Furthermore, Enedis continues its efforts in the preventative maintenance of networks, including work relating to tree topping. This came to €332 million in 2021 (compared to €314 million in 2020).
Quality of service is one of Enedis’ main objectives. In 2021, the average outage time, excluding transmission incidents and exceptional incidents, was 57 minutes. This result, one of the best in 15 years, stems from the combination of a relatively favourable year of weather and the benefit of the resilience initiatives taken in recent years. The quality of service provided is also reflected by maintaining steady voltage levels, kept as close as possible to the level set by regulations, and by minimising the number of outages.
To respond to large-scale incidents, Enedis relies on an Electricity Rapid Intervention Force (FIRE). This system allows it to mobilise, at any time, in an affected region, the teams and resources from other regions in order to restore customers’ electricity as rapidly as possible. In 2021, FIRE intervened on five occasions.
Within the Enedis scope, in 2021, the number of solar panel generation installations connected to the network grew significantly, with 2,539MW of new photovoltaic facilities connected (compared to 876MW at the end of 2020). The increase in wind power generation connected to the public distribution network also continued, with 1,008MW connected in 2021 (compared to 789MW in 2020).
At the end of 2021, a total of around 27.8GW in photovoltaic and wind power generation was connected to the Enedis grid. It is made up respectively of 11.7GW from photovoltaic plants and 16.1GW from wind power generation. To the power thus generated are added other sources of power generation, in particular hydropower plants (1.6GW), cogeneration (2.6GW), biogas, biomass and dispatchable fossil-fuel thermal. In all, at the end of 2021, the generation fleet connected to Enedis was around 33.9GW.
In 2021, more than 51,790 photovoltaic self-consumption facilities were also connected, representing close to 96% of the year’s connections for small producers.
In addition, Enedis has continued its efforts to develop capacities for accepting renewable energies. It has initiated construction work on sources as part of the regulatory framework in the regional plans for the grid connection of renewable energies.
The number of market players continued to increase in 2021. In five years, the number of balance responsible entities increased by 37% and the number of suppliers doubled. At the end of 2021, 70 balance responsible entities were active. Enedis reconstitutes the flows within their scope in order to provide information to the balance responsible entity mechanism managed by RTE. 93 electricity suppliers, which operate on the French market, have a contract with Enedis that sets out the operating procedures between the supplier and distributor when the customer takes out a single tapping contract that encompasses the supply and delivery of electricity. Moreover, more than 470 new third-party players have a contract with Enedis to exploit granular consumer data, with the consumers’ authorisation, for energy services-related purposes.
Over 90% of Enedis’ sales are made up of revenues made from electricity transmission. The Tariff for Using the Public Electricity transmission and distribution Networks (TURPE), in terms of levels and structure, is set by the CRE in a transparent and non-discriminatory manner, in order to cover all the costs borne by efficient network operators. See section 5.1.1 “Regulatory change in France” of the notes to the Group’s consolidated financial statements.
At 31 December 2021, Enedis and EDF were co-concession holders of 415 concessions contracts, covering around 95% of the population in continental metropolitan France.
The concession contracts are generally concluded for a period of 25 to 30 years.
On 21 December 2017, the French National Federation of Licensing Authorities (Fédération nationale des collectivités concédantes et régies, FNCCR), France Urbaine, EDF and Enedis signed a framework agreement based on a new concession agreement model. Twenty-five years after the 1992 agreement with the FNCCR, this new framework agreement includes France Urbaine, which represents municipalities, large urban inter-municipalities and cities. Most of its members have contracting authority status for public distribution of electricity.
The new standard agreement endorsed by this agreement restates the principles of the French concession model: public service, regional solidarity and national optimisation, while at the same time taking into account issues involving energy transition. The official introduction of this new model opens the way to a modernised and lasting relationship between Enedis and the contracting authorities.
Despite the health crisis, renewal of concession agreements continued at a sustained pace in 2021. At 31 December 2021, 291 concession contracts had thus been entered into on the basis of the new model. Negotiations have continued with the goal of renewing the remaining contracts that were signed using existing contract templates, as soon as possible.
In accordance with Articles L. 121-4 et seq. and L. 322-1 et seq. of the French Energy Code, and Article L. 2224-31 of the French Local Authorities Code, the public distribution of electricity is operated under a system of public service concessions. Pursuant to this body of law, the contracting authorities organise the public electricity distribution service through concession agreements and general specifications that set forth the respective rights and obligations of the contracting authority and the operator. Currently, the contracting authorities are most often public institutions formed by associations of several municipalities cooperating together, some of which may cover an entire département.
The separation of production and supply activities on one hand, and network activities on the other imposed by European Directives has led to the identification of a public service with two distinct missions: on the one hand, the regulated tariff supply mission entrusted to EDF and the LDCs in their respective exclusive service areas and, on the other hand, the development and operation of the public electricity distribution networks, entrusted to Enedis and the LDCs in their respective exclusive service areas, and EDF for areas not interconnected to the continental metropolitan network.
Article L. 334-3 of the French Energy Code specifies that concession contracts must be tripartite, signed by the contracting authority, the distribution network operator (or the territorially competent LDC) for aspects relating to the management of the public distribution network, and by EDF (or the territorially competent LDC) for aspects relating to regulated tariff distribution.
Within the limits defined by statute and by case law precedent, the contracting authorities are the owners of the distribution networks, which constitute returnable assets (1).
Pursuant to Article L. 3213-1 of the French Public Procurement Code, which transposed Article 10.1 of Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 into domestic law, concession contracts for the operation of the public distribution network and the supply of electricity at regulated tariffs are concluded directly, i.e., with no publicity and competitive bidding procedures.
The common service function shared by Enedis and GRDF (2) is not a legal entity in its own right. Enedis and GRDF’s relations in this common service are governed by an agreement that defines the scope of the service and the resulting division of costs. The agreement has an indefinite 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. In 2019, the governance agreements between Enedis and GRDF were completely reviewed.
(1) Returnable assets are those that must imperatively be returned to the contracting local authority at the end of the concession. These assets are deemed to have belonged to this local authority from the outset. They are defined by the concession contract or even by the law. Unless stipulated otherwise, assets that are essential for the performance of the concession service are generally regarded as being returnable.
(2) Defined by Article L. 111-71 of the French Energy Code.
