EDF_REGISTRATION_DOCUMENT_2017

5.

THE GROUP'S PERFORMANCE IN 2017 AND FINANCIAL OUTLOOK Operating and financial review

Weather conditions: temperatures 5.1.2.4 and rainfall 2017 was a warmer year than 2016, and average temperatures in France were +0.2°C above normal. The temperatures in January and September 2017 were well below normal (-2.4°C and -1.4°C respectively), but March and June 2017 were predominantly warm months.

In the United Kingdom , EDF Energy introduced two tariff changes: a 5.2% reduction in gas tariffs from 5 January 2017 and an 8.4% increase in ■ electricity tariffs from 1 March 2017; then a 5.5% increase for gas and a second increase of 9% for electricity on ■ 21 June 2017. The five other principal energy suppliers also increased their tariffs. These increases are mainly explained by the rise in wholesale market prices and non-energy costs.

Temperatures (1) (2) in France in 2017 and 2016

Variance from normal in 2017 in °C

Monthly average temperatures in °C

4

22

2016

3

2017

+2.0

17

+1.8

2

+1.2

+1.3

1

+0.5

12

+0.3

+0.2

+0.1

0

-1

7

-0.8

-0.8

-1.4

-2

2

-2.4

-3

July

May

June

April

March

-4

August

January

October

February

-3

December

November

September

(1) Average temperatures recorded in 32 cities weighted by electricity consumption. (2) Source: Miréor (data from Météo-France).

2017 was marked by a shortfall of rain in the extended south-west third of Europe (Spain, France, and Italy in particular) while Scandinavia and North Europe saw more precipitation. Air temperatures were higher than normal throughout Europe, especially in the east.

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EDF I Reference Document 2017