EDF_REGISTRATION_DOCUMENT_2017

1.

PRESENTATION OF EDF GROUP Description of the Group's activities

31/12/2017

31/12/2016

Electricity supplied (1) (GWh)

43,769 27,879

46,242 28,307

Gas supplied (GWh)

Number of residential customer accounts (thousands)

5,160

5,221

Number of employees (2)

12,797

13,331

Total Recordable Incident Rate (3)

0.59

0.68

Power supplied to final consumer including previous year metering cut-offs. (1) Includes staff on maternity leave. (2)

Total Recordable Incident Rate -Annual total combined number of Lost Time Incidents, fatalities, Restricted Work Injuries and Medical Treatment Injuries (3) (excluding First Aid)/number of hours worked ×1,000,000. This covers all employees, agency and contractor staff. Excludes EDF Energy Renewables and Hinkley Point C project.

Strategy 1.4.5.1.1 EDF Energy’s strategy targets a sustainable long-term business, meeting its customers’ needs for energy and associated services in an efficient and responsible way while focused on supporting the transition to a lower-carbon economy through generation of safe, reliable and affordable low-carbon electricity. As part of its 2020 project EDF Energy has developed detailed action plans which build on the high-level vision and objectives defined by EDF group’s CAP 2030. All these actions are underpinned by a focus on maintaining industry leading safety performance and improving cost efficiency across the business. In its energy supply business, EDF Energy aims to make energy easy for its customers by doing things better, faster and cheaper and enabling customer engagement by applying digital technologies and innovation. This also involves installing smart meters to our customers’ homes and small business premises, as part of the national programme. EDF Energy helps customers to make the most of their energy consumption and production and of their increasingly connected, smart homes (similarly connected public buildings, communities and cities), whilst providing excellent service and convenience. Through its energy services joint venture with Dalkia, including the recently acquired company Imtech, EDF Energy aims to help businesses explore and develop solutions that deliver energy, carbon and cost savings. In response to the major transformations within the energy industry, it has also launched Blue Lab, which aims to rapidly identify, develop and trial new business opportunities and services for customers. In generation, EDF Energy seeks to create value through continued operational excellence of existing assets and by developing a portfolio of new investments. In partnership with China General Nuclear Corporation (CGN), EDF is building two new nuclear units (3.2GW capacity in total) at Hinkley Point in Somerset, based on the EPR technology. EDF Energy is also working with CGN to progress a similar 3.2GW EPR project at Sizewell in Suffolk, where a second stage public consultation was conducted in February 2017. The feedback from this is being reviewed and EDF Energy continues to engage with its stakeholders through further pre-development consent order application consultation. Further it is proposing to develop a new nuclear power station based on CGN’s UK HPR1000 technology for the UK at Bradwell in Essex. Through EDF Energy Renewables (a joint venture with EDF Énergies Nouvelles), EDF Energy operates around 700MW of wind farms and is also continuing to develop new renewable generation projects; it is also exploring options for flexibility assets including the development of a new 49MW battery storage project at West Burton B, which will provide frequency response services to the National Grid. EDF Energy aims to secure value from its existing nuclear, coal and gas assets through continued operational excellence and safe, reliable generation. Since 2009, EDF Energy has extended the lifetime of all of its Advanced Gas Reactors (AGRs) by an average of 8 years. This has allowed the UK to continue to benefit from existing nuclear low carbon energy for as long as possible, as well as providing ongoing nuclear employment opportunities and the maintenance of nuclear industry skills within the UK. However, due to large non-replaceable components, there is a technical limit to the AGR lifetimes, and as we approach this limit, we will be seeking to optimise the end of life value of the stations. This may include the small, incremental extension of individual reactors, where safety and technical

considerations allow. As part of adding value from the end of AGR lifetimes, EDF Energy is also exploring opportunities to develop new activities in nuclear decommissioning, building on its expertise in operating the UK’s existing nuclear stations. Other important strategic actions concerning the Company’s generation fleet include optimising the operations of the West Burton B Combined Cycle Gas Turbine power station and the remaining lifetime value of coal generation capacity under the UK capacity market mechanism. Activities 1.4.5.1.2 Nuclear generation 1.4.5.1.2.1 EDF Energy owns and operates eight nuclear power stations in the UK (15 reactors) with a total capacity of 8.9GW. Since 2009, Centrica plc. (“Centrica”) has held a 20% shareholding in Lake Acquisitions Limited, the company in which the nuclear generation assets sit (except Nuclear New Build). Nuclear generation fleet technology Seven of the eight nuclear power stations are Advanced Gas-Cooled Reactor (AGR) power stations (Dungeness B, Hartlepool, Heysham 1, Heysham 2, Hinkley Point B, Hunterston B and Torness) and the eighth, Sizewell B, is a Pressurised Water Reactor (PWR) power station. Safety and radiological protection Nuclear safety is EDF Energy’s overriding priority (see section 3.2.4.1 “Nuclear safety”). EDF Energy operates to strict procedures to minimise and control the radiation doses received by employees and contractors at all of EDF Energy’s existing nuclear power stations. In 2017, the average individual dose received by all workers on EDF Energy’s existing nuclear sites was 0.041mSv, the legal dose limit being 20mSv per year. The highest individual dose received in 2017 was 5.5mSv. The operating lifetime of the nuclear power plants The actual lifetime of each power station will be determined primarily by the technical and economic practicability of supporting its safety case. This is assessed at each statutory outage for the following operating period through inspection, maintenance, testing and assessment of plant performance. Following the outage, consent is required from the Office for Nuclear Regulation (ONR) before restarting the reactor. The operating period between statutory outages is normally three years for the AGR power stations and eighteen months for Sizewell B. In addition, every ten years, the stations are subject to a more detailed and wide ranging Periodic Safety Review (PSR) of design, operational and organisational safety which must also be accepted by the ONR in order to secure continued operation. In January 2017, the ONR accepted the Hinkley Point B and Hunterston B PSRs, and in January 2018 the ONR accepted for the Dungeness B PSR. ONR are currently assessing the Hartlepool and Heysham 1 PSR with acceptance due in January 2019. Heysham 2 and Torness PSRs are in production and due for ONR assessment in 2019 with an ONR acceptance due in January 2020.

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DF I Reference Document 2017