Universal Registration Document 2022

As a distribution network operator, Enedis’ main mission is to operate and develop the public electricity distribution network. Enedis guarantees the security and safety of the network, and oversees the balance of electricity flows at all times. Enedis now serves around 95% of the population in continental metropolitan France. The remaining 5% are served by Local Distribution Companies (LDCs).

In 2022, Enedis distributed electricity to more than 38.1 million customers (points of delivery). It enabled feed from more than 634,700 production sites in mainland France by means of a network of around 1.4 million kilometres.

At 31 December 2022, the distribution network for which Enedis is the concession holder was made up of around:

• 664,447 kilometres of A-type high-voltage (HVA) lines of 20,000 volts;
• 736,976 kilometres of low-voltage (LV) lines of 400 volts;
• 2,246 HVB/HVA source substations;
• 806,610 HVA/LV transformer stations.

Simplified report of energy flows - 2022

(in TWh)

Electrical losses are inherent in the functioning of the distribution network. They primarily result from physical effects, which are directly dependent on the amount of electricity delivered. Enedis must compensate these losses to complete the amount of energy delivered to all the customers connected to the distribution network.

Energy purchases made to compensate losses recognised in the accounts, including restatements of prior fiscal years, amount to €2,223 million. To compensate these losses, Enedis buys the corresponding electricity from the wholesale market, either through organised market platforms, or through calls for tender that are open to around 20 qualified suppliers. Enedis also takes part in the consultations organised by the Purchase Obligation mission, within DOAAT.

Enedis’ access to ARENH rights to cover losses is implemented through specific calls for tender with a panel of qualified suppliers for this product. Enedis exercises its ARENH rights when the market prices are higher than the ARENH price.

1.4.4.2.1 Organisation of Enedis

Pursuant to the EU Directives, in order to comply with the rules on non- discriminatory access to networks and on management independence that are binding on network operators, said operators must be independent from any energy supply and production activity. If the distribution network operator is part of a vertically integrated company, it must be legally separate in order to guarantee its functional and decision-making independence.

In this regard, EDF and Gaz de France, now Engie, made their distribution network operators subsidiaries. ERDF was founded in 2008, and changed its name to Enedis on 1 June 2016. This new name will also raise the profile of the network operator and clarify its purpose, as the CRE recommended.

Enedis and GRDF share a “ordinary service” in accordance with the legal framework (see section 1.4.4.2.3 “Service shared by Enedis and GRDF”).

• The Supervisory Board comprises fifteen members, of which:
  • eight are appointed by the Ordinary Shareholders’ Meeting;
  • five are representatives of the employees elected in accordance with the conditions set out in Act No. 83-675 dated 26 July 1983 relating to the democratisation of the public sector;
  • one member is appointed by the French State by virtue of Articles 4 or 6 of Ordinance No. 2014-948 dated 20 August 2014; and
  • one member, representing the organising authorities for the public electricity distribution network, is appointed by decree pursuant to Article 153 of Act No. 2015-992 relating to energy transition for green growth.
• Pursuant to the possibility offered by Ordinance No.  2014-948 dated 20 August 2014 (Article 15) and in compliance with Decree No. 2015-38 dated 19 January 2015, the French State appointed by a Decree dated 21 April 2020 a Government Commissioner for the purposes of attending the meetings of the Enedis Supervisory Board.
• The Management Board, which was made up of five members in 2022, performs its work under the oversight of the Supervisory Board, within the limits defined by the French Energy Code and Enedis’ articles of association.

Enedis’ missions in France

Enedis, pursuant to the conditions set by law and the concession contracts signed with each of the public electricity distribution contracting authorities, performs its missions as the public distribution network operator in mainland France. These missions are:

• define and implement operational, investment and development policies in relation to the electricity distribution network;
• provide connection and access for users to these networks under objective, transparent and non-discriminatory conditions, as well as inter-connection with other networks;
• provide users with the information needed to access the network efficiently (information protected by regulations or law excepted);
• oversee relations with the energy regulation authorities (the Ministry of Energy, the Energy Regulation Commission (CRE) and public distribution contracting authorities) in line with its activities;
• oversee relations with local authorities in respect of its activities;
• negotiate, conclude and manage concession contracts with the contracting authorities for the public distribution of electricity;
• operate, maintain and repair the electricity distribution networks;
• design and build infrastructure, as well as manage work on the networks;
• carry out metering activities for users connected to the networks, particularly as regards supply, installation, meter inspection, maintenance and renewal of metering devices, as well as managing data activities and any other missions relating to its work as a whole;
• ensure that the market works properly, and provide equal access to the network and data for market players;
• encourage the integration of renewable energy in the grid and the implementation of energy efficiency initiatives;