Universal Registration Document 2021

*Excluding tax and social liabilities and the CSPE receivable.

22.1 Transactions with entities included in the scope of consolidation

Transactions with the principal associates (CTE (the company that owns RTE) and Taishan) are presented in note 12.

Transactions with other associates, joint ventures, and partner entities in joint arrangements with the Group mainly consist of sales and purchases of energy.

22.2 Relations with the French State and State-owned entities

22.2.1 Relation with French State

The French State holds 83.88% of the capital of EDF at 31 December 2021, and is thus entitled in the same way as any majority shareholder to control decisions that require approval by the shareholders.

In accordance with the legislation applicable to all companies having the French State as their majority shareholder, the EDF group is subject to certain inspection procedures, in particular economic and financial inspections by the State, audits by the French Court of Auditors (Cour des comptes) or Parliament, and verifications by the French General Finance Inspectorate (Inspection générale des finances).

The public service contract between the French State and EDF was signed on 24 October 2005. This contract is intended to form the framework for public service missions assigned to EDF by the lawmaker for an unlimited period. The Law of 9 August 2004 does not stipulate the duration of the contract.

22.2.2 Relations with ENGIE

Enedis and GRDF share a common service function, defined by Article L. 111-71 of the French Energy Code. Its missions in the electricity and gas distribution sector are plant construction, site project management, network operation and maintenance, and metering operations. This service is not a legal entity in its own right.

Enedis and GRDF are bound by an agreement that defines their relations within this service function, its competences, and the resulting division of costs. The agreement  has an unlimited term and can be terminated at any time subject to 18 months’ notice: in such a case, the parties undertake to renegotiate the agreement during the notice period. It is updated regularly.

Enedis and GRDF have been progressively reorganising their mixed activities for several years with a view to ending this agreement:

• in 2014 each entity became responsible for reading its own meters and doing work on its own meter panels;
• in 2018, certain support activities were separated (vehicles and machines, litigation and insurance, training and recruitment, office purchases) and two mixed entities were created, one for employment contracts, studies and medical/social matters, and the other for IT and telecoms

In July 2021, on completion of work begun in 2020, the Governance board decided to begin a project to modernise the four remaining mixed entities: the IT and telecoms operator, the human resources and medical/social matters service, the national accounting unit and the “Serval” operational logistics unit. Following this decision a detailed investigation of the project was initiated, involving all the employees concerned, and employee consultation was begun.

Concerning the common service of LPG distribution and supply in the cities of Ajaccio and Bastia in Corsica, ENGIE informed EDF in October 2020 that it was considering terminating its LPG activities in Corsica.

Article 96 of France’s Finance Law for 2022 allows the State to bear part of the costs associated with conversion of the LPG networks to electricity or renewable energies, for a maximum period of twenty years to be set by official order.

This measure currently has no impact for EDF. Ultimately, the prospect of ending LPG distribution operations and converting uses to electricity will need investments to reinforce the electricity distribution networks.

22.2.3 Relations with public sector entities

The EDF group’s relations with public sector entities mainly concern the two entities belonging to the former AREVA group (Orano and AREVA SA).

Transactions with Orano concern:

• the front-end of the nuclear fuel cycle (uranium supplies, conversion and enrichment services);
• the back-end of the nuclear fuel cycle (transportation, storage, processing and recycling services for spent fuel).