EDF / 2018 Reference document

6.

FINANCIAL STATEMENTS Operating assets and liabilities, equity

31/12/2018

31/12/2017

Costs based on year-end economic conditions

Costs based on year-end economic conditions

Amounts in provisions at present value

Amounts in provisions at present value

(in millions of euros)

Spent fuel management

2,665 1,856 3,645 8,166

1,464

2,829 1,827 3,589 8,245

1,567

Waste removal and conditioning

369 743

315 645

Long-term radioactive waste management BACK-END NUCLEAR CYCLE EXPENSES

2,576

2,527

29.2.3

Provisions for nuclear plant

basis of existing techniques and methods that are most likely to be used for application of current regulations. The current costs are based on Baseline Decommissioning Plans produced in 2016 (3-year revision) and approved in 2013 and assume that plants will be decommissioned and the land will ultimately be

decommissioning

Provisions for decommissioning of nuclear plants result from management's best estimates. They cover the full cost of decommissioning and are measured on the reused.

31/12/2018

31/12/2017

Costs based on year-end economic conditions

Costs based on year-end economic conditions

Amounts in provisions at present value

Amounts in provisions at present value

(in millions of euros)

15,741

6,637

15,520

6,111

PLANT DECOMMISSIONING EXPENSES

The table above concerns decommissioning obligations excluding the present value of decommissioning contributions payable to the NLF, which is €117 million at 31 December 2018 (see note 29.2.1).

Corporate bonds rated A to AA, again over the longest-term duration. The implicit inflation rate used in determining a discount rate is based on a long-term forecast of adjusted retail prices (the UK’s CPIH index). At 31 December 2018, EDF Energy applied a real discount rate of 2.5% to nuclear liabilities in the United Kingdom (2.7% at 31 December 2017).

29.2.4

Discounting of provisions related

to nuclear generation

The discount rate has been calculated using an average series of data for a sample of UK Government gilts over the longest available durations plus the spread of UK

OTHER PROVISIONS FOR DECOMMISSIONING NOTE 30

The breakdown by company is as follows:

Other entities (2)

EDF EDF Energy Edison Framatome (1)

Total 2,124 2,057

(in millions of euros)

658 626

132 130

716 692

350 347

268 262

OTHER PROVISIONS FOR DECOMMISSIONING AT 31/12/2018 (2) Other provisions for decommissioning at 31/12/2017

Including €78 million of provisions concerning basic nuclear facilities in France. (1) Including €46 million of provisions concerning SOCODEI’s basic nuclear facilities in France. (2)

Other provisions for decommissioning principally concern fossil-fired power plants, hydrocarbon production assets and installations for the production of nuclear fuel assemblies. The costs of decommissioning fossil-fired power plants are calculated using regularly updated studies based on estimated future costs, measured by reference to the

charges recorded on past operations and the most recent estimates for plants still in operation. The provision recorded at 31 December 2018 reflects the most recent known contractor quotes and commissioning of new generation assets.

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EDF I Reference Document 2018