EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

15.1

Provisions related to nuclear generation and dedicated assets in France

In compliance with the accounting principles described above: EDF books provisions to cover all obligations related to the nuclear facilities it ● operates; EDF also holds dedicated assets for secure financing of long-term obligations (see ● note 15.1.2). The calculation of provisions incorporates a level of risks and unknowns as appropriate to the operations concerned. The valuation of costs carries uncertainty factors such as described in note 1.3.4.2.

15.1.1

Nuclear provisions

In France, the provisions established by EDF SA for the nuclear generation fleet result principally 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.

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

Discount effect

Other movements

31/12/2020

Notes

31/12/2019

Increases

Decreases

(in millions of euros)

Provisions for spent fuel management amount unrelated ● to the operating cycle

15.1.1.1

10,823

625

(744)

626

(8)

11,322

1,152

65

(14)

109

(15)

1,297

amount outside the scope ● of the Law of 28 June 2006 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

1,019

41

(35)

51

-

1,076

15.1.1.2

805

6

(25)

46

(832)

-

15.1.1.2

10,531

101

(221)

1,016

1,873

13,300

22,159

732

(990)

1,688

1,033

24,622

15.1.1.3 15.1.1.4

16,937

133

(181)

780

(180)

17,489

Provisions for last cores Provisions for decommissioning and last cores

2,624

-

(99)

94

92

2,711

19,561

133

(280)

874

(88)

20,200

PROVISIONS RELATED TO NUCLEAR GENERATION Provisions related to nuclear generation within the scope of the Law of 28 June 2006* Provisions related to nuclear generation outside the scope of the Law of 28 June 2006*

41,720

865

(1,270)

2,562

945

44,822

40,701

824

(1,235)

2,511

945

43,746

1,019 1,076 Scope of application of the law of 28 June 2006 on the sustainable management of radioactive materials and waste and its application decrease concerning secure * financing of nuclear expenses. The provisions that do not fall within the scope of this law are provisions for the back-end of the nuclear cycle concerning non-EDF installations (see below). 41 (35) 51 -

The discount effect comprises the €1,520 million cost of unwinding the discount, and the €1,042 million effects of the change in the real discount rate in 2020 which were recorded in the income statement for provisions with no related assets (costs of unwinding the discount). Other movements mainly include: the €707 million effect of the change in the real discount rate ● at 31 December 2020 for provisions with related assets; reclassification of €841 million previously included in provisions for waste removal ● and conditioning and €813 million previously included in provisions for nuclear plant decommissioning (corresponding to the cost of interim storage and processing of steam generators in a centralised facility), as provisions for long-term radioactive waste management, to ensure consistency with the most recent official breakdown of nuclear expenses in defined operations attached to the amended ministerial order of 21 March 2007 on secure financing of nuclear expenses.

Concerning non-EDF installations: EDF, COGEMA (now Orano Recyclage) 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 Recyclage) 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 Orano Recycle 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 - UNIVERSAL REGISTRATION DOCUMENT 2020