Universal Registration Document 2022

Introduction

Added to the 33 previously renewed or amended concessions that contain stipulations similar to the new model, these 302 concessions bring the total number of modernised concession agreements to 335 of the 364 that were due for renewal. Negotiations are continuing with a view to renewing agreements based on the old model as soon as possible.

11.1 Property, plant and equipment operated under French public electricity distribution concessions

(in millions of euros) 31/12/2021 Increases (1) Decreases Other movements (2) 31/12/2022
Land and buildings

Land and buildings

31/12/2021

3,407

Land and buildings

Increases (1)

139

Land and buildings

Decreases

(30)

Land and buildings

Other movements (2)

1

Land and buildings

31/12/2022

3,517
Networks

Networks

31/12/2021

104,700

Networks

Increases (1)

4,292

Networks

Decreases

(445)

Networks

Other movements (2)

(3)

Networks

31/12/2022

108,544
Other installations, plant, machinery, equipment & other

Other installations, plant, machinery, equipment & other

31/12/2021

5,072

Other installations, plant, machinery, equipment & other

Increases (1)

371

Other installations, plant, machinery, equipment & other

Decreases

(425)

Other installations, plant, machinery, equipment & other

Other movements (2)

5

Other installations, plant, machinery, equipment & other

31/12/2022

5,023
Assets in progress (3)

Assets in progress 

(3)31/12/2021

1,886

Assets in progress 

(3)Increases (1)

327

Assets in progress 

(3)Decreases

(2)

Assets in progress 

(3)Other movements (2)

(7)

Assets in progress 

(3)31/12/2022

2,204
Gross value Gross value31/12/2021115,065 Gross valueIncreases (1)5,129 Gross valueDecreases(902) Gross valueOther movements (2)(4) Gross value31/12/2022119,288
Land and buildings

Land and buildings

31/12/2021

(1,661)

Land and buildings

Increases (1)

(83)

Land and buildings

Decreases

26

Land and buildings

Other movements (2)

(12)

Land and buildings

31/12/2022

(1,730)
Networks

Networks

31/12/2021

(48,119)

Networks

Increases (1)

(233)

Networks

Decreases

327

Networks

Other movements (2)

(2,465)

Networks

31/12/2022

(50,490)
Other installations, plant, machinery, equipment & other

Other installations, plant, machinery, equipment & other

31/12/2021

(3,153)

Other installations, plant, machinery, equipment & other

Increases (1)

(229)

Other installations, plant, machinery, equipment & other

Decreases

417

Other installations, plant, machinery, equipment & other

Other movements (2)

(137)

Other installations, plant, machinery, equipment & other

31/12/2022

(3,102)
Depreciation and impairment Depreciation and impairment31/12/2021(52,933) Depreciation and impairmentIncreases (1)(545) Depreciation and impairmentDecreases770 Depreciation and impairmentOther movements (2)(2,614) Depreciation and impairment31/12/2022(55,322)
NET VALUE NET VALUE31/12/202162,132 NET VALUEIncreases (1)4,584 NET VALUEDecreases(132) NET VALUEOther movements (2)(2,618) NET VALUE31/12/202263,966

(1) Increases also include facilities provided by the concession-granting authorities.

(2) Other movements mainly concern depreciation of assets operated under concessions, booked against amortization recorded in the special concession liability accounts.

(3) Increases in assets in progress are stated net of the effects of newly-commissioned assets.

11.2 Special French public electricity distribution concession liabilities

Accounting principles and methods

Concession liabilities represent the contractual obligations specific to the concession rules for public electricity distribution concessions in France, and comprise the following:

  • the concession-granting authority’s rights in existing assets (its right to recover all the concession assets):
    • the value in kind of the facilities (the net book value of assets operated under concessions),
    • less any as yet unamortised financing provided by the operator;
  • the concession-granting authority’s rights in assets to be replaced (the operator’s obligations relating to assets due for replacement):
    • amortisation of financing by the grantor: this is a liability owed by the concession operator to the grantor and is recognised progressively as the asset is used,
    • provision for replacement: this provision exclusively concerns assets due for replacement before the end of concessions using the 1992 concession agreement model, except for the rising mains transferred in application of the ELAN law. It is accrued over the asset’s useful life, based on the difference between the asset’s replacement value for identical capacity and functions, and the original value. In application of the 2017 concession model, used in almost all current concession agreements, no provision for renewal is now established for concession assets. The balance of provisions at the end of the previous concession agreement have been transferred to the new concession and the provisions for renewal continue to be used for their intended purpose.

When assets are replaced, amortisation recognised on the portion of assets considered to be financed by the grantor, and the provision for replacement established for the relevant asset, are cancelled and transferred to rights in existing assets. Any excess provision is taken to income.

During the concession, the grantor’s rights in assets to be replaced are thus transferred upon the asset’s replacement to become the grantor’s rights in existing assets, with no outflow of cash to the benefit of the grantor.

The Group considers that the obligations related to assets to be replaced are to be valued on the basis of the special clauses contained in the concession agreements. Under this approach, these obligations are stated at the value of the contractual obligations as calculated and reported annually in the reports to the grantors. This contractual value also reflects the eventuality that the EDF group may one day lose its status as the mandatory concession operator.