EDF / 2020 Universal Registration Document

1 THE GROUP, ITS STRATEGY AND ACTIVITIES Description of the Group’s activities

Gross investments made by Enedis

2020

2019

(in €m)

Connections and reinforcement

1,584

1,623

Regulatory, safety and transmission channel obligations

409 379

445 365

Work instruments and operational resources

Network modernisation (1)

1,589 3,962

1,821 4,254

TOTAL INVESTMENTS OF ENEDIS

730

725

WORK ALLOWANCES BY THIRD PARTIES AND LOCAL AUTHORITIES (2)

TOTAL NETWORK INVESTMENTS 4,979 Of which Linky: €682 million in 2020, €722 million in 2019, €792 million in 2018 and €612 million in 2017 (generalisation costs and those related to post (1) experimentation). 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 Annex 1 of the concession specifications relating to the integration of works into the environment (for example, the work to bury lines). (b) 4,692

Furthermore, Enedis continues its efforts in the preventative maintenance of networks, including work relating to tree topping. This came to €314 million in 2020 (compared to €319 million in 2019). Quality of service Quality of service is one of Enedis’ main objectives. In 2020, the average outage time, excluding transmission incidents and exceptional incidents, was 58 minutes. This result, the best in 15 years, stems from the combination of a relatively favourable year of weather and the benefits of resilience initiatives taken in recent years. The quality of service provided is also reflected by maintaining steady voltage levels, kept as close as possible to the level set by regulations, and by minimising the number of outages. To respond to large-scale incidents, Enedis relies on an Electricity Rapid Intervention Force (FIRE), which allows it to mobilise, at any time, in an affected region, the teams and resources from other regions in order to restore customers’ electricity as rapidly as possible. In 2020, FIRE intervened on six occasions. As regards insurance cover for the protection of the overhead distribution network against the effects of large scale storms, see section 2.1.2.6 “Insurance" - "Storm cover”. Development of renewable energies Across the Enedis scope, the number of solar panel generation installations connected to the network grew again: in 2020, a growth in photovoltaic connections was observed with 876MW of new photovoltaic facilities connected (compared with 858MW at the end of 2019). The increase in wind power generation connected to the public distribution network also continued, with 789MW connected in 2020 (compared to 1,202MW in 2019). At the end of 2020, a total of around 24.2GW in photovoltaic and wind power generation was connected to the Enedis grid, made up of 9.1GW from photovoltaic plants and 15.1GW from wind power generation. To the power thus generated are added other sources of power generation, in particular hydropower plants (1.6GW), cogeneration (2.5GW), biogas, biomass and dispatchable fossil-fuel thermal. In all, at the end of 2020, the generation fleet connected to Enedis was around 30.2GW. In 2020, more than 30,200 photovoltaic self-consumption facilities were also connected, representing close to 99% of the year’s connections for small producers. In addition, Enedis has continued its efforts to develop capacities for accepting renewable energies, by implementing construction work on sources as part of the regulatory framework in the regional plans for the grid connection of renewable energies. Electricity market The French electricity sales market has been open to competition for all customers since 1 July 2007. 82 electricity suppliers, operating on the French market, have a contract with Enedis. This contract sets out the operating procedures between the

supplier and distributor when the customer takes out a single tapping contract, encompassing supply and delivery of electricity, with or without the option of a single dispatch contract for individual self-consumers. The supply market is facing sharply increased levels of competition for subscribed power supply in excess of 36kVA since the elimination of regulated sales tariffs (TRVs) for this type of power at the end of 2016, as well as for subscribed power supply for less than 36kVA in view of the partial end of Professional TRVs announced on 1st January 2021. This most recent major change was successfully supported by Enedis. Furthermore, more than 250 new service providers are exploiting detailed customer consumption data, subject to the customers’ permission, also making a significant contribution to the market dynamics. Regulatory notice Tariff for using the public electricity distribution networks (distribution TURPE) Over 90% of Enedis’ sales are made up of revenues made from electricity transmission. The tariff for using the public electricity network (TURPE), in terms of levels and structure, is set by the CRE in a transparent and non-discriminatory manner, in order to cover all the costs borne by the efficient network operators. On 28 June 2018, the CRE adopted TURPE 5 bis HVA/LV (medium voltage – low voltage). This tariff came into effect on 1 August 2018 for a period of approximately three years. It involves an inflation-linked change on 1 August 2019 and 2020 (apart from corrections arising from the income and expense regularisation account). In the context of TURPE 5 HVA/LV, Enedis’ financial compensation is derived from the sum of the compensation on managed assets (RAB paid at 2.5%) and the compensation of regulated shareholders’ equity (compensated at 4.0%). In a decision dated 20 May 2020, the CRE set the increase in the tariff on 1 August 2020 at 2.75%, in accordance with the annual adjustment formulas. On 21 January 2021, the CRE published its decisions for the distribution TURPE 6 (HVA and LV) tariffs. This price, aimed at covering costs for the fiscal years 2021-2024, will apply from 1 August 2021 onwards for a period of around 4 years. It provides for an increase on 1 August each year corresponding to the provisional inflation rate plus 0.31%. In the context of this tariff, Enedis’ financial compensation is mostly derived from the sum of the compensation on managed assets (RAB paid at 2.5%) and the compensation of regulated shareholders’ equity (compensated at 2.3%). This decision was forwarded to France’s Minister for Ecological Transition and the Minister for the Economy, Finance, and Recovery, and will be published in France’s Official Journal.

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020

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