ANNUAL RESULTS 2020
Strategy and
investments
ESG
Renewables
Regulated
France Generation and
supply
Consolidated sales
Operational data and markets
ARENH: FORCE MAJEUR LITIGATION
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The Covid-19 health crisis and the emergency measures taken by the French government as of 17 March 2020, have led to a decrease in electricity consumption from non-
residential customers and a decrease in electricity wholesale market prices, affecting all suppliers, including EDF.
Certain suppliers have asked the Presiding Judge of the Paris Commercial Court to order, as a matter of urgency, the total suspension of deliveries of volumes from
ARENH and/or their partial suspension up to the amount of the drop in electricity consumption of their customer portfolio during the crisis, invoking the Force Majeure
clause provided for in the ARENH framework agreement concluded with EDF.
The Summary Judge has decided that the conditions for Force Majeure have been met and has ordered EDF not to oppose the suspension of the agreement, entailing
thereby the total interruption of the annual electricity transfer program.
EDF has appealed the ruling. On 28 July 2020, the Paris Court of Appeals upheld the urgent application judge's decision, considering that the Force Majeure clause in the
framework agreement has an automatic effect and that Force Majeure could not be excluded with the evidence required in summary proceedings. EDF filed an appeal on
24 September, which is still pending before the Cour de Cassation (the highest court of appeal).
To safeguard its rights, EDF announced on 2 June the termination, as a precautionary measure, of the ARENH contracts binding it to these energy suppliers, as provided
for in the event of a suspension of these contracts beyond a two-month period. Total Direct Energie (TDE) contested this termination before the judge in charge of summary
proceedings. The latter ruled on 1 July 2020 and provisionally suspended the effects of EDF's termination announcement. EDF has appealed this ruling. On 19 November
2020, the Paris Court of Appeals overturned the ruling of the summary judge.
As the French Energy Regulatory Commission (CRE) has not complied with EDF's request to suspend ARENH deliveries to TDE (1) starting on 23 November for the end of
2020 in accordance with the ruling of the Paris Court of Appeals, EDF filed an appeal with the French State Council for ultra vires on 10 December 2020 with a view to
obtaining the revocation of the CRE's ruling.
In September, an alternative supplier (Ohm Energie) also urgently appealed to the Presiding Judge of the Paris Commercial Court to suspend payments due for ARENH
volumes delivered during the force majeure event, arguing that delivery should not have continued during the period of Force Majeure. On 23 October, the Summary Judge
dismissed the application.
These rulings were taken under an urgent procedure, on a provisional basis; only a procedure on the merits will make it possible to establish definitively the merits of the
respective positions of the parties.
As of today, several alternative suppliers have introduced full civil proceedings against EDF with the Paris Commercial Court with a view to obtaining compensation for
damages supposedly resulting from EDF's refusal to suspend ARENH deliveries on the basis of force majeure. On 13 April 2021, the Paris Commercial Court handed down
an initial ruling ordering EDF to pay €5.88 million in damages and interest to an alternative supplier. The Court considered that the conditions of force majeure were met
and concluded that EDF had committed a contractual breach for which it is liable by failing to suspend the delivery of ARENH volumes. EDF has filed an appeal against the
ruling before the Paris Court of Appeal.
(1) TDE Total Direct Energie
EDF
SALES FIRST QUARTER 2021
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