Universal Registration Document 2020

1. The Group, its strategy and activities

1.4.2.1.2 Regulated electricity sales tariff contracts
Access to regulated electricity tariffs

For details of the changes to the legal and regulatory framework for regulated electricity sales tariffs in France (“TRV” or “blue” tariffs), see note 5.1.1 in the notes to the 2020 consolidated financial statements.

Since the Energy-Climate Law entered into force, the situation for electricity, by category of customer, is as follows:

  • domestic final consumers who have subscribed power for their site(s) not exceeding 36kVA: these customers benefit from regulated sales tariffs. They can freely switch back and forth between regulated tariffs and market offers;
  • for non-domestic end consumers with subscribed power levels of 36kVA or less, only consumers with fewer than 10 employees and a turnover, total revenue, or balance sheet of less than €2 million will still be able to benefit from regulated sales tariffs after 31 December 2020. Consumers that do not fall into this category will lose the benefit of regulated tariffs on 31 December 2020, following the process described by the law;
  • domestic and non-domestic final consumers who have subscribed power for their site(s) exceeding 36kVA: since 1 January 2016 these sites can no longer subscribe to regulated sales tariff products which were cancelled on 31 December 2015;
  • domestic and non-domestic final consumers for their site(s) located in areas not connected to the continental metropolitan network: these customers have the right to regulated sales tariffs.

Regulatory notice

“Blue tariffs” – tariff changes

In accordance with Articles L. 337-4 of the French Energy Code, the CRE has been responsible for notifying the Ministers for the Economy and for Energy of its justified proposals for regulated electricity sales tariffs (TRV). If no objections are made within three months, the proposals are deemed to have been approved.

With respect to 2020 tariff changes, the CRE proposed to the government(1),that residential and non-residential “Blue tariffs” be increased by 2.4%,including tax. i.e. 1.5% corresponds to making up, within 2 years, the delay in the tariff coming into effect in 2019, and 0.9% corresponds to taking into account costs relating to the construction of regulated sales tariffs for electricity: wholesale prices for capacity and power, the effects of ARENH capping, and changes in marketing costs, including the costs of Energy SavingsCertificates. The French Energy Regulation Commission (CRE) proposal was confirmed(2) and implemented on 1 February 2020.

Thereafter, the tariff level of summer 2020 was also changed in accordance with this process: given the change in TURPE on 1 August 2020 and pursuant to the French Energy Code, the CRE proposed in a deliberation dated02 July 2020 a reduction of 1.54% including tax in residential blue tariffs and an increase of 1.58% including tax in non-residential “Blue tariffs”. The FrenchEnergy Regulation Commission (CRE) proposal was confirmed(3) and implemented on 1 August 2020.

1.4.2.1.3 Electricity supply contracts

In France, domestic and non-domestic customers(4) with subscribed power levels of less than 36kVA are entitled to regulated sales tariffs, and may also choose a market offer put forward by any supplier, including EDF.

With the exception of customers directly connected to the transmission network, who must sign separate supply and delivery contracts, all other customers may enter into a single contract with the supplier. In this regard, a commission is paid by the distributor to any supplier offering a single contract to its customers since in doing so, it provides customer management services on behalf of the distributor.

The quality of supply, which is the distributor’s responsibility, is monitored on a regular basis under contracts with the distributors. EDF monitors the impact of outages and the quality of supply to its customers and their satisfaction with the aim of working with the distributor on a continuous improvement basis (see section 1.4.4.2.2 “Distribution activities”).

1.4.2.2 Activities of the Customer Division

EDF’s Customer Division brings together all business relating to the sale of electricity ,gas, and related services in mainland metropolitan France. It also performs all customer management functions, including the management of customer requests via all channels (telephone, email, etc.), complaints handling, invoicing, and debt recovery. The activity spans all customer segments: domestic consumers, professionals, companies, and local authorities. For larger customers (industry and service sectors), energy services are mainly marketed and provided by Dalkia (see section 1.4.6.1.1 “Dalkia”).

The Customer Division operates on the basis of recognised fundamentals:

  • constantly seeking to further strengthen consumer confidence;
  • local presence in the form of 6,200 customer advisers, all based in France, and its 8 Regional Commercial Divisions;
  • permanent innovation in digital technology, electric mobility, self-consumption solutions, and electricity flexibility.
1.4.2.2.1 Activity by customer category
1.4.2.2.1.1 Domestic customers

EDF is innovating on a daily basis; Domestic customer satisfaction is a priority: approximately 9 out of 10 customers are satisfied with their relationship with EDF following telephone contact. The annual report of the French national energy mediator published in June 2020, shows that EDF has the lowest rate of disputes, far behind its main competitors. The customer experience offered is both digital(customer space, chat, web call back, mobile application, digital solutions, social media, etc.) and human. 5,000 advisers, all based in France, are attentive to the needs of customers and offer them personalised advice.

Energy supply

EDF supplies electricity at the regulated sales tariff (TRV) and offers a comprehensive range of market offers in electricity. To offer even more choice to its domestic customers in 2020, EDF extended its electricity market offering; as of the end of 2019, this comprised the "Mes Jours Zen", "Mes Jours Zen Plus", "Vert Électrique","Vert Électrique Weekend", "Vert Électrique Auto", and " Digiwatt" offers. Thereafter, in January 2020, EDF launched "Vert Électrique Bretagne" (“ElectricGreen Brittany”) its first electricity offering allowing its customers to support the production of green electricity in Brittany, France(5). "Vert Électrique Bretagne" addresses the expectations of the large number of people in France who are keen to support production of energy of local origin and who are committed to the environment, allowing them to support specific wind farms in Brittany. Vert ÉlectriqueBretagne customers can be assured that the entire output of these sites is purchased by EDF group, together with the related guarantees of origin.

In order to broaden its portfolio of gas customers, EDF has launched a new offer, "Avantage Gaz Optimisé" (“Optimised Gas Advantage”), indexed at 2% below the price per kWh before VAT of regulated gas tariffs (TRG). This offer further extends the existing range of three gas offers. "Avantage Gaz" offers a fixed price per kWh(before VAT) for a period of four years. Over and above the characteristics of the "Avantage Gaz" offer, "Avantage Gaz Durable" offers carbon offsetting based on the customer’s estimated gas use. Lastly, "Avantage Gaz Connecté" gives customers the possibility of managing their heating remotely and enhancing their comfort with the purchase of a connected thermostat.

(1) Via the decision of 16 January 2020 published on 24 January 2020.

(2) Through tariff ruling on 29 January 2020, published in the French Official Journal on 31 January 2020.

(3) Through tariff ruling on 29 July 2020, published in the French Official Journal on 31 July 2020.

(4) Eligibility conditions defined in the 29 January 2020 decision on regulated electricity sales tariffs applicable to non-residential consumers in mainland France.

(5) See EDF’s press release of 29 January 2020, “EDF’s Vert Électrique Bretagne offer allows clients to support the production of green electricity in Brittany, France.”