Articles L. 121-1 et seq. of the French Energy Code state that the public electricity service must develop a balanced supply of electricity, develop and operate public electricity networks and supply electricity at regulated sales tariffs.
The purpose of developing a balanced supply of electricity, which is defined in Article L. 121-3 of the French Energy Code, is to achieve the objectives defined in the multi-year energy programme (PPE). The PPE was defined by decree, and sets out priority courses of action for the public authorities for the management of all forms of energy in continental metropolitan France. It must be compatible with the greenhouse gas emission reduction targets set in the carbon budget and the low carbon strategy, which are defined by Decree no. 2020-457 of 21 April 2020.
It defines the quantitative objectives for the plan and the maximum indicative budget for the public funds that will be allocated by the French State and its public institutions in order to attain them. It may be broken down by objective and by industry sector.
The France’s “Climate and Energy” Act (loi relative à l’énergie et au climat) adopted in November 2019 created a programming law on energy and the climate (LPEC) which will set the main objectives of the Multi-year energy programme (PPE) and the National Low Carbon Strategy (SNBC). Accordingly, these three documents will form the French energy and climate strategy. The programming law on energy and the climate (LPEC) should be adopted before 1 July 2023.
Decree no. 2020-456 of 21 April 2020 set the multi-year energy programme for the 2019-2023 and 2024-2028 periods. The Multi-year energy programme 3 (PPE 3) (2024-2033) will have to be compatible with the programming law on energy and the climate (LPEC) and adopted by Decree within twelve months of the Act being adopted.
Pursuant to the law, EDF prepared a Strategic Business Plan (PSE) presenting the actions that the Company commits to implementing to meet the security of supply and electricity generation diversification objectives defined in the first period of the PPE. On 14 October 2020, the PSE was submitted for approval by the Minister for Energy.
The "Climate and Energy" Act of 8 November 2019 also specifies the procedure concerning the PSE, which will have to cover both periods of the PPE, be made public (with the exception of information relating to business secrecy), and present the accompanying measures put in place for employees as a result of the closure of nuclear or thermal power stations. If the PSE is incompatible with the PPE, the act provides for a formal notice followed, if necessary, by sanctions.
The mission relating to the balanced development of electricity supply also involves guaranteeing supply in areas that are not interconnected to continental metropolitan France (Corsica, and the overseas départements and territories, as well as some islands in Brittany). Corsica, Guadeloupe, French Guiana, Martinique, Mayotte, La Réunion, and Saint-Pierre-et-Miquelon will each have their own specific PPE. Other areas that are not interconnected with the continental metropolitan network, except for Saint Martin and Saint Barthélemy, will be subject to a section appended to the PPE for continental metropolitan France.
As a power producer, EDF, along with the other producers, contributes to the performance of this mission.
The mission to develop and operate the public electricity transmission and distribution networks, which is defined in Article L. 121-4 of the French Energy Code, involves ensuring:
Public network operators are designated by law to carry out this duty: RTE for transport, Enedis and Local Distribution Companies (Entreprises Locales de Distribution, or LDCs) for distribution, EDF in zones that are not interconnected to the continental metropolitan network.
The public service mission to supply electricity, which is defined in Article L. 121-5 of the French Energy Code, involves ensuring the supply of electricity throughout France to customers who benefit from regulated electricity sales tariffs.
This mission is entrusted to EDF and the LDCs.
The conditions under which customers can benefit from regulated electricity sales tariffs are defined in Articles L. 337-7 et seq. of the French Energy Code.
The mission to supply electricity also includes supplying emergency power to customers connected to public networks, if their supplier is unable to supply power or has had its licence withdrawn or suspended. As a transitional measure, until the aforementioned calls for bids provided for the permanent arrangements for emergency supply have been implemented, in November 2021 the French government designated emergency power suppliers on a transitional basis (EDF in the areas served by RTE and Enedis, the LDCs in the areas they serve, with the option of transferring this responsibility to EDF for non-residential customers).
Article L. 121-5 of the French Energy Code provides that the supply of electricity at regulated tariffs must contribute to social cohesion, in particular through the national equalisation of regulated electricity sale tariffs.
Article L. 115-3 of the French Social Action and Families Code prohibits electricity suppliers from cutting off electricity supplies to the primary residences of individuals or families during the winter period (from 1 November to 31 March) due to unpaid bills, including through contract termination. Electricity suppliers may, nevertheless, in certain cases, reduce the power supplied, except with regard to customers who benefit from “energy vouchers”. These vouchers are a special means of payment that allow households that are experiencing financial difficulties to cover part of their energy consumption expenses (electricity, gas, fuel oil, etc.) or their expenditure on improving the energy efficiency of their home.
In its capacity as an electricity supplier, EDF is required to maintain electricity supplies under the conditions laid down by said Article and by Decree no. 2008-780 of 13 August 2008 on the procedure that is applicable in the event of unpaid electricity, gas, heating and water bills.
On 24 October 2005, a Public Service Contract was entered into by the French State and EDF pursuant to Article L. 121-46 of the French Energy Code. This contract, which details the commitments made by EDF and the French State and specifies the rules governing the financial remuneration for service commitments, will remain in force until a new contract is signed, as provided for in the contract itself.
EDF’s public service commitments include:
Through the Public Service Contract, Enedis and RTE in their capacity as network managers made commitments concerning the management of the public networks for the transmission and distribution of electricity and the safety of the electricity system. These commitments are financed by the Tariff for Using the Public Electricity transmission and distribution Networks (TURPE).
These commitments concern, above all, network safety, supply quality, third party safety and the preservation of the environment – four areas where customers’ and local authorities’ expectations are especially high.
