EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS Notes to the financial statements

36.1

Commitments given

36.1.1

Fuel and energy purchase commitments

In the course of its ordinary Generation and supply activities, EDF has entered into long-term contracts for purchases of electricity, other energies and commodities and nuclear fuel, for periods of up to 20 years.

In almost all cases, commitments given are reciprocal, and the third parties concerned are under an obligation to supply EDF with assets or services related to operating, investing and financing transactions.

At 31 December 2020, these commitments mature as follows:

Maturity

31/12/2020

< 1 year

1-5 years

5-10 years

> 10 years

31/12/2019

(in millions of euros)

Electricity purchases and related services

1,513 1,749 3,262

3,569 6,255 9,824

3,141 4,684 7,825

3,855 2,317 6,172

12,078 15,005 27,083

12,669 16,412 29,081

Nuclear fuel purchases

FUEL AND ENERGY PURCHASE COMMITMENTS

36.2

Commitments received

Electricity purchases and related services Electricity purchase commitments mainly concern:

Island Energy Systems (SEI), which has given commitments to purchase electricity generated from bagasse and coal, and electricity generated by the plants of EDF’s subsidiary PEI; hedging contracts: these are forward purchases, for which the volumes and prices are set in contracts with EDF Trading. In addition to the obligations reported above and under Article 10 of the Law of 10 February 2000, in mainland France EDF is obliged to purchase, at the producer’s request and subject to compliance with certain technical features, the power produced by co-generation plants and renewable energy generation units (wind turbines, small hydro-electric plants, photovoltaic power, etc.). The additional costs generated by this obligation are offset, after validation by the CRE, by the CSPE. These purchase obligations total 59TWh for 2020 (57TWh for 2019), including 7TWh for co-generation (7TWh for 2019), 31TWh for wind power (30TWh for 2019), 11TWh for photovoltaic power (11TWh for 2019) and 4TWh for hydropower (3TWh for 2019). Nuclear fuel purchases Commitments for purchases of nuclear fuel arise from supply contracts for the nuclear plants intended to cover EDF’s needs for uranium and fluoration, enrichment and fuel assembly fabrication services. The decrease in nuclear fuel purchases in 2020 is mainly explained by the execution of existing contracts. Other operating commitments 36.1.2 These are mostly commitments undertaken by EDF through signature of orders relating to operations or contracts in progress, related guarantees, and commitments as lessee under irrevocable operating lease contracts principally for premises, equipment and vehicles. The corresponding rents are subject to renegotiation at intervals defined in the contracts. The increase in these commitments mainly relates to bank guarantees given by EDF and additional purchases for repair work on the main secondary circuit welds at the Flamanville 3 EPR. Investment commitments 36.1.3 Investment commitments are mostly commitments for acquisitions of property, plant and equipment. The decrease in EDF’s commitments for acquisitions of intangible assets and property, plant and equipment mainly relates to the Flamanville 3 EPR. Financing commitments 36.1.4 These are financing commitments by EDF to its subsidiaries, in 2020 mainly €3,615 million to EDF International, €2,060 million to EDF Trading, €1,298 million to EDF Renewables, €847 million to EDF Energy, €799 million to Edison and €700 million to Enedis.

36.2.1

operating commitments

These commitments mainly comprise: operating lease commitments received as lessor; operating guarantees received; operating sale commitments, essentially concerning engineering services for HPC; personnel secondment commitments for Edvance. Financing commitments 36.2.2

These commitments correspond to the total value of credit lines available to EDF from various banks.

36.3

Other types of commitment

36.3.1

Electricity supply commitments

In the course of its business, EDF has signed long-term contracts to supply electricity as follows: long-term contracts with a number of European electricity operators, for a specific plant or for a defined group of plants in the French nuclear generation fleet, corresponding to installed power capacity of 3.5GW; by French law, EDF has a commitment to sell some of the energy generated by its existing nuclear power plants to other suppliers on the French market. This has concerned volumes of up to 150TWh each year since 1 January 2020, until 31 December 2025. Gas purchases and related services 36.3.2 Gas purchase commitments are given by EDF in connection with its expanding gas supply business. Gas purchases for supply, delivery and storage are mostly undertaken through long-term contracts and forward purchases from EDF Trading. Under the contract with the Dunkerque LNG methane terminal, EDF also benefits from approximately 61% of the terminal’s regasification capacities until 2037, in return for payment of an annual premium of approximately €150 million. A provision for onerous contracts is recorded in connection with this contract.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020