EDF_REGISTRATION_DOCUMENT_2017

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

Distribution – Enedis 1.4.4.2 Enedis’ main objective is to operate and develop the public electricity distribution network, guaranteeing its security and safety, and overseeing the balance of electricity flows at all times. Enedis has been in operation since 1 January 2008. Initially called ERDF, it changed its name to Enedis on 1 June 2016. Enedis services around 95% of the population in mainland France. The remaining 5% are provided by Local Distribution Companies (LDCs).

In 2017, Enedis distributed electricity to more than 36.2 million customers (points of delivery) and provided for the injection from 376,941 production sites in mainland France, thanks to a network of around 1.36 million kilometres. At 31 December 2017, Enedis employed 38,888 people.

Electricity volumes on the Enedis network In TWh

Injections by decentralised producers

Injections by decentralised producers

400

400

376.2

376.2

378.2

378.2

Losses

Losses

39.8

42.9

23.9

24.9

300

300

Injections by RTE

Injections by RTE

200

200

333.3

338.4

Deliveries

Deliveries

354.3

351.3

100

100

0

0

Injections

Withdrawals

Injections

Withdrawals

2016

2017

Electrical losses are inherent to the functioning of the distribution network and mainly result from physical effects which are directly dependent on the amount of electricity delivered. Enedis must compensate these losses to complete the amount of energy delivered to the final customers. In 2017, losses amounted to 24.9TWh, i.e. a rate of 6.6% of electricity injected into the network. The cost for Enedis of the compensation of the losses was €1,066 million in 2017. To compensate these losses, Enedis buys the corresponding electricity from the wholesale market, either through organised market platforms, or through calls for tender open to around 20 qualified suppliers. Since 2014, Enedis can benefit from ARENH deliveries for its electricity purchases to offset its losses. For 2017, no ARENH product was delivered to offset its losses, given the price levels of standard products, which proved to be more favourable than ARENH. Technical specifications: the distribution network for which Enedis is the concession holder (see section 1.4.4.2.2 “Distribution activities”) is, at 31 December 2017, made up of around: 640,688 kilometres of A-type high-voltage (HVA) lines of 20,000 volts; ■ 717,090 kilometres of low-voltage (LV) lines of 400 volts; ■ Distribution activities on French soil are, pursuant to the legal framework, almost exclusively conducted by Enedis, a French public limited company (société anonyme) with an Executive Board and a Supervisory Board responsible for the management of the public electricity distribution network. Pursuant to Directive No. 2003/54/EC, the principles of which are applied in Directive No. 2009/72/EC of 13 July 2009, when the public distribution network operator is part of a vertically integrated company, its organisation and decision-making must be legally independent from other activities not related to distribution. Within this framework, the principle adopted by EDF and Gaz de France, now Engie, led them to spin out their distribution network. Enedis and GRDF 2,262 HVB/HVA source substations; ■ 783,262 HVA/LV transformer stations. ■ Organisation of Enedis 1.4.4.2.1

share a “common service” pursuant to the legal framework (see section 1.4.4.2.3 “Service shared by Enedis and GRDF”). Pursuant to the Law of 9 August 2004, the business of public electricity distribution network operator was turned into a subsidiary in 2007. The Supervisory Board of Enedis comprises fifteen members, of which eight are appointed by the Ordinary Shareholders’ Meeting, five are representatives of the employees elected in accordance with the conditions set out in Law no. 83–675 dated 26 July 1983 relating to the democratisation of the public sector, one member is appointed by the French State by virtue of Articles 4 or 6 of Ordinance no. 2014-948 dated 20 August 2014, and one, representing the organising authorities for the public electricity distribution network, is appointed by decree in application of Article 153 of Law No. 2015-992 relating to energy transition for green growth. In 2017, the Enedis Executive Board was made up of five members who performed their work under the supervision of the Supervisory Board. With effect from 11 January 2018, a new Enedis Executive Board was set up and is composed of two members. In application of the possibility offered by Ordinance No. 2014-948 dated 20 August 2014 (Article 15) and in compliance with Decree No. 2015-38 dated 19 January 2015, the French State appointed by a Decree dated 4 February 2015 a Government Commissioner for the purposes of attending the meetings of the Supervisory Board of Enedis. On 1 June 2016, the business name of the public distribution network operator was changed to Enedis, as a replacement for ERDF. This new name reflects the Company’s strong commitment to the energy transition in the wake of COP 21. It will also raise the profile of the network operator and clarify its purpose, as the CRE recommended. Enedis’ missions in France Enedis, pursuant to the conditions set by law and the concession contracts signed with each of the public electricity distribution contracting authorities (see section 1.4.4.2.2 “Distribution activities”), performs its missions as the public distribution network operator in mainland France.

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DF I Reference Document 2017