 million in 2017 (generalisation costs and those related to post experimentation). (1) After deducting PCT (a) and Article 8 (b) (2)

(a) PCT (portion covered by the tariff): portion paid to project manager contractors from the contributions to the delivery tariff for financing a connection. (b) Article 8 of Annex 1 of the concession specifications relating to the integration of works into the environment (for example, the work to bury lines).

The additional resources thereby committed are dedicated to the quality of the service, to securing the networks, to the security and preservation of the environment, areas where the identified expectations of customers, local authorities and concession authorities are particularly strong. This level of investment allows Enedis to carry out asset renewal programmes. To complement these investments, Enedis continues its efforts in the preventative maintenance of networks, including work relating to tree topping. This came to €325 million in 2018 (compared to €327 million in 2017). Quality of service Quality of service is one of Enedis’ main objectives. In 2018, the average outage time, excluding transmission incidents and exceptional incidents, was 64 minutes, which is a good result for a year marked by frequent and sharp climate variations. The quality of service provided is also reflected by maintaining steady voltage levels, kept as close as possible to the level set by regulations, and by minimising the number of outages. To respond to large-scale incidents, Enedis relies on an Electricity Rapid Intervention Force (FIRE), which allows it to mobilise, at any time, in an affected region, the teams and resources from other regions in order to restore customers’ electricity as rapidly as possible. In 2018, FIRE was deployed on five occasions: Eleanor storm of

4 January which hit the North of France, floods in mid-January and early February which affected Ile-de-France, thunder of 4 July which impacted the South-West of France and heatwaves between end-July and mid-August in Ile-de-France and part of the South of France, and sticking snow on 29 and 30 October. As regards insurance cover for the protection of the overhead distribution network against the effects of large scale storms, see section 2.5.5.3 “Storm cover”. Development of renewable energies Across the Enedis scope, the number of solar panel generation installations connected to the network grew again: in 2018, an upswing in photovoltaic connections was observed with 825MW of new photovoltaic facilities connected (compared with 755MW at the end of 2017). The increase in wind power generation connected to the public distribution network also continued, with 1,360MW connected in 2018 (compared to 1,300MW in 2017). At the end of 2018, a total of around 20.4GW in photovoltaic and wind power generation was connected to the Enedis grid, made up of 7.4GW from photovoltaic plants and 13GW from wind power generation. To the power thus generated are added other sources of power generation, in particular “historical” hydropower plants (1.5GW), cogeneration (2.5GW), biogas, biomass and dispatchable fossil-fuel thermal. In all, at the end of 2018, the generation fleet connected to Enedis was around 26.3GW.

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EDF I Reference Document 2018