EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Legislative and regulatory environment

Commitments by EDF (excluding network managers) EDF’s public service commitments include: access to the public electricity service and the supply of electricity to customers ■ who choose to remain at regulated tariffs; production and sales. These areas include the implementation of the energy ■ policy and maintaining secure power generation that is environmentally friendly; contributing to the safety of the electricity network. In this regard, EDF ■ undertakes to enter into several contracts with RTE, in particular concerning the optimisation of work on generation facilities and the availability of the resources required to maintain network balance. Commitments by network managers In the Public Service Contract, the Enedis and RTE 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. More accessible services On 28 September 2010, the State and EDF, as well as eight other major public service operators, signed a partnership agreement entitled “+ de services au public” (“more services to the public”), which aims to develop access to a set of services intended for rural populations in France (information on bill payment, general information, travel ticket sales, etc.). Reception staff and internet access points are some of the many resources made available to users through shared facilities such as Multiservice Conciliation and Information Points (PIMMS), Public Service Relays (RSP) and other structures such as town halls. Following the experimental phase, during which these services were deployed in twenty-two French départements, in July 2013, the Inter-Ministerial Committee for the Modernisation of Public Action (CIMAP) decided to extend this initiative throughout France. European legislation 1.5.3.1 Three European Directives, which form the basis for the current organisation of the electricity market in France, were successively adopted in order to lay down the common rules for the generation, transmission, distribution and supply of electricity. Directive no. 96/92/EC of 19 December 1996 laid the foundation for opening up the electricity market to competition. Directive no. 2003/54/EC of 26 June 2003 reiterated the major principles and took an additional step on the path to opening up the market, by progressively expanding eligibility to all customers. Directive no. 2009/72/EC of 13 July 2009, known as the “Third Directive”, was adopted as part of the third “Energy Package”. This Directive primarily strengthens the guarantees of the independence of transmission system operators and increases the power of the national regulatory authorities. These provisions have now been incorporated into the French Energy Code. Moreover, the rules that govern the conditions for access to the network for cross-border exchanges in electricity are currently defined by regulation (EC) no. 714/2009 of the European Parliament and Council of 13 July 2009, which is part of the third Energy Package. This regulation, inter alia, provides for a compensation mechanism between transmission system operators for the costs incurred by hosting ELECTRICITY MARKET LEGISLATION 1.5.3

cross-border flows of electricity on their networks. This compensation is paid by the operators of the national transmission systems from which cross-border flows originate and the systems where those flows end. Finally, the “Security of Electricity Supply” Directive no. 2005/89/EC, which was adopted on 18 January 2006, is designed to provide a better definition of the responsibilities of the various operators, ensure that minimum operational standards are respected, maintain balance between demand and supply, and channel investments toward the systems. The objectives of this Directive have been taken into account in various French laws and regulations. Energy Union On 30 November 2016, the European Commission presented a legislative package entitled “Clean Energy for All Europeans”, which is a proposal to revise all legislation on electricity. This package is made up of 11 legislative texts and a considerable number of communications documents that accompany the European Commission’s proposals. These proposals concern the organisation of the wholesale and retail markets for electricity, and are designed to give increased importance to consumer-centred measures. The legislative proposals are also an opportunity to confirm or propose new European targets for 2030 in terms of energy efficiency (a 30% target proposal) and renewable energy (a 27% target proposal). A new regulation is proposed for security of supply, and a revised regulation is proposed concerning the Agency for the Cooperation of Energy Regulators (ACER). All the proposed provisions are intended to create a more cohesive organisational framework for the electricity markets, for the benefit of the European energy and climate policies, as part of the planned European Energy Union. A technical memo on Energy Union Governance completes the package and specifies the method for monitoring the achievement of objectives by the Member States that will be implemented by the Commission. The parliamentary debate began in early 2017, and the Council was also involved in negotiating these texts. The adoption of the definitive texts is not expected before the first half of 2018 and perhaps even the second half for trialogue negotiations (European Parliament/Council/EC). The (new or revised) provisions are therefore expected to enter into force between 2019 and 2021, depending on whether they are immediately applicable in the Member States (regulations) or have to be transposed into domestic law (default time of 18 months). The Agency for the Cooperation of Energy Regulators Regulation (EC) no. 713/2009 of the European Parliament and Council of 13 July 2009, established an Agency for the Cooperation of Energy Regulators (ACER). The ACER plays a role in developing network codes in the electricity and gas sectors, and can make decisions relating to cross-border infrastructures (on this subject, see also section 1.5.6.2.5 “Regulations applicable to renewable energy generation”). French legislation: the Energy Code 1.5.3.2 The various pieces of legislation on energy (1) Law 504 were incorporated into the French Energy Code by Order no. 2011-504 of 9 May 2011, with the exception of the majority of the provisions on nuclear energy, which were incorporated into the French Environment Code, pursuant to Order no. 2012-6 of 5 January 2012. Moreover, Decree no. 2015-1823 of 30 December 2015 organised the regulatory section of the French Energy Code. Consequently, around one hundred decrees on energy law have been repealed. The Law of 17 August 2015 on Energy Transition for Green Growth amended numerous provisions of the French Energy Code, and in particular the objectives of the energy policy, which are now focused on the emergence of a competitive economy that creates an abundance of jobs through the mobilisation of all the industrial sectors (in particular the green growth sectors), security of supply and the reduction of reliance on imports, competitive and attractive energy prices, the preservation of human and environmental health, social and territorial cohesion, the fight against fuel poverty, and contributing to the implementation of a European Energy Union.

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Law of 15 June 1906, Law no. 46–628 of 8 April 1946, Law no. 2000-108 of 10 February 2000, Law no. 2003-8 of 3 January 2003, Law no. 2004-803 of 9 August 2004, Law (1) no. 2006-1537 of 7 December 2006, Law no. 2010-1488 of 7 December 2010.

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EDF I Reference Document 2017