EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

Provisions related to nuclear generation and dedicated assets Note 15

Accounting principles and methods The Group recognises provisions when it has a present obligation (legal or constructive) arising from a past event, an outflow of resources will probably be required to settle the obligation, and the obligation amount can be estimated reliably. If it is anticipated that all or part of the expenses covered by a provision will be reimbursed, the reimbursement is recognised under receivables if and only if the Group is virtually certain of receiving it. Provisions are determined based on the Group’s expectation of the cost necessary to settle the obligation. Estimates are based on management data from the information system, assumptions adopted by the Group, and if necessary, experience of similar transactions or operations, based on Provisions related to nuclear generation mainly cover the following: back-end nuclear cycle expenses: provisions for spent fuel management, for waste ● removal and conditioning and long-term radioactive waste management are established in accordance with the obligations and final contributions specific to each country; costs for decommissioning power plants; ● costs relating to fuel in the reactor when the reactor is shut down (provisions for ● last cores). These correspond to the cost of the fuel stock in the reactor that is not

independent expert reports, or contractor quotes. The various assumptions are reviewed for each closing of the accounts. In the case of decommissioning provisions for power plants in operation, adjustments are recorded via fixed assets. The discount effect generated at each closing to reflect the passage of time is recorded under “Discount effect” in financial expenses. Changes in provisions resulting from a change in discount rates, a change in the disbursement schedule or a change in contractor quote are recorded: as an increase or decrease in the corresponding assets, up to the net book ● value, if the provision was initially covered by balance sheet assets; in the income statement in all other cases. ●

totally spent at the time of the final reactor shutdown and cannot be reused due to technical and regulatory constraints, the cost of processing for that fuel, and the cost of removal and storage of the resulting waste. Obligations can vary noticeably depending on each country’s legislation and regulations, and the technologies and industrial scenarios involved.

The breakdown between current and non-current provisions related to nuclear generation is as follows:

31/12/2020

31/12/2019

Current Non-current

Total

Current Non-current

Total

(in millions of euros)

Provisions for the back-end of the nuclear cycle Provisions for decommissioning and last cores Provisions related to nuclear generation

1,430

26,137 32,196 58,333

27,567 32,919 60,486

1,432

23,822 31,761 55,583

25,254 32,125 57,379

723

364

2,153

1,796

The breakdown of provisions by company is shown below:

EDF Note 15.1

EDF Energy Note 15.2

Belgium Note 15.3

Total

(in millions of euros)

Provisions for spent fuel management

11,322

1,286

- -

12,608

Provisions for waste removal and conditioning

-

546

546

Provisions for long-term radioactive waste management

13,300

1,106

7

14,413

PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2020 Provisions for the back-end of the nuclear cycle at 31/12/2019

24,622 22,159 17,489

2,938 3,088 10,170

7 7

27,567 25,254 28,036

Provisions for nuclear plant decommissioning

377

Provisions for last cores

2,711

2,172

-

4,883

PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2020 Provisions for decommissioning and last cores at 31/12/2019 PROVISIONS RELATED TO NUCLEAR GENERATION AT 31/12/2020 Provisions related to nuclear generation at 31/12/2019

20,200 19,561

12,342 12,195

377 369

32,919 32,125

44,822 41,720

15,280 15,283

384 376

60,486 57,379

365

EDF - UNIVERSAL REGISTRATION DOCUMENT 2020