Affordability in the energy sector

Overview of French situation - EDF policy and actions

AFFORDABILITY OF UTILITIES’S SERVICES

EXTENT, PRACTICE & POLICY

Coralie Declercq Delire, EDF, Sales Division

CERRE Expert Workshop Brussels, 19 May 2015

STATE OF PLAY OF FRENCH LAW AND REGULATORY

ENVIRONMENT

State of play of French law and regulatory environment

EDF always ensures the setting up of regulation and legislation with public

authorities in a manner that consumers’ interests are optimized.

Provisions dedicated to residential consumers

Public service : A major law (February the 10th 2000), established the concept of the “public service” mission of energy supply :

A right to electricity supply for French citizens ; the social tariff (created in 2004) for electricity

supply is part of this “public service” mission ; Electricity is considered as an essential supply,

Under the national energy code and the concession specifications document, a supplier is

thus not entitled to refuse a consumer to conclude an end user regulated tariff contract even if

the latter is in debt. EDF is a kind of supplier of last resort for electricity,

Energy suppliers have to help fuel poverty and support energy efficiency (2005).

informed and sustainable choices

- PCT and comparability of offers : since 2007, consumers have had the choice between opting

for free market prices and regulated tariffs which can only be offered by incumbents. Comparison

tools already exist that enable consumers to easily evaluate competing offers between suppliers.

CRE and the energy ombudsman (MNE) jointly manage an information website on energy issues

which provides information on the opening-up of energy markets and a comparison tool for

electricity and gas retail prices. EDF believes that the principles of transparency and trusted

information should apply to all market participants that will play a part in the energy retail markets

(and not only suppliers).

State of play of French law and regulatory environment

- Bill : how to deal with simplicity vs regulation ? How can we combine the customers' will of simplicity

and the fact that regulation prevents suppliers to tailor bills to customers’ needs ! French example of the

“arrêté facture” (Arrêté du 18 avril 2012 relatif aux factures de fourniture d'électricité ou de gaz naturel à leurs modalités

de paiement et aux conditions de report ou de remboursement des trop-perçus).

A reference to National Energy ombudsman is provided in the bill.

- Switching : the technical delay in France for switching to a new supplier is 24 hours. EDF agrees

that switching must be easy and supports that switching will be easier if suppliers are the main point of

contact. However, the level of switching rate does not necessarily reflect how easy the process is, and

does not reflect neither the level of competition.

Unpaid debt decree : the unpaid debts decree provides for a certain number of delays in order for

the consumer to seek for various solutions (Décret n° 2014-274 du 27 février 2014 modifiant le décret n° 2008-

780 du 13 août 2008 relatif à la procédure applicable en cas d'impayés des factures).

Winter Break : French national law (loi “Brottes” on energy which entered into force on April 2013),

established a winter break (from the 1st November until the 31st of March) during which any electricity

or gas supplier cannot disconnect any consumer even in case of unpaid bills or a withdrawal from the

supply contract: the supplier may limit the consumer’s power till 3 kVa, except for consumers who

benefit from social tariffs and from FSL in the 12 last months.

Mediation : the national ombudsman for energy is an independent administrative authority created

by law (7 December 2006). The MNE is responsible for domestic, small and micro-business customers,

dispute between customers and DSO.

ADR directive : implementation by July 9th 2015.

RASP Principles : UFE and Eurelectric fully support the RASP principles of the CEER-BEUC 2020

vision and expects concrete measures to be shared and spread as good practices throughout the EU.

State of play of French law and regulatory environment

Provisions dedicated to precarious consumers

Energy poverty definition : the environmental law (passed on July 12th 2010, loi Grenelle 2, art.3 bis a)

includes a formal definition of energy poverty : “A person is considered to be a fuel poor according to the

present law if she is facing particular difficulties for having the necessary energy supply to satisfy her

basic needs in her housing because of the inadequacy of her resources or living conditions”.

5.1 millions households in France are deemed “fuel poor” in 2014 (according to the

indicators of ONPE)

Social tariffs of energy : special tariffs are granted for households with an income below or equal to

a threshold of entitlement to supplementary universal health cover. These tariffs are available for both

natural gas and electricity consumers (TPN for electricity since 2004 around 103 € discount and TSS for

gas since 2008 around 132 € discount including taxes).

From the end of 2013 (decree n°2013.1031 of 15th November 2013), those social tariffs were granted

automatically and further extended to every energy supplier to cover all households with an annual

reference fiscal income per unit lower than EUR 2,175. The number of households benefitting from the

social tariff is currently 3 millions for electricity and 1,1 million for gas (figures from April 2015).

Social Fund for housing (FSL), supervised by local authorities, was created by law

(2005) : the aim of the social fund for housing is to grant aids to precarious customers to allow them to

keep up with their housing expenditures : they can thus be helped to pay their energy bills.

Recovery processes : the “energy debts recovery processes” decree was modified in 2008 to take

more into account consumers benefiting from social supports or social tariffs : the payment deadline is

extended by 30 days - information of social services 8 days after first reminder – 3 days after

disconnection, social services are to be contacted and informed.

Winter break : consumers who benefit from social tariffs and from FSL in the 12 past months cannot

see their power limited.

State of play of French law and regulatory environment

EDF APPROACH FOR RESIDENTIAL CUSTOMERS

AND FOR TACKLING ENERGY POVERTY

EDF approach for residential customers Client satisfaction rate - French consumers rate the performance of their retail electricity market well above the EU

average (79.2 points vs. 72.0 corresponding to 4th place out of 28)

- The market has the third lowest percentage of complaints and second highest assessment of

trust within the EU (European Commission staff working document – Country reports – p.83).

- EDF realizes its own satisfaction inquiries : in 2015, 90.8% of our customers were very and

quite satisfied following a contact with our advisers. Regarding our customers’ perception on our

complaints handling, 79.5% were very and quite satisfied.

The EDF’s 9 commitments ▫ Advices on energy management EDF has undertaken to establish a personalized relationship

to help customers better managing their energy consumption.

8) an immediate answer for

complaints or inform you on the

processing time

3) offer you

payment

arrangements

5) contact you when

it’s useful for you

7) repayment

without waiting

1) the right offer

for your needs

2) charged at fair

value

4) offer you simplicity with

Internet and customer-

focused technical support

6) help you to find

concrete solutions

to save energy

9) help you through

tough times

EDF and national consumers’ associations : EDF organises 2 to 4 times a year inter-active

information sessions with French consumers’ associations. EDF ombudsman facilitates the institutional

relation between the Group and the 15 Consumers’ associations recognized by the government.

Complaint handling : EDF’s mediation was created in 1999 prior to the creation of the MNE.

Common values guiding his action

EDF approach for residential customers

Consumerist

UFC-Que Choisir

CLCV

Union AFOC, Indecosa

CGT ADEIC,

Family (au sein de l’UNAF)

Familles Rurales CSF

CNAFC FF

CNAFAL

Specific/ sectorial

CGL

FNAUT

CNL

Various UNAF ALLDC

15 consumers’

associations

Fairness Listening Impartiality Confidentiality

The company ombudsman deals with any dispute regarding contractual

relationship with EDF group (clients, grid, supplier, business partners). Before

the submission of the complaint to the company ombudsman, the consumer

has to go through the back office clients relation centre (CRC) and if he still

feels his complaint has not find the right solution, he may then go through the

consumers service department.

EDF approach to tackle energy poverty

Accompanying

(People)

Subsidies

(Bill)

Prevention

(Housing)

Social Fund for housing –

Financial support brought by

local authorities

Social tariffs : EDF is

working together with public

authorities to ensure that

enforcement of regulation on

social tariffs is optimal in the

interest of customers

Accompanying and

guiding customers

Personalized payment

solutions

Partnerships with NGOs

Energy efficiency schemes

for fuel poors

Advice on energy savings

The 3 pillars of the energy poverty policy at EDF

EDF has started tackling fuel poverty more than 30 years ago. Our objective is to avoid

that energy invoice increases customers’ precarious social position.

3 complementary pillars have been implemented to fight against fuel poverty with public

authorities

EDF approach to tackle energy poverty Subsidies

FSL

EDF is the leading “private” contributor.

22 millions EUR were financed by EDF in 2010 - 23 Millions EUR in 2014 (105 millions EUR

within 5 years).

200 000 families are helped by the FSL for paying their energy bills. Once helped,

precarious customers are protected against disconnections for 12 months.

EDF invites Departments to spend 10% of this amount to implement actions in order to

reduce energy consumptions.

Accompanying (customers)

EDF customer oriented service : 5000 customers advisors provide personalised advice to consumers who have to face

financial difficulties (contact and payment terms verification, payment terms, link with social

workers)

“Accompagnement énergie” is a customer oriented service for precarious consumers

who need assistance in terms of payment : longer payments terms, orientation toward

social workers if needed.

513 000 final beneficiaries of this service in 2014.

Edf links with social workers

380 EDF solidarity advisers dedicated to fuel poverty working directly with social

workers (municipal social action centres – social security system for families – General

Councils and social workers in associative environment). In 2014, the EDF solidarity

advisers dealt with 548 000 social workers’ demands.

A web site was set up to streamline exchanges between EDF and these social

workers.

EDF and local Partnership

□ EDF has concluded local partnerships with 180 social mediation structures to assist

precarious customers in solving their problems linked to energy and to provide for advices in

energy management. Among those structures, we find also the 62 PIMMS network.

□ EDF also signed partnerships agreement with NGOs such as le Secours Populaire Français,

le Secours Catholique, la Croix Rouge, le Crédit Agricole, Community Centre for social

action and SOS Familles Emmaüs.

Prevention

“Improving and renovating the habitat for better reducing energy consumption”

EDF partner with Fondation Abbé Pierre : EDF has been partner

for “2000 roofs for 2000 families” Abbé Pierre program between

2008 and 2011. From 2012, the partnership was renewed till the

end of 2015 within the “Toits d’abord” program with a contribution

from EDF of 1.5 EUR million per year.

EDF is the key player of “Habiter mieux” program driven by the

National Agency for Habitat (ANAH). A convention has been signed

in 2011 under the umbrella of French government to renovate

50000 housing. Between 2011 and 2013, EDF brought a financial

support of 28 EUR millions. The program was renewed till the end

of 2017 with an objective of 45 000 - 50 000 renovated housing

and a contribution from EDF of 32 EUR millions for 2014 and a prevision of 29 EUR millions from

2015 till 2017.

EDF approach to tackle energy poverty

THANK YOU FOR

YOUR ATTENTION