EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

26.2.2

Transactions between the EDF group

Following the start of commercial operation by the first reactor on 13 December 2018, the second reactor began commercial operation on 7 September 2019 (see note 3.1.4). On 20 March 2019, the NDRC (National Development and Reform Commission) attributed regulated tariffs to the first three 3rd-generation nuclear projects in China, one of which is Taishan. The tariff attributed to Taishan is set at RMB435/MWh until the end of 2021, with retroactive effect to the date the first unit was commissioned (13 December 2018). Indexing mechanisms and the post-2021 tariff levels were not set out in this decision. The business plan was updated to incorporate this temporary tariff decision. This did not lead to recognition of any impairment on these assets in the financial statements at 31 December 2019.

and Taishan

EDF owns 30% of Taishan Nuclear Power Joint Venture Company Limited (TNPJVC), which was set up to build and operate two EPR nuclear reactors in Taishan, in the province of Guangdong in China. CGN holds a 51% stake and Yudean a 19% stake. Framatome has two contracts with TNPJVC: supply of two EPR nuclear islands in a consortium with CNPDC and CNPEC; ■ delivery of fuels (initial core and first refuelling for each unit). ■

Inventories Note 27

The carrying value of inventories, broken down by nature, is as follows:

31/12/2019

31/12/2018

Gross value Provision Net value

Gross value

Provision

Net value

(in millions of euros)

Nuclear fuel Other fuel Other supplies

10,649

(4)

10,645

10,671

(6)

10,665

872

(30)

842

957

(14)

943

1,624

(360)

1,264

1,613

(302)

1,311

Work-in-progress for production of goods and services

497 869

(30) (38)

467 831

538 840

(30) (40)

508 800

Other inventories

TOTAL INVENTORIES

14,511

(462)

14,049

14,619

(392)

14,227

The long-term portion (more than one year) mainly concerns nuclear fuel inventories amounting to €7,828 million at 31 December 2019 (€7,810 million at 31 December 2018).

The value of EDF Trading’s inventories stated at market value is recognised in “Other fuel” and “Other inventories” and stands at €141 million at 31 December 2019 (€142 million at 31 December 2018).

Trade receivables Note 28

Details of net trade receivables are as follows:

31/12/2019

Note

31/12/2018

(in millions of euros)

Trade receivables, gross value – excluding EDF Trading

15,066

14,468

- contract assets

28.3

400

439

Trade receivables, gross value – EDF Trading

1,583

2,446

Impairment

(1,043) 15,606

(1,004) 15,910

TRADE RECEIVABLES, NET VALUE

Most trade receivables mature within one year. Advances received from customers in France who pay in regular monthly instalments, amounting to €6,719 million at 31 December 2019 (€6,827 million at 31 December 2018), are deducted from trade receivables.

337

EDF | Universal registration document 2019