EDF / 2020 Universal Registration Document

1 THE GROUP, ITS STRATEGY AND ACTIVITIES Description of the Group’s activities

Regulatory Regime applicable to nuclear facilities in the UK 1.4.5.1.2.1 The following regime is applicable to both EDF Energy’s generation and new build assets in the UK.

Regulatory notice

Basic nuclear facilities in the United Kingdom In the United Kingdom, EDF Energy is required, under the Nuclear Installations Act 1965 (“NIA 1965”), to hold a nuclear site licence for each of its existing nuclear power plants and nuclear power plants under development and comply with a certain number of licence conditions. The Planning Act 2008 (“PA 2008”) introduced the concept of Development Consent Orders (“DCOs”), which are the authorisations required to build a new nuclear power plant in the UK. The DCO application process involves conducting an environmental impact assessment, implementing environmental mitigation measures and holding a certain number of public consultations. Office for Nuclear Regulation (ONR) In the United Kingdom, the Office for Nuclear Regulation (ONR) and the Environment Agency (“EA”)/Scottish Environment Protection Agency (“SEPA”) are responsible for the safety, security, emergency planning and environmental regulation that applies to the UK’s nuclear sites. The ONR is responsible for the regulation and inspection of nuclear facilities and the following laws are overseen by the ONR: The Health and Safety at Work Act 1974 (“HSWA 1974”), which defines EDF’s liability for the safety of workers and others on its sites; The Nuclear Installations Act 1965 (“NIA 1965”), under which operators of nuclear power plants need to obtain a nuclear site licence to comply with that licence and to maintain nuclear liability insurance; The Energy Act 2013 (Part 3) (“EA 2013”) conferred statutory body status on the ONR. It also confirmed ONR’s purposes as nuclear safety, nuclear site health and safety, nuclear security, nuclear safeguards and transport. Schedule 8 of the Act includes the powers of ONR Inspectors; Nuclear generation 1.4.5.1.2.2 EDF Energy owns and operates eight nuclear power stations in the UK (15 reactors) with a total capacity of 8.9GW. Since 2009, Centrica plc. (“Centrica”) has held a 20% shareholding in Lake Acquisitions Limited, the company in which the nuclear generation assets sit (except Nuclear New Build). Nuclear generation fleet technology Seven of the eight nuclear power stations are AGR power stations (Dungeness B, Hartlepool, Heysham 1, Heysham 2, Hinkley Point B, Hunterston B and Torness) and the eighth, Sizewell B, is a Pressurised Water Reactor (PWR) power station. Safety and radiological protection Nuclear safety is EDF Energy’s overriding priority. In 2020, as in 2019, no safety events were recorded higher than Level 1 – anomaly – on the International Nuclear Event Scale (INES scale). There was one INES Level 1 event. EDF Energy operates to strict procedures to minimise and control the radiation doses received by employees and contractors at all of EDF Energy’s existing nuclear power stations. In 2020, the average individual dose received by all workers on EDF Energy’s existing nuclear sites was approximately 0.021mSv. The highest individual dose received in 2020 was 2.6mSv, with the legal dose limit being 20mSv per year.

The ionising radiation regulations 2017 (“IRR”) 2017 , which are based on the Basic Safety Standards Directive and provide for the protection of workers and the public against ionising radiation; The environmental permitting (England and Wales) regulations 2016 and The environmental authorisations (Scotland) regulations 2018. The 2016 regulations provide the current permitting framework for radioactive substances. The 2018 regulations provide a framework for the authorization of environmental activities and currently include only Radioactive Substances activities. The EA and SEPA are the responsible Regulators for these 2016 and 2018 regulations respectively. When assessing the measures that may be required to reduce the risks from activities within the scope of HSWA 1974, the ONR requires risks to be reduced as low as reasonably practicable. Safety is ensured through all of the ONR’s duties and its approach to the regulation of nuclear facilities. It begins with a detailed review and assessment of the safety of the design and continues throughout the operation and decommissioning of the facilities. The ONR uses the powers granted to it under the NIA 1965, the EA 2013 and the 36 standard Nuclear Site Licence Conditions as the basis for its monitoring and enforcement regime. The ONR has extensive inspection powers allowing it to inspect nuclear facilities, request documents and conduct investigations. Under the NIA 1965, the ONR is authorised to grant licences to applicants and to impose licence conditions which may be varied or revoked. In particular, the ONR can prohibit certain nuclear operations or revoke the licence of a nuclear site. More commonly, the ONR may agree to specific actions, approve arrangements or require changes/variations to operations. The maximum penalty for non-compliance with safety legislation is an unlimited fine or imprisonment for a term not exceeding two years for Directors or both. statutory outage for the following operating period through inspection, maintenance, testing and assessment of plant performance. Following the outage, consent is required from the Office for Nuclear Regulation (ONR) before restarting the reactor. The operating period between statutory outages is normally three years for the AGR power stations and eighteen months for Sizewell B. In addition, every ten years, the stations are subject to a more detailed and wide ranging Periodic Safety Review (PSR) of design, operational and organisational safety which must also be accepted by the ONR in order to secure continued operation. The next PSR due for submission to ONR is in January 2024 for Sizewell B, with their decision expected in January 2025. The AGRs were designed with a nominal 25 year lifetime, and Sizewell B with a 40 year lifetime. However, with the aggregation of technical information, and operational and safety experience of EDF Energy, it has been possible to extend the expected AGR lifetimes. Since British Energy was acquired by EDF, the AGR lifetimes have been further extended by an average of eight years. The last extensions were declared in February 2016. Hartlepool and Heysham 1 were extended by a further five years, and Heysham 2 and Torness were extended by seven years. Although the work has not yet been carried out to support the extension of Sizewell B, EDF Energy expects that it should be possible to extend it by c.20 years. See also section 2.2.5 “Risks specific to nuclear activities” – Risk 5A “Nuclear plants in the United Kingdom”.

Lifetime of power stations

The actual lifetime of each power station will be determined primarily by the technical and economic practicability of supporting its safety case. This is assessed at each

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EDF - UNIVERSAL REGISTRATION DOCUMENT 2020