Concession liabilities represent the contractual obligations specific to the concession rules for public electricity distribution concessions in France, and comprise the following:
When assets are replaced, amortisation recognised on the portion of assets considered to be financed by the grantor, and the provision for replacement established for the relevant asset, are cancelled and transferred to rights inexisting assets. Any excess provision is taken to income.
During the concession, the grantor’s rights in assets to be replaced are thus transferred upon the asset’s replacement to become the grantor’s rights inexisting assets, with no outflow of cash to the benefit of the grantor.
The Group considers that the obligations related to assets to be replaced are to be valued on the basis of the special clauses contained in the concession agreements. Under this approach, these obligations are stated at the value of the contractual obligations as calculated and reported annually in the reports to the grantors. This contractual value also reflects the possibility that theEDF group may one day lose its status as the concession operator.
The changes in special concession liabilities for existing assets and assets to be replaced are as follows:
(in millions of euros) | 31/12/2020 | 31/12/2019 |
|---|---|---|
| Value in kind of assets* | Value in kind of assets *31/12/2020 52,907 | Value in kind of assets *31/12/2019 51,085 |
| Unamortised financing by the operator | Unamortised financing by the operator 31/12/2020 (28,730) | Unamortised financing by the operator 31/12/2019 (27,387) |
| Rights in existing assets – net value | Rights in existing assets – net value 31/12/2020 24,177 | Rights in existing assets – net value 31/12/2019 23,698 |
| Amortisation of financing by the grantor | Amortisation of financing by the grantor 31/12/2020 15,000 | Amortisation of financing by the grantor 31/12/2019 14,389 |
| Provisions for replacement | Provisions for replacement 31/12/2020 9,243 | Provisions for replacement 31/12/2019 9,378 |
| Rights in assets to be replaced | Rights in assets to be replaced 31/12/2020 24,243 | Rights in assets to be replaced 31/12/2019 23,767 |
| SPECIAL FRENCH PUBLIC ELECTRICITY DISTRIBUTION CONCESSION LIABILITIES | SPECIAL FRENCH PUBLIC ELECTRICITY DISTRIBUTION CONCESSION LIABILITIES 31/12/2020 48,420 | SPECIAL FRENCH PUBLIC ELECTRICITY DISTRIBUTION CONCESSION LIABILITIES 31/12/2019 47,465 |
*Including contributions received to finance concession assets, amounting to €108 million (€131 million in 2019). In 2020 they include €399 million resulting from incorporation of the rising mains in application of the ELAN law.
