EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Operating assets and liabilities, equity

PROVISIONS RELATED TO NUCLEAR GENERATION – NOTE 29 BACK-END OF THE NUCLEAR CYCLE, PLANT DECOMMISSIONING AND LAST CORES

Provisions related to nuclear generation comprise provisions for back-end nuclear cycle expenses (management of spent fuel and radioactive waste), provisions for plant decommissioning and provisions for last cores. Provisions are estimated under the principles presented in note 1.3.2.2.

Obligations can vary noticeably depending on each country’s legislation and regulations, and the technologies and industrial practices used in each company. The movement in provisions for the back-end of the nuclear cycle, provisions for decommissioning and provisions for last cores breaks down as follows:

Discount effect

Translation adjustments

Other movements

31/12/2017

Increases Decreases

31/12/2018

(in millions of euros)

Provisions for spent fuel management Provisions for waste removal and conditioning

12,353

500

(1,204)

748

(12)

(223)

12,162

1,041

12

(29)

59

(3)

40

1,120

Provisions for long-term radioactive waste management Provisions for the back-end of the nuclear cycle

9,463

42

(231)

859

(6)

468

10,595

22,857

554

(1,464)

1,666

(21)

285

23,877

Provisions for nuclear plant decommissioning Provisions for last cores

21,431

52

(162)

1,083

(57) (13)

693

23,040

3,891

-

-

166

60

4,104

Provisions for decommissioning and last cores

25,322

52

(162)

1,249

(70)

753

27,144

PROVISIONS RELATED TO NUCLEAR GENERATION

48,179

606

(1,626)

2,915

(91)

1,038

51,021

The change in provisions related to nuclear generation in 2018 is mainly due to a (€1,169 million) for changes in provisions with related assets (assets associated with lower discount rate in France and the United Kingdom. The corresponding effects provisions and underlying assets in France; the NLF receivable in the United are included in the “Discount effect” (€835 million) for provisions with Kingdom). corresponding entries in the income statement, and in “Other movements”

The breakdown of provisions by company is shown below:

EDF EDF Energy

Belgium

Total

Note 29.1

Note 29.2

(in millions of euros)

Provisions for spent fuel management

10,698

1,464

- -

12,162

Provisions for waste removal and conditioning

751

369 743

1,120

Provisions for long-term radioactive waste management

9,846 21,295 20,326 15,985 2,526 18,511 17,307

6 6 4

10,595 23,877 22,857 23,040 4,104 27,144 25,322

2,576 2,527 6,754 1,578 8,332 7,737

PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2018 Provisions for the back-end of the nuclear cycle at 31/12/2017

Provisions for nuclear plant decommissioning

301

Provisions for last cores

-

301 278

PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2018 Provisions for decommissioning and last cores at 31/12/2017

NUCLEAR PROVISIONS IN FRANCE 29.1 In France, the provisions established by EDF SA for the nuclear generation fleet result from the Law of 28 June 2006 on long-term management of radioactive materials and waste, and the associated implementing provisions concerning secure financing of nuclear expenses. In compliance with the accounting principles described in note 1.3.2.2. EDF books provisions to cover all obligations related to the nuclear facilities it ■ operates; EDF holds dedicated assets for secure financing of long-term obligations (see ■ note 45).

The calculation of provisions incorporates a level of risks and unknowns as appropriate to the operations concerned. The valuation of costs carries uncertainty factors such as: changes in legislation, particularly regarding safety, security and environmental ■ protection, and financing of nuclear expenses; changes in the regulatory decommissioning process and the time necessary for ■ issuance of administrative authorisation; future methods for storing long-lived radioactive waste and provision of storage ■ facilities by the French agency for radioactive waste management ANDRA (Agence nationale pour la gestion des déchets radioactifs); changes in certain financial parameters such as discount rates, notably in view of ■ the regulatory limits, inflation rates, or changes in the contractual terms of spent fuel management.

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EDF I Reference Document 2018