The compensation paid under the terms of this protocol comprises:
This compensation is recognised as income in profit and loss as and when the associated costs are incurred;
Since its decoupling from the network, the Fessenheim plant has entered a post-operating phase that will last approximately five years. During that period, units 1 and 2 will continue to be operated and maintained as “defueled core” and“evacuated fuel” reactors. This will require a series of technical and administrative operations.
All the post-operating expenses and income associated with the closure of the two units in 2020 are recognised in other operating income and expenses. At 31 December 2020, they mainly comprise:
In France, the Law of 13 July 2005 introduced a system of energy savings certificates. Suppliers of energy (electricity, gas, heat, cold, domestic fuel oil and fuel for vehicles) with sales above a certain level became subject to energy savings obligations, initially for a three-year period.
To meet this obligation, three sources are available to the EDF group: supporting consumers in their energy efficiency operations, funding ministry-approved energy savings certificate schemes, and purchasing certificates from eligible actors.
Expenses incurred for this purpose are recorded in expenses of the year concerned, in “Other operating income and expenses”. Expenses in excess of the accumulated obligation at year-end are included in inventories and may be used to cover the obligation in later years.
A provision is recognised if the energy savings achieved are lower than the cumulative energy savings obligation at the year-end. The amount of the provision is equal to the cost of actions still to be taken to extinguish the obligations related to the energy sales made.
Decree 2017-690 of 2 May 2017 issued by the French Ministry for theEnvironment, Energy and the Sea substantially raised the obligation levels for the fourth period of energy savings obligations (initially running from 1 January2018 to 31 December 2020) to 1,200TWhc for the “standard” obligations and 400TWhc for the obligations that are intended to benefit households insituations of energy poverty, compared to 700TWhc and 150TWhc respectively for the previous period.
Law no. 2019-1147 of 8 November 2019 relating to Energy and the Climate, as well as prolonging the fourth period of the energy savings certificates scheme, included a chapter on measures against fraud concerning these certificates designed to increase the number and effectiveness of controls and sanctions.
If there is a shortfall in certificates surrendered at the end of the period, obligated actors must pay a fine of €15 per MWhc of shortfall.
In order to fulfil these obligations, the Group made every effort to gradually increase its number of energy savings certificates, taking advantage of the“Coup de pouce” operations launched in France early in 2019 (subsidies for insulation, financial aid for replacing oil heating by heat pumps, 50%additional energy savings subsidy for heat pump users, special offers for heat pump maintenance contracts, etc.).
The Group currently considers that due to the combined effect of the expected increase in certificates earned by the end of 2021 and the extension of the fourth period, there is no risk of a shortfall in energy savings certificates at the end of the period.
This item essentially consists of changes over the period in the fair value of derivatives used for economic hedging of commodity purchases or sales that are not eligible for hedge accounting as defined in IFRS 9, and are therefore included directly in profit and loss. The Group report these changes in a specific line of the income statement, “Net changes in fair value on Energy andCommodity derivatives, excluding trading activities” below the operating profit before depreciation and amortisation.
| (in millions of euros) | 2020 | 2019 |
|---|---|---|
| NET CHANGES IN FAIR VALUE ON ENERGY AND COMMODITY DERIVATIVES, EXCLUDING TRADING ACTIVITIES | NET CHANGES IN FAIR VALUE ON ENERGY AND COMMODITY DERIVATIVES, EXCLUDING TRADING ACTIVITIES2020(175) | NET CHANGES IN FAIR VALUE ON ENERGY AND COMMODITY DERIVATIVES, EXCLUDING TRADING ACTIVITIES2019642 |
Net changes in fair value on Energy and Commodity derivatives, excluding trading activities, decreased from €642 million in 2019 to €(175) million in 2020, principally due to high price volatility observed on the markets for other commodities, especially electricity (a mainly price-related rather than volume-related effect), and Edison’s gas positions.
