EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

To provide an effective public service, the distribution network operator and the concession-granting authority now agree to jointly set up a governance system to oversee investments in the public electricity distribution network over the area covered by the concession, including replacement of infrastructures. This system mainly takes the form of a master plan taking a long-term view of developments in the network over the concession area, and multi-year investment plans ( programmes pluriannuels d’investissements – PPIs) for 4 and 5-year periods that are medium-term applications of the master plan. PPIs contain detailed objectives for each investment purpose, concerning a selection of quantified, localised investments with financial valuations for the duration of the plan. PPIs are revised when necessary, after consulting with Enedis and the authority granting the concession, to take account of changes in each party’s investment priorities and financial resources. If it were observed at the end of a PPI that any investment concerned by Enedis’ financial commitment had not been made, the concession-granting

authority could oblige Enedis to deposit a sum equal to 7% of the investments still to be made. This deposit would then be returned or retained after a two-year period, depending on the investments made by that time. In accordance with the agreement reached in late 2017 with the FNCCR and France Urbaine, negotiations for concession renewals continued in the regions of France during 2020. By the end of the year, 240 concession agreements had been concluded under the new model validated in December 2017, for local projects with major cities, urban boroughs, syndicated counties or municipalities, and towns or villages. More than two thirds of concession agreements with major cities and urban boroughs have already been renewed under the new model, in addition to the 42 previously renewed or amended concessions that contain stipulations similar to the new model. The aim is to continue negotiations with the concession-granting authorities with a view to ensuring that almost all concessions using the old agreement model are renewed by the end of 2021.

11.1

Property, plant and equipment operated

under French public electricity distribution concessions

Other movements (2)

31/12/2020

31/12/2019

Increases (1)

Decreases

(in millions of euros)

Land and buildings

3,061

177

(18)

(1) 11

3,219

Networks

96,970

4,383

(465)

100,899

Other installations, plant, machinery, equipment & other

4,624 1,880

466 (56)

(218)

-

4,872 1,828

Assets in progress (3)

(1)

5

Gross value

106,535 (1,523) (43,724)

4,970

(702)

15

110,818 (1,592) (45,873)

Land and buildings

(74)

15

(10)

Networks

(234)

361

(2,276)

Other installations, plant, machinery, equipment & other Depreciation and impairment

(2,875)

(210) (518) 4,452

204 580

(120)

(3,001)

(48,122) 58,413

(2,406) (2,391)

(50,466)

NET VALUE 60,352 Increases also include facilities provided by the concession-granting authorities. In 2020 they include €399 million resulting from incorporation of the rising mains (1) in application of the ELAN law. Other movements mainly concern depreciation of assets operated under concessions, booked against amortization recorded in the special concession liability (2) accounts. Increases in assets in progress are stated net of the effects of newly-commissioned assets. (3) (122)

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020