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Business Case

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RTE – socio-economic impacts

  • 1/ Context

    Beyond the service it provides to French companies by managing the network transporting electricity, RTE also supports the French economy through its expenditures, salaries and taxes. Therefor it seemed necessary for RTE to be able to measure the impact of its flows directly injected to the economy and decipher local and national reaches, sector by sector.

    In order to assess the socio-economic contribution of its activities in the 13 French regions and nationwide, RTE has worked with Utopies to quantify its direct, indirect and induced effects.

    By decrypting how its activity influences job and wealth creation all the way down to the economic grassroots level, RTE improves on the comprehension of its business model.

  • 2/ Mission

    The direct impact, indirect impact (resulting for RTE’s supply chain) and induced impact (resulting from households consumption and government expenditure) of RTE’s activity in France have been estimated by the LOCAL FOOTPRINT® tool, developed by Utopies, which is the first model in the world enabling an analysis of socio-economic impacts on a global scale.

    The mission consisted in :

    • understanding the flows injected directly by RTE in the French economy (through its expenditures, salaries, taxes, and value added)
    • measuring the economic impacts of these flows, in terms of sectors and regions using the LOCAL FOOTPRINT® tool 
    • breaking down the economic consequences by of impacts (direct, indirect, induced) and in terms of two key indicators : number of job sustained and the contribution to GDP produced
    • assisting RTE in the comprehension and appreciation of its French and local socio-economic footprint
  • 3/ Results

    This study gives a clear and complete picture of RTE’s impact by going beyond its direct effects: the socio-economic footprint also includes the impact of RTE on its supply chain and on the local economy.

    This study enabled measuring RTE’s different impacts in France and in the 13 regions for the year 2014:

    • RTE sustains around 73,880 jobs and contributes to produce 7Bn€ of GDP. Hence, for one job directly created by RTE, 7.3 jobs are sustained in the French territory.
    • Île-de-France together with Auvergne-Rhône-Alpes both concentrate 45% of the job sustained and 45% of the GDP produced by RTE’s activity.
    • RTE’s expenditures for its supply chain amounted to 1.7Bn€ in 2014, mainly in construction and electricity. Apart from the electricity sector; public services, healthcare and education are sectors benefiting the most of the indirect and induced impacts of RTE’s activities.