Universal Registration Document 2021

11.1 Property, plant and equipment operated under French public electricity
distribution concessions

(in millions of euros)	31/12/2020	Increases ⁽¹⁾	Decreases	Other movements ⁽²⁾	31/12/2021
Land and buildings	Land and buildings 31/12/2020 3,219	Land and buildings Increases ⁽¹⁾ 205	Land and buildings Decreases (20)	Land and buildings Other movements ⁽²⁾ 3	Land and buildings 31/12/2021 3,407
Networks	Networks 31/12/2020 100,899	Networks Increases ⁽¹⁾ 4,308	Networks Decreases (512)	Networks Other movements ⁽²⁾ 5	Networks 31/12/2021 104,700
Other installations, plant, machinery, equipment & other	Other installations, plant, machinery, equipment & other 31/12/2020 4,872	Other installations, plant, machinery, equipment & other Increases ⁽¹⁾ 416	Other installations, plant, machinery, equipment & other Decreases (209)	Other installations, plant, machinery, equipment & other Other movements ⁽²⁾ (7)	Other installations, plant, machinery, equipment & other 31/12/2021 5,072
Assets in progress⁽³⁾	Assets in progress ⁽³⁾31/12/2020 1,828	Assets in progress ⁽³⁾Increases ⁽¹⁾ 52	Assets in progress ⁽³⁾Decreases -	Assets in progress ⁽³⁾Other movements ⁽²⁾ 6	Assets in progress ⁽³⁾31/12/2021 1,886
Gross value	Gross value31/12/2020110,818	Gross valueIncreases ⁽¹⁾4,981	Gross valueDecreases(741)	Gross valueOther movements ⁽²⁾7	Gross value31/12/2021115,065
Land and buildings	Land and buildings 31/12/2020 (1,592)	Land and buildings Increases ⁽¹⁾ (80)	Land and buildings Decreases 19	Land and buildings Other movements ⁽²⁾ (8)	Land and buildings 31/12/2021 (1,661)
Networks	Networks 31/12/2020 (45,873)	Networks Increases ⁽¹⁾ (237)	Networks Decreases 379	Networks Other movements ⁽²⁾ (2,388)	Networks 31/12/2021 (48,119)
Other installations, plant, machinery, equipment & other	Other installations, plant, machinery, equipment & other 31/12/2020 (3,001)	Other installations, plant, machinery, equipment & other Increases ⁽¹⁾ (215)	Other installations, plant, machinery, equipment & other Decreases 190	Other installations, plant, machinery, equipment & other Other movements ⁽²⁾ (127)	Other installations, plant, machinery, equipment & other 31/12/2021 (3,153)
Depreciation and impairment	Depreciation and impairment31/12/2020(50,466)	Depreciation and impairmentIncreases ⁽¹⁾(532)	Depreciation and impairmentDecreases588	Depreciation and impairmentOther movements ⁽²⁾(2,523)	Depreciation and impairment31/12/2021(52,933)
NET VALUE	NET VALUE31/12/202060,352	NET VALUEIncreases ⁽¹⁾4,449	NET VALUEDecreases(153)	NET VALUEOther movements ⁽²⁾(2,516)	NET VALUE31/12/202162,132

(1) Increases also include facilities provided by the concession-granting authorities.

(2) Other movements mainly concern depreciation of assets operated under concessions, booked against amortization recorded in the special concession liability accounts.

(3) Increases in assets in progress are stated net of the effects of newly-commissioned assets.

11.2 Special French public electricity distribution concession liabilities

Accounting principles and methods

Concession liabilities represent the contractual obligations specific to the concession rules for public electricity distribution concessions in France, and comprise the following:

the concession-granting authority’s rights in existing assets (its right to recover all the concession assets):

the value in kind of the facilities (the net book value of assets operated under concessions),
less any as yet unamortised financing provided by the operator;

the concession-granting authority’s rights in assets to be replaced (the operator’s obligations relating to assets due for replacement):

amortisation of financing by the grantor: this is a liability owed by the concession operator to the grantor and is recognised progressively as the asset is used,
provision for replacement: this provision exclusively concerns assets due for replacement before the end of concessions using the 1992 concession agreement model, except for the rising mains transferred in application of the ELAN law. It is accrued over the asset’s useful life, based on the difference between the asset’s replacement value for identical capacity and functions, and the original value. The replacement value is adjusted at each year-end based on indexes from official publications, and the impact of the adjustment is spread over the residual useful life of the assets concerned.

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 in existing 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 in existing 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 the EDF 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)	31/12/2021	31/12/2020
Value in kind of assets*	Value in kind of assets* 31/12/2021 54,391	Value in kind of assets* 31/12/2020 52,907
Unamortised financing by the operator	Unamortised financing by the operator 31/12/2021 (30,307)	Unamortised financing by the operator 31/12/2020 (28,730)
Rights in existing assets – net value	Rights in existing assets – net value31/12/202124,084	Rights in existing assets – net value31/12/202024,177
Amortisation of financing by the grantor	Amortisation of financing by the grantor 31/12/2021 15,630	Amortisation of financing by the grantor 31/12/2020 15,000
Provisions for replacement	Provisions for replacement 31/12/2021 9,139	Provisions for replacement 31/12/2020 9,243
Rights in assets to be replaced	Rights in assets to be replaced31/12/202124,769	Rights in assets to be replaced31/12/202024,243
SPECIAL FRENCH PUBLIC ELECTRICITY DISTRIBUTION CONCESSION LIABILITIES	SPECIAL FRENCH PUBLIC ELECTRICITY DISTRIBUTION CONCESSION LIABILITIES31/12/202148,853	SPECIAL FRENCH PUBLIC ELECTRICITY DISTRIBUTION CONCESSION LIABILITIES31/12/202048,420

* Including contributions received to finance concession assets, amounting to €129 million (€108 million in 2020).

Universal Registration Document 2021

6. Financial statements

11.1 Property, plant and equipment operated under French public electricitydistribution concessions

11.2 Special French public electricity distribution concession liabilities

Accounting principles and methods

11.1 Property, plant and equipment operated under French public electricity
distribution concessions