EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Income Statement

PROVISIONS RELATED TO NUCLEAR GENERATION - NOTE 29 BACK-END OF THE NUCLEAR CYCLE, PLANT DECOMMISSIONING AND LAST CORES

Provisions related to nuclear generation comprise provisions for back-end nuclear cycle expenses (management of spent fuel and radioactive waste), provisions for plant decommissioning and provisions for last cores. Provisions are estimated under the principles presented in note 1.3.2.2.

Obligations can vary noticeably depending on each country’s legislation and regulations, and the technologies and industrial practices used in each company. The movement in provisions for the back-end of the nuclear cycle, provisions for decommissioning and provisions for last cores breaks down as follows:

Translation adjustments

Other movements (1) 31/12/2017

31/12/2016

Increases

Decreases Discount effect

(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

12,429

454

(1,109)

648

(60)

(9)

12,353

-

76

(15)

47

(4)

937

1,041

9,857

46

(221)

590

(28)

(781)

9,463

22,286

576

(1,345)

1,285

(92)

147 22,857

6.

20,568

2

(146)

997 162

(220)

230 21,431

3,660

-

-

(50)

119

3,891

24,228

2

(146)

1,159

(270)

349 25,322

46,514 48,179 Other movements mainly include the reclassification at 1 January 2017 of the provisions for waste removal and conditioning, which were previously included in (1) the provisions for long-term radioactive waste management, in the amount of €882 million. 578 (1,491) 2,444 (362) 496

The breakdown of provisions by company is shown below:

EDF EDF Energy

Belgium

Total

Note 29.1 Note 29.2

(in millions of euros)

Provisions for spent fuel management

10,786

1,567

- -

12,353 1,041 9,463 22,857 22,286 21,431 3,891 25,322 24,228

Provisions for waste removal and conditioning

726

315 645

Provisions for long-term radioactive waste management

8,814 20,326 19,624 14,920 2,387 17,307 16,409

4 4 3

2,527 2,659 6,233 1,504 7,737 7,563

PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2017 Provisions for the back-end of the nuclear cycle at 31/12/2016

Provisions for nuclear plant decommissioning

278

Provisions for last cores

-

278 256

PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2017 Provisions for decommissioning and last cores at 31/12/2016

NUCLEAR PROVISIONS IN FRANCE 29.1 In France, the provisions established by EDF SA for the nuclear generation fleet result 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. In compliance with the accounting principles described in note 1.3.2.2. EDF books provisions to cover all obligations related to the nuclear facilities it ■ operates; EDF holds dedicated assets for secure financing of long-term obligations (see ■ note 47).

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: changes in legislation, particularly regarding safety, security and environmental ■ protection, and financing of nuclear expenses; changes in the regulatory decommissioning process and the time necessary for ■ issuance of administrative authorisation; future methods for storing long-lived radioactive waste and provision of storage ■ facilities by the French agency for radioactive waste management ANDRA (Agence nationale pour la gestion des déchets radioactifs); changes in certain financial parameters such as discount rates, notably in view of ■ the regulatory limits, inflation rates, or changes in the contractual terms of spent fuel management.

359

EDF I Reference Document 2017