EDF / 2019 Universal registration document

1. The Group, its strategy and activities Legislative and regulatory environment

The PPE report, its summary and the corresponding draft decree have been made available to the public by the Ministry of Ecological and Solidarity Transition for public comments from 20 January to 19 February 2020 on http://www.consultations-publiques.developpement-durable.gouv.fr. A review of the consultation will be produced by the Ministry of Ecological and Solidarity Transition. The PPE is expected to be adopted and the corresponding decree issued in 2020. The balanced development of electricity supply mission also involves guaranteeing the supply of areas that are not interconnected to continental metropolitan France (Corsica, and the overseas departments and territories), as well as some islands in Brittany. Corsica, Guadeloupe, Guyana, Martinique, Mayotte, La Réunion, and Saint-Pierre-et-Miquelon will each have their own specific PPE. Other areas that are not interconnected with the continental metropolitan network, except for Saint Martin and Saint Barthélemy, will be subject to a section appended to the PPE for continental metropolitan France. As a power producer, EDF, along with the other producers, contributes to the performance of this mission. Mission to develop and operate public transmission and distribution networks The mission to develop and operate the public electricity transmission and distribution networks, which is defined in Article L. 121-4 of the French Energy Code, involves ensuring: a rational electricity distribution service in France through the public transmission ■ and distribution networks, in a way that is environmentally friendly, the interconnection with neighbouring countries; connection and access to the public transmission and distribution networks, ■ under non-discriminatory conditions. Public network operators are designated by law to carry out this duty: RTE for transport, Enedis and Local Distribution Companies ( entreprises locales de distribution , or LDCs) for distribution, EDF in zones that are not interconnected to the continental metropolitan network. Mission to supply electricity The public service mission to supply electricity, which is defined in Article L. 121-5 of the French Energy Code, involves ensuring the supply of electricity throughout France to customers who benefit from regulated electricity sales tariffs. By law, this mission has been entrusted to EDF and to the LDCs. The conditions under which customers can benefit from regulated electricity sales tariffs are defined in Articles L. 337-7 et seq. of the French Energy Code. Since 1 January 2018, the special “basic necessity” rate (TPN), a public service mission assigned to all electricity suppliers, has been replaced by the “energy voucher” scheme. These vouchers are a special means of payment that allow households that are experiencing financial difficulties to cover part of their energy consumption expenses (electricity, gas, fuel oil, etc.) or their expenditure on improving the energy efficiency of their home. The mission to supply electricity also includes supplying emergency power to customers connected to public networks, if their supplier is unable to supply power or has had its licence withdrawn or suspended. Emergency suppliers are appointed by the Minister for Energy following a call for applications organised with the support of the French Commission de régulation de l’énergie (Energy Regulation Commission – CRE). As the implementing regulations had not yet been adopted on the date of this Universal Registration Document, this provision has still not entered into force. Social cohesion Article L. 121-5 of the French Energy Code provides that the supply of electricity at regulated tariffs must contribute to social cohesion, in particular through the national equalisation of regulated electricity sale tariffs and tariff entitlement. Article L. 115-3 of the French Social Action and Families Code prohibits electricity suppliers from cutting off electricity supplies to the primary residences of individuals or families during the winter period (from 1 November to 31 March) due to unpaid bills, including through contract termination. Electricity suppliers may, nevertheless, in certain cases, reduce the power supplied, except with regard to customers who benefit from “energy vouchers”. In its capacity as an electricity supplier, EDF is required to maintain electricity supplies under the conditions laid down by said Article and by Decree no. 2008-780 of

13 August 2008 on the procedure that is applicable in the event of unpaid electricity, gas, heating and water bills, implemented in its amended form pursuant to Decree no. 2014-274 of 27 February 2014. Public Service Contract On 24 October 2005, a Public Service Contract was signed by the State and EDF pursuant to Article L. 121-46 of the French Energy Code. This contract, which details the commitments made by EDF and the State and specifies the rules governing the financial compensation for service commitments, will remain in force until a new contract is signed, as provided for in the contract itself. Commitments by EDF (excluding network managers) EDF’s public service commitments include: access to the public electricity service and the supply of electricity to customers ■ who choose to remain at regulated tariffs; production and sales. These areas include the implementation of the energy ■ policy and maintaining secure power generation that is environmentally friendly; contributing to the safety of the electricity network. In this regard, EDF ■ undertakes to enter into several contracts with RTE, in particular concerning the optimisation of work on generation facilities and the availability of the resources required to maintain network balance. Commitments by network managers In the Public Service Contract, the Enedis and RTE network managers made commitments concerning the management of the public networks for the transmission and distribution of electricity and the safety of the electricity system. These commitments are financed by the Tariff for Using the Public Electricity transmission and distribution Networks (TURPE). These commitments concern, above all, network safety, supply quality, third party safety and the preservation of the environment – four areas where customers’ and local authorities’ expectations are especially high. More accessible services On 28 September 2010, the State and EDF, as well as eight other major public service operators, signed a partnership agreement entitled “+ de services au public” (“more services to the public”), which aims to develop access to a set of services intended for rural populations in France (information on bill payment, general information, travel ticket sales, etc.). Reception staff and internet access points are some of the many resources made available to users through shared facilities such as Multiservice Conciliation and Information Points (PIMMS), Public Service Relays (RSP) and other structures such as town halls. Following the experimental phase, during which these services were deployed in twenty-two French departments, in July 2013, the Inter-Ministerial Committee for the Modernisation of Public Action (CIMAP) decided to extend this initiative throughout France. Concession contracts for the 1.5.1.3 distribution and supply of electricity in France French legal system applicable to concessions In accordance with Articles L. 121-4 et seq. and L. 322-1 et seq. of the French Energy Code, and Article L. 2224-31 of the French Local Authorities Code, the public distribution of electricity is operated under a system of public service concessions. Pursuant to this body of law, the contracting authorities organise the public electricity distribution service through concession agreements and general specifications that set forth the respective rights and obligations of the contracting authority and the operator. Currently, the contracting authorities are most often public institutions formed by associations of several municipalities cooperating together, however contracting authorities at department level are becoming more common. The separation of supply and network activities imposed by Community Directives has led to the identification of a public service with two distinct missions: on the one hand, the regulated tariff supply mission entrusted to EDF and the LDCs in their exclusive service areas and, on the other hand, the development and operation of the public electricity distribution networks, entrusted to Enedis and the LDCs in their service areas, and EDF for areas not interconnected to the continental metropolitan network.

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EDF | Universal registration document 2019