EDF / 2019 Universal registration document

1. The Group, its strategy and activities Description of the Group’s activities

EDF Energy nuclear generation’s strategy for LLW and HAW reflects that the UK and Scottish governments are focused on application of the waste hierarchy (reduce, reuse¸ recycle, recover). The use of a range of waste recycling and disposal routes will help to make the best use of the UK’s Low Level Waste Repository (LLWR) in Cumbria. Only a disposal route for LLW currently exists in the UK. HAW is stored for the medium-term in safe, purpose built facilities at EDF Energy’s stations while longer term national solutions are being established within England and Scotland. Under historic contractual arrangements, spent fuel from the AGRs is transported to Sellafield nuclear reprocessing site (owned by NDA) for reprocessing or long term storage. Heat generating HAW from the reprocessing of spent AGR fuel are converted into glass blocks for safe, long term storage. Regarding Sizewell B, the spent fuel is stored on site and EDF Energy has built a further spent fuel dry storage facility on the Sizewell B site to allow the station to continue to safely store all of the spent fuel that will be generated over Sizewell B’s life. Following long-term surface storage, the Sizewell B PWR spent fuel will be disposed to a future UK geological disposal facility. The nature of EDF Energy nuclear generation’s business and its historic government link means that the strategy for spent fuel and the management of radioactive waste from EDF Energy nuclear generation’s power stations is approved by the NDA. However, EDF Energy has policies to continually improve and minimise the spent fuel and waste arising through the company’s wider safety, sustainability and environmental policies. Restructuring Agreements were originally entered into in 2005 as part of the restructuring of the former British Energy Group of companies in order to stabilise its financial situation. Since the acquisition of British Energy by EDF, EDF Energy Nuclear Generation Limited is a beneficiary of these agreements. By virtue of these restructuring agreements: the Nuclear Liabilities Fund (NLF), an independent trust set up by the UK ■ government, 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 Costs relating to radioactive waste management and decommissioning – Restructuring Agreements

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. 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. EDF Energy and the British authorities began discussions in 2019 to clarify the terms for implementing certain agreements concluded in January 2005 when British Energy was restructured, particularly the Nuclear Liabilities Funding Agreement (NLFA), in view of future nuclear plant closures. The purpose of these discussions is to have a more detailed definition of the dismantling costs to be recovered by EDF Energy from the Nuclear Liabilities Fund (and potentially from the UK Treasury which guarantees the NLF), and of the conditions in which the British authorities can exercise their option to purchase the nuclear power plants after the defueling phase (a right governed by the Option Agreement). A set of principles was agreed in 2019 as a result of these discussions, which are continuing with a view to achieving comprehensive binding agreements. EDF Energy is drafting a modification for the Baseline Decommissioning Plan (BDP), which was approved in 2017 and is currently in force, in order to reflect the proposed change in the division of liability between EDF Energy during the defueling phase and the NDA (Nuclear Decommissioning Authority), a public body, during the decommissioning phase. In the first stage, concerning updating the estimated cost of removing the fuel, EDF Energy filed its Decommissioning Plan in January 2020 and the NDA’s response is expected in April 2020. The second stage, concerning updating the estimated cost of decommissioning, is expected to take place in 2021. This work led to an upward revision of the provision for decommissioning at the end of 2019. The receivable representing the reimbursements to be received from the NLF has increased by the same amount.

Thermal generation and gas storage 1.4.5.1.2.2

Output (in TWh)

Year commissioned

Number of units

Type of station

Capacity (in MW)

2019

Power Plant

Location

2018

Cottam

Nottinghamshire

1970

4

Coal-fired

2,000

1.7

2.7

Coal-fired and OCGT  (1)

West Burton A

Nottinghamshire

1969

4

1,987

0.8

1.8

Combined Cycle Gas Turbine

West Burton B

Nottinghamshire

2013

3

1,332 5,319

6.2 8.6

6.8

TOTAL  (2)

UK

11

11.3

Open Cycle Gas Turbine. (1) Differences in total number due to the rounding. (2)

60

EDF | Universal registration document 2019

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