Article L. 115-3 of the French Social Action and Families Code prohibits electricity suppliers from cutting off electricity supplies to the primary residences of individuals or families during the winter period (from November 1 to March 31) due to unpaid bills, including through contract termination. Electricity suppliers may, nevertheless, in certain cases, reduce the power supplied, except with regard to customers who benefit from “energy vouchers”. These vouchers are a special means of payment that allow households that are experiencing financial difficulties to cover part of their energy consumption expenses (electricity, gas, fuel oil, etc.) or their expenditure on improving the energy efficiency of their home.
In its capacity as an electricity supplier, EDF is required to maintain electricity supplies under the conditions laid down by said Article and by Decree no. 2008-780 of 13 Aug. 2008 on the procedure applicable in the event of unpaid electricity, gas, heating and water bills, implemented in its amended form pursuant to Decree no. 2014-274 of 27 February 2014 and Decree no.°2016555 of 6 May 2016.
On 24 October 2005, a Public Service Contract was entered into by the State and EDF pursuant to Article L. 121-46 of the French Energy Code. This contract, which details the commitments made by EDF and the State and specifies the rules governing the financial remuneration for service commitments, will remain in force until a new contract is signed, as provided for in the contract itself.
EDF’s public service commitments include:
Through the Public Service Contract, Enedis and RTE in their capacity as network managers made commitments concerning the management of the public networks for the transmission and distribution of electricity and the safety of the electricity system. These commitments are financed by the Tariff for Using the Public Electricity transmission and distribution Networks (TURPE).
These commitments concern, above all, network safety, supply quality, third party safety and the preservation of the environment – four areas where customers’ and local authorities’ expectations are especially high.
In this Universal Registration Document, a reference to the articles of association means the Company’s articles of association as approved by French Decree no. 2004-1224 of 17 November 2004 adopted under French Act no. 2004-803 of 9 August 2004 relating to the public electricity and gas service and electricity and gas companies (the “9 August 2004 law”), which have subsequently been amended on various occasions.
EDF’s purpose, both in France and abroad and in compliance with the laws set out in the first Article of its articles of association, is:
EDF’s raison d’être would be to: “To build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive well-being and economic development”.
Each fiscal year lasts for 12 months, starting on 1 January and ending on 31 December of each year.
The distributable profit consists of the net profit for the fiscal year, less prior losses carried forward and the various deductions provided for by the law or the articles of association, plus any retained earnings carried forward.
The Shareholders’ Meeting may decide to distribute amounts deducted from the reserves that are freely available to it, but must expressly state the reserve items from which the deductions are made.
After approving the financial statements and confirming the existence of distributable amounts (which include the distributable profit and any amounts deducted from the reserves mentioned above), the Shareholders’ Meeting can decide to distribute all or part of such amounts to the shareholders in the form of a dividend, allocate them to reserve items or carry them forward. The Board of Directors may also distribute interim dividends prior to the approval of the financial statements for the fiscal year, under the conditions laid down by law.
The Shareholders’ Meeting has the option of granting the shareholders a choice, for all or part of the dividend or interim dividend paid out, between payment in cash and payment in shares. Moreover, the Shareholders’ Meeting may decide to pay any dividend, interim dividend, reserve or premium that is distributed or any reduction in capital, through remittal of the Company’s assets, including financial securities.
