EDF_REGISTRATION_DOCUMENT_2017

6.

FINANCIAL STATEMENTS Income Statement

23.1.2

Transactions between the EDF group

In executing its responsibility to ensure balance in the electricity system, during 2017 RTE also undertook: energy purchases and sales with EDF and Enedis, amounting to €153 million ■ and €165 million respectively; system service purchases from EDF amounting to €257 million. ■

and CTE At 31 December 2017 the main transactions between the EDF group and CTE are as follows: Sales Enedis uses RTE’s high-voltage and very high-voltage networks to convey energy from its point of generation to the distribution network. This service generated €3,507 million in sales revenues for RTE from Enedis over 2017.

23.2

CENG

CENG – financial indicators 23.2.1 The key financial indicators for CENG (on a 100% basis) are as follows:

31/12/2017

31/12/2016

(in millions of euros) Non-current assets Current assets TOTAL ASSETS

7,370

10,164 1,020 11,184 4,240 6,521

965

8,335 2,989 5,030

Equity

Non-current liabilities

Current liabilities

316

423

8,335 1,156

11,184 1,059

TOTAL EQUITY AND LIABILITIES

Sales

Operating profit before depreciation and amortisation

396

305

Net income

(633)

(971)

Gains and losses recorded directly in equity

107

169

Dividends paid

-

-

23.2.2

Transactions between the EDF group

This impairment was evaluated by the Group’s usual methodology. It results from: further downward revision of long-term price trajectories published by external ■ analysts (ABB, IHS, Cera, EIA): the reports published in autumn 2017 were lower than the forecasts issued in spring 2017; a decline in short-term market prices caused by the steady decrease in gas prices ■ throughout the year (average 4% decrease in electricity prices on the market horizon between the first and second half-year). Calculation of the value in use takes into consideration the implementation of New York State’s Zero Emission Credit (ZEC) programme of subsidies for nuclear power plants, which provides additional income for the Ginna and Nine Mile Point plants. However, the ZEC programme’s long-term existence will depend on the outcome of current legal proceedings. In addition to the question of the ZEC programme’s continuation, there are uncertainties relating to several key assumptions for the valuation of the investment in CENG (e.g. the market environment, legal framework, changes in energy policies, and the Group’s lack of control over strategy-setting). The calculation of recoverable value for the CENG asset thus includes a specific risk premium.

and CENG At 31 December 2017 the main transactions between the EDF group and CENG concern the power purchase agreements between CENG and the Group (EDF Trading North America). These agreements provide for delivery to EDF Trading North America of 15% of the energy generated by CENG that is not sold to former owners of its power plants, in application of the pre-existing power purchase agreements that terminated in 2014. Since 1 January 2015, the Group has purchased 49.99% of the power output from CENG’s two plants at market price. These electricity sales by CENG to EDF Trading North America represented a volume of 16.3TWh in 2017. 23.2.3 In 2016, impairment of €(462) million was recorded on the Group’s investment in CENG as a result of lower forward prices and long-term electricity prices. At 31 December 2017, the Group recognised additional impairment of €(491) million (of which €(341) million was already booked at 30 June 2017). Impairment

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EDF I Reference Document 2017