Universal Registration Document 2020

5.1.4.2.2 Évolution et analyse de l’EBE par segment

 5.1.4.2.2.1 France – Generation and supply

EBITDA of France – Generation and supply activities was down organically by 2.7% compared to 2019 and amounted to € 7,412 million.

Overall, the health crisis affected the EBITDA for an estimated -€ 872 million due to lower nuclear Generation and supply activities (around -33TWh or -€ 0.6 billion), the decline in consumption (around -8TWh, or -€ 0.2 billion) and an estimated increase in bad debt (around -€ 0.1 billion).

Excluding the impact of the health crisis, EBITDA would have increased by 8.8%.

The 11TWh decline in nuclear output excluding the Covid impact was due to the definitive closure of Fessenheim, extended outages at Flamanville 1 and 2 and at Paluel 2, reduced outages to guarantee meeting demand (+14TWh). Meanwhile, hydro output rose by 5.1TWh after deducting pumped volumes. The net effect of nuclear generation excluding Covid and hydro output is estimated at -€ 209 million.

Power prices had a positive effect of around €748 million related to the price increases⁽¹⁾ in June 2019 and February 2020 (the latter including half of the tariff catch-up in 2019).

EBITDA also benefited from the increase in capacity revenues. In fact, in line with the rules governing the capacity auctions, in 2020 RTE carried out auctions for 2021 and 2022 for equivalent volumes, which led to record in 2020 two years of revenues relative to these auctions. Furthermore, 2020 witnessed a surge in capacity prices for 2020 and subsequent years. This increase was mainly driven by the reduced availability of the fleet over this timeframe, against the backdrop of the Covid-19 crisis.

Operating expenses⁽²⁾ were down € 148 million, i.e. -2.2%, partially due to the decrease in the headcount.

5.1.4.2.2.2 France – Regulated activities

EBITDA of France- Regulated activities amounted to € 5,206 million, up 2.1% inorganic terms compared to 2019 despite the crisis.

The change in prices had a positive effect of +€ 391 million, in line mainly with the favourable adjustments to the TURPE 5 indexation⁽³⁾ distribution and transport that took place on 1 August 2019 and 2020.

Mild weather conditions generated lower distributed volumes and had an unfavourable impact of -€ 151 million (or -6.8TWh). Elsewhere, climatic contingencies were lower in 2020 than in 2019 (+€ 57 million).

The decline in distributed volumes (about -8.4TWh excluding climate effects) and the grid connection services reflected the impact of the health crisis on business. This was estimated at a total of -€ 237 million.

Excluding the impact of the health crisis, EBITDA would have increased by 6.7%.

5.1.4.2.2.3 EDF Renewables

EBITDA of EDF Renewables amounted to €848 million, down -23.0% in organic terms compared to 2019.

The exceptional level of “Development and Sale of Structured Assets” transactions in 2019 had no equivalent in 2020, which explains the € 313 million decline in 2020 EBITDA, especially due to the disposal of 50% of the Scottish offshore wind farm project Neart na Gaoithe⁽⁴⁾ (NnG).

Growth in generation and the distributed Solar & Operating Maintenance activities (mainly in the US) contributed positively to EBITDA.

Development costs increased in line with growth in business and the setting up in new regions.

The health crisis had no significant effect on EDF Renewables’ business.

5.1.4.2.2.4 Dalkia

EBITDA of Dalkia amounted to € 290 million, down 17.5% in organic terms compared to 2019.

The health crisis affected EBITDA primarily due to the closure of many customer sites and the postponement of building works (amount estimated at -€ 40 million), mainly in the first half of the year, with a good recovery in activities during the second half. Dalkia remained mobilised over the year alongside its customers, to ensure continuity of essential services, notably in the hospitals sector.

The operating performance plan and the control of structural costs helped strengthen competitiveness. New contracts and renewals of existing sales contracts also had a beneficial effect on EBITDA. In particular, Dalkia signed energy performance contracts with the Pontoise hospital and Thales Alenia Space for its Cannes site. The latter is a concrete example of the low-carbon transition in the industry (45% savings on energy for hot water and 980 tons of CO₂ avoided each year).

Conversely, occasional difficulties with UK contracts penalised financial performance.