1. The Group, its strategy and activities

EDF and regional authorities, social housing landlords, local distribution companies ELDs and public service providers

Against the energy transition, EDF offers customised solutions for local authorities and public institutions with decentralised decision-making powers (hospitals, universities and major graduate schools, chambers of commerce and industry, CROUS student service centres, ports and airports).

As an operator in a competitive sector, the EDF group is active for these customers in three areas:

  • the supply of electricity and gas at market price, responding to their energy problems (proposal of offers and solutions adapted to the needs described in calls for tender);
  • the development of offers and services in terms of energy transition: local climate plans, eco-districts, local generation, road lighting, electric mobility, energy efficiency of buildings, etc.;
  • in addition, with respect to its public service missions, EDF is in charge of:
    • the conclusion of concessions agreements to supply electricity at the regulated sales tariff,
    • the supply of electricity at the regulated sales tariff,
    • the fight against energy poverty.

In 2019, overall satisfaction of EDF Collectivités customers is stable with 9 customers out of 10 satisfied or very satisfied.

Managing energy consumption with local authorities

Agreements covering local demand-side management have been entered into with local authorities. In addition, local authorities with the power to make decisions in the area of energy arrange specific actions in their region in matters concerning control of energy transitions and renewable energies. A “Load Amount” device for social-housing lessors aims to improve the energy efficiency of social housing, and makes it possible for EDF to issue energy savings certificates. In 2019, 190,000 social housing homes received assistance for renovation works. EDF also funds Economy Savings Certificates programmes, in particular for local authorities (e.g. positive energy regions and “Watty at School”).

1.4.2.2.2 For sustainable cities and regions

Cities and regions have to reconcile local appeal with responsible development. EDF addresses the needs of local development stakeholders by identifying the various energy solutions and services available in the light of projects’ technical and economic characteristics, assisting with energy transition and low-carbon strategies.

EDF has developed a range of consultancy offerings with a view to designing low-carbon neighbourhoods, developing housing stock renovation strategies based on an asset strategy, vehicle fleet electrification, and charging station location plans with its subsidiary Izivia, and installing solar panels with its subsidiary EDF ENR or other partners. The Bilan Energétique (“Energy Review”) available on the EDF Collectivités website can be used to provide an initial appraisal of a locality’s carbon status.

45 Development Managers are present across all regions so that EDF can better meet the needs of large cities, urban communities, medium sized cities, rural areas.

1.4.2.2.3 Customer data protection

The protection of data belonging to EDF customers is a major component of the Customer Department’s action plan to secure assets/goods and information systems.

Measures taken under the plan are presented every year to suppliers’ governance bodies.

Special attention is paid in particular to compliance with data processing regulations (general data protection regulation – GDPR). Works are regularly conducted to update the description of customer data processing and identify their Operational Data Controllers (ODCs). The Data Controller and the ODCs meet regularly as a dedicated group, the Data Protection Committee (Comité de protection des données).

All Customer advisers of the Residential Customers market and the Corporate Customers market have been trained to deal with requests from customers regarding the exercise of their rights. All employees in the Sales and Marketing Department are required to undergo GDPR training.

Every year, an internal audit on the capacity of the information systems to securely host customer data is conducted. It ensures that only employees in charge of customer relations have access to customer data.

Access to customer data is granted only after a best practice charter has been signed; certification is also required for some experts. These personnel are subject to disciplinary sanctions if they fail to abide by the policy.

A Customer Preference Centre allows domestic customers to enjoy a central view of their consents and preferences and manage these via their customer space.

Vulnerability assessments for the main applications and business continuity plan drills are organised every year. The results are addressed by monitored improvement plans, either by the Sales Division, or by the Group.

1.4.2.2.4 Public electricity distribution concessions at regulated tariffs

Concessions hereby referred to cover two distinct public service missions:

  • the development and operation of public distribution networks, which are the responsibility of Enedis(1) in mainland France, excluding Local Distribution Companies (ELD) (see section 1.4.4.2 “Distribution – Enedis”) and of EDF in the non-interconnected areas (ZNI);
  • the supply of electricity to customers benefiting from regulated sales tariffs connected to the public distribution networks, under the responsibility of EDF for mainland France (excluding ELDs) and ZNIs. This mission is carried out in compliance with the commitments of the concession specifications and general terms and conditions of sale (subscription terms, payment and delivery terms, contractualisation, etc.).

Each concession contract in continental metropolitan France is co-signed by EDF, Enedis and the licensing authority, and concerns a municipality or a grouping of municipalities. These public service missions are executed within the framework of 442 concession agreements of which 54 are at Department level.

2019 was the second year of the process concerning the implementation of the new national concession agreement model which was the subject matter of an agreement signed on 21 December 2017 between EDF, Enedis, the FNCCR (national federation of licensing authorities) and France Urbaine. As of 31 December 2019, over 170 licensing authorities had entered into a concession agreement on the basis of the new model.

2020 will be marked by the continued application of the new agreement model. An organisation and tools are maintained, particularly in order to renew concession contracts, mobilise both national and regional competences, develop the expertise of EDF’s contacts in the contracting authorities, draw up each year the concession activity reports and respond to inspection requests from the granting authorities.

1.4.3 Optimisation activities for EDF in France

1.4.3.1 Role and activities of the Upstream/Downstream Optimisation & Trading Division (DOAAT)

The DOAAT is responsible for managing the balance of EDF’s upstream/downstream electricity portfolio, optimising and securing the electricity gross margin created by this portfolio, as well as managing the associated risks.

The balance between electricity supply and demand is managed right down to a real-time basis, in line with the framework established by risk policies, developed inline with the directives issued by the Group’s Risk Control Department and validated by EDF’s Executive Committee (see section 2.2.2C “Financial and market risks”, risk factor Energy market risk). Climate variations affect this management. Hence, a fall in temperature of 1°C in winter leads to a rise in electricity consumption in France of the order of 2,400MW(2) and EDF’s portfolio bears a large part of this thermo sensitivity. In addition, depending on the run-off, the amplitude of hydraulic generation in the EDF scope, between one extreme year and another, can amount to around 20TWh. The DOAAT ensures that it has, in all timeframes, sufficient resources in order to enable it to meet its commitments. To do this, it manages a set of leveraged actions: scheduling of maintenance operations of generation means (in particular nuclear), management of inventory (fossil fuels, hydro-electric reserves and customer load shedding), purchases and sales in wholesale markets via EDF Trading which is in charge of market access on behalf of DOAAT (see section 1.4.6.3 “Optimisation and trading: EDF Trading”). DOAAT also manages the exposure of

(1) Network operator, independently managed.
(2) Source: RTE.