EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

32.2

EDF Energy’s nuclear provisions

The specific financing terms for long-term nuclear obligations related to EDF Energy are reflected as follows in the EDF group’s financial statements: the obligations are reported in liabilities in the form of provisions amounting to ■ €15,282 million at 31 December 2019; in the assets, EDF Energy reports receivables corresponding to the amounts ■ payable under the restructuring agreements by the NLF, for non-contracted obligations or decommissioning obligations, and by the British Government for contracted obligations (or historical liabilities).

These receivables are discounted at the same real rate as the obligations they are intended to finance. They are included in “Financial assets” in the consolidated balance sheet (see note 39.3) at the amount of €13,303 million at 31 December 2019 (€9,220 million at 31 December 2018). 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*

31/12/2019

31/12/2018

Increases

Decreases

(in millions of euros)

Provisions for spent fuel management Provisions for waste removal and conditioning 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 PROVISIONS RELATED TO NUCLEAR GENERATION Provisions for last cores

1,464

13

(202)

61

74

93

1,503

369

3

-

15

23

122

532

743

3

-

30

46

231

1,053

2,576

19

(202)

106

143

446

3,088

6,754 1,578

- -

(33)

280

444

2,858

10,303

-

70

88

156

1,892

8,332

-

(33)

350

532

3,014

12,195

10,908 15,283 Other movements include the change in nuclear liabilities, with an equivalent change in the receivable corresponding to amounts reimbursable by the NLF * (Nuclear Liabilities Fund) and the British government. This change results from the €1,347 million decrease in the discount rate and the €1,994 million effect of revision of assumptions used to calculate nuclear obligations (see note 32.2.3). 19 (235) 456 675 3,460

32.2.1

Regulatory and contractual framework

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 2019; £150,000 (indexed to inflation) per tonne of uranium loaded in the Sizewell B ■ reactor after the date of the “restructuring agreements”.

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

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EDF | Universal registration document 2019