The EDF Group is ISO 14001 certified. · Number of low-energy light bulbs distributed by EDF and its partners in Martinique, Guyana and Reunion Island 3,000 Smart meters installed

EUROPEAN LEADER FOR TOMORROW’S ENERGIES>

2007ANNUAL REPORT

EDF GROUP

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22-30, avenue de Wagram75382 Paris Cedex 08edf.comEDF SA capital stock € 911,085,545 euros – 552 081 317 RCS Paris

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8 Chairman’s statement

12 Running a European Group

16 A European Group with global reach

18 Key figures

22 Shareholders: strengthening relations

A STRATEGY OF INVESTMENT

26 Unprecedented global energy challenges

30 Five strategic priorities

32 Investing in the global nuclear revival

34 Investing in renewables and energy eco-efficiency

36 Investing in industrial assets in France

37 Securing gas supply

38 Strengthening the business in Europe

THREE DRIVERS OF SUSTAINABLE GROWTH

42 Highly skilled, motivated teams

46 Research & Development: support and anticipation

48 Social and Environmental Responsibility

EUROPEAN BUSINESSES

52 Background and changes in Europe

54 France: Groundwork laid for a new competitive environment

70 EDF Energy: Doing well in a challenging environment

74 EnBW: Delivering results

78 Edison: Meeting targets with upgraded industrial facilities

82 Other European countries: Making progress in the regulated markets

CONTENTS

The EDF Group is a leading player in the Europeanenergy industry, active in all areas of the electricity value chain,from generation to trading and network management. The leader in theFrench electricity market, the Group also has solid positions in the UnitedKingdom, Germany and Italy, with a portfolio of 38.5 million Europeancustomers and a generation fleet which is unique in the world. It intendsto play a major role in the global revival of nuclear and is increasinglyactive in the gas chain. The Group has a sound business model, evenlybalanced between regulated and deregulated activities. Given its R&Dcapability, its track record and expertise in nuclear, fossil-fired and hydrogeneration and in renewable energies, together with its energyeco-efficiency offers, EDF is well placed to deliver competitive solutions to reconcile sustainable economic growth and climate preservation.

Consolidated figures at 31/12/2007.

158,640employees

Sales

€59.6 billion

EDF customeraccounts in Europe

38.5 millions

EDF Generationworldwide

610.6 TWh

+1.2%

PROFILE

1EDF - 2007 ANNUAL REPORT

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First concrete pouring at EPR site in Flamanville.

2.3EDF - 2007 ANNUAL REPORT

A GLOBALNUCLEAR

RENAISSANCEcompetitive energy with zero CO2

emissions • supply security• expertise • joint investments

• EPR technology • United States• China • United Kingdom

• South Africa

10EPR projects

in our four target countries

58nuclear reactors

commissioned in France

1,650 MW

EPR, the most powerful reactor in the world, under

construction at Flamanville

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Photovoltaic system at the Geoffroy Guichard Stadium, Saint-Etienne.


DEVELOPMENT OFRENEWABLE

ENERGIESENERGY EFFICIENCY

mature and operational solutions • developing distributedenergies • new services

• respect for the environment

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3,300 MW net

EDF Énergies Nouvelles target for installed

wind power capacity by the end of 2011

1 millionNumber of low-energy light

bulbs distributed by EDF and its partners in Martinique,

Guyana and Reunion Island

3,000Smart meters installed

by EDF Energy in the UK

to save energy

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BUILDING THE EUROPEAN

BUSINESS

open electricity and gas market• 700 GW to be built by 2030

• networks to be secured


€ 6.2 billion

investment planned by Italian company Edison in natural gas

and electricity by 2013

6,000 MW

of new capacity by 2012 in France

870 MW

construction of a natural gas-firedplant in the Netherlands to come on line in 2009

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Delivering results,major strategic progress internationally and increasing investments.

CHAIRMAN’S STATEMENT 8.9EDF - 2007 ANNUAL REPORT

The past year was one of contrasting trends. The oil priceclimbed to 100 dollars, and raw material costs edged higher.

Energy demand continued to grow, making investment in new generation capacity unavoidable. At the same time, the urgency of climate change becameclear to all, and the subprime crisis caused real turmoil infinancial markets.

Against this backdrop, EDF once again delivered resultsand made major strategic progress internationally.The Group is now positioned to play an active role in thenuclear revival on the world’s leading energy markets.

As in the previous year, EDF recorded improvements for all the main financial indicators in 2007, and all Group subsidiaries and affiliates made positivecontributions to the strong results. Sales reached €59.6 billion, marking a slight improvement on theprevious year despite the sale of Light in Brazil. EBITDAcame in at €15.2 billion, implying organic growth of 6.1%,and net income from ordinary operations, excludingnon-recurring items, advanced by 10.6%.

We delivered on all our commitments in 2007. Thetargets set out in the Altitude performance program werelargely exceeded. We have also made all of the disposalsannounced, following the sale of our Mexican plants latein December.

The residential market was opened to competitionin July. This was an opportunity for EDF to demonstrateits capacity for innovation, offering customers services that combine more environmental protection, moresavings and more well-being through energy savings,renovation advice and decentralized renewable energygeneration solutions. Our teams worked hard to implement a new organization of the distribution andsales and marketing activities. ERDF, the new subsidiary in charge of distribution, has been operational since the1st of January 2008. EDF approached this last step in the deregulation process with two key goals in mind: guarantee non-discriminatory network access to all suppliers via the transmission and distribution subsidiaries,and make sure that all our customers enjoy the same service as before, in keeping with our quality public service commitments.

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Chairman’s statementPierre GADONNEIX

> The Group also continued to step up its investmentprogram. Operating investment has increased by almost50% over two years, reaching €7.5 billion in 2007. InFrance, investment amounted to €4.5 billion, making EDFthe country’s largest investor. Funds were allocated to allbusinesses and geographic areas. In the generation acti-vity, where investments have been ramping up since 2006,we brought new capacity on stream, of which 1,400 MWin France1. Construction work on the EPR reactor inFlamanville proceeded on schedule. Significant efforts arebeing implemented to maintain and extend the lifespan of the hydro and nuclear assets. Investments were alsomade in the transmission and distribution networks, in France and in the UK and Germany. On the renewableenergy front, EDF Énergies Nouvelles continued to recordstrong growth, with net capacity in service rising above1,000 MW during the year.

Our status as the world’s premier nuclear operatorallowed us to reach a major milestone in 2007:working with partners in the United States andChina, we will be the first to become joint ownersand operators of nuclear power stations in thesecountries.

Major energy and environmental challenges lie ahead.They will represent an opportunity for the sector as awhole, and for EDF in particular.

We must tackle climate change while assuring securityof supply, which is being threatened by the scarcity andhigh cost of hydrocarbons at a time when global demandis steadily increasing.

The goal is to bolster our generation capacities to continueto contribute significantly to the energy independence of France and Europe.

In addition to being the world’s largest nuclear operator,we are also a leader in the field of renewable power,thanks to our hydro fleet and EDF Énergies Nouvelles. As a major energy player with unmatched industrialresources, EDF is ready to demonstrate, today and inthe future, its leadership when it comes to the safegeneration of zero-carbon energy at competitivecosts.

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1. Porcheville in 2006, Cordemais in 2007 (1,270 MW)

and a combustion turbine in Vitry in 2007 (130 MW).

CHAIRMAN’S STATEMENT 10.11EDF - 2007 ANNUAL REPORT

With its unequalled industrial assetbase, EDF is ideally positioned

to demonstrate its leadership, nowand in the future, when it comes

to generating safe, competitive andcarbon-free energy.

In France, 95% of our electricity generation iscarbon-free, and EDF emits three times less CO2

per KWh than the other large European electricitygroups.

EDF will continue to focus on productivity in the short andmedium terms to further improve its operating performance.We are also preparing for the longer term by investing tomaintain and expand our generation assets and achievesustainable industrial growth.

Between 2008 and 2010, we will invest more than€35 billion, in France and internationally, in keybusinesses. A total 6,000 MW of new generationcapacity will be brought on stream between 2006 and2012 in France. We will also continue to build up ournatural gas and renewable energy businesses, includingtidal and photovoltaic power and electric vehicles. R&D will keep the focus on developing low-carbon technologies such as carbon capture and storage. As a leading player in the world nuclear revival, EDF aims to invest in, commission and operate more than ten EPRs by 2020 in four key markets: the United

Kingdom, the United States, China and South Africa.

This will require hiring skilled people, which we aredoing. By way of example, EDF recently announced the creation of the European Foundation for Tomorrow’sEnergies, which will fund education and research in the area of zero-greenhouse gas technologies. Our goal is to recruit more than 10,000 people in the next fiveyears, including 500 nuclear engineers a year, to drive the sustainable industrial growth that will secure EDF’sposition as the leading energy group of tomorrow.

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GOVERNANCE 12.13EDF - 2007 ANNUAL REPORT

Running a European Group Executive Committee

An Executive Committee which reflects the GroupThe Chairman of the Board of Directorswho is also Chairman and Chief ExecutiveOfficer, presides over the Group. Firstappointed Chairman of the Board of EDF bydecree on November 24, 2004, Pierre Gadonneix’s term of office wasrenewed following the Shareholders’Meeting of February 14, 2006. He is supported by a small steering committee, the Top 4, and by the Group’s ExecutiveCommittee. As of 2006, the Top 4, a decision-makingbody, comprises the Chairman and CEOand the three Chief Officers. The Executive Committee, a cross-disciplinarystrategic and consultative body, comprisesthe members of the Top 4, the SeniorExecutive Vice Presidents and the CorporateSecretary of EDF SA, the CEO’s of EDFEnergy, EnBW and Edison. Its compositionreflects the need to give equal treatment to all the Group’s strategic priorities. A limited number of specific decision-making committees support the ExecutiveCommittee’s activity. There are, in addition,a number of ad hoc committees or boardswhich are responsible for groupwide strategic issues.

Monitoring, safety and coherence bodiesA number of critical functions report directly to the Executive Committee such as Corporate Audit, Corporate RiskManagement 1 and the Senior Vice President,Nuclear Safety and Radioprotection, whosubmits an annual report to the CEO. The Board of Directors

The EDF Board of Directors determines the orientations of the Group’s activitiesand oversees their implementation. It defines the major strategic, economic,financial or technological objectives. It addresses, in its deliberations, all othermatters affecting the Group and relevant to its proper functioning. In 2007, it reviewed matters relating to the Group’s normal activities and the year’smajor projects: the distribution subsidiary,the ordering of the Flamanville 3 nuclearreactor steam supply system, theinternational nuclear strategy (including thesigning of a partnership with Constellationin the United States), and the strengtheningand renewal of EDF’s fossil-fired fleet inFrance.Pursuant to the French law of July 26, 1983on the democratization of public service,the French State holding less than 90% of EDF’s share capital, the Group’s Board ofDirectors comprises 18 members, of whichone third represent the French State, onethird represent the employees and one thirdare appointed by the Shareholders’ Meetingon proposal by the Board of Directors.

The Audit Committee

Composition of the Executive Committee as at March 31, 2008

1 - Pierre GadonneixChairman and CEO

2 - Daniel CamusChief Financial Officer

3 - Yann LarocheChief Human Resources and Communications Officer

4 - Jean-Louis MathiasChief Operating Officer,Integration and DeregulatedOperations in France

5 - Jean-Pierre BenquéSenior Executive Vice President,Customers

6 - Bernard DuprazSenior Executive Vice President,Generation and Engineering

7 - Dominique LagardeSenior Executive Vice President,Strategy and Coordination

8 - Marianne LaigneauGeneral Secretary and Chief Legal Officer

9 - Bruno LescoeurSenior Executive Vice President,International Industrial andPublic Affairs

10 - Umberto QuadrinoEdison, CEO

11 - Vincent de RivazEDF Energy, President of the Executive Board

12 - Hans-Peter VillisEnBW, President of the Executive Board

13 - Gérard WolfSenior Executive Vice President,Subsidiaries and InternationalDevelopment

>GOVERNANCE

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1. See Document de référence.

In connection with the expiry of the ChiefOfficers’ mandate on May 20, 2008, EDF’sBoards of Directors appointed, as proposed bythe Chief Executive Officer, Daniel Camus,Dominique Lagarde and Jean-Louis Mathias asChief Officers, effective following theShareholders’ Meeting to be held on May 20,2008. Dominique Lagarde becomes Chief HRand Communications Officer.

On April 8, 2008, EDF announced its newExecutive Committee, effective May 20, 2008,

with the appointment of Philippe Huet, Senior Executive Vice President, Strategy and Coordination and Anne Le Lorier, Senior Executive Vice President, Corporate Finance, Finance and Treasury.Jean-Pierre Benqué, Senior Executive Vice President, assumes responsibility forNorth American operations and remains,temporarily, in charge of the Customer Branch.Bruno Lescoeur, Senior Executive Vice President, assumes responsibility for gas activities.

COPYRIGHTS:

1 : MÉDIATHÈQUE EDF – ALDO SPERBER2 : MÉDIATHÈQUE EDF – ALEXANDRE SARGOS3 : MÉDIATHÈQUE EDF – PHILIPPE BRAULT4-5-6-12 : MÉDIATHÈQUE EDF – STÉPHANE LAVOUÉ7-8-9-10-13 : MÉDIATHÈQUE EDF – LIONEL CHARRIER11 : DR

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GOVERNANCE

comprised of five members, comments onthe company’s financial situation, the medium-term plan and the budget, the draft financialstatements prepared by the Finance Division(EDF parent company and consolidatedfinancial statements), the monitoring ofrisks, internal audit and control, as well as the choice of Statutory Auditors. In 2007,the Committee also reviewed matters suchas the distribution subsidiary, the insurancestrategy and the centralization of the EDFGroup’s long-term financing.

The Committee for MonitoringNuclear Commitments It is responsible for monitoring the develop-ment of nuclear provisions, commenting onthe governance of dedicated assets, on therules for matching assets and liabilities andon strategic allocation, as well as verifyingthe compliance of the management of thededicated assets constituted by EDF. The Strategy Committee,

comprised of seven members, comments onthe company’s major strategic orientations. In 2007, it notably reviewed EDF’s investmentstrategy with respect to generation assets inFrance, the strategy for international nucleardevelopment and the updating of theGroup’s strategic reference framework.

The Ethics Committee, comprised of six members, monitors that ethical considerations are taken intoaccount in the Board of Directors’ work and in the management of EDF. It reviewsthe annual report excluding the financialstatements, the activity reports from theEthics and Compliance Advisor as well as the reports from the Mediator and theSenior Vice President, Nuclear Safety and Radioprotection. In 2007, it examinedthe communications strategy and the newEDF ethical reference framework. It contin-ued its review of the policy on partnershipwith nuclear service providers and oversaw

the implementation of a code of conduct for the distributor. Finally, it produced the annual report on the functioning of the Board of Directors, for which it isresponsible.

The Appointments and Remuneration Committee, comprised of three members, comments on the compensation of the CEO and ChiefOfficers. It also comments to the Board on the amount and allotment of Boarddirectors’ fees as well as on the compensa-tion terms of the main executives. Finally, it provides the Board of Directors with a listof proposed Board directors for appointmentby the Shareholders’ Meeting.

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In order to carry out its duties, the Board of Directors has a number of committees comprised of Board directors.

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GOVERNANCE 14.15EDF - 2007 ANNUAL REPORT

FRENCH STATE REPRESENTATIVES

Pierre-Marie Abadiereplacing François Jacq as of August 2007. Director for Energy Demand and EnergyMarkets at the French Departmentfor Energy and Raw Materials(Direction Générale de l’Energie etdes Matières Premières - DGEMP)at the French Ministry of Ecology,Energy, Sustainable Developmentand Land Use.

André AurengoUniversity professor – hospitalpractitioner, Head of theNuclear Medicine Departmentat the Pitié-Salpêtrière hospital

Bruno BézardDirector General of the FrenchState Holdings Agency at theFrench Ministry of the Economy,Finance and Employment(Ministère de l’économie, des finances et de l’emploi)

Gérard Errerareplacing Philippe Faure, as ofDecember 2007. GeneralSecretary at the French Ministryof Foreign and European Affairs(Ministère des affairesétrangères et européennes)

Yannick d’EscathaChairman of the French SpaceResearch Center (Centre Nationald’Etudes Spatiales - CNES)

Philippe JosseDirector of the Budget at theFrench Ministry of the Budget,Public Accounts and the CivilService.

ELECTED BY THE GENERALSHAREHOLDERS’MEETING

Frank E. DangeardChairman and Chief ExecutiveOfficer of Thomson untilApril 9, 2008.

Daniel FoundoulisMember of the ExecutiveCommittee of the NationalConsumers’ Council and memberof the European CommissionConsumer Committee in Brussels

Claude MoreauChairman of the InterministerialCommission on clean, energy-efficient vehicles (VéhiculesPropres et économes en éner-gies) between 2004 and 2007

Henri ProglioChairman and Chief ExecutiveOfficer of Veolia Environnement

Louis SchweitzerChairman of the RenaultBoard of Directors, Chairmanof HALDE, the French equalopportunities commission

EMPLOYEE REPRESENTATIVES

Jacky Chorinsponsored by the general con-federation of labor-workers’force (CGT-FO Union)

Marie-CatherineDaguerresponsored by the CGT

Alexandre Grillatsponsored by the French con-federation of management –general confederation of executives (CFE-CGC)

Philippe Pesteilsponsored by the French democratic confederation of labor (CFDT)

Jean-Paul Rignacreplacing Laurence Hoefflingas of November 2007, sponsored by the CGT

Maxime Villotasponsored by the CGT

Board meetings are alsoattended by Head of theFrench Government’sEconomic and FinancialControl Commission as wellas by the Secretary of theWorks Council, none ofwhom have voting rights.

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EDF’s success is founded on its ability to bring together all the Group’s components while fully respecting their individual governance rules.”

Marianne Laigneau, General Secretary and Chief Legal Officer

COMPOSITION OF THE EDF BOARD OFDIRECTORS AS AT MARCH 31, 2008Pierre GadonneixBoard director appointed by the General Shareholders’ MeetingChairman and CEO

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A EUROPEANGROUPWITH GLOBALREACH

AUSTRIAESTAG Group (EDF 20% owned,25% of voting rights)• Electricity , Gas and Heat Distribution • Electricity , Gas and Heat Sales • Services

406,459 customers

BELGIUMEDF Belgium (EDF 100%)EDF Belgium owns 50% of the Tihange 1nuclear power plant, 50/50 with Electrabel• Electricity Generation• Electricity and gas Sales• Services

Electric installed capacity: 419 MW

SPAINHispaelec Energia S.A. (EDF 100%)• Electricity Sales

Numbers of customers: approximately50 sites

Elcogas (EDF 31.39%)• Electricity Generation

Electric installed capacity: 335 MW

HUNGARY BERt (EDF 95.57% owned and votingrights)• Electricity and Heat Generation

Electric installed capacity: 356 MWThermal installed capacity: 1,471 MWth

Demasz (EDF 100%)• Electricity Distribution• Electricity Sales

770,887 customers

POLANDECW (EDF 77.52% owned and votingrights)• Electricity and heat Generation


Elektrownia Rynnik S.A. – ERSA(EDF 78.63% owned, 97.05% of votingrights)• Electricity Generation

Electric installed capacity: 1,775 MW

ECK (EDF 66.26% owned and votingrights)• Electricity and heat Generation


Kogeneracja (EDF 35.61% owned, 50% of voting rights)• Electricity and Heat Generation


Zielona Gora (EDF 35.56% owned,99.87% of voting rights)• Electricity and Heat Generation

Electric installed capacity: 221 MWThermal installed capacity: 322 MWth

SLOVAKIASSE (EDF 49% owned and voting rights)• Electricity and heat distribution • Electricity, Gas and heat Sales

699,665 customers

SWITZERLANDAtel Group (EDF 24.83% owned,25% of voting rights)• Electricity Generation • Electricity, Trading and Sales • Electricity transmission and distribution• Services

Electric installed capacity: 3,714 MWThermal installed capacity: 918 MWth

Emosson/Chatelôt/Mauvoisin(EDF 50% owned and voting rights)• Hydropower Generation

0.4 TWh made available

WORLDWIDE The Group invests and is involved in generation outside Europe as well,bringing its engineering andoperating expertise to differentprojects. EDF also leverages thisexpertise by offering its services tolarge national electricity companies.

UNITED STATESUniStar Nuclear Energy, LLC. 50/50 joint venture between EDF andConstellation Energy (EDF 3.1%). UniStar willbuild, own and operate Europeanpressurized water reactor (EPR) nuclearplants in the US.

CHINAFiglec (EDF 100% – Laibin thermal plant)Installed capacity: 720 MW

Shandong Zhonghua PowerCompany (EDF 19.6%)Installed capacity: 3,000 MW

LAOSNam Theun Power Company(EDF 35%)Installed capacity: 1,070 MW(Hydro plant under construction)

VIETNAMMekong Energy Company Ltd(EDF 56.25%)Installed capacity: 715 MW

Gross values, not adjusted for percentage of ownership interests (including the minority interests).

Wth: thermal W for cogeneration, as opposed to electric W.

Other European countries

EDF WORLDWIDE 16.17EDF - 2007 ANNUAL REPORT

UNITED KINGDOM EDF Energy (EDF 100%)

Sales contribution: €8.4 billion• Electricity Generation• Electricity Distribution• Electricity and Gas Sales• Services

Numbers of customers – accounts :approximately 5.5 million(including gas)

Electric installed capacity: 4.9 GWGas activity: 39.6 TWh

EDF Trading (EDF 100%)

Sales contribution: €670 mil-lion• Energy trading for the Group’sown account in Europe.

Volumes traded: Electricity: 1,207 TWhNatural gas: 186 Gm3

Coal: 454 Mtil: 205 Mb

Emission certificates of C 2: 325 Mt

Gross global gas volumes handled by the Group’s companies including plants’internal consumption

GERMANY

EnBW (EDF 46.07% owned and voting rights )

Sales contribution: €6.9 billion• Electricity Generation• Electricity Transmission andDistribution• Gas Transmission and Distribution,• Electricity and Gas Sales • Services

Numbers of customers:approximately 6 million (includinggas).

Electricity installed capacity:15.0 GWGas activity: 75.2 TWh


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FRANCEEDFSales: €32.2 billion

DEREGULATED ACTIVITIES(activities open to competition)• Electricity generation• Electricity and gas supply and optimization in mainland France.• Sales of engineering and consulting services

27.2 million customers (including gas)excluding Corsica and overseasdepartments.

Electricity installed capacity: 96.2 GWin mainland France.

REGULATED ACTIVITIES • Generation and electricity distributionby EDF in Island Energy Systems (IES)

RTE-EDF Transport (EDF 100%) • Transmission in mainland France.RTE owns, operates, maintains anddevelops the transmission networkshigh and ultra high voltage.

Around 100,000 km of high voltageand ultra high voltage grids 44 cross-border lines

ERDF (EDF 100%)• Distribution in mainland France.ERDF (created on anuary 1, 2008)owns, generates, maintains anddevelops the electricity distributionnetworks (high and low voltage)

596,200 km of 20,000 volt highvoltages lines669,300 km of 400 volt lowvoltage lines

EDF Énergies Nouvelles(Owned 50%)• Development, construction andoperation of electricity generationassets, mainly from renewableenergy sources • Sales to third parties of electricitygeneration assets based onrenewables it has developed andbuilt• peration and maintenance ofwind farms

Installed electric capacity:1,442.7 MW (total)

ITALYSales contribution:€4.7 billion

Edison (EDF 48.96% owned and 50% of voting rights)• Electricity Generation• Electricity Sales• Gas Production, Storage andSales

187,000 customers (including gas)

Electric Installed capacity:12.5 GWGas activity: 13.8 Gm3

Fenice (EDF 100%)• Electricity Generation • Energy and Environmental services

Electricity installed capacity:328 MWThermal installed capacity: 2,886 MWth


Wth: thermal W for cogeneration ,as opposed to electric W.

Gross values, not adjusted for percentage of ownership interests (including the minority interests).

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58.9*

2007 GROUP SALES In € billion

2007 GROUP EBITDA*

In € billion

NET INCOME (GROUP SHARE) AND GROUP’SNET INCOME FROM ORDINARY OPERATIONS*In € million

NET INCOME (GROUP SHARE)

GROUP’S NET INCOME FROMORDINARY OPERATIONS

1.2%

0.2%

5.7%

Distribution

Creation of ERDF

On July 1, 2007, the EDF Group began conducting its sales and marketing activities in a fully deregulated European energymarket. Since January 1, 2008, ERDF, a wholly-owned EDF subsidiary, handles distribution operations in France, just as RTE manages the transmission activities.

>*The €58.9 billion and €59.6 billion amounts correspond to the sum of theprecise values, corrected to one decimal place.** Fenice, EDF’s stake in Edison: 48.96 % consolidated in 2007 versus 51.58%in 2006.*** 46.07 % stake in EnBW in 2007.

>* Excluding non-recurring items.** +12.0% at constant scope and exchange rate.

2006

5,618

Rest of the world Other European countries

Italy

Germany

United Kingdom

France


Italy

Germany

United Kingdom

France

59.6

2007 2006

14.4Rest of the world


ItalyGermany

United Kingdom

France

Rest of the world


ItalyGermany

United Kingdom

France

15.2

2007

2006 2007

4,227 4,677

2006 2007

32.2

8.4

6.9***

4.7**

6.21.3

31.9

8.3

6.0***

5.6**

4.9

2.1 Rest of the world 0.5

1.40.91.01.3

9.3

0.3

1.7

0.91.01.3

10.0**

>* After the reclassification of net allocation to provisions for renewal belowEBITDA in the amount of (€463 M) in 2006 ((€504 M) in 2007).** After the reversal of provision of €262 M linked to the effect of implementationtexts of 28 June, 2006 Law on nuclear waste.

5,60510.6%

**++

+ +

Key figures 2007

Altitudeperformance program

(2005-2007):

Targets were exceeded by more than

20%,with a €1.2 billion impact on EBITDA.

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KEY FIGURES 2007 18.19EDF - 2007 ANNUAL REPORT

2007 FREE CASH FLOWin € billion

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COMMUNICATION

E = less CO2 campaign

Tackling climate change is a priority for all. As part of its contri-bution, EDF launched the E = less CO2 guide, a simple andaccessible tool to increase consumer awareness of the urgencyof decreasing their CO2 emissions. The guide features tips ongood habits that help keep energy consumption in check.

Operational Excellenceperformance program

Target of

€1 billiongain in EBITDA in 2010 vs 2007

€1.28 per share

Share dividend proposed in 2007

€1.16in 2006

Funds from operations (FFO)

Free CashFlow (FCF)

10.6

3.0

- 7.5

- 0.3

Δ WCR

Gross CapexNon-recurringcorporate tax

Disposal of fixedassets+ 0.2

- 0.1

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ACCELERATION OF OPERATING INVESTMENT SINCE 2005in € billion

Strategic partnership in the United States

On July 20, 2007, EDF and the US electricity company, Constellation EnergyGroup (CEG), signed an agreement concerning the creation of a 50/50 joint venture, called UniStar Nuclear Energy (LLC). The goal is to jointly design anddevelop, build, own and operate EPR type nuclear plants in the US.

Environmental performance

143 g/kWh

372 g/kWh

EDF’s CO2 emissions are almost three times lower thanthe sector average for Europe

Source: EDF 2006 / IEA 2005

Average CO2 emissionsin the European Union

EDF’s CO2 emissions in Europe

Between 2008 and 2010, the EDF Group plans to invest more than

€35 billionin generation and networks over three years,

including €20 billion in France.

> Investments in generation doubled in France since 2005.• 2007 investments of €7.5 billion, semi-financed by FFO of €10.6 billion.• Maintained financial flexibility: debt ratio* of 36%.* Debt ratio = Net financial debt / (Net financial debt + shareholders’ equity)

regulated

non regulated

France International2005



2.2

0.9

2.02.4

1.4

2.1

Key figures 2007

Pierre Gadonneix and Michael J. Wallace, Chairman and Chief Executive Officer of UniStar Nuclear Energy LLC.

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47%+

KEY FIGURES 2007 20.21EDF - 2007 ANNUAL REPORT

INVESTMENTS IN ALL SECTORS AND IN ALL GEOGRAPHICAL AREAS IN 2007

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PLUG-IN HYBRID VEHICLE

Cooperation with Toyota

Toyota’s plug-in hybrid vehicle features a gas-powered engine and rechargeableelectric motor. The objective is to reduce the environmental impact of cars, notably in urban areas. With EDF’s assistance, the prototypes have been equipped with a new smart charging and invoicing system; a number of themwill be integrated into EDF’s fleet for testing on public roads in France. This could be a decisive step in helping Europeans recognize that electric cars area relatively economical way to reconcile their need for individual transport with economic growth and environmental protection.

40%DISTRIBUTION*

37%GENERATION

17%TRANSMISSION

6% OTHERS

France€4.5 billion

CHANGE IN NET FINANCIAL DEBT

December2005

December2006

December2007

18.6

14.9

- 3.0 - 1.2 + 1.0

+ 3.3

- 1.1

16.3

+ 2.4

Free CashFlow

Dedicatedassets

DisposalsDividends

Acquisitions

Scope effectsand other

40%EDF ENERGY

16% OTHERS

13%EnBW

8%EDISON

International€3 billion

DEVELOPMENT INCL. EDF ÉNERGIES NOUVELLES

23%

> New generation capacities (France, Italy, United Kingdom).> Maintenance of industrial assets (France, Germany).> Development of networks (France, United Kingdom, Germany).> Acceleration of investment in wind power (via EDF ÉnergiesNouvelles).

* Including investments in Island Energy Systems (SEI).

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Ongoing, personalized contact with shareholders was pursued in 2007 in a series of meetings and one-on-ones. The year wasmarked by the disposal of 2.5% of the French State shareholding.

Fostering dialogue EDF has developed its relations with thefinancial community by organizing meetingson its half-year and annual results, as wellas addressing a number of specific themes.The Group maintained an ongoing dialoguewith financial analysts and institutionalinvestors in the leading financial markets inFrance, Europe, the United States and Japanto keep them informed on any significantdevelopments and on its strategy, operatingand financial performance.For individual shareholders, EDF

management organized nine regionalinformation and exchange meetings inFrance.The Shareholder Advisory Committee heldthree meetings during its first full year ofoperation, attended by the Chairman andCEO and by EDF’s top executives. The Shareholders’ Club, open to anyshareholder, has 30,000 members. Theywere able to participate in 200 events: sitevisits, energy conferences, stock marketteach-ins, and cultural and sporting eventsincluding the Rugby World Cup.

>SHAREHOLDERS AND THE STOCK MARKET

Shareholders: strengthening relations

FRENCH STATE

84.85%

BREAKDOWN OF EDF’SSHARE CAPITAL AT DECEMBER 31, 2007

INDIVIDUAL ANDINSTITUTIONALSHAREHOLDERS

13.25%

EMPLOYEES

1.90%

February 13Fourth quarter 2007sales

February 20Annual results 2007

May 20General Shareholders’meeting

May 7First quarter 2008 sales

August 01Half-year results 2008

2008 Financial agenda>

On May 24, 2007 EDF organized its first carbon-neutral Shareholders’ Meeting. Greenhouse gas emissions were reduced from 95 to 47 tonnes, offset by a photovoltaic installation which replaced a diesel-powered generator. All EDF Shareholders’ Meetings will henceforth meet the same standards, involvingthe calculation of the carbon footprint, the reduction in emissions and their offsetting.

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EDF€ Stoxx UtilityCAC 40

Source: Thomson financial

+ 72,2 %55,11 €

+ 49,2 %530,97

+ 2,6 %4 707,07

+ 0%

- 20%

+ 20%

+ 40%

+ 60%

+ 80%

+ 100%

+ 120%

+ 140%

+ 160%

+ 180%

01/0

2/20

06

03/3

1/20

08

01/2

8/20

08

11/2

6/20

07

09/2

4/20

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05/2

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07

03/1

9/20

07

01/1

5/20

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11/1

3/20

06

09/1

1/20

06

07/1

0/20

06

05/0

8/20

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6/20

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SHAREHOLDERS 22.23EDF - 2007 ANNUAL REPORT

The Group has delivered on all its commitments. The marketrecognizes its performance, productivity and sound fundamentals:EDF is the leading player in the nuclear sector and one of the mostpowerful electricity producers in the world.”

A new development for EDF’s share capitalOn December 3, 2007, the French Statesold 2.5% of EDF’s share capital, or some45 million shares valued at €3.7 billion, viaa placement reserved for institutionalinvestors.At the Special Shareholders’ Meeting ofDecember 20, the shareholders approvedthe transfer of EDF’s distribution activities in France to the French distributor (ÉlectricitéRéseau Distribution France - ERDF).

Increasing the number of employee shareholdersWithin the framework of the French State’ssale of 2.5% of EDF’s share capital onDecember 3, 2007 as French law provides,employees and former employees will beinvited to participate in 2008 a new employee

offering, representing 15% of the totaltransaction volume, or around 0.4% of the share capital. During the 2005 IPO, 75% of the employeesin France and 50% of the employees in themajor European subsidiaries and affiliatesbecame shareholders in EDF. At December31, 2007, they owned 1.9% of the sharecapital. Since 2006, they have had access to an EDF Share Fund within the employeeshareholding scheme (Plan d'épargneGroupe), in which they can continue to investa portion of their savings with EDF’s help. In 2007, EDF launched a bonus issue ofnearly three million shares (0.16% of theshare capital) for employees in France andmost of the countries where the Group hasoperations, whose award is linked to theachievement of the Group’s EBITDA growthtarget for the 2006-2008 period.

Daniel Camus, Chief Financial Officer.

FOR MORE INFORMATIONAND TO CONTACT US

The EDF shareholder websitewww.actionnaires.edf.com.

The Shareholder Letter. Publishedthree times a year and sent tonearly one million shareholders, itcan be consulted on the website.

The toll free number 0800 000 800with a team of online advisors.18,750 calls in 2007.

The electronic mailbox,[email protected]. 2,353 answersquestions about the Group,financial news and employeeshareholding.

The investor relations websitewww.investisseurs.edf.com.

Relations with individualshareholders and employeeshareholders: Gilles Gateau [email protected].

Investor relations: DavidNewhouse at [email protected] .

INVESTOR MEETINGS IN 2007

11 roadshows

1 Investor Day in London

2 analyst conferences for thehalf-year and annual results

• 9 investor conferences focused on the businesses or the market

• Nearly 400 one-on-one meetings with investors

INVESTOR DAY

At this theme day held in London for the financial community, EDF managementpresented the following subjects:

• The EDF Group’s market environment

• Supply strategy on the main markets

• Group challenges in sales and marketing development

• International nuclear strategy

The full presentation can be found on the websitewww.investisseurs.edf.com

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EDF SHARE PRICE SINCE THE IPO AS AT MARCH 31, 2008

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Grand prize winner:fourth bestemployee shareholdingscheme_

Grand prize winner:ranked third bestshareholder website by BoursoScan_

+ 72.2%€55.11

+ 49.2%530.97

+ 2.6%4,707.07

A STRATEGY OF INVESTMENT

STRATEGY 24.25EDF - 2007 ANNUAL REPORT

Strategy

26303234363738

>UNPRECEDENTED GLOBAL ENERGY CHALLENGESFIVE STRATEGIC PRIORITIES FOR 2008-2012INVESTING IN THE GLOBAL NUCLEAR REVIVAL INVESTING IN RENEWABLES AND ENERGY ECO-EFFICIENCY INVESTING IN INDUSTRIAL ASSETS IN FRANCE SECURING GAS SUPPLY STRENGTHENING THE BUSINESS IN EUROPE

Global economic growth and the dynamism of developing countries are the two drivers behind rising energy demand. To date, each generation has used 50% more energy than the previous one, depleting 80% of fossil fuel resources. This situation is notsustainable: it increases greenhouse gas emissions, the maincause of climate change, and increases the cost of access to hydrocarbon resources, particularly affecting the poorestcountries and populations. Faced with these challenges, the EDF Group’s strategy consists of investing in building a sustainable energy future, reconcilingeconomic growth, the preservation of the climate and theenvironment, supply security and reducing global inequalities. We already have robust and competitive solutions: energyefficiency on the demand side and zero-carbon electricitygeneration based on nuclear and renewable energies.

>STRATEGY

“

Unprecedented globalenergy challenges

Between 2005 and 2030

+ 1.7 billionGlobal population

+ 4.7% annually Emerging country growth

The kind of growth wehave relied upon until nowcannot be sustainedbecause it is disrupting theecosystem by provoking climatechange. Nor is curbing growth an option, as it would increaseinequality. We need to movetowards responsible growth,reconciling economicdevelopment, climatepreservation and the reductionof global inequalities. We mustfind ways to do more with less.We have a historic opportunity to plan massive investment insuch a way as to reduce carbonemissions. We know that doingnothing today will prove evenmore costly in the future.

Pierre GadonneixPrésident du CME

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Pierre Gadonneixin his inaugural speech as Chairmanof the World Energy Council1Rome, November 2007

“

Source: International Energy Agency (IEA).

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A considerable need for energy assetsBetween 2005 and 2030, global energyconsumption is expected to grow by 50%2.During this period, demand for electricityshould double. This forecast already includesa significant increase in energy saving.Given this demand outlook, countries willneed to invest in their energy assets. TheEuropean Union plans to build between600 and 700 GW of electricity generationcapacity over the next 25 years, or betweensix and seven times the installed power of the EDF fleet in France. At the sametime, the United States is expected to bring on line 800 GW, China 1,300 GWand India 400 GW3.

A threat to resources and the climateCurrently, two-thirds of electricity generationis fossil-fired. This poses a dual problem in terms of resources and climate. And yet access to hydrocarbons to meetthe increase in demand is becoming increasingly costly. The price of a barrel of

oil has increased from €20 to €80 in thespace of five years. According to forecastsfrom some oil companies, peak oil, afterwhich production will decline, will bereached in 2030 and peak gas around2050. North Sea production has alreadypeaked.Coal appears to be the most abundant fossil fuel. But, for an equivalent amount of electricity generation, it releases twice as much CO2 as gas-fired generation.The conclusions of the IPCC4 in 2007 on the increase in greenhouse gas concentrations in the atmosphere and its effect on global warming are wellknown. The need for urgent action to

+ 55%Global energy demand

+ 57%CO2 emissions

Peak oil forecast for around 2030 _

Peak gasforecast around 20505

_

+ 2.2%OCDE growth

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OECD North

America

Latin America

Africa

Russia and formerSoviet Union countries

Middle East

Asia

OECD Pacific

OECD Pacific

OECDEurope

Europe non OECD

MAP SHOWING ENERGY CONSUMPTION PER INHABITANT AND BY CONTINENT

8,900 to 10,900

4,700 to 6,800

2,600 to 4,700

500 to 2,600

6,800 to 8,900

© 2007 OECD/IEA.Source: IEA Energy Statistics.

1 Conseil mondial de l’énergie or World Energy Council(WEC).

2 Sources: International Energy Agency (IEA) and theWorld Energy Council.

3 Source: IEA.

4 Intergovernmental Panel on Climate Change.

5 Sources: Total, IFP.

deal with this situation is now widely understood, as demonstrated in theEuropean Union position or the EarthSummit in Bali in December 2007. In France,the mobilization around the national conference on the environment (Grenellede l’environnement) and the commitment to dividing French CO2 emissions by four by 2050 testify to this awareness.

Eco-efficient demand-side solutionsWe can slow down the depletion ofresources and stop the escalation in climatechange without opting for economicrecession: effective technologies alreadyexist for demand-side eco-efficiency.

In buildings, in addition to insulation andlow-energy lighting, there are decentralizedgeneration solutions such as solar waterheaters and heat pumps that can reduceenergy consumption and CO2 emissions bybetween 20% and 40%. For transportation,particularly in urban environments, thereare alternatives to automobiles and oil:tramways, buses, electric vehicles,bicycles, etc. In the industrial sector,technologies like induction furnaces enableus to heat only the objects concerned,without wasting heat. Most of thesesolutions call for electricity, which is provingto be the energy of the 21st century. Thisexplains why the IEA and WEC forecast thatdemand for electricity is due to increasetwice as rapidly as other energies.

Generation solutionsFor electricity generation, low-carbon technologies are already operational. EDF’s generation fleet in France is just one example. Thanks to its nuclear plantsand hydropower facilities, it generates competitive energy, 95% of which is carbon-free. For every kWh generated, EDF emits 3 times less CO2 than theEuropean energy company average. Wind power is growing and offers competitive solutions in the right conditions. Solar photovoltaic and

>STRATEGY

EPR construction site at Flamanville. One advantage of nuclear electricity generation is that it is carbon-free.

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Electric trams, buses and bicycles,

all alternatives to cars and oil.

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> EVOLUTION FROM 1971 TO 2005 OF OECDTOTAL PRIMARY ENERGY SUPPLY BY FUEL(Mtoe)

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> CO2: GLOBAL EMISSIONS BY REGION(in MtCO2)

1971

1975

1980

1985

1990

1995

2000

2005

350

0

700

1050

1400

2100

2450

2800

3150

1971

1975

1980

1985

1990

1995

2000

2005

100

1390

2680

3970

5260

9130

10420

11710

13000

Coal Oil Gas

Combustible renewables & waste Electricity

OECD Africa Latin America China

Europe (outside OECD) Middle East

GREENHOUSE GASES: ATMOSPHERIC CONCENTRATIONS

050

010

0015

0020

00250

300

350

400

Beginning of industrial age

Carbon dioxide(CO2)

Years

C0

2(p

pm

), N

20 (

pp

b)

Source: IPCC Working Group Report 2007.

Source: IEA 2007.

Source: IEA 2007.

thermal enable local energy generationwithout CO2.As for fossil-fired plants, their performancecan be enhanced to emit less CO2 per kWhgenerated with combined-cycle gasturbines (CCGT) or supercritical coal-firedplants, for example. Carbon capture andstorage is the subject of research programsin which EDF is actively involved.

A time for choicesThe need for massive investment in generation gives us a historic opportunityto opt for low-or zero-carbon technologiesas of today.This is why, given the concern for energyindependence and climate preservation,investment in wind power is seeing significant growth and many countries areshowing renewed interest in nuclear. Whilethis is not the only option, it will prove oneof the main solutions. Having long beenskeptical, the IPCC adopted a positivestance in its latest report, and the EuropeanUnion Council meeting of March 2007referred to “the contribution made bynuclear energy to meeting the growingconcerns about safety of energy supply andCO2 emissions reduction”. EDF believes that160 GW of nuclear could be builtworldwide between now and 2020.


EUROPEAN UNION TARGETS FOR 2020

Reduce greenhouse gas emissions by 20% on 1990 levels

Increase the share of renewable energiesin final energy consumption to 20%

Increase energy efficiency by 20% (*) in the European Union

* Energy efficiency is usually measured in terms of final energyintensity (relationship between energy consumption and GDP).

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3,150

2,800

2,450

2,100

1,400

1,050

700

350

0

13,000

11,710

10,420

9,130

5,260

3,970

2,680

1,390

100

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STRATEGY

Five strategic priorities

Having achieved the objectives of its industrial projectlaunched in 2004, the EDF Group is entering a new phase of growth and investment. Its strategy aims to respond to growth in demand and to the global challenges of climatechange and supply security, while establishing the Group as a leader in sustainable development.

the global nuclear revival

renewable energies and energy efficiency

2008-2012 – 5 priorities: invest sustainably in >

2004-2007: delivering on commitments The commitments outlined in the2004-2007 industrial project weredelivered in full. The Group Performance program called foran around €1 billion impact on 2007Group EBITDA compared with the 2004level, not taking into account costsassociated with transforming and adaptingthe Group ahead of market opening onJuly 1, 2007 and a €1.5 billionimprovement in working capitalrequirement in 2005-2007. The impact ofthe program on Group EBITDA for 2005,2006 and 2007 (€1.220 billion) ultimatelyexceeded this target by more than 20%.The sale of non-strategic assets continuedand, in 2007, EDF disposed of itsgeneration units in Mexico. The totalimpact on consolidated net debt exceededthe objective of €5 billion at the end of2007. The Group also sold its remaining

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We are convinced that a greener world will necessarily be a moreelectric world, consuming less electricity per end user but developingstill more uses for electricity. This is why our strategy focuses oninvesting in both zero-carbon generation and energy eco-efficiency.” Jean-Louis MathiasChief Operating Officer, Integration and deregulated Operations in France.

The Group uses three key criteriato screen investment and development plans

Consistency with overall strategyProfitabilityIn countries where EDF is welcome

generation and networks in France

strengthening itsleadership position in Europe

securing gas supply

The sale of the Mexicanplants is part of the strategyto diversify the asset portfolio by focusing on the construction, operationand resale of independentgeneration facilities. In thisway, the Group can maintainits expertise in a wide rangeof electricity generation technologies. It still owns the Norte Fluminense plant in Brazil, Phu My in Vietnam,Azito on the Ivory Coast and Nam Theun in Laos.

In France, one of the year’smajor events was the nation-al conference on the environ-ment (Grenelle de l’environ-

nement), which mobilized theentire country around theissue. EDF focused its mes-sage on the need to give pri-ority to reducing CO2 emis-sions and committed to cut-ting emissions from its owngeneration fleet.

25% shareholding in Edenor during the IPOlaunched by this company in New York and Buenos Aires.The Group re-launched its investment in generation and networks. Its operatinginvestment has tripled since 2004. InFrance, the Flamanville EPR unit site andthe program to build combustion turbinesand reactivate peak load fossil-fired plantsis on schedule. Within the Edison2003-2007 industrial plan, the companybrought on line 7,000 MW, while EDFEnergy increased its generation capacity. Full market opening in continental France,involving 27.2 million points of delivery,went according to plan. EDF implementedthe unbundling of its distribution and sales and marketing businesses. This major transformation, which concernedthousands of employees and involved the review of numerous processes, wentsmoothly, with a constructive employee dialogue on training, recruitment and subcontracting. The EDF Customer Branch

went on the offensive in launching its newbrand Bleu Ciel d’EDF.The Group made progress on establishingits gas strategy, consolidated its Europeangovernance and functioning, leveraged synergies and mobilized its teams.

2008-2012: five prioritiesFaced with changes in its market and theplanetary urgency of global warming, theEDF Group places sustainable developmentat the heart of its strategy. This focuses on the five key priorities presented to theBoard of Directors on November 7, 2007. It plans to invest sustainably in: • The global nuclear revival,• Renewable energies and energy efficiency, • Generation and networks in France, • Strengthening its leadership position in Europe, • Securing gas supply.

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A leading industrial playerEDF is the leading nuclear operator in theworld with 58 reactors in operation and 30years of experience in this field. The Groupgenerates competitive electricity and enjoysan exemplary safety record. EDF’s key strength is its in-house engineering.The design, construction and operation of afleet with common technological standardshas given the Group unique engineeringexpertise, particularly in the managementof large-scale projects. In France, EDF is overseeing the constructionof a first EPR-type unit at Flamanville 3.Internationally, the level of EDF’s participationis adapted to each individual situation,depending on the partner and the industrialspecification.

THE UNITED STATES: a major partnerThe United States has the largest nuclearfleet in the world, owned by numerous different operators. The country decided to revive nuclear back in 2005, with theEnergy Policy Act. In 2007, EDF concludeda major agreement with ConstellationEnergy Group, which operates five nuclearunits in Maryland and New York State. The two companies created UniStar Nuclear Energy (LLC), a 50/50 joint venture, to build a series of four EPR-type

reactors, of which the first will be built at Calvert Cliffs (Constellation’s base in Maryland) for commissioning in late2015. EDF’s experience with Flamanville 3and its ability to generate a scale effect will underpin its contribution to project management and operations. Under this agreement, EDF may purchaseup to 9.9% of Constellation’s outstandingcommon shares in the market within five years, becoming its primary industrialpartner.Together with Constellation, EDF will alsolook at investment opportunities elsewherein the United States and in Canada.

CHINA: investing with a historic partnerEDF has been working in China for the past 20 years. Its engineers were involved in the construction and commissioning of the Daya Bay and Ling Ao nuclear plants. The company has also invested in coal-fired plants. In November 2007, EDF signed a joint-venture agreement (EDF around one third)with its historic partner, China GuangdongNuclear Power Company (CGNPC), for theconstruction of two EPR-type nuclear plantsin Guangdong. The concrete foundation slab of the first unit is planned for 2009.

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STRATEGY

1/Investing in the global nuclear revival Nuclear electricity generation has the threefold advantage of beingcompetitive and insensitive to fossil-fuel prices and emitting no CO2. It is seeing renewed interest in many countries. As the global leader in nuclear generation, with extensive experience and proven know-how, the EDF Group is participating in co-investmentprojects in which it can play an active industrial role. The construction of the new EPR-type reactor in Flamanville (Manche) gives it unequalledlegitimacy and credibility.

Four prioritycountries

The United States

China

The United Kingdom

South Africa

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UNITED KINGDOM: contributing to fleet renewal In the United Kingdom, apart from thepressurized water reactor brought on line in 1995, all the nuclear plants are expectedto reach the end of their lifespan between2015 and 2025. Faced with soaring hydro-carbon prices, the depletion of North Seaoil reserves and the climate risk, the countryhas reviewed its energy policy and plans anew phase of nuclear as of early 2008. Through its subsidiary EDF Energy, the EDFGroup is committed to playing an activerole in the British government’s consultationprocess. It aims to build and operate fourEPR-type nuclear reactors replicating theFlamanville 3 model, either alone or in partnership, subject to the appropriate regulatory and political environment. Two steps were taken in this direction in 2007: the first, with Areva, to requestgeneric design approval for the EPR fromthe UK regulatory authorities, and the second to look for possible sites.

SOUTH AFRICA: an investmentopportunityIn order to meet its electricity demandgrowth, South Africa is looking to doubleits installed capacity (from 42 to 80 GW) by 2030. This country already has twonuclear units and has announced its program: a call to tender for 3,000 to3,500 MW of pressurized water technology,followed by a commitment to 20,000 MWover 15 years. As a long-term partner of South African operator Eskom, EDF together with Areva – the leader of theconsortium regrouping engineering specialist and local partner Aveng andBouygues – has submitted a bid for theconstruction of EPR-type nuclear plantsrepresenting 3,000 to 3,500 MW.

NUCLEAR INVESTMENT

EDF is committed to EPRtechnology in four prioritycountries which alreadyhave experience in nucleargeneration.

As planned since 2004, the concrete for the first partof the slab for the floor of theFlamanville 3 nuclear reactorwas poured at the beginningof December. At the end of2007, 95% of the contractshad been signed, securing thecost at the expected level ofaround €3.3 billion in terms of2005 euros. The site currentlyemploys 700 individuals, afigure which is expected torise to 2,000 at the height ofits activity. It brings togetherplayers from all sectors of theFrench nuclear industry, inparticular Bouygues, Arevaand Alstom. The constructionof this state-of-the-art EPRwill showcase EDF’s expertisein managing such projects.

UNITED STATES

The United States is the largestenergy market in the world,with total sales of 3,670 TWhand a forecasted average annual growth rate of 2%between 2007 and 2010.

(Source: Energy InformationAdministration, 2006.)

CHINA

Nuclear generation fleet:

7,000 MW in 2007.

Annual growth in electricitydemand: far higher than inEurope (15% per year onaverage, compared with lessthan 2% per year in Europe).The proportion of Chinesenuclear-generated electricityis expected to double by 2020.

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First concrete pouring at EPR site in Flamanville.

>STRATEGY

2/Investing in renewables and energy eco-efficiency Energy efficiency and renewables save fossil resources and do not emit greenhouse gases. As the leading producer of hydroelectric power in Europe, the Group is confirming its leadership position in renewableenergies, supported particularly by EDF Énergies Nouvelles. Each of theGroup’s companies deploys energy efficiency offers in its national market.

Wind power experiencing worldwide growthWith strong positioning in Europe and theUnited States, EDF Énergies Nouvelles (50%owned subsidiary of EDF) owes its successto its dynamism in international markets. The company is mostly counting on windpower to achieve its target of total installedcapacity of 3,300 MW net around 2011. In2007, it exceeded the 1,000 MW netinstalled capacity level and launched a recordnumber of new construction projects inEurope and the United States. The turbinesupply has been secured through agreementswith the major manufacturers globally.In the United Kingdom, EDF ÉnergiesNouvelles is working with EDF Energy onbuilding a substantial portfolio of onshoreand offshore windfarms. In September, EDF Energy received authorization for an offshore project to build 90 MW inNortheast England. The company is also investing in otherrenewable energies and has rapidly

Edison 2008-2013>

2,700 MWinstalled capacity in Italy and other countries in 2013

€1 billion for renewable energies,or double the previous target

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Wind turbines at Castiglione Messer, in Italy. In 2007, Edison brought 10 MW of wind power into service and an additional 84 are being built.

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HYDROPOWER: THELEADING RENEWABLEENERGY

In France, EDF combines hydroand nuclear technologies tosupply electricity which is95% carbon free. The facili-ties are being developedparticularly in Corsica, withthe Rizzanese dam project,and on Reunion Island withthe extension of the Rivièrede l’Est dam.

EDF is also involved as a co-investor worldwide. InLaos, the company is leadcontractor on the Nam Theun2 Power Company project(35% owned by EDF) for a1,070 MW hydropower facilityto be commissioned in 2008.

BIOMASSE

In July 2007, EDF Tradingacquired Renewable FuelSupply Ltd (RFSL). RFSLprovides a biomassprocurement service, logisticalsupport and technicalsupport to coal-firedgeneration companieswishing to ‘co-fire’ biomasswith coal in their plants.

WIND POWERGENERATION:PREDICTING THEUNPREDICTABLE

In 2007, EDF R&D developedthe day-to-day forecasting of wind generation, using ananalog method. This involvesfinding a day in the past whenweather conditions were closeto those forecast by Frenchweather agency, Météo-France. This method will berefined with hourly forecastsand correlations betweenwind and generation once thefleet exceeds 2,500 MW.

expanded its solar business with severalhundred megawatts under development inFrance, Italy, Spain, Greece and the UnitedStates. It has signed a number of contractswith manufacturers of photovoltaicmodules. It is also entering the biogas andbiofuel markets in Belgium.

The deployment of distributed energiesEDF EnR Réparties (EDF EnR), 100% ownedby EDF, and which in time is destined to beco-owned by its subsidiary EDFDéveloppement Environnement SA (‘EDEV’)and EDF Énergies Nouvelles, offers genera-tion solutions based on renewable energiesintegrated within buildings (photovoltaicarrays located on roofs, solar water heaters,heat pumps and wood-fired heating). High temperature heat pumps are arrivingat maturity and are moving to the industrialstage based on an EDF R&D patent.

Launching energy eco-efficiency offersIn the Group’s national markets, energyeco-efficiency solutions and services arealready very much part of the sales andmarketing offer. In France, EDF has already contributed tonumerous energy saving and distributed

renewables projects in homes, the service sector and industry. For the corporate sector,EDF is accelerating its sales and marketingeffort to collect energy savings certificates withintegrated services and installing, financingand maintaining efficient equipment.In the residential market, EDF has launchedits Bleu Ciel d'EDF brand which encompassesall its energy eco-efficiency offers. TheCustomer Branch has regrouped its supply,services and distributed renewablesbusinesses in order to gear its entire offertowards energy eco-efficiency. InMartinique, Guyana and Reunion Island,EDF and its partners: regional authoritiesand the French Agency for Environment andEnergy Management (Agence del’Environnement et de la Maîtrise del’Energie – Ademe) have distributed nearly amillion low-energy light bulbs to individuals. In the United Kingdom, EDF Energy hasbeen marketing energy eco-efficiencyservices for several years. Its partnershipwith the London 2012 Olympic Games isfocused on reducing CO2 emissions.In Italy, Edison offers energy efficiencysolutions to its customers. In Germany, EnBW is testing a smartelectricity meter in the homes of more than1,000 residential customers.

Partnership with the French Building Federation >

50,000 construction professionals trained over two years in energy eco-efficiency techniques

December 31, 2006 December 31, 2007

(IN MW) GROSS NET GROSS NET

WIND POWER

France 73.8 57.8 73.8 57.8

Portugal 143.8 86.6 143.8 86.6

Greece 75.4 74.1 111.4 110.1

Italy 0.0 0.0 164.1 77.9

United Kingdom 79.2 79.2 103.2 103.2

Germany 3.0 3.0 3.0 3.0

United States 437.6 306.2 618.6 432.8

Total wind power 812.8 606.9 1,217.9 871.4

OTHER RENEWABLESHydro Biomass Thermal Solar

223.9 163.4 224.8 163.8

Total EDF EN 1,036.7 770.3 1,442.6 1,035.2

1.Total capacity of all EDF Énergies Nouvelles plants whatever the percentage of participation held by EDF ÉnergiesNouvelles.

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Total gross installed capacity1 and EDF EN Group share at 31/12/2007

R&D

Generation, a new momentumEDF is accelerating its investment in generation 1. In addition to the FlamanvilleEPR unit, the re-commissioning of fuel oil-fired units, the construction of combustionturbines and the hydropower facilities inCorsica and French overseas departmentslaunched in 2004, the Group decided on new investments in June 2007. These involve the construction of threecombined-cycle gas plants at Blénod(440 MW) and Martigues, where the oil-fired plant will be converted into twocombined-cycle gas plants, each withcapacity of 465 MW. The CCGTs emit the least CO2 and nitrogen oxide of thetechnologies in the fossil-fired fleet and no sulfur emissions. These CCGTs will be similar to the three units EDF Energy will be building at West Burton, in order to benefit from synergies for greaterpurchasing power. To bolster its extreme peak generation, EDF has also committed to 555 MW of combustion turbine 2 capacity at Vaires-sur-Marne and Montereau, in addition to the 550 MW at Vitry and Vaires decided in 2005.EDF also invests in the heavy maintenanceof its hydropower facilities (SuPerHydro program) and in the “housekeeping” of its nuclear plants.In the French overseas departments, EDF has launched the renewal of six of its seven oil-fired plants.

1. See Generation in France page 62.

2. Turbine à Combustion or TAC.

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STRATEGY

3/Investing inindustrial assets in FranceFrance now needs new electricity generation capacity to meet risingdemand. In France, EDF has embarked upon the largest investmentprogram in Europe.

Peak capacity 4,215 MW (commitments made in 2005 and 2007)

Re-commissioning of the peak oil-firedunits: Cordemais in 2007, Aramon 1 and Porcheville B1 in 2008

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€4.5 billionof investment in France in 2007_

Networks: investments made by the regulated subsidiariesNetwork investment in France ismade by the specialized, legallyindependent subsidiaries: RTE(100% owned by EDF) for electricitytransmission and ERDF (100%owned by EDF, created onJanuary 1, 2008) for distribution. The two subsidiaries have ambitiousequipment plans. In order to secureits network and strengthen itsanchorage in the European system,RTE will increase its investment toan annual €950 million between2008 and 2011. Investment in the distributionnetwork has risen by more than12% between 2005 et 2007. In order to meet rising demand,modernize the industrial assets andreduce network sensitivity toextreme weather conditions, ERDFplans to invest more than €2 billionin 2008 (€1.7 billion in 2007 and€1.6 billion in 2006). One of ERDF’sprojects involves replacing the 35million meters in France with smartmeters. This is a ten-year projectcosting several billion euros. A pilotproject has already been launched todeploy 300,000 meters over two years.

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A gradual, coherent approachThe EDF Group is present in the natural gassupply market mainly through EDF Energyin the United Kingdom, EnBW in Germany,Edison in Italy and EDF in France andBelgium. It is supported by EDF Trading,particularly for its operations in the whole-sale markets. The Group is building a secure and flexiblediversified portfolio of assets, whetherphysical or contractual, in order to ensure itssupply (procurement contracts, reserves) andlogistics (gas pipelines, storage facilities, LNGchain). Investments are aimed at securingthe supply for the company’s power plantsand for its direct customers, for whom it isdeveloping a dual electricity and gas offer.

A balanced geographical strategyThe Group is adding new projects inNorthwest Europe to Edison’s historicalprojects in Southeast Europe.In France, the public debate on the Dunkirkterminal was concluded in December 2007.This construction project, for which EDF hasexclusive rights, involves capacity of at least6 billion cubic meters per year in phase 1(coming on line planned for 2012) and atleast 12 billion cubic meters per year inphase 2. EDF is going to invest with EnBW in anunderground salt cavern gas storage facilityat Etzel, in Germany. For its part, EDF

Trading has acquired regasification capacityin the Montoir LNG terminal in France for2007 and 2008 and concluded anagreement with flexibility for interruptibledeliveries of up to 4.5 billion cubic metersper year with Rasgas (Qatar) at theZeebrugge LNG terminal in Belgium. EnBWis also participating in the LionGas terminal project in Rotterdam.In Southern Europe, the construction of the Rovigo offshore terminal continues and is expected to come on line in 2008.There Edison will have access to 6.4 billioncubic meters per year of Qatari gas over a25-year period. Edison continues to developIGI gas pipeline projects between Turkey,Greece and Italy, and Galsi, betweenAlgeria and Italy, the two amounting toannual capacity of 8 billion cubic meters.In June 2007, EDF established a consortiumwith Distrigaz, ENI and Essent, giving eachcompany access to 0.2 billion cubic metersper year at the Fos Cavaou terminal, assoon as it comes on line, which is expectedin 2008.

1. Liquefied Natural Gas.

2. Sales and own consumption included at 100%, which is to say not consolidated,excluding EDF Trading’s gas activity and salesof gas produced by Edison outside Italy.

4/Securing gas supplyNatural gas is the fossil energy emitting the least CO2 per kWh generated and security of supply is a critical issue for Europe and for its electricity generation. The EDF Group’s gas strategy therefore aims to meet the increased supply requirement created by its growth, and adopt a European approach in order to gradually position EDF as a gas player in its own right.

120,000 gascustomers (17.9 TWh delivered)in France, of which60,000 are residential_

290 TWh 2

of gas sold or used in the Group’spower plants in Europe _

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STRATEGY

98% of EDF’s sales generated in Europe

46% of sales outsideFrance

5/Strengthening the businessin EuropeEurope needs to build some 600 to 700 MW 1 of additional electricitygeneration capacity between 2005 and 2030 in order to meet demand. It needs powerful industrial companies, capable of committing to thesetechnical investments over the long term. With its European focus, EDFplans to confirm its leadership position while respecting the values of the countries in which it operates.

Synergies across all businessesThe Group’s teams are looking to increasetheir synergies. EDF Énergies Nouvelles and EDF Energy are working together tobuild windfarms in England. EDF Energy is benefiting from EDF’s experience in Franceand its backing in nuclearinvestment projects in the United Kingdom.EDF R&D is working with the R&Ddepartments of Edison and EnBW and itsengineers are studying, with EnBW, a super-critical coal boiler with 50% efficiency (38%currently). In procurement, EDF in France and EDFEnergy regroup their bids on calls for tender for gas turbines, while ERDF workswith EDF Energy and EnBW for its HVA cableprocurement (8,000 km annually betweenFebruary 2008 and the end of January 2010). Demasz in Hungary cooperates with SSE in Slovakia for its distribution activities andwith SSE and Everen (Poland) in electricitytrading, either directly or via EDF Trading. Asthe European leader in its sector, EDF Tradingworks for the whole of the Group in Europe.

The Renardières R&D laboratory. More and more synergies are being generated between EDF researchers in France, Germany and Italy.

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Converging growth dynamicsConverging growth dynamics Edison, plansto invest €3.2 billion in natural gas and€3 billion in electricity between now and2013. Edison is aiming to extend itselectricity generation and gas productionactivities to Greece, the Balkans and Turkey.It plans to build a supercritical coal-firedpower plant in Karlsruhe. These two largecompanies are thus committing to aninvestment effort consistent with that ofEDF’s in France and EDF Energy in the UnitedKingdom.

Strengthening the positioning in EuropeThe Group is already well positioned in France, the United Kingdom, Italy and Germany and is continuing to developin other countries such as the Netherlands(construction of a combined-cycle gas plant with Delta NV), Greece and Turkey (viaEdison and EnBW).The gas strategy is an integral part of thisEuropean growth dynamic, bolstering theGroup’s position in the European gas

market and leveraging significant synergies.In the Central and Eastern European countries, and even Russia, EDF plans to continue its development in building on its current positioning together withEnBW and Edison.

1. European Commission estimate (Source :Etude de la DGTREN – Trends to 2030 – update2005).2. See section on Edison and EnBW in thisreport.

A EUROPEAN APPROACH

The British experience helpedEDF prepare for the opening of the residential market in France, with EDF Energy employees assisting in the setting up of the customer platforms. The Lyon call centerhas a British manager. EDF and EnBW are increasing theircooperation, particularly innuclear operations and hydroand fossil-fired operations.

€1 billionEnBW investment in a supercriticalcoal-fired powerplant _

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Gas storage site at Cellino Attanasio. Edison plans to invest €3.2 billion in natural gas production and reserves and to secure supply.

€300 millionPurchasing capacity of the Group's Carbon Fund, pulled by EDF Trading

11 countriesThe Group’s coordinated salesand marketing network

THREE DRIVERS OFSUSTAINABLEGROWTH

Drivers

DRIVERS 40.41EDF - 2007 ANNUAL REPORT

HIGHLY-SKILLED, MOTIVATED TEAMS

RESEARCH AND DEVELOPMENT GEARED TO SUPPORT AND PLANNING

A POLICY OF ENVIRONMENTAL AND CORPORATE SOCIAL RESPONSIBILITY

42

46

48

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To support its strategy, the Group is investingin the skills and motivation of its teams.Recruitment is being increased in high-growth sectors, such as nuclear generation and sales and marketing. The Group is building the future with pro-active R&D, with state-of-the-art resources focused on two objectives: to contribute to EDF’s competitiveness in providing the teams with the most effective tools, methods and techniques and to prepare for long-term developments through its research programs. The EDF Group’s objective is to grow sustainably, limiting its environmental footprint and providing current and future generations with effective solutions.

>HUMAN RESOURCES

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Highly skilled,motivated teams

Market opening and the distribution subsidiary, regulatorychange, reform of the special pension schemes in France: EDF has implemented a policy of profound change whilemaintaining its internal cohesion, in honing its strategy for skills renewal and pursuing the integration of the Group.

Winning through competence

Forward-looking businessesFaced with the retirement of numerousemployees in the near future, skills renewal isa major challenge. EDF plans for thiswithin a context of headcount optimization.The company is establishing forward-lookingprograms in each of its businesses.

Different career pathsFor EDF, resource optimization is anongoing priority and the company is implementing an oriented mobility program with targets set by branch and division. Employees are thus able to pursue a number of different careerpaths. They benefit from significantresources offering training and support for geographical mobility in terms of housing, employment for a spouse, etc. A new employment mobility information

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23,000 employees changed their job specifications in France in 2007

6,000 individuals transferred from distribution to sales and marketing

The Gravelines plant. Here, two apprentices out of the 300 recruited in 2007 by the nuclear division.

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system was created in 2007. Accessible to all EDF employees in France, it providesinformation on available job opportunitiesand gives all the entities a detailed pictureof employee mobility.

A recruitment dynamic In order to adapt their businesses and skills in line with the Group’s development, EDF and ERDF plan to recruit around14,000 people in France over the next fiveyears. In nuclear, the company will recruit500 engineers each year over the next fiveyears, a threefold increase on previous levels.To attract talented individuals, EDF haslaunched a communication campaign topromote its “employer brand”. The objective:to show young graduates that, with EDF, theycan put their education to work while gaininga career path. A special website(www.edfrecrute.com) has been set up. Atthe Energy Day, held at the Cité des scienceset de l’industrie in Paris, 1,000 engineeringstudents found out about the Group’sbusinesses and were offered 350 internships.

Training more in tune with the businessesIn order to support its employment policy,EDF has reorganized its training programs.

The new EDF Vocational Training entity isstructured around the main businesses inorder for training to be more in tune withtheir needs and involve managers andemployees more closely. Specialist structurescoordinated at national level have thus beencreated: Generation, Sales and Marketing,Distribution, Management and the NationalExpertise Structure.

Strong growth in apprenticeshipApprenticeship is one of the drivers in skillsrenewal. The company achieved its target,set in 2005, to increase the number ofapprentices by 20% over a two-yearperiod. Ahead of the application of thenew French law relating to a first job foryoung people, EDF already has1,000 apprentices (3% of headcount) in itsGeneration Branch. They are supported byhighly-motivated mentors and most will goon to be recruited by the Group. Some willfind employment with companies whichprovide services, and in which EDF is keento secure skill levels. In 2007, more than70 apprentices were being trained inNuclear Operations within the frameworkof contracts with service providersguaranteeing their first job.

NUCLEAR GENERATION

EDF conducts regional operationsto identify employees in servicefunctions with the potential tomove to technical positions. TheMeet Nuclear Operations sessions(Carrefours de la Division

Production nucléaire) were thusattended by 350 employees, ofwhom 120 chose to join theDivision after training.

300 apprentices recruited

in 2007

40 more young executives

recruited in 2007 by the nuclearfleet in France in order to create a pool of international executives:after experience of an operatingrole in a power plant, they will be available for international postings

6 000

person-

nes

trans-

900 salariés de différents métierssont devenus conseillers clientèle

après 50 jours de formationen moyenne

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Respect for individuals, environmental responsibility, striving for excellence, a commitment to the communityand the necessity of integrity: our Group values give us a significant advantage in attracting and securingthe loyalty of the talented people we need.”

“Yann Laroche, Chief HR and Communications Officer

Three major prioritiesAdapting jobs and skills

Motivating employees through attractive working conditions

Encouraging workplace dialogue

TRAINING

900 employees from different

professions became customercounselors after an average of 50 days of training

26 European Key Account

Managers in sales and marketingtrained to work as a network inmulti-cultural environments

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Mobilizing employees

Recognition and compensationCompensation increasingly includes a variable portion, linked to both collective and individual performance. Furthermore, a bonus issue of 2.8 millionshares has been decided and their distributionto the beneficiaries was the subject of an employee agreement in June 2007.Some 150,000 employees located in22 countries will each receive an average of 19.2 shares. The vesting of the shares on August 31, 2009 is subject to continuedpresence during the vesting period and to collective performance targets: GroupEBITDA growth (excluding changes in scopeand exchange rate variations) averaging at least 3% per annum between 2006 and 2008.

Cohesion and shared valuesThe companies within the Group have theirown separate human resource policiesconsistent with the laws and practices in theircountries. The Group is nonetheless committedto developing cohesion between the teamsand promoting a common ethic. An HR Teammeets monthly with the Chief HR andCommunications Officer to coordinate HRpolicies and their performance indicators. Ithas created a number of working groups,including Health and Safety, which reports onhealth and safety performance within theGroup companies. In 2007, ten cross-Groupprojects were launched at the annual HRconvention in Milan, on themes such as the“employer brand”, working hours, etc.They are monitored monthly by the HRTeam.

Health and safety in the workplaceThe Health and Safety results continue to improve, justifying the deployment of the strategy first launched in 2003. Atbelow four, the industrial injury frequencyrate puts EDF amongst the top-rankedFrench companies and European energyplayers on this metric.In 2007, the branches, divisions and businesses made a sustained effort to prevent psycho-social risks. Following on from 2006, EDF initiativescontinued to address public health issues:finalization of the influenza pandemic plan,conference on AIDS prevention. The updatedHealth and Safety policy will integrate theimpact of organizational and managementchange on health in the workplace.

Quality of life in the workplace: a project-based approachThe human dimension and the quality of working conditions are priorities.Following a number of unfortunate events,the company created a workplaceobservatory on quality of life in theworkplace (Observatoire national de laqualité de vie au travail), strengthened itsethical guidelines and simplified itsprocedures to encourage a more hands-onmanagement style. The observatory, which held its firstmeeting in June 2007, constitutes a forumfor dialogue, involving doctors, managers,social partners, etc. and is tasked withmonitoring quality of life in the workplace.A Group project focused on this issue isdeveloping a method to establish a system

>HUMAN RESOURCES

Employeebenefits system harmonized forBert employees in Hungary sinceJanuary 1, 2007 _

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EDF Energy headquarters in London. Group companies implement their own HR policies to comply with local law but all foster the EDF Group values.

of local audits together with the appropriateperformance indicators. The Group’s values have been reaffirmedand were the subject of a major internalcommunication campaign via management.Each unit has appointed an ethics coordinator,and a “workplace life” toll-free number hasbeen set up for employees in difficulty.

Diversity, a real strength The employment policy also aims topromote proximity and diversity in order toenrich the company’s social fabric. The2006-08 social agreement sets a target of4% of the overall total for the recruitmentof disabled employees. Distribution (ERDFas of January 1, 2008) made a particularlystrong contribution in 2007 with 4.5%.A new agreement concluded on December21 reflects the shared determination to promote diversity and professional genderequality at all levels of the company. Thefirst agreement had helped reduce theaverage disparity between men andwomen’s salaries from 4.7% to 1.6%between 2002 and 2006. The new agreement also covers access to trainingand the work-life balance. .

Promoting workplace dialogue

CSR: positive results and extensionThe results for the first two years of theCorporate Social Responsibility agreement(CSR) show that, within very different contexts, the Group companies have fullyrespected the commitments. In 2007, the signatories extended thisagreement for a further year. Employee dialogue has been conducted in all thecompanies to identify the local initiatives to be prioritized.

New employee representative bodiesPursuant to company law, EDF has created aCorporate Works Council (Comité centrald'entreprise - CCE) and Works Councils(Comités d'établissement - CE), to replace itsformer structures. Agreements wereconcluded with the social partners on the organization of professional elections.These were held at the end of 2007, withinthe period foreseen by the agreement withthe electricity and gas branch (IEG).Negotiations are continuing on the exerciseof union law, the composition andfunctioning laws of the Secondary Personnel

Commissions and the establishment of theCorporate Works Council.

Reform of the special pension schemePursuant to the French government’s decision to harmonize the special pensionschemes with the civil service pensionscheme, negotiation began with the socialpartners in the electricity and gas industryworkers branch (IEG) during the firstquarter of 2007. Significant information resources were put at the disposal of employees: individualsimulation tools, documentation on theexpected changes to the special electricityand gas sector scheme, information meetings, etc.


BusinessCustomers ofthe CustomerBranch France: 33% of managementcommittee membersare women_

In Hungary,Demasz accreditedas an employer forthe disabled_

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The EDF employment policy aims to promote diversity in order to enrich the company’s social fabric. The new 2007 agreement reflects the shared determination to promote professional gender equality at all levels of the Group.

Research & Development:support and anticipation

The EDF Group is preparing for the future and investing in innovation. The R&D Division is a real asset for EDF,working to serve customers and the operating activitiesalike. It is contributing to overall performance and preparing technological breakthroughs.

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Boosting overall Group performance The R&D Division helps boost the performances of the Group’s businessesthrough contracts with the differentbranches and divisions for technologywatch, studies, expertise and development.R&D is in a good position to organize the transfer of methods and tools fromone business to another and to encourageGroup entities to set up joint projects if their needs are similar. A Group R&DCommittee was set up by EDF Energy,EnBW and Edison, with initial exchangesfocusing on energy eco-efficiency. EDF R&D has some 20 projects underway

with EDF Energy. In 2007, the Divisionhelped adapt the progress contractsdeveloped for French companies to largecustomers in the UK based on audits of their energy consumption. It is alsodeveloping software to help EDF Energycounselors market energy efficient solutionsto residential customers by telephone. Cooperation with EnBW is built aroundEIFER, the joint laboratory between EDFR&D and the University of Karlsruhe, and projects relating to distributed energy,geothermal, biomass and sustainable urban development. A first project portfolio was also set up

Partnershipwith the EnergyResearchInstitute of India (TERI), headed by Rajendra K. Pachauri,Nobel Prize laureate and IPCC Chairman_

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The R&D teams are developing tools to make generation facilities more efficient. Here, laser measurement of water through-flow speeds inside nuclear assemblies.


with Edison, focusing in particular on fuelcells and solar energy.

Preparing for the future EDF R&D defined 12 new Challenges for2007-2009, based on the Group’s five strate-gic priorities. Several hundred researchers andnumerous partners in France and abroad areworking on research programs designed topave the way for future growth. Of thedifferent areas they address, several relatedirectly to environmental protection:renewable energy, rechargeable hybridvehicles, new services, energy eco-efficiencyend-uses in buildings and industry, andlocal energy policy. EDF R&D also helpedthe Group prepare its contribution to theFrench national conference on theenvironment (Grenelle de l’environnement)in 2007.The IBM supercomputer delivered in 2007,a major investment for the Group, willposition EDF among the world leaders interms of numerical simulation. The Groupranks first in the worldwide industry interms of scientific computation.

Excellence and cooperation EDF R&D is cultivating its areas of excellence,including in materials and hydraulics.

In 2007, it set up the Materials AgeingInstitute (MAI), an international research cen-ter for the durability of materials, at the lesRenardières site. At the same time, it is optimizing its ownperformance by forging partnerships withuniversities and research centers both inFrance and abroad, especially via jointlaboratories. For instance, in 2007, EDF R&Dset up its eleventh joint laboratory with Ecolenationale des ponts et chaussées and theCentre d’études techniques maritimes etfluviales (Institute for Maritime andWaterway Studies). The new lab is focusingon fluid mechanics as applied to hydraulicsand the environment.It also set up ECLEER, the European Centerand Laboratories for Energy EfficiencyResearch on construction and industry, at the les Renardières site, with support from Edison. Its leading partners are Ecolepolytechnique fédérale de Lausanne andEcole des mines de Paris.With EDF Energy, R&D helped create theEnergy Technologies Institute atLoughborough. This public-private partnershipwill play a key role in reviving research onlow-carbon technologies in Great Britain.

1,950 people of which

one third are women

200 doctoral students

of which half work in-house

67 new hires of which 17 from

countries other than France

€375 million R&D budget

for EDF in 2007, of which more than €100 million for environmental protection

375 patents on innovations

1,020 property rights

in France and abroad

R&D

TWO MAJOR LONG-TERM PARTNERSHIPS WITH

The French Atomic EnergyCommission (Commissariat à

l’Energie Atomique – CEA),via a tripartite agreementwith EDF and Areva

The Electric PowerResearch Institute, whichhandles R&D for Americanutilities. EDF is its leadingforeign partner, notably forstudying materials ageingand smart grids.

800 developmentprojects designed to serve operating teams_

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EDF* Group

EDF

2005 2006 2007* Excluding Edison and excluding Dalkia.

2007 R&DEXPENDITURE

411

387

391

373

401

375

411

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The Photovoltaic Energy Research and Development Institute (Institut de recherche et de développement sur l’énergie photovoltaïque –IRDEP) at the EDF R&D facility in Chatou. Work is being done with thin-film photovoltaic modules to lift the conversion rate from20% currently to more than 50%.

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Social and EnvironmentalResponsibility

In addition to developing competitive, low-carbongeneration technologies and energy efficiency solutions,the EDF Group strategy focuses on improving itsperformance with regard to the social and environmentalaspects of sustainable development 1.

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Committed to protecting the Environment

Through investment…The EDF Group is striving to minimize theenvironmental footprint of its electricitygeneration, transmission and distributionfacilities. As a whole, EDF’s CO2 emissionsper kWh produced are three times lowerthan the European average. In France, 95%of generation is completely CO2 free. During the French national conference on theenvironment (Grenelle de l’environnement) in2007, EDF France set a goal of reducing its CO2

emissions by more than 20% between nowand 2020. EDF Energy committed to reduce thecarbon intensity of its generation activities inthe UK by 60% over the same period.The Group is implementing a far-reachingdenitrification program at its fossil-fired units,targeting Le Havre 4 and Cordemais 5 late in 2007 and in 2008, Cordemais 4, Vazzio

(Corsica), Bellefontaine and soon Pointe desCarrières in Martinique. After le Havre 4 andCordemais 5 and 6 at the end of the 1990sin France, it is also installing desulphurizationunits in the UK at West Burton and Cottam,in Poland at Rybnik, and in China, atShiheng.

… and through concrete actionIn France, the level of liquid radioactive waste (excluding tritium, carbon 14 and NI-63) produced by the nuclear plantsremains well below the regulatory limit. As regards the distribution network, ERDFexceeds the burial requirements set forth in the Public Service Agreement for 2007,with 94% of new HV lines laid undergroundand 65% of new LV lines installed usingunderground or discreet technology. ERDF is continuing to bury existing lines and eliminate polluted PCB transformers.

Golfech the first nuclear power plant in Europe

Europe to obtain EFQM certification for Quality Management

All Group sitesworldwide certified ISO 9001 and ISO 14001_

Solidarity a core part of action strategy

Formalizing commitments to society The EDF Group’s commitments to societyare outlined in the Public Service Agreementsigned with the French State in 2005 and in the Corporate Social Responsibility (CSR)agreement entered into with stakeholdersfor all Group companies. In keeping with the CSR Agreement, thecontractual terms of the sale of the Group’splants in Mexico included an agreementwith plant employees and ensured that it be implemented by the buyer. Along thesame lines, EDF works with the toughestsafety standards, refusing to considerserious accidents as inevitable. Strictmeasures were thus adopted following twofatal accidents in 2006 at Kogeneracja, inPoland, and a safety committee has beenset up at Nam Theun in Laos. The CSRagreement is reflected in the performancereviews of all Group companies.

Acting locally EDF is fully aware that its stakeholders are adiverse group including vulnerablecustomers, young people, job seekers, andpersons with disabilities. EDF is helping assure that these morevulnerable customers have access toessential services through adapted solutions.

It is also facilitating job placement for youngpeople and providing emergency assistanceto those confronted with critical situationsor crises. All Group companies are acting locally by supporting projects that improve qualityof life and create jobs. They are also contributing their expertise through energyeco-efficiency advice for local renovationprograms; EDF Energy’s involvement in the Warm Zones in England is but oneexample. In addition, the companies arepromoting education on energy issues.

Promoting access to energy EDF is implementing energy access programsin developing countries, particularly Africa.Its goal is to work with local partners to setup decentralized service companies that arehanded over once viability is assured. One example was the sale in 2007 of EDF’sstake in South Africa’s PNES, after it broughtelectricity to a township near Cape Town.EDF is involved in rural electrificationprograms in that country as well as in Mali,Morocco and Madagascar.

1. See 2007 Sustainable Development Report2. PolyChloroBiphenyl.

Dominique Lagarde, Senior Executive Vice President, Strategy and Coordination

Our goal is not to adopt one approach for France and another for the rest of the world. We aim to apply the same high standardsand targets of excellence for social and environmental performanceeverywhere. The Group is therefore called upon to make a distinctcontribution to the countries in which it operates.”

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RESPONSIBILITY

Helping vulnerable customers is a priority forthe Group, and part of thePublic Service Agreement in France. The CustomerBranch has taken overresponsibility for theseissues since the distributionactivity was unbundled 3.

EDF Energy is poweringahead with its Energy Assistsocial tariff in the UK. In2007, electricity and gasindustry regulator Ofgem 4

named EDF Energy the sup-plier with the highest level of commitment to vulnerablecustomers.

LAOS

770 families housed in a newvillage on the Nam Theun 2dam site in 2007 (Sourceprojet Nam Theun).

CHINA

Figlec funding thereconstruction of a schoolbased on environmental andenergy conservation criteria.

AWARDS

The SustainableDevelopment Awards generated a high level of enthusiasm and a verylarge number of initiativesfrom Group companies,including BERt of Hungary,which submitted a projectfor optimizing water consumption at the Újpestplant, and Edison, whichproposed a plan to installphotovoltaic panels at itsheadquarters in Milan.

3. See section on sales andmarketing in France.

4. Office of Gas and ElectricityMarket.

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EUROPEAN BUSINESSES

The EDF Group generates 98% of its sales in Europe, where it is established on the four largest energy markets: France, the UK, Germany and Italy. Electricity and gas markets across the European Union were fully deregulated in 2007. The Group was prepared for this market opening and had made the appropriate changes. With concern mounting in Europe over energy supply and climate change, EDF’s industrial solutions, adapted to each country but all geared to low-carbon generation and energyeco-efficiency, are more attractive than ever.

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EUROPE MARKET 50.51EDF - 2007 ANNUAL REPORT

Market

525470747882

>BACKGROUND AND CHANGES IN EUROPEFRANCE: GROUNDWORK LAID FOR A NEW COMPETITIVE ENVIRONMENTEDF ENERGY: DOING WELL IN A CHALLENGING ENVIRONMENTEnBW: DELIVERING RESULTSEDISON: MEETING TARGETS WITH UPGRADED INDUSTRIAL FACILITIESOTHER EUROPEAN COUNTRIES: MAKING PROGRESS IN DEREGULATED MARKETS

>EUROPEAN BUSINESSES

Background and changes in Europe

In Europe, increasingly concerned about issues of supplysecurity and climate change, the EDF Group’s solutions,tailored to each country, but all focused on low-carbongeneration and energy eco-efficiency offers, are of theutmost relevance.

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European energy policy and the choices ahead

Growing awareness across the board The European Council of Ministers expresseda desire to tackle climate change in March2007, and its stance was echoed by the veryproactive position adopted by the EuropeanUnion at the Bali Earth Summit. The Councilsubsequently decided to include nuclearpower as a possible part of the solution,alongside energy eco-efficiency andrenewable energies.Nuclear power seems even more crucialtoday in that Europe will be increasinglyreliant upon imported fossil fuels, since itcannot generate enough renewable energyto satisfy both increasing demand and therequired decrease in the use of fossil fuels.

The determining effect on the future of today’s decisionsThe European electric system was in a situation of excess capacity for a time but is now showing signs of weakness. In addition, tougher environmental regulations have made even more plantsobsolete. Of the 600 to 700 GW of newcapacity the European Commission wantsbrought into service between 2005 and20301, 300 GW will go to coveringgrowing needs and 300 GW to replacefacilities at the end of their useful life.These plans are an opportunity to adoptlow-pollution, low-carbon and competitivegeneration technologies.

Ongoing differences of opinionPositions with regard to nuclear power arethus becoming less categorical. Enel, Italy’sleading electricity company, has agreed toacquire a 12.5% stake in and help financethe Flamanville 3 EPR project. The British government has supported theidea of the country’s return to nuclear, butthe debate is still ongoing in Germany:EnBW did not receive authorization toextend the lifetime of a nuclear powerplant, and it was phased out as planned.

Clear commitments from the EDF Group

Keeping the focus on climate change The Group is seeking first and foremost todevelop generation methods that producelittle or no CO2, adapting its strategy to localpolitical policy. The EPR at Flamanville is one example. In the UK, EDF Energy willbuild a CCGT to keep up with demand inthe short term and, further out, will be positioned to take part in the country’snuclear revival. Edison’s investment policy in Italy has given it a relatively clean generation profile,with highly efficient CCGT plants. InGermany, EnBW is looking into building a high-efficiency supercritical coal boiler.At the same time, all Group companies are investing in renewable energies anddeveloping energy eco-efficiency services. .

+ 600 GWof new capacitybetween 2005 and 2030_

An open but fragmented market

2007: full market opening Electricity markets were fully opened across the European Union in 2007, andrules were applied to unbundle sales and marketing activities from network operations in order to guarantee equalaccess to networks.A number of Group entities were affectedby these changes, chief among them EDFFrance, which set up distribution subsidiaryERDF on January 1, 2008, just as it had created RTE before (independently managedsince 2000 and a subsidiary since 2005).Similar changes were made at SSE inSlovakia and Demasz in Hungary. The Groupwas able to benefit during this process fromEDF Energy’s experience with theunbundling process over the last decade.

The need to improve fluidity Market opening has not automatically created a single market. The European electricity industry is still fragmented. Someregions remain insular, including the IberianPeninsula and Italy, where interconnectionsare insufficient. A market is nonetheless taking shape between Germany, France,

It was in Europe that the urgency of sharply reducing greenhousegas emissions was first recognized, and today investment isneeded to keep up with demand. We are convinced that energyeco-efficiency, renewable energies and nuclear power must necessarily be part of the solution. The EDF Group is ready tomake all of its expertise available and mobilize its people, technologies and powerful industrial resources.”

OPTIMIZATION AND TRADING

To secure its energy supply,the Group is working withEDF Trading to organizecooperation between theoptimization and tradingentities of EDF France,EnBW in Germany, Edison inItaly, EDF Energy in the UKand Everen in Poland.

Bruno Lescoeur, Senior Executive Vice President, International Industrial and Public Affairs

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KEY ACCOUNTS

One graphic identity now used by the entire sales and marketing network for large accountsin Europe, bringing togetherEDF Energy, Edison, EnBWand EDF France.

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Benelux and Switzerland but, even here,exchanges are limited by inadequate interconnection.

EDF policy: focusing on Europe The EDF Group is delivering multi-countryenergy solutions through a coordinated sales and marketing network covering11 countries (France, the UK, Germany,Belgium, Spain, Italy, Austria, Slovakia,Hungary, Poland and the Czech Republic).Slovakian affiliate SSE is also working with major accounts like PSA and Metro in their catchment area. The Group also entered into the carbonmarket late in 2006 by setting up a CarbonFund to pool capacity to acquire emissionscredits between EDF, EDF Energy, Edison and EnBW. Managed by EDF Trading, the Carbon Fund has a buying capacity of close to €300 million, making it one of the leading players in the emissionsallowance market. The fund earned EDFTrading a Gold Award for Excellence inEmissions Markets in the 2007 EnergyBusiness Awards.

1. DGTREN study – trends to 2030 – update2005.

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EUROPEAN MARKET 52.53EDF - 2007 ANNUAL REPORT

ELECTRICITY PRICES IN EUROPE IN 2007>

FRANCE

GERMANY

UNITED KINGDOM*

SPAIN

NETHERLANDS

FORWARD PRICES (2007 Platts average assessment of Calendar 2008 Baseload)

ITALY

SPOT PRICES IN ITALY(2007 GME average baseload day-ahead price)

* (2007 Platts average assessment of April Annual 2007 and 2008 Baseload).

€51.3 /MWh

€54.4 /MWh

€55.9 /MWh

€57 /MWh

€60.4 /MWh

€71.6 /MWh

WHOLESALE ELECTRICITY PRICES

Spot prices (Averageprevious day price – baseloadand peakload – for same-daydelivery)

France1

€40.9 /MWh baseload

€58.5 /MWh peakload

United Kingdom2

€42.2 /MWh baseload


Germany3

€38 /MWh baseload


1. Powernext.

2. Platts OTC.

3. EEX.

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> KEY FIGURES

Sales:

€32.2 billion65.7%Group EBITDA contribution

Customers:

28.3 million*(of which approximatively120,000 for gas)

Employees:

105,322**

Installed capacity:

98 GWe*Generation:

482.9 TWh** Including Corsica and overseas Departments.

** The EDF number of employeesin France include EDF and RTE-EDFTransport employees as well asemployees not belonging to the electricity and gas industry workers branch (IEG).

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Customer service center in Saint-Étienne.

FRANCE MARKET 54.55EDF - 2007 ANNUAL REPORT

Electricity: divergent trends Mild weather in winter, cool temperaturesin the summer and a sharp drop in theaverage price per tonne of CO2 draggedspot prices lower in France and neighboringcountries. However, starting in October,spot prices in France shot upward owing tohigher coal and heating oil prices andtemporary imbalances between supply anddemand. There were several cold spells latein the year, when generation was limited bylow rainfall in France, the absence of windin Germany and the unavailability of severalplants. Base load prices peaked at above€150/MWh, and these fluctuations werereflected in futures prices.

The integrated model proving optimum EDF France took full advantage of the integration of its generation and sales and marketing activities. The DownstreamOptimization and Trading Division specializes in matching upstream electricityand gas resources (generation and supply)with selling channels (sales to customersand wholesale markets and capacity auctions). It seeks, through its trading activities, to maximize gross margin across the board by controlling the risksstemming from fluctuations in customerconsumption and generation and market variables. On a longer-term view, it suggests adaptations of the structure ofthe upstream and downstream portfoliosbased on forecast market trends. EDF Trading, a wholly-owned EDF subsidiary,provides support for transactions on wholesale electricity, gas, emissionallowance and fossil fuel markets.

Spot prices in FranceAverage €40.9/MWhfor baseload (vs. €49.3/MWh in 2006)

Average €58.5/MWhfor peakload (vs. €69.8/MWh in 2006)

FRANCEGroundwork laid for a newcompetitive environment

EDF implemented major changes in France ahead of full marketopening in 2007. The sales and marketing and distributionactivities were unbundled, and the ERDF distributionsubsidiary has been operational since January 1, 2008.

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12%GERMANY

8%ITALY

BREAKDOWN OF EDF GROUP SALES

OTHER EUROPEANCOUNTRIES

2%REST OF THE WORLD

54%FRANCE

10%

14%UNITED KINGDOM

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Sales and marketing in France:the year of full marketopening

In response to growing environmental concerns, EDF has focused its sales and marketing policy on energyeco-efficiency. The Bleu Ciel d’EDF ® brand was launched for residential customers during the year, and the investmentprogram has been stepped up further.

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Renewing the residential offers

Successful market openingFor the full opening of the energy marketson July 1, 2007, EDF set two objectives: to enable any customer wishing to changesupplier to do so easily and to guarantee all those who wanted to remain on the tariff the same quality of service. The objectives were fully achieved: customerswishing to do so have changed supplierwithout any difficulty and customer satisfaction did not decline. The cooperation between distribution and sales and marketing during this criticalperiod was a key factor in the successfultransition, involving more than 28.4 millionpoints of delivery. Sales and marketing was completely transformed: informationand telephone systems, product ranges,customer service centers.

>FRANCE

26.9 millionresidential and professional customers

15 million visitsper year to theresidential website edf.fr

Gas supply to 60,000 residentialcustomers(end December 2007)

ALL

RIG

HTS

RES

ERV

ED

Introduced in September 2007, the Bleu Ciel d’EDF® brand is gathering momentum: more well-being and savings thanks to energy eco-efficiency

200 sites1,600 sites

3,200 siteset 99 ELD*

2.2 millioncustomers

27 millioncustomers

February 1999

May2000

February 2003

July2004

July2007

100 GWh/year 16 GWh/year 7 GWh/year All non-household customers

All customers

100%

69%

37%30%

20%

THE OPENING OF THE FRENCH MARKET FOR SALES ANDMARKETING OCCURRED IN THE FOLLOWING STAGES

% of Total Opening inTerms of Consumption(by volume)

Total Sites/EligibleCustomers

Eligibility Threshold

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Services to make life easier 2007 saw the launch of a number ofservices: Suivi Conso for personalized adviceon managing energy consumption andAssistance Dépannage Électricité/Électricité +Plomberie for repair assistance. The year’sother new developments: payment by SMS,electronic billing and the interactivetelephone-based vocal server Mon Compte sur Serveur Vocal to communicate meterreadings, consult account balances and paybills by bank card. Thirteen percent of callsare already handled by this service. These services are in addition to those

TARIFFS FOR RESIDENTIAL CUSTOMERS

Pursuant to the PublicService Agreement, residential tariffs areincreasing by no more than inflation. They rose by 1.1% in August 2007.

We are experiencing a Copernican revolution.Customers are now empowered to make their ownenergy choices. They are even becoming energyproducers. It is important for an energy companylike EDF to participate in this new momentum.”

“Jean-Pierre Benqué, Senior Executive Vice President, Customers.

Bleu Cield’EDF®:aided recall rateof 42% at the endof 2007 1_

MARKET OPENING IN FRANCE FOR ELECTRICITY SALESAND MARKETING

6,000 customer service

advisors reachable 24/7 by telephone

68 customer service

centers

191 shops

17,000 Cash Counters

in partnership with theFrench post office

6,000 Bleu Ciel d’EDF®

partners (insulation, renovation, electricity,plumbing)

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1. Source: TNS Sofres.

organized around a customer’s key lifemoments, moving house, improvingcomfort in the home, building a home,renovation of electrical equipment, etc.

A new sales and marketing momentumbased on energy eco-efficiencyIn September, following the opening of the residential market, EDF launched itssales and marketing brand, Bleu Ciel d’EDF®,which introduced a new dynamic: moreecology, more savings and more well-being

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*Local distribution companies.

> through energy eco-efficiency offers withina new relationship putting customers incharge of their consumption and even theirenergy generation. As of 2008, Bleu Cield’EDF® will replace the Vivrélec® brand.The residential offer has now been enrichedwith a dual offer adding natural gas toelectricity, an off-tariff electricity offer Moncontrat élec, and an Equilibre® offerproposing an audit aimed at preserving theenvironment while reducing customers’energy bills. Launched in November, the Bleu Ciel d’EDFÉnergie Solaire® advisory service includesthree photovoltaic offers, Énergie SolaireClé en Main, Énergie Solaire ProductionGarantie, and Énergie Solaire FinancementAdapté, developed and implemented byEDF Énergies Réparties.The range of offers aimed at home heating

renovation is growing and EDF isdeveloping turnkey energy eco-efficiencyrenovation services. Based on a homeenergy and carbon performance audit,these services offer global renovationsolutions integrating insulation and heatingsystems based on renewable solutionsincluding heat pumps, individual solarwater heaters, and wood-fired boilers.

Helping vulnerable customersHaving assumed responsibility for themanagement of vulnerable customers, the Customer Branch created a NationalConsumer Service and specially-trainedregional teams, available 24/7 on a nationaltoll-free number (0800 650 309). Supportfor vulnerable customers now includes theMaintien d’énergie service, which ensures a minimal service of 3,000 W in the event

>FRANCE

Vulnerable customers>

Consumptionrecord: 88,960 MWin France on17 December at 7:00 p.m. RTE estimate

_

630,000 clientscustomers have benefited from EDF’s Tarif de Première Nécessité

300 advisors across the customerservice centers

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Installation of floor heating system linked to a heat pump. EDF is now delivering comprehensive solutions including insulation and heating systems based on renewable energies.

ELECTRICITY – DOMESTIC CONSUMERS –HALF-YEARLY PRICES>

BELGIUM

DENMARK

GERMANY

SPAIN

FRANCE

ITALY

NETHERLANDS

SWEDEN

UNITED KINGDOM

197

157

175

13120072006

116

184

153

96

173

100 100

186

94

Source: Eurostat.

125

101

202

112

120

HIGH TEMPERATUREHEAT PUMPS

In 2007, the new heat pump developed by EDF R&D allowed this new technology to take a significant step forward. It canheat an old house without anyback-up energy even on the cold-est day, while producing hot water.In a 160 m2 house, substituting the heat pump for a fossil-fired boilerand without any modification in the central heating system, a hightemperature heat pump can halvethe heating bill and divide CO2emissions by five. It is now movinginto the industrial phase and willbecome part of EDF’s distributedrenewables offer.

COMPETITION

In order to provide resellers whocompete with EDF the maximumlevel of security within a contextof high market prices, inDecember 2007 the FrenchCompetition Authorities acceptedEDF’s commitment to give themaccess to a volume of base loadenergy. This supply will graduallyincrease in terms of power andprice, to cover, as of 2013, theEPR development cost (€46 MWh2005 euros).

R&D


of payment arrears, a basic necessity tariff(Tarif de Première Nécessité) and thecontribution to the housing solidarity fund (Fonds de solidarité logementsdépartementaux) which pays a portion of the electricity bill.

Professionals: rapid, efficient solutionsEDF has developed its EDF Pro® range,which facilitates the lives of its professionalcustomers. The Essentiel, Présence andSouplesse offers have been replaced byÉlectricité Pro and Gaz Naturel, togetherwith services such as a two-hour repairservice (Assistance dépannage 2 heures)which is proving very successful.EDF also markets a kWh Équilibre® offerwhich supplies electricity coming, partly or wholly, from renewable energies. EDF Pro and its Climsure partnership networkoffer an energy-efficient air conditioningsolution which guarantees maximum peaceof mind: a free audit, advice on managingenergy consumption, a five-year equipmentguarantee, a maintenance contract as partof the offer and tailored financing.

Partnering businesses

Energy eco-efficiency to the foreIn order to meet the expectations of businesses, EDF is developing a range ofenergy eco-efficiency services: equipmentaudits, installation and financing of energy-efficient equipment using mostlyrenewables, maintenance and operatingservices.With the Equilibre® range, customers canpurchase kWhs from renewable energysources while providing support for theCisel photovoltaic research program.They are supported in managing theirenergy usage and environmental impact by advisory and management services such as Adviso®, di@lege® and Panorama®

(consumption monitoring and control) and audits such as Diagnostic Optimia®

and Contrat de progrès® (consumptionmanagement).

Quality of service and customer satisfaction Customer satisfaction is at the heart of EDF’s sales and marketing strategy. Somestrengths are particularly appreciated such >

SALES AND MARKETING

175,000 Premier Niveau

Rénovation renovation

advisory services

12,000 Objectif Travaux

services

336,500 Vivrélec® loansfor new build or renovation

100,700 ElectricityRepair/Electricity +Plumbing Repair Services

80,000 Assurélec®

services

46,500 Suivi Conso

services

Professional customers>

20,000 Électricité Prooffers

47,000 2-hour repair services

55,000 contractsDual electricity and gas offer_

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as the warm welcome, the professionalismof EDF contacts or the day-to-day handlingof requests. EDF is working on improvingthe quality of customer service in terms of billing and the time taken to handlecomplaints.The Business Customers Division is working toobtain ISO 14001 environmental certification.

Partnership for electricity-intensive customers and transitional schemes for industrial companies Before the increase in market pricesbetween 2000 and 2004, the French government instituted, for industrial

companies having left the tariff, the opportunity to opt for a transitional regulated tariff for market adjustment (Tarif transitoire d’ajustement du marché –TarTAM), for a non-renewable two-yearperiod. Its level may be no more than 25%above the regulated tariff applicable at asite with a similar amount of consumption.The customers had to ask EDF for this tariff before July 1, 2007.With the very large users regrouped in the Exeltium consortium, EDF is committedto a long-term industrial and sales andmarketing partnership. The objective: toenable these customers to benefit from

200,000 clients 223.5 TWh1electricity sales in 2007

16.7 TWh2natural gas sales

1. Excluding Tarif Bleu sales, handled by the Residential and small Business Customers Division for the Business Customers Division.

2. Including sales to local authorities and low-income housing agencies.

>FRANCE

Business customers>

50

60

70

80

90

100

110

120

130

140

150

160

1985

153

99.19689.2

62.858.3

73.4

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

REGULATED TARIFFS: ANNUAL TREND IN PRICES BEFORE TAXEXCLUDING CONTRIBUTION TO ELECTRICITY PUBLIC SERVICEFUND (CSPE) (price index 100 in 1985)

Large industrial customersResidential customers and retailersSmall and medium-sized business

Constant currency** Current currency

Price index, excluding tobacco

*CSPE: Contribution to Electricy Public Service Fund. **Adjusted for inflation. Source: EDF.

ENERGY ECO-EFFICIENCY In public buildings and social housing

In order to reduce energyconsumption and CO2

emissions, EDF R&D isdeveloping:• Tools to target andprioritize action within a building,• Efficient technologies forhousing and the integrationof renewable energies,• Numerical simulations toevaluate the savings andoverall cost of strategies.These services aim topromote the emergence of “total cost-oriented”business models. A numberof studies with localauthorities are underway.

visibility on the cost of their electricitysupply in return for sharing the risksinvolved in investing in EDF’s generationassets. Its implementation is subject to noobjection from the European authorities.

Support for local authorities

The proximity of an energy eco-efficiency partnerWith the support of its subsidiaries, affiliates and partners, EDF is deploying an array of services, audits, advisory and consumption management tools to provide assistance to local authoritiesand low-income housing agencies in theirenergy eco-efficiency projects. It puts attheir disposal multiple technical solutionsbased on renewable energies: solar, thermal, photovoltaic, geothermal, wood-burning and heat pumps. EDF advisors help them to improve the performance of their asset portfolio.

The enthusiasm shown by low-incomehousing agencies for the Montant deCharges offer, which includes a guaranteeof results, demonstrates the relevance ofsuch approaches, which also generateenergy saving certificates.

Diversified operating systemsNumerous local authorities have installedefficient equipment with EDF. Saint-Etiennechose a photovoltaic installation for itsGeoffroy Guichard stadium, while Chavilleopted for the same type of equipment forits cultural center, designed as a showcaseto raise clean energy awareness amongstinhabitants. The Urban Community of Paysd’Aubagne et de l’Etoile chose biogas togenerate electricity resold to EDF. In Soultz,geothermal is providing comfort and energyefficiency in retirement homes. The sameenergy source heats the leisure center inthe Community of Communes in Dunois.

R&D

Creation of

an internet sitededicated

80,000 local authorities and low-incomehousing agencies in mainlandFrance

Quality of service: 87%of customers satisfied in 2007 3

PRODUCTIVITY

In order to increase customersatisfaction and improve productivity, EDF haslaunched the Clipper projectwhich aims to streamline certain processes: the management system, contractmanagement, the bundlingand deployment of electricityand gas offers and relationswith the distributor, for example.

PARTNERSHIP

The Puissance Excelis offerdeveloped with Schneiderfor the installation, financing and maintenanceof transforming stations hasfound its market with134 contracts negotiated.

Local authorities>

3. Source: TNS-Sofres.

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Photovoltaic panels at the Geoffroy Guichard Stadium, Saint-Étienne.

Generation in France In France1, EDF produced 482.9 TWh, including 86.6% from nuclear facilities. To respond to growing demand andpeak load increase, industrial investment in all generationbusiness has increased.

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An efficient and diversified generation fleetEDF utilizes its power plants giving priorityto those that carry the lowest variablecosts. Run-of-river hydro plants are called upon for base load generation and nuclear plants for base load and semi-base load. Dam hydro and fossil-fired units are relied upon for semi-baseload and peak production.

The 58 nuclear reactors The 58 nuclear reactors account for 86.6%of EDF’s generation in France. Availabilitywas lower than in 2006 (80.2% versus83.6%) owing to a generic failure, with no impact on safety, affecting 15 steamgenerators at the 900 MW and 1,300 MWunits. A chemical treatment was developedin cooperation with the French NuclearSafety Authority (Autorité de sûreténucléaire - ASN) and successfullyimplemented at one plant during the firsthalf of 2007, and subsequently at threeother sites. EDF’s goal for the medium term is to achieve 85% availability thanksto a resolution of clogging problems with the steam generators, more efficient operations and further shortening of

>FRANCE

95% of generation in France without CO2 emissions, due to hydro and nuclear fleet

42.5 g CO2/kWhemissions from EDF’s generation plants in France are eight times lower than the European average(372 CO2/kWh – source AIE 2005)

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the duration of shutdowns for fuel reloading. In 2007, six reactors werereloaded in less than 30 days and theDampierre 2 unit in 23 days, a record for France.

Hydro generation Hydro generation increased to 42.6 TWhfrom 40 TWh in 2006, despite unusuallylow rainfall. Demand response improved to 99.3% from 99.2% a year earlier.Availability fell to 90.9% from 91.7% in 2006, owing to work being done on the SuperHydro program.

Fossil-fired units Investments made over the last three yearsin the fossil-fired units (coal, gas and oil)are beginning to bear fruit. These respon-sive and efficient assets account for 4.6%of EDF’s generation in continental France.Availability continues to improve, with anannual unavailability ratio of 11.96% in2007 compared with a target of 13%.The oil-fired Cordemais 3 plant (700 MW)was brought back into service as planned,after being shut down for 12 years, and thenew combustion turbine at Vitry (125 MW)was connected to the network. Work on the latter project mobilized 50 people over18 months. EDF is investing in flexible andresponsive plants to meet consumptionpeaks.

When it comes to energy and environmental challenges, our generation fleet is proof that it is possible to reconcilesafety, competitiveness and climate protection. EDF’sresources are gaining new momentum with the EPR atFlamanville, investments in semi-base load and peak capacity, and our recruitment and training efforts.”

“Bernard Dupraz, Senior Executive Vice President, Generation

CHANTIER EPR

The construction of the EPRat Flamanville is being conducted under a “majorproject” (Grand Chantier)

approach to facilitate theworksite’s integration intothe region’s social and economic fabric.

A total of 1,800 candidatesapplied to the “Bus forJobs” (Bus pour l’emploi)chartered by the BouyguesGroup with EDF, the CountyCouncil of La Manche, theemployment agencies ANPE(Agence Nationale pourl’Emploi) and APEC (Agencepour l’Emploi des Cadres):215 were hired and morethan 160 are being trained.

Local companies can getinformation about calls for tenders and progress onthe project via the specialwebsite set up with theCherbourg InternationalChamber of Commerce. They can also put theirnames on the list of localsubcontractors made available to contract holders.

FRANCE

96.2 GWe in

continental France: Europe’spremier generation fleetexcluding Corsica and overseas Department

16 % of total installed

capacity of main Europeancountries (the twenty-twomembers of the Union for theCo-ordination of Transmissionof Electricity - UCTE)

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1. Including Corsica and overseas departments.

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FOSSIL-FIREDEXCLUDING NUCLEAR**

14.5 (14.8 %)

NUCLEAR63.1 (64.4 %)

HYDRO*20.4 (20.8 %)

EDF, GENERATIONBY AREA IN 2007 (in TWH)

>EDF, INSTALLED CAPACITYBY AREA IN 2007 (in GWe)

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* Of which 371 MW for Corsica and overseas departments in 2007.** Of which 1,405 MW for Corsica and overseas departments.

HYDRO*42.6 (8.8 %)

NUCLEAR418.0 (86.6 %)

FOSSIL-FIREDEXCLUDING NUCLEAR**

22.3 (4.6 %)

* Of which 1.4 TWh for Corsica and overseas departments.** Of which 4TWh for Corsica and overseas departments.

45% of generation division employees to retire by 2015—

>FRANCE

Safety and radioprotection: making constant progress

Stringent controls and an industrial approach Maintaining the highest level of safety and security is EDF’s top priority. Operatorsare responsible for overall evaluations in nuclear plants while the Senior VicePresident, Nuclear Safety andRadioprotection conducts audits. TheNuclear Safety Authority (Autorité desûreté nucléaire – ASN) also conducts400 annual inspections. The ten-yearinspections, which last about three monthsand require more than five years ofpreparation, involve complete “check-ups”and rely in part on technical innovationsmade possible by feedback from Franceand other countries. In 2007, the safety

re-inspection for the first ten-year inspec-tions of the 1,500 MW reactors led to in-depth exchanges with the Nuclear SafetyAuthority. The second ten-year inspection(20 years) of the 1,300 MW unit isunderway and will continue through 2014.Meanwhile, the third ten-year inspection(30 years) of the 900 MW facilities willbegin in 2009 at Tricastin and Fessenheim.A first contract for studies, maintenancework and upgrades was awarded to Arevain 2007.

Best international practices Regular international inspectionsencourage the sharing of best practices.Initiated by the Nuclear Safety Authority,the Osart 1 reviews conducted by the IAEA 2

produced some recommendations onoperational safety. The Osart conducted at

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Five key priorities for 2007>

Operate the Group’s 58 reactors safely and improve their performance

Continue to invest in the fossil-fired facilities

FRANCE

Run-of-river dam at Tuillières, on the Dordogne. Part of the SuperHydro (hydro safety and performance) program involving 450 projects to renovateand modernize the hydro fleet in France.

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Number of workers cumulating a dose of over 18 milliSieverts in a twelve-month periodNumber of workers cumulating a dose of over 16 milliSieverts in a twelve-month periodAverage collective dose (manSieverts/reactor)

1.42na na

0.78na

290.69

0

17 0.63

0

20

> RADIOPROTECTION

1997 2005 2006 2007


Chinon in 2007 identified 11 bestpractices. Meanwhile, the Peer Reviews con-ducted by WANO 3 at EDF’s request, were anopportunity to compare safety performanceto best international practice. These reviewswere done at the Blayais, Cruas, Fessenheimand Penly facilities in 2007.

Radioprotection: exceeding targetsThe average cumulative dose declined to 0.60 man-Sieverts per reactor per yearfrom 0.69 man-Sieverts in 2006. The 2007level was comparable to those recorded bynuclear operators working with the sametechnology in Germany, Japan and the US. Individual exposure was well below theregulatory limit of 20 mSv over 12 months:in 2007, only 20 people from EDF or sub-contractors received cumulative doses of

0.8 event of safety significance (level one or higher)

per reactor on average in 2007 (1.2 per reactor in 2006)

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Support EDF’s international development, notably in the nuclear field

Update and boost skills

BEST PRACTICES

Challenges are beingorganized within thegeneration plants torecognize and share bestpractice across allbusinesses.

For the ninth NuclearOperations DivisionChallenge, 131 innovationsand best practices in termsof safety, security andradioprotection weresubmitted, and 18 werewidely adopted in 2007.

The first edition of theServices Division EffectivePractices Awards yielded 13practices that will be spreadacross the Group.

NUCLEAR PLANT LIFE

In France, the NuclearSafety Authority mustauthorize nuclear plants to remain in operation everyten years, following the Ten-Year Inspection andSafety Re-inspection conducted by EDF under its supervision. A series ofmodifications proposed byEDF and approved by theAuthority in 2006 shouldenable the plants to be kept active for 40 years ormore. In the US, operatinglicenses have already beenextended from 40 to60 years for 48 of the100 nuclear power plants.

Meet the objectives set for the Flamanville 3 EPRin terms of quality, deadlinesand costs

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more than 16 mSv. More progress muststill be made in managing radiation risk(119 significant events in 2007).

Hydro safety: applying the same level of vigilance EDF pays close attention to safety at itshydro plants, notably in regard to operations during floods and protectiondownstream of dams. The Group conductsinformation campaigns every year to buildawareness among those coming into contact with the hydro sites. Infrastructure isalso subjected to ten-year safety inspections.A total of 12 dams were inspected in 2007.

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1. Operational Safety Review Team.2. International Atomic Energy Agency .3. World Association of Nuclear Operators.

>FRANCE

Minimizing the environmental footprint of our facilities EDF is reducing the environmental impact ofits facilities along with waste and effluents 1.The denitrification systems in place at thefossil-fired units at Havre 4 and Cordemais5 since the end of 2007, and to be installedat Cordemais 4 in 2008, reduce nitrogenoxide emissions by 80%. The flue gasdesulphurization systems already installedat these units are 90% efficient. In addition,the use of very low sulfur-content fuel(0.55%), including at Cordemais 3, is furtherlimiting the Group’s environmental impact. Thanks to tight at-source control and management of effluent production at

the nuclear plants, liquid radioactive waste (excluding tritium, carbon 14 and NI-63) was kept well below the regulatory limit at 0.3 GBq per reactor and per year. Progress was also made on chemical waste: where hydrazine is concerned, just a few kg were emitted per reactor and per year, and for boric acid, emissions have fallen by 30% since 2004. Radioactive waste is managed with extreme caution and in complete safety before being shipped to Andra 2 sitesfor storage. EDF is working hard to reduce production at the source, effortsthat will also yield economic benefits.

East Hydro-generation unit:the first to get triple certification: ISO 9001,ISO 14001 and OHSAS18001_

Construction of three combustion turbines underway at Vaires-sur-Marne. Objective: keep up with the increase in peak demand.

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FACTORING IN THEHUMAN ASPECTS OFTECHNICAL PROJECTS

Programs designed to upgradepower plants must necessarilytake into account the overalltechnical, organizational andwork environment for people.This is why EDF R&D hasdeveloped an approach forintegrating these factors intoplanned changes to thenuclear fleet. Tested in some30 projects scheduled ahead ofthe third ten-year inspection ofthe 900 MW units, theapproach has proven its value.The plan was submitted to theNuclear Safety Authority inJune of 2007 and is graduallybeing applied at differentsites.

GENERATION IV SODIUM-COOLED FAST REACTORS

The joint R&D programlaunched by the French AtomicEnergy Commission (CEA –Commissariat à l’Energie

Atomique), EDF and Areva aims to propose, by 2012, the main options fordeveloping a Gen IV sodium-cooled fast reactor andbeginning construction on aprototype that could be putinto service after 2020.Research into fast nucleonreactors reflects the principlesadopted by the Gen IVInternational Forum (GIF).Member countries signed afirst agreement in 2007:Euratom, France, Japan, theUS and Korea. China recentlybecame a GIF member.

R&D

Ramping up investment

Boosting generation capacity in all segmentsEDF maintained its investment program in 2007 to keep up with increases in electricity needs and peak demand. Theinvestments are spread across all businesslines: nuclear, with the EPR at Flamanville3, hydro with the construction of the54 MW Rizzanese dam in Corsica, and fossil-fired with the re-commissioning offour oil-fired units (Porcheville B1 and B2,Cordemais and Aramon, total capacity of2,540 MW) and the construction of newcombustion turbines (550 MW) at Vitryand Vaires.EDF also invested during the year in semi-base load and peak load capacity withCCGTs at Blénod and Martigues andcombustion turbines (555 MW) atVaires-sur-Marne and Montereau (seesection on investing in industrial assets inFrance), for a combined capacity of1,925 MW.

Sustainable improvements in economic performance and safety Other investments are geared to improvingefficiency and safety at existing plants.Between 2007 and 2011, EDF will investnearly €560 million in the SuPerHydro program (Safety, Performance, Hydro)approved late in 2006 and involving 450renovation and overhaul projects. In 2007,priority was given to preparing for the re-commissioning of major facilities that havebeen shut down, including Tuilières andPragnères. Among the large projects conductedduring the year were improvements to thecanal of the Mauzac factory, the renovationof the alternators at Pizançon, thetreatment of the penstocks at Luz 1, therehabilitation of a generation unit at theKembs plant, and the renovation of thegates at Cadarache.

1. See Sustainable Development Report.2. Agence nationale pour la gestion des déchetsradioactifs.

PROGRAM: ACHIEVINGEXEMPLARY INTERNATIONAL STANDARDS

EDF has committed to a €600 million “housekeeping” program overfive years to bring the nuclear plants up to the best international standards in terms of paint,lighting, resistance to seaside corrosion, etc. The program got underway in2007 at Civaux, Golfech andTricastin.

ReportIn accordance with the law on nucleartransparency and safety of 2006, all of the nuclear units published nuclear safety andradioprotection reportsin 2007, outliningmeasures adopted, any incidents or accidents, and the type and amount ofradioactive dischargesand waste produced.The reports includeappendices withrecommendationsmade by the Health,Safety and WorkingConditions Committee(Comité d’hygiène, desécurité et desconditions de travail –CHSCT).—

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FRANCE>FRANCE

RTE EDF Transport, the independenttransmission network operator The law gives RTE, a wholly-owned subsidiary of the EDF Group, a specific status that, under the supervision of theEnergy Regulation Commission, guaranteesits independence and neutrality.RTE is entering a new phase of its investment program, preparing to spendclose to €950 million a year between 2008and 2011. Tariff adjustments should helpfinance these investments. The funds spentin 2007 (€792 million) mainly went tosecuring the national network.

An independent distribution network operator

2007 devoted to reorganization The organization and management of the distribution activities underwentunprecedented changes when the residentialmarket was opened to competition. Thesechanges were successfully implementedthanks to the dedication of EDF employees

and to cooperation with the CustomerBranch.The IT solutions required to unbundle the 28.4 million customer accounts were deployedgradually, drawing from our experience withthe opening of the professional market in2004. Six months prior to full opening, all EDFsuppliers could access the EDF portal tobecome familiar with the new IT solutions. The next steps will focus on communicationwith suppliers’ IT systems and lead times forconnection.

Creation of ERDFEDF subsidiary ERDF (Électricité RéseauDistribution France) has been operationalsince January 1, 2008. It has its ownsupervisory and management boards, and itsgovernance rules guarantee that it isindependently managed. Most ERDF employeesreport to a service that is shared with the Gazde France distribution subsidiary.In 2008, ERDF will develop an industry,employee and society project focused onimproving quality of services and supply,

Regulated businesses in France

EDF’s transmission and distribution businesses in France are managed by specific subsidiaries that are independent 1: RTE is responsible fortransmission operations and ERDF, a subsidiary created on January 1,2008, for the distribution activities. Both are investing heavily to keep up with growing demand. They are accountable2 to the Energy RegulationCommission (Commission de Régulation de l’Énergie – CRE) for the transparent and non discriminatory nature of their services.

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35 million meters1,200 concessions4,292 producers connected

1.27 million km of high and low voltage lines

94%ERDF supplies electricityin 94% of towns

100,000 kmof high voltage and ultra-high voltage grids (63 kV – 400 kV) _

44 cross-border lines_

ERDF>

RTE>


recruitment, and vocational training. It willalso be preparing to negotiate its PublicService Agreement for 2008–2010, tariffsfor using the public transmission anddistribution networks (Tarif d’Utilisation duRéseau Public – TURP), and employmentagreements.

Island Energy Systems (IES)IES are electric systems that are only partially or not at all interconnected to the continental mainland network, chiefly the French overseas departments, Corsicaand Saint-Pierre and Miquelon.These regions benefit from the same tariffsas continental mainland even thoughgeneration costs are much higher there.The additional costs are offset by thecontribution to the public service chargesfor electricity (Contribution au service publicde l’électricité – CSPE). Competitionbetween generators has been introducedthrough calls for tenders launched by public

authorities, EDF being the single buyer. This competitive framework is efficient. On Reunion Island, EDF only accounts forhalf of generation Francony.Significant growth in electricity consumptionrequires investments in generation facilitiesand networks. In 2007, the Rizzanese damproject got underway in Corsica, as did the extension of the Rivière de l’Est hydrofacility on Reunion Island. EDF has handed its generation activitiesover to a holding company subsidiary, PEI (Production Énergie Insulaire, or IslandEnergy Generation), which will include all of the plants, each established as aseparate company.

1. Because RTE and ERDF publish their ownannual reports, their businesses are onlydiscussed briefly here.

2. Energy Regulation Commission.

The French business model used in France has shown that it is possiblefor a transmission network operator to be both independent and neutralwithin an integrated group. In seven years, RTE has not been involved in a single major dispute with the 700 French and foreign users of the transmission network. It is even cited as an example throughout Europe.”

Michel Francony, Senior Executive Vice President, Regulated Operations in FranceOn January 1, 2008, Michel Francony became CEO of ERDF and is thus no longer with the EDF Group.

RTE’S PURPOSE

Maintain, operate anddevelop the nationalelectricity transmission grid

• Oversee the operation andsafety of the electric system

• Guarantee continuity andquality of supply to networkusers (industrial customers,distributors, producers andsuppliers)

• Assure that conditions fornetwork access aretransparent and non-discriminatory for all users

Reunion Island was hit by Cyclone Gamede in February 2007 andMartinique and Guadeloupeby Hurricane Dean inAugust. The latter put 70%of the low-voltage networkin Martinique out of service.Power was restored inrecord time with supportprovided by mainlandFrance. Island EnergyGeneration is investing€40 million to rebuild andstrengthen these networks.

ERDF’S PURPOSE

• Operate, maintain anddevelop the electricity distribution networks inFrance under concessionagreements with localauthorities

• Guarantee that networkaccess conditions aretransparent and non-discriminatory

• Assure interconnection with other networks

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EDF GAZ DE FRANCE

ERDF GRDF

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BUSINESS DIVISIONS NATIONAL BUSINESS DIVISIONS

Joint service (47,000 employees) – eight regional management units

ORGANIZATION OF DISTRIBUTION IN FRANCE:TWO INDEPENDENT SUBSIDIARIES FOR EDF AND GAZ DE FRANCE, ONE JOINT SERVICE

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> KEY FIGURES

Sales:

€8.4 billion8.4%Group EBITDA contribution

Customers:

5.5 millionCustomer accounts(including gas)

Employees:

13,158Installed capacity:

4.9 GWeGeneration:

25.5 TWh

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An integrated energy providerEDF Energy, a wholly-owned EDF subsidiary, is a distributor of electricity and gas in London and the east and southeast of England and a marketer of electricity and gas in the UK (52.4 TWhof electricity and 28.7 TWh of gas). Its generation fleet includes the Sutton Bridgecombined cycle gas plant, two coal-firedunits at Cottam and West Burton, andwindfarms in Northeast England.

Improving operating performance

Optimizing sales and marketing EDF Energy teams mobilized to optimizeperformance across the board in a chal-lenging environment. A new IT system was set up to track marginsgenerated with the largest customers(£2 billion of sales). On the residential front, the company overhauled its CostInformation System with the twofold aim of becoming a preferred supplier based on service quality and ensuring that eachcustomer account is profitable. Furtherinvestments were made in customer service. These efforts produced results, even in a highly competitive environment. Thecustomer portfolio stabilized and a numberof new accounts were won during the year.Billings and payments both improved,translating into additional cash flow andearnings.

EDF EnergyDoing well in a challengingenvironment

EDF Energy performed well in 2007, despite an unfavorableenvironment of highly volatile primary energy prices anddownward pressure on electricity and natural gas sale prices,particularly in non regulated activities.

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Vincent de RivazEDF Energy, CEO

In a challenging pricingenvironment, EDF Energyworked on achievingoperating excellence and maintained its market shares and earnings.”

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UNITED KINGDOM MARKET 70.71EDF - 2007 ANNUAL REPORT

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>EDF ENERGY

Showing excellence as a network operator The EDF Energy Networks Branch is relyingon a wide-scale overhaul of its organizationalstructure to become the most efficientnetwork in Great Britain by 2009.Large contracts have been signed for privateelectricity networks. During 2007, EDFEnergy completed the installation of thecritical electricity infrastructure for the newlink from the Channel Tunnel to St. Pancrasstation in London. The infrastructureincludes a very high voltage line bringingelectricity to the Eurostar from a 400 kVline, through 59 substations. The contractcame in addition to numerous others,including one for the Heathrow, Gatwickand Stansted airports serving London. EDFEnergy is also taking part in joint ventureslike MUJV Limited, with Thames WaterServices, to set up water, gas and electricitynetworks to the new infrastructure beingbuilt for the Ministry of Defence.

Ongoing efforts to help vulnerable customers EDF Energy was cited by the regulator asthe supplier with the most efficient servicesfor vulnerable customers, particularly for itsEnergy Assist social tariff (15% discountsoffered to 50,000 customers), its energyefficiency advice, and the assistance providedto customers in obtaining the public aid towhich they are entitled. The company hasalso paid £7 million into its Energy TrustFoundation since 2003. The Energy TrustFund is used to provide help and advice tovulnerable customers.

Keeping the focus on the climate and security of supply

A leading role in the UK energy debateAs a key player in the British electricitymarket, EDF Energy has been deeplyinvolved in the energy debate, particularlyin consultations held by the government onproposed legislation to reduce greenhousegas emissions and guarantee security ofsupply. EDF Energy focused on the benefitsof energy efficiency, renewable energiesand nuclear power.The British government launched aconsultation on the future of nuclearpower in May 2007. The EDF Group, whichhad set up a Nuclear Project team inLondon in 2006, took an active part in it.Early in 2008, the government decided in favor of a nuclear revival. The Groupplans to build and manage up to four EPR reactors there, alone or throughpartnerships, provided that the regulatoryand political environment is favorable tosuch a move.

Leading distributor with

7.9 millionsites connected

52.4 TWhElectricity sales

28.7 TWhNatural gas sales

>Scientific/university partnerships • Support for the Energy

Technologies Instituteset up in 2007

• R&D framework agreement with the Universityof Manchester

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The coal-fired stations at West Burton (left) and Cottam(right) are now equipped with systems to cut SO2emissions by 94%. The British government has approvedthe construction of a combined-cycle gas turbine powerstation at the West Burton site.

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British electricity market1

£33/MWh by end 2006

£53/MWh by end 2007

Networks:

182,000 km

Investing in a sustainable energy future In June 2007, EDF Energy committed toreducing the carbon intensity of itselectricity generation activities by 60% by2020. It also launched a project, approvedby the government in October, to build a1,311 MW combined-cycle gas turbinepower plant at West Burton. Work will getunderway in 2008 and the plant should becommissioned toward 2011. In addition, EDF Energy stepped up itscooperation with EDF Energies Nouvellesfor the development, construction,purchase and operation of renewableenergy generation units in the UK,including onshore and offshore windfarms,solar, biomass and micro-hydro plants. It istargeting a capacity of 1,000 MW by thenext decade. In September, EDF Energy was

ENERGY SAVINGS

EDF Energy has begun toinstall 3,000 interactive dual-fuel meters. The metersdisplay information on screensto help customers save energy.

BRAND RECOGNITION

EDF Energy brought all of itsactivities under the EDF Groupbrand and logo in May 2006.Brand awareness rose from27% to 82% in November 2007,putting it in the number-oneslot alongside British Gas.

given the green light for a 90 MW offshorewindfarm near Teesside, in NortheastEngland.In 2007, EDF was selected as a tier-one“sustainability partner” for the London2012 Olympic Games. EDF Energy willsupply energy to the Games usingrenewable sources and provide alow-carbon Olympic flame. The core of thepartnership is EDF Energy’s 2012 CarbonChallenge, whereby consumers pledge to use practical measures to reduce theirhome energy carbon footprint by 15% by 2012. At end 2007, 25,000 peopleparticipated to this challenge.

1. Per MWh, based on forward prices.

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WIND POWER AND RENEWABLES

1.8 (0.08%)

FOSSIL – FIRED - of which coal: 4,060- of which gas: 803

4,863 (99.92%)

INSTALLED CAPACITY (IN MW)

UNITED KINGDOM MARKET 72.73EDF - 2007 ANNUAL REPORT

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In 2007, EDF Energy installed a private electricity network for the new Channel Rail Link to the internationalstation at St Pancras.

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> KEY FIGURES

Sales:

€6.9 billion*

6.8%*

Group EBITDA contribution

Customers:

6 million(including gas)**

Employees:

9,336*

Installed capacity:

15.0 GWe **

Generation:

73.5 TWh **

* EDF Group contributive data.

** Source: EnBW 2007 annualreport.

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GERMANY MARKET 74.75EDF - 2007 ANNUAL REPORT

Results trending steadily higher EnBW, the incumbent operator in theBaden-Wurtenberg region, has a balancedmodel that combines electricity generation,transmission-distribution, trading andelectricity and gas sales and marketing.The company further reduced its net debtin 2007.Having successfully completed the€1 billion TopFit cost-cutting programbetween 2003 and 2006, EnBW launchedOperative Exzellenz in 2007. The goal is tooptimize operating processes throughactive involvement of all parties, and thusgenerate sustainable gains.

Building on the generation fleet EnBW has a balanced generation mix that emits less CO2 than other Germanelectricity companies. It relies on nuclearand hydro for base load production andcoal-fired plants for base load andsemi-base load, and meets peak demandwith gas- and oil-fired facilities andpumping stations. The company is boostingits hydro generation with the Rheinfeldenplant which will come on stream by 2010and whose capacity will increase from26 MW to 100 MW.EnBW is adding to its electricity generationcapacity as well, following the decisionmade late in 2006 to build a 900 MW coal-fired plant at Karlsruhe, where it may also build a gas-fired facility. In addition, the company has plans to investin geothermal. The supply contract signedwith STEAG (in the Ruhr) guarantees theavailability of 250 MW of generation capacity over 20 years starting in 2010.EnBW intends to expand in Eastern Europeand Turkey.

EnBWDelivering results

EnBW, the third-ranked energy player in Germany, reaped the benefits in 2007 of several years of cost-cutting and a relatively buoyant market, where prices remained high. The year’s particularly positive results were made possible by efficient generation facilities and a dynamic sales andmarketing strategy.

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Hans-Peter VillisEnBW, President of the Executive Board

In a very competitive market and tight environment, EnBW wasable to improve its performancethrough a proactive selling policysupported by highly creative marketing.”

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>EnBW

EnBW Tradinga leading player in the Germanpower exchange

140 electricity distribution

concession contractsrenewed in 2007

Dynamic sales and marketing in a highly competitive environment

Progress made in 2007EnBW sold 140 TWh of electricity to 6 million customers in 2007, in a highlycompetitive market in which resellers aregathering momentum. It won more than150,000 new customers in all, includinglarge industrial users like Daimler andBosch, as well as major cities like Stuttgart. Thanks to the joint selling strategy with EDFfor large industrial users, EnBW won contracts for the German facilities of steelproducer Riva, representing total electricitysupply of 3,500 GWh in 2008 and 2009.

An innovative marketing approachEnBW is pursuing a multi-brand approach,competing under the EnBW brand in theBaden-Wurtenberg region, the Yello brandin the residential market across Germany,Watt in the SME market and Naturenergie forelectricity generated using renewable sources. Yello enjoys strong brand recognition andserves 1.4 million customers in Germany. InSeptember, it also entered into the highly

competitive and fully deregulated Swedishmarket.EnBW’s sales and marketing strategy isbased on differentiation through services.EnBW and Yello are testing smart metersthat allow customers to track their electrici-ty consumption on line, thus paving theway for the development of new, innova-tive products and services.

A major player in electricity and gas transmission and distribution EnBW owns and operates the electricitytransmission network (380-220 kV) in theBaden-Wurtenberg region and managesinterconnections with the other networks.Since it owns most of the high and mediumvoltage network (110 kV – 20 kV) in itshistoric market, it is also very active indistribution (20 kV – 400 V). Most ofconcession contracts signed by EnBWshould be renewed between 2008 and2012, thanks to a structured action planimplemented over several years now. EnBW also holds stakes in some50 Stadtwerke1 and local companies that operate distribution networks.

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EnBW smart meters will allow customers to monitor their energy consumption on line.

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GERMANY MARKET 76.77EDF - 2007 ANNUAL REPORT

Early in 2007, EnBW strengthened itspositions in the Baden-Wurtenberg regionand Eastern Saxony by lifting its stakes inthree local supply companies: ErdgasSüdwest (to 79%) Énergie Sachsen Ost (to64.84%) and Gasversorgung Sachsen OstWärmeservice (to 100%).Like the competition, EnBW was hit in2006 by an 8% cut in access tariffs for itselectricity transmission network. Accesscharges for its electricity distributionnetwork were reduced by 14% andcharges for access to the gas distributionnetwork by 17%.

Securing gas supply at competitiveprices

Investing in infrastructure EnBW is involved in this market via EnBWTrading, which expanded its activities in2007 to include physical trading of gas inGermany and neighboring countries and,more importantly, via GVS, a 50-50 JV withENI. With 1,892 km of gas pipelines and 90 million cubic meters of storage capacity,mainly in the Baden-Wurtenberg region,GVS sells gas exclusively to redistributors,and only counts a few industrial users asdirect customers. Faced with ever stiffer competition, EnBW isinvesting to gain access to gas at lower prices.To bolster its control over infrastructures, itsigned a memorandum of understandingwith 4Gas for the LionGas LNG terminalproject in Rotterdam, which is scheduled to

be operational in 2011. The agreement givesEnBW 15% of the facility with capacity rightsto 3 billion cubic meters of gas a year. EDF and EnBW entered into agreements inMay 2007 with IVG Immobilien to be jointinvestors in and have rights to store naturalgas (400 million cubic meters) in undergroundsalt caverns in Etzel starting in 2010. EDFand EnBW are also part of the consortiumbuilding the 56 km gas pipeline betweenthe Etzel storage site and the Dutch gastransmission network.

Yello’s new gas offerEnBW markets gas to residential customersin the Baden-Wurtenberg region primarilythrough EnBW Gas and ODR. In Saxonyand Dusseldorf, it works through ENSOErdgas GmbH and Stadtwerke Düsseldorf. Yello launched a new gas offer in October2007, solely in Nuremberg (Bavaria) andEssen (North-Rhine Westphalia) for now,these being large local markets with favorableconditions for new entrants. Yello’s newcustomers have access to smart meters.

1. Municipal utilities.

NUCLEAR

The International AtomicEnergy Agency (IAEA) conducted an Osart2 reviewat the Neckarwestheimnuclear plant in October2007. EnBW is the onlynuclear operator in Germany to have had all of its operating unitsinspected by the IAEA in recent years.

2. Osart: Operational SafetyReview Team, inspectionconducted by the InternationalAtomic Energy Agency.

Total14,963

INSTALLED CAPACITY (in MW)

4,842 (32.4%)NUCLEAR *

86 (0.6%)OTHER RENEWABLEENERGIES 3,415 (22.8%)

HYDROPOWER

6,620 (44.2%)

CLASSICAL FOSSIL- FIRED

*Including EDF contracts.

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2007 Further improvementin the financial situation and marginexpansion over the year _

150,000new customers_

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Source: EnBW 2007annual report.

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> KEY FIGURES

Sales:

€4.7 billion*

6%*Group EBITDA contribution

Electricity and gas customers:

187,000**

Employees:

1,449 *Installed capacity:

12.5 GW**

Generation:

53.3 TWh**


** Edison sources.

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Combined cycle power station at Altomonte.

ITALY MARKET 78.79EDF - 2007 ANNUAL REPORT

A key player in the Italian electricity market EDF owns 48.96% from Edison alongsideA2A, which was born from the merger of municipal utilities Milan AEM and ASMBrescia. Edison generates, imports and markets electricity and produces hydrocarbons (natural gas and oil).

Number two in generation

A state-of-the-art and powerful fossil-fired generation fleetWith the start-up of the Simeri Crichi850 MW CCGT in Calabria and Edipower’sTurbigo facility (850 MW, 50% owned byEdison), Edison completed during the year the program voted in 2001 to add7,000 MW to its electricity generationcapacity. The program, one of the mostambitious seen in the European energysector in the last decade, involvedconnecting eight CCGTs, of which twoowned by Edipower, to the network. The units give Edison a modern, competitiveand safe fleet that meets over 15% of Italy’s electricity generation needs.

EdisonMeeting targets with upgraded industrial facilities

Edison is reaping the benefits of its efforts to upgrade and expand its generation facilities. Strengthened by theseinvestments, the company is pursuing a strategy designed to control the entire gas supply chain, develop renewableenergies and participate in the EDF Group’s geographicexpansion in Southeast Europe and particularly in Turkey.

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Umberto QuadrinoEdison, CEO

Edison will gear its investmentin generation assets towardrenewable energies and hydrocarbon exploration and production to bolster its reserves. The focus willalso be on importing gas tomeet the needs of the CCGTplants and respond to growing demand in Italy.”

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>EDISON

As part of the refocus on marketablegeneration, Edison sold seven small, olderfacilities late in the year (540 MW ofcombined capacity, devoted to subsidizedgeneration).Edison is also developing renewableenergies. A total 10 MW of wind powerwere brought on stream in 2007, a further84 MW are being built, and constructionpermits have been obtained for 30 more.

Expansion in GreeceIn July 2007, Edison set up a 50-50 jointventure with Greece’s Hellenic Petroleum. The JV will have a CCGT (over 390 MW)already in operation and another 400 MWunit that Edison is developing in Thisvi. It is considering building a coal-fired plantin Astakos. Edison is thus capitalizing onthe deregulation of the Greek market andaims to become the country’s secondlargest player by generation volume.

270 MWof wind power

57% efficiency rating for the CCGT plant at Simeri Crichi equipped with latest generation gas turbines

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Optimizing sales Electricity prices are particularly high in Italy,which is the European Union’s fourthlargest market and growing fast.Inadequate interconnection is preventingthe country from taking full advantage of the European market. Supply hasnonetheless been secured thanks to thesignificant investments national operatorshave made in generation capacity. Edison succeeded in optimizing its sales inItaly in 2007 by reorganizing its customersegmentation. Total sales amounted to63.6 TWh, of which 41.2 TWh on the openmarket (27.5 TWh to customers includingresellers and 13.7 TWh on the powerexchange). The remaining 22.4 TWh weresold on the regulated market).

Italy’s third leading gas supplier

Developing infrastructure for secure supply Edison powered ahead in 2007 with itsstrategy of securing supply, positioningitself to take full advantage of increasingdemand in Italy. Its projects are in keepingwith the EDF Group’s gas strategy forEurope. Edison is taking part in developing theoffshore LNG terminal at Rovigo.Construction of the facility is beingcompleted in Algeciras, Spain, and it will beinstalled mid-2008, 15 km off the coast ofRovigo. It will have an annual regasificationcapacity of 8 billion cubic meters, of whichEdison will market 6.4 billion cubic meters.Edison has finished building the pipelinethat will carry the gas from the Rovigoterminal to the public network. The Galsi pipeline (900 km) designed toimport Algerian gas to Tuscany via Sardinia is also on track to be in service by 2012.Edison, the main Italian partner in theproject, will sell 2 billion cubic meters ofgas supplied by Algeria’s Sonatrach annually. The ITGI pipeline linking Turkey, Greece andItaly is also expected to be ready to bring

Edison has gas storage sites at Collalto and Cellino Attanasio (shown here). A third is being planned.

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ITALY MARKET 80.81EDF - 2007 ANNUAL REPORT

gas from the Caspian Sea Basin by 2012. Edison has already secured access to 80% of the transmission capacity of theGreece-Italy segment.

Bolstering storage Edison has two underground gas storagefacilities at Collalto and Cellino andreceived administrative authorization in 2007 to build a third facility atSan Potito-Cotignola.

Relying on exploration and production to boost own reserves Edison is stepping up its exploration andproduction in Algeria, where six appraisalwells were drilled in 2007, and in Croatia,where it has plans to develop an offshorereservoir. It also won a new concession in the Ivory Coast. Working with internationalpartners, Edison obtained five explorationlicenses in Norway, and is cooperating withPetrobras on a deep offshore explorationproject in Senegal. Edison invested some €58 million in exploration in 2007, of which €3 million in Italy and €55 million in other countries,

chiefly Algeria (three wells drilled), the IvoryCoast (one drilling project) and Senegal(acquisition of a seismic survey). Edison was also issued another exploratory blockin Egypt.

A new phase of development from 2013 In November, the Edison Board of Directorsapproved the industrial plan for 2008-2013calling for investments totaling €6.2 billion. Of this, €3.2 billion will be devoted tosecurity of supply, including €2 billion forboosting production and reserves. The goalis for the gas-fired units to be completelyautonomous and highly flexible and, mostimportantly, to gain access to natural gas atcompetitive prices for customers in Italy, inanticipation of a sharp increase in demand. The remaining €3 billion will be invested in electricity generation in Italy and elsewhere, mainly Greece and the Balkans,with an emphasis on renewable energies (€1 billion, wind power and hydro). By 2013, Edison plans to have 2,700 MW of renewable energy capacity.

17.7% of Italian electricity market _

Positive trend in financialresults _

Completion of investment program(7,000 MW)_

Edison and EDF R&D are working together on a program devoted to energy efficiency and transportation.

FENICE

Fenice, a wholly-owned EDFsubsidiary, markets energyefficiency services in Italy andis developing cogenerationfacilities. Its long-standingcontracts with the Fiat Grouphave been extended to theend of 2012. Fenice iscontinuing to expand on theItalian and Spanish industrialcogeneration markets,winning three installationcontracts during the year inItaly – Ecoespanso (30 MW),Comais (3 MW) and Ergom(5 MW) – and one in Spain for Colortex (12 MW).

2.2 Gm3of total storage capacity by 2012

39.7 billion cubic meters of hydrocarbon reserves (vs. 30 in 2006)

Total12.5

2007 INSTALLED CAPACITYOF THE EDISON GROUP (with Edipower) in GW

> 2007 GENERATION OF THE EDISON GROUP (with Edipower) in TWh

>

1.8 (14%)HYDROELECTRIC

0.3 (3%)

WIND POWER

Total53.3

3.7 (7%)

HYDROELECTRIC

0.5 (1%)

WIND POWER10.4 (83%)

THERMOELECTRIC

49.1 (92%)THERMOELECTRIC

R&D>

>

> KEY FIGURES

Sales:

€6.2 billion*

10.9%Group EBITDA contribution*

Customers:

1,113,868*

Installed capacity:

3,949 MW*

Generation:

20,461 GWh*

Network repair work being done by Demasz, Hungary.

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Other European countriesMaking progress in deregulated markets

The EDF Group is adding to its positions on several WesternEuropean markets and continuing to revamp its generationfacilities in Poland and Hungary. The distribution subsidiariesand affiliates in Hungary and Slovakia were well prepared formarket opening.

>

BENELUX: investing in generationand sales growth In 2007, EDF and Delta NV set up a 50-50JV in the Netherlands, Sloe Centrale BV, to build and operate an 870 MW naturalgas-fired plant. Construction got underwayin the spring of 2007 and the unit shouldbe commissioned in 2009.In Belgium, EDF Belgium is taking part inthe generation and sales and marketingactivities of the EDF Group, which hasguaranteed capacity of 419 MW via its50% stake in the Tihange 1 nuclear powerplant. In May 2007, an IAEA Osart reviewconfirmed the quality and safety of theplant’s operations. EDF Belgium is focusing

its sales and marketing efforts on businessusers. Its electricity sales climbed to 3.6 TWhover the year. Following a successfulexperiment with gas sales in 2006, thecompany launched into this activity in 2007and sold 0.2 TWh of gas to business usersduring the year.

SPAIN: supplying twice as many sites Hispaelec Energia, a wholly-owned EDFsubsidiary, offers electricity supply servicesand tailored advice to its customers, morethan 60% of which are large Europeangroups. The number of sites supplieddoubled between 2006 and 2007, liftingsales volumes to 528 GWh.

Gérard WolfSenior Executive Vice President,International Operations

Our Group is rooted in Europeand generates the bulk of itsbusiness there. We had pre-pared for the opening of elec-tricity and gas markets and thecreation of the single market,which will be a source of newopportunities for us.”


>

12%GERMANY

8%ITALY

2%REST OF THE WORLD

54%FRANCE

14%UNITED KINGDOM

10%OTHER EUROPEANCOUNTRIES

“

OTHER EUROPEAN COUNTRIES MARKET 82.83EDF - 2007 ANNUAL REPORT

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SWITZERLAND: a central location Located at the heart of electricityexchanges in Europe and offeringsignificant peak hydro generation capacity,Switzerland is industrially strategic for EDF and will be even more so when theelectricity sector is opened to competitionin 2008. EDF owns stakes in hydro facilitiesand in Atel Holding, which is activethroughout Europe in electricity generation,trading and distribution and in theinstallation of energy systems.EDF is pursuing negotiations with its Swisspartners to create the leading energycompany in Western Switzerland by 2009.

HUNGARY: posting good results in an open market The EDF Group is active in Hungary throughDemasz and BERt.Demasz distributes electricity to 770,800customers and sells on the open market(1.4 TWh) and under regulated tariffs(3.4 TWh). On January 1, 2007, itunbundled its distribution and sales andmarketing activities before the legaldeadline.BERt covers 60% of Budapest’s urbanheating needs with three recent CCGTplants (410 MWe). It was able to limit thenegative impact of the drop in heatingneeds owing to an unusually warm winter.On the other hand, sales increased over an exceptionally hot summer, during whichthe company focused on productivity andenergy eco-efficiency, reducing its fuelconsumption and carbon emissions by anaverage 10%. BERt benefited from thegradual opening of the Hungarian gasmarket by negotiating a first contract, whichhas translated into substantial savings.

SLOVAKIA: gathering sales momentumSSE (49% EDF) distributes and sells electricityto 699,600 customers in Central Slovakia. In July 2007, it unbundled its distributionand sales and marketing activities and created SSE-Distribution. The opening of the residential market has given SSE freshsales momentum. The company is also very active in carbon allowance trading. SSE established a foothold in the CzechRepublic by winning an international call fortenders launched by Metro, one of the EDFGroup’s largest European customers. SSE willsupply all of Metro’s sites in that country aswell as in Slovakia (80 GWh in 2008). It iscontinuing to fulfill large sales contractssigned with customers like PSA and KiaMotors, focusing on service quality. Qualityof supply at the distribution businessimproved sharply in 2007.SSE is planning to build gas turbines toprovide adjustment services to SEPS, whichmanages the electricity network in Slovakia.

POLAND: Investing in the environment The Polish market was fully opened tocompetition in July 2007, and Everen is nowthe sole marketer of electricity generated bythe Group’s five plants in that country. Following in the footsteps of ERSA andKogeneracja SA in 2006, EC Krakow nowhas a biomass co-combustion facility. TheGroup’s plants were thus able to deliver176 GWh of green energy in 2007. The construction of ERSA’s wet desulfurizationsystem is advancing according to schedule,and EC Krakow, Kogeneracja SA and ECWybrzeze’s cogeneration facilities have beenusing low-sulfur coal since 2007. Efforts toimprove productivity allowed the Polishplants to boast improved results in 2007.

>OTHER EUROPEAN COUNTRIES

Atel Holding

1,567 MW in Switzerland

1,323 MW in Italy

824 MW in Central and Eastern Europe

SSE-DistributionIncident-related outages

down 20%(average duration and frequency)

+25.5% (organic)Dynamic sales growth in Hungary driven by price increases.—

Outages due toscheduled work

down 40%

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The EDF Group is ISO 14001 certified. · Number of low-energy light bulbs distributed by EDF and its partners in Martinique, Guyana and Reunion Island 3,000 Smart meters installed