EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

Other provisions Note 35

Details of changes in other provisions are as follows:

Decreases

Changes in scope

Other Changes

31/12/2019

31/12/2018

Increases

Utilisations

Reversals

(in millions of euros)

Provisions for contingencies related to subsidiaries and investments  (1)

934 448 562

9

(201)

-

-

24

766 155 479

Provisions for tax liabilities  (2)

59 64

(91) (69)

(3)

(2)

(256)

Provisions for litigation

(86)

-

8

Provisions for onerous contracts and losses on completion  (3) Provisions related to environmental schemes

1,208

448

(324)

(14)

-

38

1,356

1,137

1,847 (1,529)

(13)

-

75

1,517

Other provisions for risks and liabilities  (4)

1,723 6,012

694

(732)

(115) (231)

(20) (22)

(48)

1,502 5,775

TOTAL

3,121 (2,946)

(159)

Including the reversal of the provision concerning Alpiq. (1) Reclassification of the provision for fiscal liabilities as deferred taxes (see note 17.3) in the amount of €235 million, in accordance with IFRIC 23. (2) Provisions for onerous contracts are mainly attributable to the long-term contract with Dunkerque LNG and long-term power purchase and sale agreements. (3) These provisions cover various contingencies and expenses related to operations (employers’ matching contributions to employee profit sharing, restructuring (4) operations, contractual maintenance obligations, etc.). No individual provision is significant.

Provisions related to environmental schemes

In 2019, the Group surrendered 26 million tonnes in respect of emissions generated in 2018. In 2018, the Group surrendered 30 million tonnes in respect of emissions generated in 2017. The Group’s total emission rights allocation for 2019 recorded in the national registers is 1 million tonnes (1 million tonnes for 2018). The volume of emissions at 31 December 2019 stood at 21 million tonnes (24 million tonnes for 2018). Renewable energy certificates Through the renewable energy certificates scheme, the EDF group has an obligation to surrender renewable energy certificates, particularly in the United Kingdom and Belgium. At 31 December 2019, a provision of €1,103 million was booked in connection with the obligation to surrender renewable energy certificates at that date, essentially concerning EDF Energy (United Kingdom) and Luminus (Belgium). A large portion of these obligations is covered by purchases of certificates included in intangible assets.

Provisions related to environmental schemes include provisions for greenhouse gas emission rights, renewable energy certificates and energy savings certificates (see note 1.3.26). The provisions related to environmental schemes principally correspond to provisions for renewable energy certificates in the United Kingdom. The increase in these provisions over the year principally results from over-quota emissions by the Group; amounting to €414 million at 31 December 2019 (€175 million at 31 December 2018). Gas emission quotas One of the main features of the third phase of the European Union greenhouse gas emission quota system, running from 2013 to 2020, is the discontinuation of free allocation of emission rights to electricity producers in certain countries, including France and United Kingdom. In the EDF group, the entities concerned by this system are EDF, EDF Energy, Edison, Dalkia, and Luminus.

Special French public electricity distribution concession liabilities Note 36

The changes in special concession liabilities for existing assets and assets to be replaced are as follows:

31/12/2019

31/12/2018

(in millions of euros)

Value in kind of assets*

51,085 (27,387) 23,698

49,327 (25,669) 23,658

Unamortised financing by the operator Rights in existing assets – net value

Amortisation of financing by the concession-granting authority

14,389

13,792

Provisions for replacement

9,378

9,474

Rights in assets to be replaced

23,767 47,465

23,266 46,924

SPECIAL FRENCH PUBLIC ELECTRICITY DISTRIBUTION CONCESSION LIABILITIES

Including contributions received to finance concession assets, amounting to €131 million (€131 million in 2018). *

359

EDF | Universal registration document 2019