| (in millions of euros) | 2022 | 2021 |
|---|---|---|
| Other operating income | Other operating income 20223,460 |
Other operating income 20211,024 |
| Transfers of charges | Transfers of charges 202292 |
Transfers of charges 202176 |
| Other operating income and transfers of charges | Other operating income and transfers of charges 20223,552 |
Other operating income and transfers of charges 20211,100 |
| Other operating expenses | Other operating expenses 2022(2,661) |
Other operating expenses 2021(2,480) |
| TOTAL OPERATING INCOME AND EXPENSES AND TRANSFERS OF CHARGES | TOTAL OPERATING INCOME AND EXPENSES AND TRANSFERS OF CHARGES2022891 | TOTAL OPERATING INCOME AND EXPENSES AND TRANSFERS OF CHARGES2021(1,380) |
Other operating expenses amount to €(2,661) million in 2022 (€(2,480) million in 2021) and notably include costs relating to Energy Savings Certificates used or consumed over the year, losses on non-recoverable receivables, royalties on software, the net book value of assets demolished or scrapped, royalties relating to hydropower concessions and additional remuneration paid to producers of renewable energies.
This additional remuneration was introduced by France’s law on the Energy Transition for green growth. It is a support mechanism intended to guarantee reasonable remuneration for producers who sell their energy directly on the markets, by compensating for the differential between the revenues from those sales and a reference amount. Conversely, when these revenues are higher than the reference amount, the producer must repay the differential received. This mechanism complements the purchase obligation system.
From the fourth quarter of 2021 and over the whole year 2022, producers of renewable energies benefited from rising prices, and the additional remuneration mechanism became inverted and resulted in negative additional remuneration, repayable by the producers to EDF. This development was amplified by implementation of Article 38 of the amended Finance Law for 2022, which modified the limit set in certain contracts on the amounts due by producers. As of 1 January 2022, when the contractual reference tariff is higher than a threshold fixed at €44.78/MWh, producers must repay the full differential between the market-price sales revenues and revenues calculated at the contractual reference tariff. This situation explains €2,361 million of the increase in “Other operating income and transfers of charges” observed in 2022.
France’s energy savings certificates scheme was introduced by the Law of 13 July 2005. Suppliers of energy (electricity, gas, heat, cold, domestic fuel oil and fuel for vehicles) with sales above a certain level became subject to energy savings obligations, initially for a three-year period.
To meet this obligation, three sources are available to EDF: supporting consumers in their energy efficiency operations, funding State-approved energy savings certificate schemes, and purchasing certificates on the secondary market.
EDF accounts for Energy Savings Certificates in compliance with Articles 616-1 to 616-24 of ANC regulation 2014-03 on France’s national chart of accounts. As its Energy Savings Certificates are held in order to meet the requirements of the regulations on energy savings, the Company applies the “Energy Savings” model defined by ANC regulation 2014-03.
Certificates obtained or receivable are recorded in inventories at production or acquisition cost, and are valued under the FIFO (first in first out) method.
At the year-end, only the net position is presented in the financial statements:
The fourth period of France’s energy savings certificates scheme ended on 31 December 2021. Despite the substantially higher energy savings targets, the EDF group met its obligation and had a stock for the start of the fifth period.
Decree 2021-712 on the fifth period of the energy savings certificates scheme (2022-2025) was published in the Journal officiel of 5 June 2021. The decree made the scheme more effective (for example by significantly reducing special measures and bringing calculations closer to the real savings), increased funding for very vulnerable households (higher obligations intended to benefit households in situations of energy poverty, restriction of the scope to very vulnerable households, an increase in the penalties in this category to €20/MWh) and encouraged development of carbon-free energies:
However, given the low level of market prices observed in the first few months of the fifth period of the energy savings certificate scheme (the first half of 2022), the number of new energy savings projects decreased significantly. To launch a new dynamic, the DGEC decided to revise the scheme obligations upwards for the fifth period, through decree 2022-1368 of 27 October 2022.
This new decree officially raised the obligations for the fifth period (2022-2025) as follows:
The obligation for the fifth period of the energy savings certificate scheme (2022-2025) is thus significantly higher than in the fourth period (2018- 2021) (raised from 2133TWh to 3100TWh).
