6. Financial statements

32.2 EDF Energy’s nuclear provisions

The specific financing terms for long-term nuclear obligations related to EDF Energy are reflected as follows in the EDF group’s financial statements:

the obligations are reported in liabilities in the form of provisions amounting to €15,282 million at 31 December 2019;

in the assets, EDF Energy reports receivables corresponding to the amounts payable under the restructuring agreements by the NLF, for non-contracted obligations or decommissioning obligations, and by the British Government for contracted obligations (or historical liabilities).

These receivables are discounted at the same real rate as the obligations they are intended to finance. They are included in “Financial assets” in the consolidated balance sheet (see note 39.3) at the amount of €13,303 million at 31 December 2019 (€9,220 million at 31 December 2018).

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

(in millions of euros)
31/12/2018
Increases
Decreases
Discount effect
Translation adjustments
Other movements
31/12/2019
Provisions for spent fuel management
Provisions for spent fuel management
31/12/2018
1,464
Provisions for spent fuel management
Increases
13
Provisions for spent fuel management
Decreases
(202)
Provisions for spent fuel management
Discount effect
61
Provisions for spent fuel management
Translation adjustments
74
Provisions for spent fuel management
Other movements
93
Provisions for spent fuel management
31/12/2019
1,503
Provisions for waste removal and conditioning
Provisions for waste removal and conditioning
31/12/2018
369
Provisions for waste removal and conditioning
Increases
3
Provisions for waste removal and conditioning
Decreases
-
Provisions for waste removal and conditioning
Discount effect
15
Provisions for waste removal and conditioning
Translation adjustments
23
Provisions for waste removal and conditioning
Other movements
122
Provisions for waste removal and conditioning
31/12/2019
532
Provisions for long-term radioactive waste management
Provisions for long-term radioactive waste management
31/12/2018
743
Provisions for long-term radioactive waste management
Increases
3
Provisions for long-term radioactive waste management
Decreases
-
Provisions for long-term radioactive waste management
Discount effect
30
Provisions for long-term radioactive waste management
Translation adjustments
46
Provisions for long-term radioactive waste management
Other movements
231
Provisions for long-term radioactive waste management
31/12/2019
1,053
Provisions for the back-end of the nuclear cycle
Provisions for the back-end of the nuclear cycle
31/12/2018
2,576
Provisions for the back-end of the nuclear cycle
Increases
19
Provisions for the back-end of the nuclear cycle
Decreases
(202)
Provisions for the back-end of the nuclear cycle
Discount effect
106
Provisions for the back-end of the nuclear cycle
Translation adjustments
143
Provisions for the back-end of the nuclear cycle
Other movements
446
Provisions for the back-end of the nuclear cycle
31/12/2019
3,088
Provisions for nuclear plant decommissioning
Provisions for nuclear plant decommissioning
31/12/2018
6,754
Provisions for nuclear plant decommissioning
Increases
-
Provisions for nuclear plant decommissioning
Decreases
(33)
Provisions for nuclear plant decommissioning
Discount effect
280
Provisions for nuclear plant decommissioning
Translation adjustments
444
Provisions for nuclear plant decommissioning
Other movements
2,858
Provisions for nuclear plant decommissioning
31/12/2019
10,303
Provisions for last cores
Provisions for last cores
31/12/2018
1,578
Provisions for last cores
Increases
-
Provisions for last cores
Decreases
-
Provisions for last cores
Discount effect
70
Provisions for last cores
Translation adjustments
88
Provisions for last cores
Other movements
156
Provisions for last cores
31/12/2019
1,892
Provisions for decommissioning and last cores
Provisions for decommissioning and last cores
31/12/2018
8,332
Provisions for decommissioning and last cores
Increases
-
Provisions for decommissioning and last cores
Decreases
(33)
Provisions for decommissioning and last cores
Discount effect
350
Provisions for decommissioning and last cores
Translation adjustments
532
Provisions for decommissioning and last cores
Other movements
3,014
Provisions for decommissioning and last cores
31/12/2019
12,195
PROVISIONS RELATED TO NUCLEAR GENERATION
PROVISIONS RELATED TO NUCLEAR GENERATION
31/12/2018
10,908
PROVISIONS RELATED TO NUCLEAR GENERATION
Increases
19
PROVISIONS RELATED TO NUCLEAR GENERATION
Decreases
(235)
PROVISIONS RELATED TO NUCLEAR GENERATION
Discount effect
456
PROVISIONS RELATED TO NUCLEAR GENERATION
Translation adjustments
675
PROVISIONS RELATED TO NUCLEAR GENERATION
Other movements
3,460
PROVISIONS RELATED TO NUCLEAR GENERATION
31/12/2019
15,283

*Other movements include the change in nuclear liabilities, with an equivalent change in the receivable corresponding to amounts reimbursable by the NLF (Nuclear Liabilities Fund) and the British government. This change results from the €1,347 million decrease in the discount rate and the €1,994 million effect of revision of assumptions used to calculate nuclear obligations (see note 32.2.3).

32.2.1 Regulatory and contractual framework

Amendments signed with the Nuclear Liabilities Fund (NLF – an independent trust set up by the UK Government as part of the restructuring of British Energy) following the EDF group’s acquisition of British Energy had a limited impact on the contractual financing commitments made to British Energy by the UK Secretary of State and the NLF under the “Restructuring Agreements”. These agreements were entered into by British Energy on 14 January 2005 as part of the restructuring led by the UK Government from 2005 in order to stabilise British Energy’s financial position. British Energy Generation Limited changed its name to EDF Energy Nuclear Generation Limited on 1 July 2011 and replaced British Energy in these agreements and amendments.

Under the terms of the Restructuring Agreements:

  • the NLF 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 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.

EDF Energy also made commitments to pay:

  • annual decommissioning contributions for a period limited to the useful life of the plants as at the date of the “restructuring agreements”; the corresponding provision amounts to €117 million at 31 December 2019;
  • £150,000 (indexed to inflation) per tonne of uranium loaded in the Sizewell B reactor after the date of the “restructuring agreements”.