In order to address the increase in connection volumes to Charging Facilities for Electric Vehicles (CFEV), Enedis set up a department to handle key CFEV accounts. It is tasked with coordinating the monitoring of connection studies and work by “CFEV multi-connectors” that roll out charging station installation plans throughout France.
At the end of 2022, through an organisation set up with highway concession holder companies and the operators of fast charging stations, the 332 highway service stations in the area covered by the concession that are supplied by the network operated by Enedis were equipped with fast charging infrastructures that are connected, or in the process of being connected, to the distribution network, with an average power level per service station of 1.8MW.
Enedis assists local authorities in defining infrastructure management schemes for electric vehicle charging (SDIRVE). At the end of 2022, 108 SDIRVE had been launched or are being approved by the administrative authorities.
Enedis is committed to the electrification of its own vehicle fleet. At the end of 2022, 26.2% of its fleet of light passenger vehicles and light commercial vehicles, a total of around 18,000 vehicles, had been electrified, and 5,150 charging stations are installed on its sites.
Under contracts with distribution network operators and suppliers, Enedis carries on activities in liaison with balance responsible entities and electricity suppliers. It reconstitutes the energy flows within the scope of each balance responsible entity (there were 70 such entities at the end of 2022), in order to provide information to the balance responsible entity mechanism run by RTE. Enedis is responsible for day- to-day relations with electricity suppliers (of which there were 94 at the end of 2022), to ensure that their customers with a single contract benefit from electricity supply and the associated services. Moreover, in the current energy context in which sobriety issues have become essential, Enedis has seen the number of contracts signed with third-party players (in order to access consumption data) increase. These contracts, of which there were 613 at the end of 2022, concern the suppliers of energy services that act on behalf of their customers, after obtaining their authorisation to access said information.
Regulatory notice
Over 90% of Enedis’ sales are made up of revenues collected in respect of electricity transmission. The Tariff for using the Public Electricity transmission and distribution Networks (TURPE), in terms of levels and structure, is set by the CRE in a transparent and non-discriminatory manner, in order to cover all the costs borne by efficient network operators. See section 5.1.1 “Regulatory changes in France” of the notes to the Group’s consolidated financial statements.
At 31 December 2022, Enedis and EDF were co-concession holders of 386 concessions contracts, covering around 95% of the population in continental metropolitan France. These concession contracts are generally concluded for a period of 25 to 30 years.
In December 2017, the French National Federation of Licensing Authorities (Fédération nationale des collectivités concédantes et régies, FNCCR), France Urbaine, EDF and Enedis signed a framework agreement based on a new concession agreement model. France Urbaine represents municipalities, large urban inter-municipalities and cities. Most of its members have contracting authority status for public distribution of electricity.
The standard agreement thus endorsed restates the principles of the French concession model: public service, regional solidarity and national optimisation, while at the same time taking into account issues involving energy transition. The official introduction of this new template opens the way to a modernised and lasting relationship between Enedis and the contracting authorities.
At 31 December 2022, 302 concession contracts had thus been entered into on the basis of the new template, along with 33 contracts that were previously renewed or amended and that contain provisions that are similar to those of the new template, for a total of 335 modernised contracts. Negotiations are continuing with a view to renewing the contracts that were based on previous templates.
Regulatory notice
In accordance with Articles L. 121-4 et seq. and L. 322-1 et seq. of the French Energy Code, and Article L. 2224-31 of the French Local Authorities Code, the public distribution of electricity is operated under a system of public service concessions. Pursuant to this body of law, the contracting authorities organise the public electricity distribution service through concession agreements and general specifications that set forth the respective rights and obligations of the contracting authority and the operator. Currently, the contracting authorities are most often public institutions formed by associations of several municipalities cooperating together, some of which may cover an entire département.
The separation of production and supply activities on one hand, and network activities on the other imposed by European Directives has led to the identification of a public service with two distinct missions: on the one hand, the regulated tariff supply mission entrusted to EDF and the LDCs in their respective exclusive service areas and, on the other hand, the development and operation of the public electricity distribution networks, entrusted to Enedis and the LDCs in their respective exclusive service areas, and EDF for areas not interconnected to the continental metropolitan network.
Article L. 334-3 of the French Energy Code specifies that concession contracts must be tripartite, signed by the contracting authority, the distribution network operator (or the territorially competent LDC) for aspects relating to the management of the public distribution network, and by EDF (or the territorially competent LDC) for aspects relating to regulated tariff distribution.
Within the limits defined by statute and by case law precedent, the contracting authorities are the owners of the distribution networks, which constitute returnable assets (1).
Pursuant to Article L. 3213-1 of the French Public Procurement Code, which transposed Article 10.1 of Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 into domestic law, concession contracts for the operation of the public distribution network and the supply of electricity at regulated tariffs are concluded directly, i.e., with no publicity and competitive bidding procedures.
The ordinary service function shared by Enedis and GRDF (2) is not a legal entity in its own right. Enedis’ and GRDF’s relations in this ordinary service are governed by an agreement that defines the scope of the service and the resulting division of costs. The agreement has an indefinite term and can be terminated at any time subject to 18 months’ notice: in such a case, the parties undertake to renegotiate the agreement during the notice period. It is updated regularly. In 2019, the governance agreements between Enedis and GRDF were completely reviewed.
Enedis has planned €96 billion of investments over the period 2022-2040. Annual investments will thus increase from €4.4 billion in 2022 to a sustainable figure of more than €5 billion.
These investments will make it possible to support ecological transition by connecting electric vehicle charging (CFEV) and renewable energy infrastructures. The phase-out of the sale of fossil-fuel vehicles in 2035 and electric vehicles becoming standard will result in a surge in investments around 2030, in connection with which multi-family housing will be a major challenge. Moreover, the rapid acceleration of the renewable energy development will continue, especially in the photovoltaic sector.
(1) Returnable assets are those that must imperatively be returned to the contracting local authority at the end of the concession. These assets are deemed to have belonged to this local authority from the outset. They are defined by the concession contract or even by the law. Unless stipulated otherwise, assets that are essential for the performance of the concession service are generally regarded as being returnable.
(2) Defined by Article L. 111-71 of the French Energy Code.
