Universal Registration Document 2022

1.4.2 Sales and supply activities in France

1.4 Description of the Group’s activities

1.4.2 Sales and supply activities in France

1.4.2 Sales and supply activities in France

Besides gas and electricity supply, EDF accompanies its customers by offering a wide range of services and energy solutions. EDF aspires to be a trusted partner for customers, by engaging in responsible marketing and providing simple, intelligible offers.

29.1 million

CUSTOMER SITES IN FRANCE (1)

231.6 TWh

ELECTRICITY SALES IN 2022 (2)

40.5 TWh

GAS SALES IN 2022 (3)

(1) EDF Customer Division + Électricité de Strasbourg: electricity: 26.7 million, gas: 2.4 million.

(2) EDF Customer Division (excluding transfers to local distribution companies) + Électricité de Strasbourg.

(3) EDF Customer Division + Électricité de Strasbourg.

1.4.2.1 Presentation of the market in France
1.4.2.1.1 Competition

Since 1 July 2007, the French market for electricity and gas has fully opened up, allowing each customer to choose their energy supplier.

In the electricity and gas markets many suppliers have been proposing offers to businesses and local authorities since the early 2000’s. For residential customers, competition has intensified significantly since 2017 with the entry into the market of gas and electricity suppliers that are well-established in other activities or geographical areas.

To supply their customers in 2022, EDF’s alternative suppliers had access to their own generation capacities as well as to the wholesale electricity market and the ARENH.

During the November 2021 application process, the demand from alternative providers for delivery in 2022 reached 160.33TWh for an ARENH distribution volume of 100TWh. On 13 January 2022, given the context of rising electricity prices, the French government announced an additional allocation of 20TWh in the ARENH volume in 2022, at a price of €46.2/MWh.

During the November 2022 application process, the demand from alternative providers reached 148.30TWh for an ARENH deliveries in 2023.

In 2022, some alternative suppliers voluntarily left the market or reduced their range of commercial services, while others were wound up by court order. In this environment, EDF won back market shares in all customer segments.

See also section 1.4.3.3 “Regulated access to historic nuclear power (ARENH)”, as well as in section  2.2.1 “Market regulation, political and legal risks" Risk 1A "Changes in public policies and in the regulatory framework in France and Europe, especially relating to ARENH”.

Regulatory notice

The Energy Regulation Commission (CRE)

The CRE is an independent administrative authority. Its responsibility is to ensure the proper workings of the electricity and natural gas markets for end consumers. In this respect, the CRE ensures, in particular, that the conditions for access to electricity and natural gas transmission and distribution networks do not impede the development of competition.

The CRE has significant powers: the power to make proposals, advisory powers and decision-making powers (approval power and regulatory power). The CRE makes proposals, in particular:

  • to the Ministers for the Economy and for Energy regarding the amount of the costs that are attributable to the public service missions assigned to power producers, and the net amount of the related contribution;
  • regarding the ARENH price once the Decree has been published that specifies the methods for identifying and recognising the costs that are taken into account for the calculation of the ARENH price.

Moreover, it has been the CRE’s responsibility to send its reasoned proposals to the Ministers for the Economy and for Energy for changes in the regulated sales and transfer tariffs for electricity offered to the LDCs.

The CRE has decision-making power to establish Tariffs for Using the Public Electricity transmission and distribution Networks (Tarifs d’Utilisation des Réseaux Publics de transport et de distribution d’Électricité, TURPE).

Under its residual regulatory power, the CRE also takes network connection decisions, as well as decisions to define the rules for calculating and adjusting the rights of suppliers to the ARENH.

The CRE is also vested with very broad powers that enable it to obtain any information that it may deem useful for the fulfilment of its remit, as well as authority to settle disputes and to apply penalties, through the Settlement of Disputes and Sanctions Committee (CoRDiS).

The Act on the Energy Transition for Green Growth also gives the CRE the possibility of having the information it obtains through its remits audited, at the expense of the audited undertakings.

Constitutional Bylaw No.  2017-54 of 20  January 2017 on Independent Administrative Authorities and Independent Public Authorities and Act No. 2017-55 of 20  January 2017 on the General Statute of Independent Administrative Authorities and Independent Public Authorities, provided these authorities, including the CRE, with a ordinary legal status and lay down the rules relating to the mandate and ethics of members, the operation and organisation of these authorities and parliamentary control.