EDF / 2019 Universal registration document

1. The Group, its strategy and activities Description of the Group’s activities

In another development, EU Directive 2019/944 of 5 June 2019 now establishes the framework within which Member States may control electricity prices. For instance, the Directive provides for a derogation to maintain regulated sales tariffs for the sole benefit of domestic customers and micro-companies. Member States have until 31 December 2020 to transpose this Directive. The provisions of the “Climate and Energy” Act implement the decisions of the French Council of State and transpose Directive 2019/944 of 5 June 2019. Therefore, since the Energy-Climate Law entered into force, the situation for electricity, by category of customer, is as follows: domestic final consumers who have subscribed power for their site(s) not ■ exceeding 36kVA: these customers benefit from regulated sales tariffs. They can freely switch back and forth between regulated tariffs and market offers; for non-domestic end consumers with subscribed power levels of 36kVA or less, ■ only consumers with fewer than 10 employees and a turnover, total revenue, or balance sheet of less than €2 million will still be able to benefit from regulated sales tariffs after 31 December 2020. Consumers that do not fall into this category will lose the benefit of regulated tariffs on 31 December 2020, following the process described by the law; domestic and non-domestic final consumers who have subscribed power for their ■ site(s) exceeding 36kVA: since 1 January 2016 these sites can no longer subscribe to regulated sales tariff products which were cancelled on 31 December 2015; domestic and non-domestic final consumers for their site(s) located in areas not ■ connected to the continental metropolitan network: these customers have the right to regulated sales tariffs. "Tarifs bleus" (blue tariffs applicable mainly to households and small companies) – tariff changes Since 8 December 2015, in accordance with Articles L. 337-4 and L. 337-13 of the French Energy Code (“NOME law”), the CRE has been responsible for notifying the ministries in charge of the economy and energy of its justified proposals for regulated electricity sales tariffs (TRV). If no objections are made within three months, the proposals are deemed to have been approved. For the tariff changes of 2019, the CRE, in accordance with the NOME Law, issued a decision on 7 February 2019 proposing that the Government should raise the “blue” regulated tariffs for residential customers and non-residential customers by +5.9% including taxes. This proposal, confirmed by a tariff decision dated 28 May 2019, published in the Journal officiel on 30 May 2019 was implemented on 1 June 2019. Thereafter, the tariff level of summer 2019 was also changed in accordance with this process: given the change in the Network Access Tariff (TURPE) on 1 August 2018 and pursuant to the French Energy Code, the CRE proposed in a deliberation dated 25 June 2019 a reduction of 1.26% including tax in residential blue tariffs and an increase of 1.10% including tax in non-residential tarifs bleus . The CRE’s proposal was approved in a tariff decision of 30 July 2019, published in the Journal officiel of 31 July 2019 and implemented on 1 August 2019. With respect to 2020 tariff changes, the CRE proposed to the government, via the decision of 16 January 2020 published on 24 January 2020, that residential and non-residential tarifs bleus be increased by +2.4%, including tax. In this proposal, 1.5% corresponds to making up, within 2 years, the delay in the tariff coming into effect in 2019, and 0.9% corresponds to taking into account costs relating to the construction of regulated sales tariffs for electricity: wholesale prices for capacity and power, the effects of ARENH capping, and changes in marketing costs, including the costs of Energy Savings Certificates. The French Energy Regulation Commission (CRE) proposal was confirmed in a tariff ruling on 29 January 2020, published in the French Official Journal on 31 January 2020 and implemented on 1 February 2020. Electricity supply contracts 1.4.2.1.4  In France, domestic and non-domestic customers with subscribed power levels of less than 36kVA are entitled to regulated sales tariffs, and may also choose a market offer put forward by any supplier, including EDF. With the exception of customers directly connected to the transmission network, who must sign separate supply and delivery contracts, all other customers may enter into a single contract with the supplier of their choice for their electricity supply and transit. In this regard, a commission is paid by the distributor to any supplier offering a single

contract to its customers since in doing so, it provides customer management services on behalf of the distributor. The quality of supply, which is the distributor’s responsibility, is monitored on a regular basis under contracts with the distributors. EDF monitors the impact of outages and the quality of supply to its customers and their satisfaction with the aim of working with the distributor on a continuous improvement basis (see section 1.4.4.2.2 “Distribution activities”). The Customer Division 1.4.2.2 EDF’s sales and supply activities in France (excluding overseas departments and Corsica) are managed by the Customer Division. The power marketed by EDF in France is often combined with services. Almost 29 million delivery points are served by EDF offers (excluding French overseas territories and departments and Corsica). EDF is committed to earning its customers’ trust by engaging in responsible marketing featuring commercial offers that are transparent, straightforward, and clear. EDF sales on the electricity market in 2019 amounted to 264TWh, excluding transfers to Local Distribution Companies (ELDs). EDF provides gas supply to all types of customers. In 2019, EDF marketed 31TWh of gas. Besides gas and electricity supply, EDF accompanies its customers through energy efficiency offers and new decentralised energy solutions. Implemented in 2006, the energy savings certificates (CEEs) scheme was amended on 1 January 2018: the national obligation for the fourth period (2018-2020) was fixed at 1,600TWhc, of which 400TWhc for households in a situation of energy poverty. The French Decree no. 2019-1320 of 9 December 2019 extended the fourth period from three to four years increasing the obligation proportionally to the duration, i.e. 2,133TWhp. In view of its diversified supply strategy, EDF has covered its obligations by its own production coupled with partnerships, programmes, and direct purchases. In this respect, in 2019, EDF took part in 230,000 renovation projects, 53% more than in 2018. Activity by customer category 1.4.2.2.1 Residential customers 1.4.2.2.1.1 EDF innovates on a daily basis and the satisfaction of residential customers is a priority: after contacting EDF, about nine out of ten customers are satisfied with the manner in which they were dealt with, whatever the channel or reason why they contacted the Company. The annual report of the French national energy mediator published in May 2019, shows that EDF has the lowest rate of disputes, far behind its competitors. The customer experience offered is both digital (customer space, chat, web call back, mobile application, digital solutions, social media, etc.) and human. 5,000 advisers, all based in France, are attentive to the needs of customers and offer them personalised advice. At end-December 2019, over 47,000 training hours were given to EDF advisers on commercial relation and sales. Energy supply EDF supplies electricity at the regulated sales tariff (TRV) and with a comprehensive range of market offers in electricity. To offer even more choice to its domestic customers in 2019, EDF extended its electricity market offering; as of the end of 2018, this comprised the Vert électrique, Vert électrique Weekend, Vert électrique Auto, and Digiwatt options. In June 2019, EDF launched " Mes Jours Zen" (My zen days) , a range of electricity supply offers for domestic customers seeking electricity prices in line with their consumer habits. These offers allow customers to benefit from an attractive price per KWh (before tax) every weekend and on national public holidays, and, with " Mes Jours Zen Plus" , an optional additional day of their choice during the week  (1) : Monday, Wednesday, or Friday. These offers are directed at customers equipped with a Linky smart meter  (2) , of which there are now around 23 million in France. EDF’s range of market offers in gas includes three offerings. " Avantage Gaz" offers a fixed price per kWh (before tax) for a period of four years and one month. Over and above the characteristics of the " Avantage Gaz" offer, " Avantage Gaz Durable" offers carbon offsetting based on the customer’s estimated gas use. Lastly, " Avantage Gaz Connecté" gives customers the possibility of managing their heating remotely and enhancing their comfort with the purchase of a connected thermostat.

(1) 30% cheaper as of the launch date. The price per kWh before tax is low at weekends, on national public holidays, and for “My zen days Plus”, on the chosen day of the week (Monday, Wednesday, or Friday) compared to the price per kWh before tax on other days of the week.

(2) Led by Enedis.

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EDF | Universal registration document 2019

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