Universal Registration Document 2021

1.4.4.2.1 Organisation of Enedis

Pursuant to the EU Directives, in order to comply with the rules on non- discriminatory access to networks and on management independence that are binding on network operators, said operators must be independent from any energy supply and production activity. If the distribution network operator is part of a vertically integrated company, it must be legally separate in order to guarantee its functional and decision-making independence.

In this regard, EDF and Gaz de France, now Engie, made their distribution network operators subsidiaries in 2008. ERDF was founded in 2008, and changed its name to Enedis on 1 June 2016. This new name reflects the company’s strong commitment to energy transition in the wake of COP21. It will also raise the profile of the network operator and clarify its purpose, as the CRE recommended.

Enedis and GRDF share a “common service” in accordance with the legal framework (see section 1.4.4.2.3 “Service shared by Enedis and GRDF”).

• The Supervisory Board comprises fifteen members, of which :
• eight are appointed by the Ordinary Shareholders’ Meeting
• five are representatives of the employees elected in accordance with the conditions set out in Law no. 83–675 dated 26 July 1983 relating to the democratisation of the public sector;
• one member is appointed by the French State by virtue of Articles 4 or 6 of Ordinance no. 2014-948 dated 20 August 2014; and
• one member, representing the organising authorities for the public electricity distribution network, is appointed by decree pursuant to Article 153 of Law no. 2015-992 relating to energy transition for green growth.
• Pursuant to the possibility offered by Ordinance no. 2014-948 dated 20 August 2014 (Article 15) and in compliance with Decree no. 2015-38 dated 19 January 2015, the French State appointed by a Decree dated 21 April 2020 a Government Commissioner for the purposes of attending the meetings of the Enedis Supervisory Board.
• Since 1 August 2020, the Management Board is made up of five members, who perform their work under the oversight of the Supervisory Board, within the limits fixed by the French Energy Code and Enedis’ articles of association.

Enedis’ missions in France

Enedis, pursuant to the conditions set by law and the concession contracts signed with each of the public electricity distribution contracting authorities, performs its missions as the public distribution network operator in mainland France. These missions are:

• define and implement operational, investment and development policies in relation to the electricity distribution network;
• provide connection and access for users to these networks under objective, transparent and non-discriminatory conditions, as well as inter-connection with other networks;
• provide users with the information needed to access the network efficiently (information protected by regulations or law excepted);
• oversee relations with the energy regulation authorities (Ministry of Energy, the Energy regulation Commission (CRE), public distribution contracting authorities) in line with its activities;
• oversee relations with local authorities in respect of its activities;
• negotiate, conclude and manage concession contracts;
• operate, maintain and repair the electricity distribution networks;
• design and build infrastructure, as well as manage work on these networks;
• carry out metering activities for users connected to the networks, particularly as regards supply, installation, meter inspection, maintenance and renewal of metering devices, as well as managing data activities and any other missions relating to its work as a whole;
• ensure that the market works properly, and provide equal access to the network and data for market players;
• encourage the integration of renewable energy in the grid and the implementation of energy efficiency initiatives;
• ensure the monitoring of the load shedding perimeters;
• be the guarantor of the distribution and accounting of energy flows between the network user players, and the fair compensation of losses on these

1.4.4.2.2 Distribution activities

Change in investments

In 2021, Enedis invested €4,379 million. €1,856 million was earmarked for connections (consumers and producers) and adjusting the grid to the load.

€2,064 million was dedicated to the quality of the service, to securing the networks, to the security and preservation of the environment and rolling out the Linky meters. These are all areas where the identified expectations of customers, local authorities and contracting authorities are particularly strong. Lastly,

€458 million was invested in information systems and operational resources (vehicles, machinery, real estate, etc.).

Investments in connections are at their highest level since 2015 due to a sharp increase in demand. On the customer side, this is driven by individual and multi- family housing, and charging points for electric vehicles. On the producers’ side, this is the result of the impacts of energy transition and the growth of renewable energies (wind and solar power).

In addition, the contracting authorities invested €743 million in 2021. In all, almost

€5,122 billion was therefore invested on the distribution networks in 2021 in mainland France.

GROSS INVESTMENTS MADE BY ENEDIS

(1) Of which Linky: €492 million in 2021, €682 million in 2020, €722 million in 2019, €792 million in 2018 and €612 million in 2017 (rollout costs and costs related to the post-experimentation phase).

(2) After deducting PCT (a) and Article 8 (b) for the part funded by Enedis.

(a) PCT (portion covered by the tariff): portion paid to project manager contractors from the contributions to the delivery tariff for financing a connection.

(b) Article 8 of Annex 1 of the concession specifications relating to the integration of works into the environment (for example, work to bury power lines).