Universal Registration Document 2022

Introduction

assumptions concerning demand (particularly energy requirements for heating, and summer comfort), generation of renewable energies (onshore and offshore wind power, solar power) for all European countries, the contribution of hydropower, and environmental cuts for nuclear power generation in France. Climate time series analyses are based on the European EUROCORDEX model and include the impact of climate change. A deliberately prudent approach is adopted to avoid any bias towards underestimation of the practical effects of climate change on the relevant physical quantities (temperatures, cloud coverage, wind speeds) and ultimately on the European electricity system between 2027 and 2050. The scenarios used also take account of the objectives of public energy and climate policies such as Fit For 55 and RepowerEU at European Union level, and the National Low Carbon Strategy (Stratégie nationale bas carbone) in France;

  • income from capacity market mechanisms is also taken into consideration in valuing generation assets, provided the countries concerned have introduced or announced the future introduction of a capacity revenue mechanism.

These calculations may be influenced by several variables:

  • changes in discount rates;
  • changes in market prices for energy and commodities and tariff regulations;
  • changes in demand and the Group’s market shares, and the attrition rate on customer portfolios;
  • the useful life of facilities, or the duration of concession agreements where relevant;
  • the growth rates used beyond the medium-term plans and where relevant the terminal values taken into consideration.
10.8.1 Impairment by category of asset

Details of impairment recognised and reversed are as follows:

(in millions of euros) Notes 2022 2021
Impairment of goodwill

Impairment of goodwill

Notes10.1

Impairment of goodwill

2022

(1,178)

Impairment of goodwill

2021

-
Impairment of other intangible assets

Impairment of other intangible assets

Notes10.2

Impairment of other intangible assets

2022

(65)

Impairment of other intangible assets

2021

59
Impairment of tangible assets

Impairment of tangible assets

Notes10.3-10.5

Impairment of tangible assets

2022

(519)

Impairment of tangible assets

2021

(712)
IMPAIRMENT NET OF REVERSALS IMPAIRMENT NET OF REVERSALSNotes

 

 IMPAIRMENT NET OF REVERSALS2022(1,762) IMPAIRMENT NET OF REVERSALS2021(653)

In 2021, impairment recognised amounted to €(653) million and concerned:

  • nuclear assets due to the shutdown of Dungeness (€(445) million) and impairment of land in the United Kingdom (€(260) million);
  • various CGUs of EDF Renewables, principally in France (€(54) million);
  • reversals of impairment related to hydropower assets (€60 million) and wind power assets (€90 million) owned by Edison in Italy; and
  • other assets (total €(44) million).

Impairment recognised in 2022 amounts to €(1,762) million. Details are given below.

 

10.8.2 Impairment tests on goodwill, intangible assets and property, plant and equipment

The following tables present the results of impairment tests carried out on the main goodwill, intangible assets with indefinite useful lives and other Group assets at 31 December 2022, and some of the key assumptions used.

Impairment of goodwill and intangible assets with indefinite useful lives

€(1,178) million of new impairment was recorded on the Group’s goodwill at 31 December 2022.

Operating segment Cash-Generating Unit or asset Net book value (in millions of euros) WACC after tax Growth rate to infinity Impairment 2022 (in millions of euros)
United Kingdom (EDF Energy) (1)

United Kingdom

(EDF Energy) (1)Cash-Generating Unit or asset

Goodwill

United Kingdom

(EDF Energy) (1)Net book value (in millions of euros)

6,541

United Kingdom

(EDF Energy) (1)WACC after tax

6.7%

United Kingdom

(EDF Energy) (1)Growth rate to infinity

-

United Kingdom

(EDF Energy) (1)Impairment 2022 (in millions of euros)

(1,176)
Italy (Edison)

Italy (Edison)

Cash-Generating Unit or assetGoodwill (energy services)

Italy (Edison)

Net book value (in millions of euros)

148

Italy (Edison)

WACC after tax

7.1%

Italy (Edison)

Growth rate to infinity

1.5%

Italy (Edison)

Impairment 2022 (in millions of euros)

(2)
Operating segment

Edison brand

 Cash-Generating Unit or asset

945

 Net book value (in millions of euros)

 

 WACC after tax

 

 Growth rate to infinity

 
Framatome

Framatome

Cash-Generating Unit or asset

Goodwill

Framatome

Net book value (in millions of euros)

1,448

Framatome

WACC after tax

7%

Framatome

Growth rate to infinity

1.5%

Framatome

Impairment 2022 (in millions of euros)

-
Operating segment

Framatome brand

 Cash-Generating Unit or asset

151

 Net book value (in millions of euros)

 

 WACC after tax

1.5%

 Growth rate to infinity

-
Dalkia

Dalkia

Cash-Generating Unit or asset

Goodwill

Dalkia

Net book value (in millions of euros)

643

Dalkia

WACC after tax

5.2%

Dalkia

Growth rate to infinity

1.9%

Dalkia

Impairment 2022 (in millions of euros)

-
Operating segment

Dalkia brand

 Cash-Generating Unit or asset

130

 Net book value (in millions of euros)

 

 WACC after tax

1.9%

 Growth rate to infinity

-
Other impairment

Other impairment

Cash-Generating Unit or asset

 

Other impairment

Net book value (in millions of euros)

-

Other impairment

WACC after tax

-

Other impairment

Growth rate to infinity

-

Other impairment

Impairment 2022 (in millions of euros)

-
IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVESCash-Generating Unit or asset(1,178)

(1) The impairment test of EDF Energy goodwill covers the useful life of industrial assets, currently in operation or under construction, with no projection to infinity. The WACC determined for goodwill takes account of the WACC applicable to each of EDF Energy’s CGUs, including the WACC applicable to the HPC CGU, which benefits from a 35 - year regulated model.