Universal Registration Document 2021

In a decision of 8 July 2021, in view of changes in the TURPE tariff from 1 August 2021 and in application of the Energy Code, the CRE proposed an increase of 0.48% including taxes (1.08% excluding taxes) in the “blue” tariffs for residential customers and 0.38% including taxes (0.84% excluding taxes) in the “blue” tariffs for non-residential customers. The CRE has proposed that this change should apply from 1 August 2021.

The proposed tariff increase results from the increase in the TURPE network access tariffs from 1 August 2021 (+0.33% on regulated sales tariffs including taxes), the increase in the remuneration received by suppliers for the service of managing customers on behalf of the network operator, which is deducted from selling costs (- 0.07% on regulated sales tariffs including taxes), and a new update of the “catch-up” adjustment for amounts not covered in 2019, so that the full amount will be recovered in two years, as the CRE had announced (+0.21% on regulated sales tariffs including taxes).

Comparability between periods is thus affected by the tariff changes introduced since 1 August 2020, presented in the table below:

“TURPE” Network access tariffs

Second TURPE 5 Distribution tariff

By a decision of 20 May 2020, the CRE adopted a +2.75% increase to the second TURPE 5 tariff for the medium and low-voltage network from 1 August 2020. This increase comprises +0.92% for inflation, +1.85% to balance the income and expenses adjustment account (CRCP ⁽¹⁾)), and -0.02% in application of the Council of State’s decision of 9 March 2018.

For transmission expenses, on 14 May 2020, the CRE adopted a decision reducing the TURPE 5 tariff for the high voltage network by -1.08% from 1 August 2020, comprising +0.92% for inflation, and -2% to balance the CRCP.

TURPE 6 Distribution tariff

The CRE issued two decisions of 21 January 2021 (published in France’s Journal Officiel 0096 of 23 April 2021) on the TURPE 6 Transmission (high voltage) and TURPE 6 Distribution (medium voltage – low voltage), after the Higher Energy Council (Conseil supérieur de l’énergie) gave its approval. These tariffs apply from 1 August 2021 for a period of approximately 4 years.

For distribution expenses, in its tariff decision n° 2021-13 of 21 January 2021, the CRE set the margin on assets at 2.5% and the additional return on regulated equity at 2.3%. The average tariff increase is +0.91% at 1 August 2021 and +1.39% per year for the whole tariff period, assuming average annual inflation of 1.07%.

For transmission expenses, in its tariff decision n° 2021-12 of 21 January 2021, the CRE set a nominal pre-tax weighted average cost of capital (WACC) of 4.6% for the return on RTE’s regulated asset base. The average tariff increase is +1.09% at 1 August 2021 and +1.57% per year for the whole tariff period, assuming average annual inflation of 1.07%.

3.2 Supplier commissioning

In application of the CRE’s decision of 18 January 2018, energy suppliers receive remuneration from distribution network operators for the service of managing single-contract customers on their behalf.

The commissioning principle is identical for all suppliers selling single-contract market-price offers. Only regulated electricity tariffs have given rise to slightly lower commissions (€4.50 instead of €6.80 per point of delivery until 1 August 2019), with progressive reduction of this difference to zero by 1 August 2022.

For remuneration of past customer management charges (prior to 1 January 2018), the CRE’s decision set an amount it considered as a cap that can be passed on through the TURPE tariff.

However, Law 2017-1839 of 30 December 2017 introduced a measure intended to rule out the possibility of suppliers receiving remuneration from network managers for past customer management services.

3.3 Electricity equalisation fund

The TURPE tariff for the medium and low-voltage network is identical for every electricity network operator. It is determined on the basis of forecast expenses to be borne by Enedis, provided they correspond to an efficient network operator, and forecasts of the number of consumers connected to Enedis’ networks, their consumption, and the power level subscribed.

As this tariff cannot always cover the specific needs of certain service zones, the Electricity Equalisation Fund (Fonds de péréquation de l’électricité or FPE) exists to compensate for disparities in network operating conditions. France’s Energy Code requires electricity distribution costs resulting from public network operation to be shared between public distribution network operators. There are two equalisation mechanisms: one based on fixed amounts, the other set by the CRE based on analysis of the network operators’ accounts. The calculation method for the fixed rate allocation mechanism is defined by decree and ministerial order. At EDF, this concerns the Island Energy Systems (SEI).

On 28 July 2021, the CRE published its decision setting the final amount of the allocation from the Electricity Equalisation Fund to SEI, based on analysis of its accounts, at €195.3 million for 2021.

3.4 Compensation for public energy charges (CSPE)

Mechanism

The compensation mechanism for public energy service charges (compensation des Charges de Service Public de l’Énergie) resulted from a reform introduced by France’s amended finance law for 2015, published in the Journal officiel on 30 December 2015. Under the legislative and regulatory framework, the public energy service charges (electricity and gas) were to be compensated via two State budget items included in France’s finance laws from 2016 onwards. Compensation initially came from two State budget items, a special “energy transition” item and a “public energy service” item, but since 1 January 2021 public energy service charges have been compensated entirely through the general budget.

(1) A mechanism to measure and offset main differences between the actual figures and the forecasts on which tariffs are based.