EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Notes to the consolidated financial statements

3.7.4

Partial assignment of the CSPE

The Board approved the terms of the protocol and authorised the CEO to sign it on behalf of EDF in due course. The protocol provides for the following compensation for EDF: a fixed initial portion covering the anticipated costs to be borne after shutdown ■ of the reactor and the end of operations (costs of staff retraining, decommissioning, the INB tax on basic nuclear facilities and “post-operation” costs). This fixed portion is currently estimated at approximately €490 million, 20% of which would be paid in 2019 and 80% in 2021; a further, variable portion that could give rise to subsequent payments reflecting ■ the loss of income for EDF until 2041. This will be determined on the basis of market prices and the actual volumes generated by EDF’s 900MW power plants other than Fessenheim over that period. EDF’s partners in the Fessenheim plant (EnBW and CNP) will have certain conditional entitlements to a share of the compensation for loss of income, proportional to their contractual rights to the plant’s generation capacity. The closure of the Fessenheim plant requires a decree revoking its operating licence, to be issued at the request of the Company. In application of the Law, this decree will take effect at the same time as the commissioning of the Flamanville 3 EPR, scheduled for late 2018. In the corporate interests of EDF, and in order to comply with the statutory ceiling of 63.2GW, the Board decided that submission of the request for revocation would be subject to the entry into force of the authorisations required to continue construction of the Flamanville 3 EPR and operation of Paluel 2, which is currently offline, and European Commission clearance of the protocol as regards State aid regulations.

receivable On 22 December 2016 EDF assigned a portion (26.4%) of the CSPE (Contribution to the Public Electricity Service) receivable on the French state, corresponding to the accumulated shortfall at 31 December 2015 in compensation for public energy service costs. This receivable was assigned to a pool of investors comprising a bank and a dedicated securitisation vehicle. This assignment generated income of €1,538 million. Part of the assigned receivable was not allocated to dedicated assets, and consequently assignment of this portion led to a €644 million improvement in net indebtedness (as defined in note 38.3). The balance was allocated to dedicated assets and the corresponding amount has been reinvested in those assets. the closure of the Fessenheim plant At a meeting held on 24 January 2017, EDF’s Board of Directors examined the terms of the protocol negotiated between the Company and the French State concerning compensation for the prejudice to the Company resulting from closure of the Fessenheim nuclear power plant, in application of the Energy Transition Law of 17 August 2015. This law caps the total authorised installed nuclear generation capacity in France at 63.2GW. This means that the Flamanville 3 EPR cannot be commissioned before the final shutdown of an equivalent generation capacity by the commissioning date. The Board of Directors was informed of the unanimously negative opinion issued by EDF’s Central Works Council on 10 January 2017. Compensation arrangements for 3.7.5

328

EDF I Reference Document 2017