EDF / 2018 Reference document

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

2018 Installed capacity and output for EDF Energy

Coal (2) 4.5TWh (6%)

Gas (3) 6.8TWh (10%)

Coal (2) 3,987MW (28%)

70.4TWh

14,243MW

Gas (3) 1,333MW (9%)

Nuclear (1) 8,923MW (63%)

Nuclear (1) 59.1TWh (84%)

Installed capacity

Output

(2) Coal capacity represents transmission entry capacity. Not power including biomass. (3) Including 1.35MW of Barkantine CHP.

EDF Energy

31/12/2018

31/12/2017

Electricity supplied (1) (GWh)

43,939 28,944

43,769 27,879

Gas supplied (GWh)

Number of residential customer accounts (thousands) (2)

4,945

5,160

Number of employees (3)

12,292

12,797

Total Recordable Incident Rate (4)

1.12

0.59

Power supplied to final consumer including previous year metering cut-offs. (1) Year end Figure (2) Headcount at the end of the period, including staff on maternity leave (3)

Total Recordable Incident Rate -Annual total combined number of Lost Time Incidents, fatalities, Restricted Work Injuries and Medical Treatment Injuries (4) (excluding First Aid)/number of hours worked ×1,000,000. This covers all employees, agency and contractor staff. Excludes EDF Energy Renewables and Hinkley Point C project.

Strategy 1.4.5.1.1 Overview

EDF Energy aims to secure value from its existing nuclear, coal and gas assets through continued operational excellence and safe, reliable generation. Since 2009, EDF Energy has extended the lifetime of all of its nuclear Advanced Gas Reactors (AGRs) by an average of 8 years. However, due to large non-replaceable components, there is a technical limit to the AGR lifetimes, and as the stations approach this limit, it will be aiming to optimise the end of life value of the stations and to develop new activities in nuclear decommissioning, building on its expertise in operating the UK’s existing nuclear stations. Other important strategic actions concerning the company’s generation fleet include optimising the operations of the West Burton B Combined Cycle Gas Turbine power station and optimising the remaining lifetime value of coal generation capacity within the UK capacity market. In partnership with China General Nuclear Corporation (CGN), EDF is building two new nuclear units (3.2GW capacity in total) at Hinkley Point in Somerset, based on the EPR technology. EDF Energy is also working with CGN to progress a similar 3.2GW EPR project at Sizewell in Suffolk. A further new nuclear power station proposal is being developed at Bradwell in Essex based on CGN’s "UK HPR1000" Chinese technology. In partnership with EDF Energy Renewables in the UK (a joint venture with EDF Renewables), EDF Energy continues to develop new renewable generation projects, including the 450MW Neart Na Gaoithe offshore project, located off the coast of East Scotland, acquired in 2018. The new 49MW battery storage project at West Burton B is now operational, providing frequency response services to the National Grid, and further flexibility projects are being explored. In June 2018, EDF Renewables entered into a new partnership with Dalmore Capital Limited and

EDF Energy’s strategy targets a sustainable long-term business, meeting its customers’ needs for energy and associated services in an efficient and responsible way while focused on supporting the transition to a lower-carbon economy through generation of safe, reliable and affordable low-carbon electricity. EDF Energy is entirely consistent with EDF group’s CAP 2030 and is underpinned by a focus on maintaining industry leading safety performance and improving cost efficiency across the business. In its energy supply business, EDF Energy aims to make energy easy for its customers by doing things better, faster and cheaper whilst providing excellent service and convenience. This also involves installing smart meters to our customers’ homes and small business premises, as part of the national programme. In response to the temporary price cap introduced by the UK government for residential standard variable tariff customers, EDF Energy is maintaining its efficiency efforts and exploring alternative options to develop the business. It is also developing new services and revenue streams in response to market opportunities in flexibility and the electrification of the economy. Through its energy services joint venture with Dalkia, including the company Imtech, and new capabilities such as the flexibility platform Powershift, EDF Energy also aims to help businesses explore and develop solutions that deliver energy, carbon and cost savings. In generation, EDF Energy seeks to create value from both existing and new activities.

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I Reference Document 2018