Updates: last update's detail

From now on, RTE's accounts are separated from EDF's accounts

Source: RTE 29/03/2001

RTE's unbundled accounts have been approved by EDF's Board of Directors and confirm the independence of the French Power Transmission System Operator.

Towards RTE's accounting and financial independence

The Europe of electricity is being set up in stages. In France, the accounting and financial independence of the Power Transmission System Operator, RTE, is the result of the European Directive 96.92 and of the Act of 10 February 2000. This independence is a key element for transparency in matters concerning competition. Today, unbundled accounts between three EDF activities (generation, transmission with RTE, distribution) have been proposed to the company's Board of Directors. RTE's opening balance sheet, resulting from these unbundled accounts, will be approved at a later time by the Electricity Regulation Commission, after advice given by the Competition Committee.

Already independent of EDF from the managerial standpoint, all that was lacking for RTE was to obtain its effective accounting and financing independence so as to be able to fully carry out a corporate activity. The process is now under way with RTE's opening balance sheet proposal presented by EDF.

This accounting framework has been defined while taking into account the objectives laid down by the Electricity Regulation Commission:
Provide the new entity with all the assets so as to benefit from a satisfactory financial structure and one that is comparable to that of the other network operators in Europe;
Enable RTE to fulfil its public service mission, by giving it the necessary financial capacity, with regard to the specific character of its activities.

In order to finance its assets (mainly the high and extra high voltage transmission network), RTE will feature a financial capacity amounting to FRF 25 billion in equity and FRF 55 billion in financial debt.

According to the standards selected by the European regulators, one may consider that this financial structure, with 70% of financial debt and 30% of equity, is satisfactory for a lower-risk, regulated natural monopolistic activity, such as power generation and commercialisation. Furthermore, considering the strategic character of its activity, RTE will benefit from the most favourable financial market access conditions.

RTE's economic profitability mostly comes from network access-related revenue, on the basis of a tariff covering the operating expenses and ensuring a 6.5% return on the capital invested.

The application of this tariff will make it possible to finance network development and reinforcement investments, while maintaining the quality of service.

For more information : press kit

Press Officer :
Michel DERDEVET 01 41 02 19 73