EDF / 2019 Universal registration document

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

supply users with the information necessary for effective access to networks, ■ except for information protected by law and regulatory provisions, particularly by evaluating the impact on the grid of projects submitted to it in terms of the injection of renewable energy, the rollout of charging systems for electric and rechargeable hybrid vehicles, urban development, and energy planning; 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; encourage the integration of renewable energy in the grid and the ■ implementation of energy efficiency initiatives; 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. 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 2019, €4,254 million was invested by Enedis, €1,623 million of which was devoted to connections (consumers and producers) and adjusting the grid to the load, while €2,266 million was devoted to quality of service, securing networks, safety, protecting the environment, and rolling out Linky meters, all areas in which the identified expectations of customers, local authorities, and concession contracting authorities are particularly high. In addition, the contracting authorities invested €725 million in 2019. In all, almost €4,979 million were invested on the distribution networks in 2019 in mainland France.

Organisation of Enedis 1.4.4.2.1 Distribution activities on French soil are, pursuant to the legal framework, almost exclusively conducted by Enedis, a French public limited company ( société anonyme ) with an Executive Board and a Supervisory Board responsible for the management of the public electricity distribution network. Pursuant to Directive no. 2003/54/EC, the principles of which are applied in Directive no. 2009/72/EC of 13 July 2009 and Directive no. 2019/944 of 5 June 2019, when the public distribution network operator is part of a vertically integrated company, its organisation and decision-making must be legally independent from other activities not related to distribution. Within this framework, the principle adopted by EDF and Gaz de France, now Engie, led them to spin out their distribution network. Enedis and GRDF share a “common service” pursuant to the legal framework (see section 1.4.4.2.3 “Service shared by Enedis and GRDF”). Pursuant to the Law of 9 August 2004, the business of public electricity distribution network operator was turned into a subsidiary in 2007. The Supervisory Board of Enedis comprises fifteen members, of which eight are appointed by the Ordinary Shareholders’ Meeting, five are representatives of the employees elected in accordance with the conditions set out in Law no. 83–675 dated 26 July 1983 relating to the democratisation of the public sector, one member is appointed by the French State by virtue of Articles 4 or 6 of Ordinance no. 2014-948 dated 20 August 2014, and one member, representing the organising authorities for the public electricity distribution network, is appointed by decree in application of Article 153 of Law no. 2015-992 relating to energy transition for green growth. In 2019, the Enedis Executive Board was made up of two members who performed their work under the supervision of the Supervisory Board. In application of the possibility offered by Ordinance no. 2014-948 dated 20 August 2014 (Article 15) and in compliance with Decree no. 2015-38 dated 19 January 2015, the French State appointed by a Decree dated 25 October 2018 a Government Commissioner for the purposes of attending the meetings of the Supervisory Board of Enedis. On 1 June 2016, the business name of the public distribution network operator was changed to Enedis, as a replacement for ERDF. This new name reflects the company’s strong commitment to the energy transition in the wake of COP 21. It will also raise the profile of the network operator and clarify its purpose, as the CRE recommended. 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;

GROSS INVESTMENTS MADE BY ENEDIS

2019

2018

(in millions of euros)

Connections and reinforcement

1,623

1,464

Regulatory, safety and transmission channel obligations

445 365

415 347

Work instruments and operational resources

Network modernisation  (1)

1,821 4,254

1,772 3,998

TOTAL INVESTMENTS OF ENEDIS

WORK ALLOWANCES BY THIRD PARTIES AND LOCAL AUTHORITIES  (2)

725

705

TOTAL NETWORK INVESTMENTS 4,703 Of which Linky: €822 million in 2019, €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) for the share funded by Enedis. (2) PCT (portion covered by the tariff): portion paid to project manager contractors from the contributions to the delivery tariff for financing a connection. (a) Article 8 of Appendix 1 of the concession specifications relating to the integration of works into the environment (for example, the work to bury lines). (b) 4,979

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EDF | Universal registration document 2019