EDF / 2018 Reference document

FINANCIAL STATEMENTS Operating assets and liabilities, equity

Details of changes in provisions for the back-end of the nuclear cycle and provisions for decommissioning and last cores are as follows:

Discount effect

Translation adjustments

Other movements (1)

31/12/2017 Increases Decreases

31/12/2018

(in millions of euros)

Provisions for spent fuel management

1,567

12

(218)

97

(12)

18

1,464

Provisions for waste removal and conditioning

315

2

-

16

(3)

39

369

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

645

2

-

33

(6)

69

743

2,527

16

(218)

146

(21)

126

2,576

Provisions for nuclear plant decommissioning Provisions for last cores

6,233 1,504

- -

(24)

322

(57) (13)

280

6,754 1,578

-

69

18

Provisions for decommissioning and last cores

7,737

-

(24)

391

(70)

298

8,332

PROVISIONS RELATED TO NUCLEAR GENERATION

10,264 10,908 Other movements include €404 million for the change in nuclear liabilities, reflecting the lower discount rate, with an equivalent change in the receivable (1) corresponding to amounts reimbursable by the NLF (Nuclear Liabilities Fund) and the British government. 16 (242) 537 (91) 424

6.

Regulatory and contractual framework 29.2.1 Amendments signed with the Nuclear Liabilities Fund (NLF – an independent trust set up by the UK Government as part of the restructuring of British Energy) following the EDF group’s acquisition of British Energy had a limited impact on the contractual financing commitments made to British Energy by the UK Secretary of State and the NLF under the “Restructuring Agreements”. These agreements were entered into by British Energy on 14 January 2005 as part of the restructuring led by the UK Government from 2005 in order to stabilise British Energy’s financial position. British Energy Generation Limited changed its name to EDF Energy Nuclear Generation Limited on 1 July 2011 and replaced British Energy in these agreements and amendments. Under the terms of the Restructuring Agreements: the NLF agreed to fund, to the extent of its assets: (i) qualifying contingent ■ and/or latent nuclear liabilities (including liabilities for management of spent fuel from the Sizewell B power station); and (ii) qualifying decommissioning costs for EDF Energy’s existing nuclear power stations; the Secretary of State agreed to fund: (i) qualifying contingent and/or latent ■ nuclear liabilities (including liabilities for the management of spent fuel from the Sizewell B power station) and qualifying decommissioning costs related to EDF Energy’s existing nuclear power stations, to the extent that they exceed the assets of the NLF; and (ii) subject to a cap of £2,185 million (in December 2002 monetary values, adjusted accordingly), qualifying known existing liabilities for EDF Energy’s spent fuel (including liabilities for management of spent fuel from plants other than Sizewell B loaded in reactors prior to 15 January 2005); EDF Energy is responsible for funding certain excluded or disqualified liabilities ■ (e.g. those defined as EDF Energy liabilities), and additional liabilities which could be created as a result of failure by EDF Energy to meet minimum performance standards under applicable law. The obligations of EDF Energy to the NLF and the Secretary of State are guaranteed by the assets of the principal members of EDF Energy.

EDF Energy also made commitments to pay: annual decommissioning contributions for a period limited to the useful life of ■ the plants as at the date of the “restructuring agreements”; the corresponding provision amounts to €117 million at 31 December 2018; £150,000 (indexed to inflation) per tonne of uranium loaded in the Sizewell B ■ reactor after the date of the “restructuring agreements”. Furthermore, EDF Energy entered into a separate contract with the Nuclear Decommissioning Authority (NDA) for management of AGR spent fuel and associated radioactive waste resulting from operation of power plants other than Sizewell B after 15 January 2005, and bears no responsibility for this fuel and waste once it is transferred to the processing site at Sellafield. The corresponding costs of £150,000 (indexed to inflation) per tonne of loaded uranium – plus a rebate or surcharge dependent on market electricity price and electricity generated in the year – are included in inventories (see note 1.3.17.1). nuclear cycle Spent fuel from the Sizewell B PWR (pressurised water reactor) plant is stored on site. Spent fuel from other plants is transferred to Sellafield for storage and reprocessing. EDF Energy’s provisions for the back-end of the nuclear cycle concern obligations for reprocessing and storage of spent fuel and long-term storage of radioactive waste, required by the existing regulations in the UK approved by the Nuclear Decommissioning Authority (NDA). Their amount is based on contractual agreements or if this is not possible, on the most recent technical estimates. Provisions for the back-end of the 29.2.2

387

EDF I Reference Document 2018