Sales are comprised of:
| (in millions of euros) | 2022 | 2021 |
|---|---|---|
| Sales of energy* | Sales of energy*202283,628 | Sales of energy*202150,390 |
| electricity | electricity 202255,023 |
electricity 202142,906 |
| gas | gas 202228,605 |
gas 20217,484 |
| Sales of services and other | Sales of services and other20223,501 | Sales of services and other20212,611 |
| SALES | SALES202287,129 | SALES202153,001 |
* Including a share of delivery costs for sales of electricity and gas.
The increase in electricity sales is principally explained by higher sales to final customers, and the purchase obligation system.
The rise in sales to final customers (€5.2 billion) is mainly attributable to price effects on sales at regulated tariffs and market price contracts, including the effect of the exceptional regulatory measures taken in France for 2022:
This price effect is substantially greater than the negative volume effect caused by the weather and lower consumption, observed particularly at the end of the year.
Resales of electricity covered by purchase obligations rose significantly by €4.8 billion, due to a favourable volume effect reflecting a notable increase in spot prices.
There was a significant downturn in the volume of electricity sales on the market via EDF Trading as a result of the notable decline in nuclear power output due to the stress corrosion phenomenon, but as these sales took place at very high prices, the variation from 2021 was ultimately moderate. Sales revenues also include the sales of 19.5TWh of additional ARENH allocations for €0.9 billion (the purchase cost, included in “fuel and energy purchases”, was €5 billion).
The increase in gas sales principally reflects higher volumes sold to EDF Trading as the market price rises continued and were amplified in 2022. Sales to final customers were up by €1.1 billion due to rising prices, and to a lesser extent the increase in sales volumes.
| (in millions of euros) | 2022 | 2021 |
|---|---|---|
| OPERATING SUBSIDIES RECEIVED | OPERATING SUBSIDIES RECEIVED2022883 | OPERATING SUBSIDIES RECEIVED20215,554 |
Operating subsidies mainly comprise the subsidy received or receivable by EDF in respect of the compensation for 2022 public energy service charges, reflected in the financial statements through recognition of income of €808 million in 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 EDF’s purchase obligation costs. 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 3.1).
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 3.1) 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 accordance with the application for termination of operations and the declaration of the permanent shutdown of both reactors at Fessenheim nuclear power plant sent by EDF to the Minister for the Ecological and inclusive Transition and to the ASN on 30 September 2019, EDF shut down reactor 1 on 22 February 2020 and reactor 2 on 30 June 2020.
