105,817km
OF HIGH AND EXTRA HIGH VOLTAGE CIRCUITS
52
CROSS-BORDER LINES
400TWH
IN WITHDRAWALS IN 2022 (ADJUSTED FOR WEATHER EFFECT)
€1,722 million
INVESTMENTS IN 2022
EDF is a mandatory purchaser of the electricity generated by the generation facilities the government wishes to support and develop, by means of purchasing agreements (renewable energy sources and energy-efficient cogeneration facilities). Pursuant to the CRE resolution of 16 December 2014, all electricity purchased in this manner is managed within a dedicated ‘balancing perimeter’ for installations subject to Purchase Obligation (OA) agreements, which were implemented on 1 July 2015. The additional costs stemming from this obligation are offset for EDF on the basis of an electricity market benchmark price (the concept of “avoided cost”), in accordance with the law (Article L. 121-7 of the French Energy Code). Since 1 January 2017, the management costs for this public-service mission have also been offset.
The DOAAT organises the sale of the energy produced by the installations under Purchase Obligation contracts directly on the energy markets. The management of this perimeter is completely independent of that of the EDF portfolio. The electricity volumes under Purchase Obligations which are foreseeable over the long term (the portion of the Purchase Obligations referred to as “virtually certain”) are sold via transparent and non-discriminatory calls for tenders. Electricity volumes under Purchase Obligations that can be forecast in the short term (from one day to the next, known as the “random portion of the Purchase Obligations”) are sold on EPEX Spot.
Similarly, within a dedicated Purchase Obligation perimeter, the Upstream- Downstream Optimisation & Trading Division (DOAAT) carries out certification of the capacity of production installations that are subject to Purchase Obligations, together with the necessary rebalancing and sales to the market of the related capacity guarantees.
Power transmission and distribution activities in mainland France are the remit of the transmission system operator (RTE) for high and extra high voltages, and of distribution network operators (Enedis and LDCs in their respective exclusive service areas) for medium and low voltage.
RTE, which is an Independent Transmission Operator (as defined by EU law), and Enedis are subsidiaries that are managed in accordance with the rules on management independence, as provided for by the French Energy Code.
105,817km
OF HIGH AND EXTRA HIGH VOLTAGE CIRCUITS
52
CROSS-BORDER LINES
400TWH
IN WITHDRAWALS IN 2022 (ADJUSTED FOR WEATHER EFFECT)
€1,722 million
INVESTMENTS IN 2022
Réseau de Transport d’Électricité (RTE) was founded on 1 July 2000 and has been a subsidiary since 1 September 2005. It is the owner and operator of the French electricity transmission network, which it operates, maintains and develops. At the end of 2022, with less than 100,000 kilometres of overhead power lines, more than 7,000 kilometres of underground power lines, 2,900 substations operated individually or jointly, and 52 cross-border lines, this is one of the largest networks in continental Europe RTE’s geographical location places it at the core of the European electricity market.
RTE guarantees the correct operation and safety of the electricity system, and provides free and fair access to all the network users. In its role as an industrial operator with responsibility for energy transition, RTE is optimising and converting its electricity network in order to be able to connect generation facilities, irrespective of future energy choices. RTE contributes its expertise and publishes reports to assist the public authorities in making informed choices.
As at 31 December 2022, RTE is indirectly owned (50.1%) by EDF via the company Coentreprise de Transport d’Électricité (CTE). Its specific conditions of governance mean that RTE is not fully consolidated by the Group, but rather accounted for using the equity method.
CTE
CTE is a limited company (société anonyme) with a Board of Directors, owned by EDF (50.1%), Caisse des Dépôts et Consignations (29.9%) and CNP Assurances (20%) (1). CTE holds 100% of the share capital of RTE. In accordance with its articles of association, the sole purpose of CTE is the acquisition and holding of RTE’s shares, and more generally, all commercial, financial, intangible and tangible property transactions relating directly, or indirectly, to its corporate purpose or that may facilitate the fulfilment thereof or stimulate business growth.
CTE’s Board of Directors is composed of eight members, who are appointed for a term of six years, including four EDF representatives, two CDC representatives and two CNP Assurances representatives. RTE’s Compliance Auditor General attends meetings of CTE’s Board of Directors.
RTE
RTE is a limited company (société anonyme) with both a Management Board and a Supervisory Board. RTE’s Supervisory Board is composed of twelve members appointed for five years. Six are representatives of the shareholder CTE, two are appointed pursuant to Articles 4 and 6 of Ordinance No. 2014-948 of 20 August 2014 on the governance and equity transactions of companies in which the State holds shares (the French State and the Board member appointed at the proposal of the French State), and four are employee representatives.
Other individuals attend Supervisory Board meetings but are not members:
RTE’s Management Board is made up of five members, who perform their duties under the oversight of the Supervisory Board, within the limits fixed by the French Energy Code and RTE’s articles of association. With the agreement of the Energy Minister, the Supervisory Board appoints the President of the Management Board and, at the President’s proposal, the other members of the Management Board.
(1) 0.96% is held by its subsidiary CNP Retraite.