EDF / 2018 Reference document

FINANCIAL STATEMENTS Balance sheet

PROVISIONS RELATED TO NUCLEAR GENERATION - NOTE 28 BACK-END OF THE NUCLEAR CYCLE, PLANT DECOMMISSIONING AND LAST CORES

changes in the regulatory decommissioning process and the time necessary for ■ issuance of administrative authorisations; 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.

The provisions established by EDF 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 1.15: 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 38). The calculation of provisions incorporates a level of risks and unknowns that depend on the operations concerned. The valuation of costs also carries uncertainty factors such as: changes in legislation, particularly regarding safety, security and environmental ■ protection, and financing of nuclear expenses;

6.

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

Other changes (2)

Increases

Decreases

31/12/2017

Operating Financial (1)

Utilisation Reversals

31/12/2018

(in millions of euros)

Provisions for spent fuel management Provisions for removal and conditioning of waste Provisions for long-term radioactive waste management Provisions for the back-end of the nuclear cycle Provisions for nuclear plant decommissioning Provisions for decommissioning and last cores TOTAL PROVISIONS RELATED TO NUCLEAR GENERATION Provisions for last cores

10,786

488

651

(784)

(202)

(241)

10,698

726

10

43

(29)

-

1

751

8,814

38

826

(231)

-

399

9,846

20,326

536

1,520

(1,044)

(202)

159

21,295

14,920

52

752

(138)

- -

399

15,985

2,387

-

97

-

42

2,526

17,307

52

849

(138)

-

441

18,511

37,633 39,806 The discount effect comprises the €1,534 million cost of unwinding the discount, and the effects of the change of real discount rate in 2018, recognised via the (1) income statement for provisions with no related assets (€835 million) (cost of unwinding the discount). Other changes mainly include: (2) - reclassification of the provision covering interim storage of waste resulting from spent fuel processing as part of the provision for long-term radioactive waste management (€298 millon); - the effects of the change of real discount rate at 31 December 2018 for provisions with related assets (€718 million). 588 2,369 (1,182) (202) 600

Concerning non-EDF installations: EDF, COGEMA (now Orano Cycle) and the French Atomic Energy Commission ■ (Commissariat à l’énergie atomique or CEA) signed an agreement in December 2004 which transferred the management and financing of final shutdown, decommissioning and waste recovery and reconditioning for the UP1 reprocessing facility at Marcoule to the CEA. In return, EDF paid the CEA a one-time financial contribution covering its full share of the cost of outstanding operations, while remaining the owner of its final waste and bearing only the transport and storage costs;

EDF, AREVA and AREVA NC (now Orano Cycle) signed two agreements in ■ December 2008 and July 2010 defining the legal and financial terms for the transfer to AREVA NC of EDF’s contractual obligations regarding its financial contribution to the dismantling of La Hague installations and the recovery and conditioning of waste. In application of those agreements, EDF paid AREVA NC a one-time financial contribution covering its full share of the cost of outstanding operations, while remaining the owner of its final waste and bearing only the transport and storage costs.

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EDF I Reference Document 2018