| (in millions of euros) | 2022 | 2021 |
|---|---|---|
| Fuel purchases used (1) | Fuel purchases used (1)20229,059 |
Fuel purchases used (1)20214,422 |
| Energy purchases (2) | Energy purchases (2)202278,202 |
Energy purchases (2)202121,752 |
| electricity | electricity 202252,443 |
electricity 202116,025 |
| gas | gas 202224,868 |
gas 20215,113 |
| Services and other purchases used (3) | Services and other purchases used (3)202218,819 |
Services and other purchases used (3)202117,354 |
| PURCHASES AND OTHER EXTERNAL EXPENSES | PURCHASES AND OTHER EXTERNAL EXPENSES2022106,080 | PURCHASES AND OTHER EXTERNAL EXPENSES202143,528 |
(1) Fuel purchases used include costs relating to raw materials for energy generation (nuclear fuels, fissile materials and gas, and coal and fuel oil in very small proportions), and purchases of services related to the nuclear fuel cycle. The increase in this item principally results from the higher purchase cost of gas consumed for electricity generation by CCG (Combined Cycle Gas) facilities. Fuel purchases used also include greenhouse gas emission rights used (see note 17):
(2) Energy purchases include purchases made through the purchase obligation mechanism. The increase in electricity purchases is principally explained by higher purchase volumes induced by the lower nuclear power output (see note 2.1.3) in a high market price environment. Purchases resulting from the additional 19.5TWh ARENH allocation (see note 3.1) also amounted to €5,011 million in 2022. Gas purchases increased due to the combined effect of a significant rise in both prices and the volumes purchased. The observed increase mostly concerns purchases on the international markets and to a lesser extent on the domestic market. As these purchases were largely consumed during the year, the increase in gas stocks was moderate, at €189 million in net value (see note 17 (1)).
(3) Service purchases primarily include distribution network access fees invoiced by the subsidiary Enedis. Excluding delivery, service purchases increased by €1,672 million between 2021 and 2022, and in 2022 they include €617 million of costs relating to repair work on the main secondary circuit welds in the Flamanville 3 EPR (compared to €548 million in 2021) (see note 15 (3)).
Details of taxes other than income taxes are as follows:
| (in millions of euros) | 2022 | 2021 |
|---|---|---|
| Taxes on salaries and wages | Taxes on salaries and wages 2022180 |
Taxes on salaries and wages 2021172 |
| Energy-related taxes | Energy-related taxes 20221,123 |
Energy-related taxes 20211,180 |
| Local Economic Contribution* | Local Economic Contribution* 202241 |
Local Economic Contribution* 2021313 |
| Property taxes | Property taxes 2022305 |
Property taxes 2021288 |
| Other taxes | Other taxes 2022325 |
Other taxes 2021301 |
| TOTAL TAXES OTHER THAN INCOME TAXES | TOTAL TAXES OTHER THAN INCOME TAXES20221,974 | TOTAL TAXES OTHER THAN INCOME TAXES20212,254 |
* The decrease in the Local Economic Contribution results from the lower level of value added in 2022 due to an increase in energy purchases (see note 7) in a context of declining nuclear power output and the cost of purchasing 19.5TWh of electricity for the ARENH scheme (see note 3.1).
On 6 October 2022 the European Union adopted a regulation for harmonised action to address the energy price crisis. Among other measures, this regulation sets targets for reducing energy consumption during the winter of 2023, and introduces state aid for businesses and households, funded by a windfall tax on the fossil fuel sectors, and an inframarginal price cap on electricity production.
This inframarginal price cap is a compulsory tax measure requiring electricity producers to pay to the State all revenues above a threshold expressed in €/MWh. Under the EU regulation, this cap is applicable from 1 December 2022 to 30 June 2023 with a threshold of €180/MWh, but many EU member states have decided to lengthen the application period and set different thresholds, well below the EU level, for different generation technologies.
In France, a 90% tax applies to inframarginal rents during three periods: July - November 2022, December 2022-June 2023, and July - December 2023. Any deficit in one period may be carried over to the next.
Separate inframarginal rent thresholds (in €/MWh) are set for each electricity generation technology (8 different categories), principally €90/MWh for nuclear power and €80-€140/MWh for hydropower (depending on the power of each plant).
EDF’s inframarginal rent was substantially negative for the first price cap period in 2022, and in December 2022 in the second period, in line with the purchases made on high-price markets due to the significant decrease in nuclear power output (-81.7TWh). Consequently, no tax on inframarginal rents is payable for electricity production in 2022.
