1. The Group, its strategy and activities - Page 388 | edf

Note 51 Related parties

Details of transactions with related parties are as follows:

	Associates and joint ventures		Joint operations		French State or State-owned entities^*		Group Total
(in millions of euros)	31/12/2019	31/12/2018	31/12/2019	31/12/2018	31/12/2019	31/12/2018	31/12/2019	31/12/2018
Sales	Sales Associates and joint ventures 455	Sales Joint operations 560	Sales French State or State-owned entities ^* -	Sales Group Total -	1,889	1,708	2,344	2,268
Energy purchases	Energy purchases Associates and joint ventures 4,063	Energy purchases Joint operations 4,071	Energy purchases French State or State-owned entities ^* 4	Energy purchases Group Total 5	2,104	2,031	6,171	6,107
External purchases	External purchases Associates and joint ventures 18	External purchases Joint operations 4	External purchases French State or State-owned entities ^* 3	External purchases Group Total 3	253	251	274	258
Financial assets	Financial assets Associates and joint ventures 150	Financial assets Joint operations 294	Financial assets French State or State-owned entities ^* -	Financial assets Group Total -	-	-	150	294
Other assets	Other assets Associates and joint ventures 633	Other assets Joint operations 730	Other assets French State or State-owned entities ^* -	Other assets Group Total -	532	486	1,165	1,216
Financial liabilities	Financial liabilities Associates and joint ventures -	Financial liabilities Joint operations -	Financial liabilities French State or State-owned entities ^* -	Financial liabilities Group Total -	-	-	-	-
Other liabilities	Other liabilities Associates and joint ventures 1,228	Other liabilities Joint operations 1,162	Other liabilities French State or State-owned entities ^* 1	Other liabilities Group Total 1	624	631	1,853	1,794

*Excluding tax and social liabilities and the CSPE receivable.

51.1 Transactions with entities included in the scope of consolidation

Transactions with the principal associates (CTE, the company that owns RTE, CENG and Taishan) are presented in note 26.

Transactions with other associates, joint ventures, and partner entities in joint arrangements with the Group mainly consist of sales and purchases of energy.

51.2 Relations with the French State and State-owned entities

51.2.1 Relations with the French State

The French State holds 83.58% of the capital of EDF at 31 December 2019, and is thus entitled in the same way as any majority shareholder to control decisions that require approval by the shareholders.

In accordance with the legislation applicable to all companies having the French State as their majority shareholder, the EDF group is subject to certain inspection procedures, in particular economic and financial inspections by the State, audits by the French Court of Auditors (Cour des Comptes) or Parliament, and verifications by the French General Finance Inspectorate (Inspection générale des finances).

The public service contract between the French State and EDF was signed on 24 October 2005. This contract is intended to form the framework for public service missions assigned to EDF by the lawmaker for an unlimited period. The Law of 9 August 2004 does not stipulate the duration of the contract.

51.2.2 Relations with GRDF

The common service function shared by Enedis and GRDF is defined by Article L. 111-71 of the French Energy Code. Its missions in the electricity and gas distribution sector are building structures, site project management, network operation and maintenance, and metering operations. This service is not a legal entity in its own right.

Enedis and GRDF’s relations in this common service are governed by an agreement that defines the scope of the service and the resulting division of costs. The agreement has an unlimited term and can be terminated at any time subject to 18 months notice: in such a case, the parties undertake to renegotiate the agreement during the notice period. It is updated regularly.

In July 2014, Enedis and GRDF issued a joint announcement that their joint activities of meter reading and work on meter panels would be discontinued in the future. Currently, Enedis prioritises a structure consisting of regional divisions covering all its operational missions at local level. A network of smaller units is used for very local activities.

In March 2018, Enedis and GRDF reorganised some of their joint operations by creating two mixed entities: one handles employment contracts, studies and medical/social matters and the other is the IT and telecoms operator for all telephone and office technology activities. These two entities took effect from 1 January 2019.

The support functions for Real Estate, Vehicles and Machines, Litigation and Insurance, Training and Recruitment, and Office purchases, which were previously combined, are now handled separately by each of the two companies.

51.2.3 Relations with public sector entities

The EDF group’s relations with public sector entities mainly concern the two entities belonging to the former AREVA group (Orano and AREVA SA).

Transactions with Orano concern:

the front-end of the nuclear fuel cycle (uranium supplies, conversion and enrichment services);
the back-end of the nuclear fuel cycle (transportation, storage, processing and recycling services for spent fuel).

Front-end of the cycle

Several important long-term agreements were negotiated between EDF and Orano:

for supplies of natural uranium: Orano Mining contracts;
for fluoration: an Orano cycle contract;
for enrichment of natural uranium into uranium 235: an Orano Cycle contract.

Back-end of the cycle

Relations between EDF and Orano concerning transportation, processing and recycling of spent fuels are described in note 32.1.1.

6. Financial statements