Other operating income and expenses comprise:
| (in millions of euros) | Notes | 2022 | 2021 |
|---|---|---|---|
| Operating subsidies | Operating subsidies Notes5.5.1 |
Operating subsidies 2022 1,055 |
Operating subsidies 2021 5,685 |
| Net income on deconsolidation | Net income on deconsolidation Notes5.5.2 |
Net income on deconsolidation 2022 168 |
Net income on deconsolidation 2021 302 |
| Gains on disposal of fixed assets | Gains on disposal of fixed assets Notes5.5.2 |
Gains on disposal of fixed assets 2022 (167) |
Gains on disposal of fixed assets 2021 (29) |
| Net increase/decrease in provisions on current assets | Net increase/decrease in provisions on current assets Notes5.5.3 |
Net increase/decrease in provisions on current assets 2022 (307) |
Net increase/decrease in provisions on current assets 2021 124 |
| Net increase in provisions for operating contingencies and losses (1) | Net increase in provisions for operating contingencies and losses (1)Notes
|
Net increase in provisions for operating contingencies and losses (1)2022 (1,059) |
Net increase in provisions for operating contingencies and losses (1)2021 (381) |
| Other items | Other items Notes5.5.4 |
Other items 2022 677 |
Other items 2021 (1,439) |
| OTHER OPERATING INCOME AND EXPENSES | OTHER OPERATING INCOME AND EXPENSESNotes
|
OTHER OPERATING INCOME AND EXPENSES 2022 367 |
OTHER OPERATING INCOME AND EXPENSES 2021 4,262 |
(1) See notes 15.1.1.1 and 17.2.
This item mainly comprises the subsidy received or receivable by EDF in respect of the compensation for public energy service charges, reflected in the financial statements through recognition of income of €808 million for 2022 (€5,472 million in 2021). The public service charges to be covered for purchase obligations decreased substantially, and were negative in 2022 because market prices were very high, generally much higher than the price of EDF’s purchase obligations. However, the public service charges to be covered in 2022 include an amount of €1,571 million in compensation for the lower sales revenues resulting from limits on the sale prices to final customers introduced by the authorities through tariff caps for electricity and gas (see note 5.1.1)
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, since 2016, public energy service charges (electricity and gas) were to be compensated. 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.
In compensation for the 2022 charges, France’s initial finance law for 2022 introduced a €8.4 billion “public energy service” item in the general budget, to cover additional costs incurred on support contracts (purchase obligations and additional remuneration) for renewable energies and biogas, expenses associated with the electricity and gas tariff caps (see note 5.1.1) solidarity charges borne by gas and electricity suppliers, costs associated with support for non-renewable energy production (essentially cogeneration), and the cost of applying the standard national tariffs to zones that are not connected to France’s mainland network.
Income generated by the domestic tax on the final consumption of electricity (TICFE), also named the Compensation for Public Electricity Charges (CSPE) on customer invoices, the Compensation for Public Electricity Charges (CSPE) goes directly into the general budget. The TICFE/CSPE tax is collected directly from final consumers of electricity in the form of an additional levy on the electricity sale price (collected by the suppliers), or directly from electricity producers that produce electricity for their own uses.
The level of this tax was set in 2016 at a full rate of €22.5/MWh, and eight reduced rates ranging from €12/MWh to €0.5/MWh depending on criteria of electro- intensiveness, business category and the risk of carbon leakage from installations (the risk of industries relocating to countries where greenhouse gas emissions are higher due to their electricity mix). It remained at that level until the end of 2021. France’s electricity tariff cap then effectively reduced the tax to its minimum level of €1/MWh for residential customers and €0.5/MWh for business customers.
In accordance with decree 2016-158 of 18 February 2016 concerning compensation for public service energy charges, unusually, the CRE published two decisions in 2022: the first (2022-202) on 13 July and the second (2022-272) on 3 November, both setting out a forecast of EDF’s public service charges for 2023, a revised forecast of charges for 2022, and the actual charges recorded for 2021. The CRE was obliged to update its July 2022 forecasts in November due to significant changes in key parameters.
In 2022, net income on deconsolidation and gains on disposal of property, plant and equipment mainly includes gains on sales of EDF Renewables’ generation assets as part of the Development and Sale of Structured Assets (DSSA) activities, amounting to €192 million (€245 million in 2021).
In 2021, it also included gains on sales of real estate assets in France and the gain on disposal of IDG (a gas distribution network in Italy) (see note 3.1.2).
In 2022, impairment and net reversals of impairment on current assets principally concern trade receivables in the United Kingdom and Belgium (see note 13.3).
Other items mainly include costs relating to energy savings certificates used or consumed during the year, losses on non-recoverable operating receivables, French hydropower concession fees and additional remuneration paid to producers of electricity from renewable sources in France. The favourable change in other income and expenses in 2022 is principally explained by abolition of the cap on credit notes related to producers’ additional remuneration, corresponding to the impact of the amended Finance Law (Article 38 of the Amended Finance Law for 2022 and the order of 28 December 2022, published in the Journal officiel of 31 December 2022) and the rise in spot prices, which generated negative subsidies for producers which they must now repay.
