Under the Euro Medium Term Note Programme ... - Finance - EDF

Risk Factors
NOME law of 7 December 2010. Provided various criteria are met, including a requirement
regarding the level of coverage provided by provisions booked as of 29 June 2011, the
NOME law 11 grants a five-year extension (from 29 June 2011 to 29 June 2016) of the
deadline by which the portfolio of dedicated assets must cover all long-term nuclear business
commitments, as required by stipulated by the law of 28 June 2006.
These dedicated assets may prove to be insufficient at the time actual payment is required if
true costs are different or if the schedule for decommissioning and storage costs is modified,
which could have a significant negative impact on EDF’s financial position. Moreover, stricter
regulations at the national level (in particular those that impact the base for determining the
dedicated assets to be constituted by EDF) or European level may lead to more stringent
requirements regarding the constitution of dedicated assets and have an effect on EDF’s
financial position.
Lastly, although these assets are constituted and managed in accordance with strict
prudential rules, the EDF Group cannot guarantee that price fluctuations in the financial
markets will not have a significant negative impact on the value of these assets which could
require EDF to disburse additional amounts to restore the value of these assets.
In the United States, in accordance with NRC regulations and requirements imposed by the
relevant states, CENG has established funds strictly dedicated to covering the costs of
power plant decommissioning. The strategy adopted in establishing these funds is based on
the estimated costs necessary for decommissioning and the disbursement schedule
associated therewith. CENG’s estimate of the revenue generated by these funds is based on
various factors, including the asset allocation strategy for the investments, the historical rate
of return and market conditions. At this time, it is anticipated that decommissioning activities
will continue until 2083. Any changes that affect decommissioning costs or schedules, or any
changes that affect the revenues generated by the funds may impact the ability of the funds
to cover the decommissioning costs of power plants, which could lead CENG to incur
additional expenditures.
Such events could have a negative impact on the EDF Group’s financial position.
Risks related to the EDF Group’s structure and changes within the EDF Group
The EDF Group’s development strategy may not be implemented in accordance with
the objectives set by the EDF Group
The EDF Group intends to continue its expansion in the electricity, gas and energy services
industries, both in France and abroad, in line with its industrial development plan, in
accordance with its business model for each geographical area and in light of any relevant
experience (upstream/downstream balance, marketing strategy, development of renewable
energy sources or other production methods, such as nuclear, hydropower, coal, gas
combined-cycle power plants, etc.). The EDF Group thus implements programmes that focus
on expansion, reorganisation, increasing profitability (see the discussion below of the risk
factor entitled “The EDF Group implements programmes to improve its operating and
financial performance and to increase its financial flexibility”) and disposals.
11 Article 20, as amended, of law nº 2006-739 of 28 June 2006, today in the article L.594-1 at L594-10 Environmental
Code
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