1. The Group, its strategy and activities - Page 433 | edf

Note 27 Provisions for risks

		Increases		Decreases
(in millions of euros)	31/12/2018	Operating	Financial	Utilisations	Reversals	Financial	Other	31/12/2019
Provisions for unrealised exchange losses⁽²⁾	Provisions for unrealised exchange losses ⁽²⁾ 767		Provisions for unrealised exchange losses ⁽²⁾Decreases 108		Provisions for unrealised exchange losses ⁽²⁾ -	(107)	-	768
Provisions for losses on contracts	Provisions for losses on contracts 1,446	Provisions for losses on contracts Increases 427	Provisions for losses on contracts Decreases 39	Provisions for losses on contracts (285)	Provisions for losses on contracts (11)	-	-	1,616
Provisions for other risks	Provisions for other risks 331	Provisions for other risks Increases 229	Provisions for other risks Decreases -	Provisions for other risks (216)	Provisions for other risks (40)	-	-	304
PROVISIONS FOR RISKS	PROVISIONS FOR RISKS 2,544	PROVISIONS FOR RISKSIncreases656	PROVISIONS FOR RISKSDecreases147	PROVISIONS FOR RISKS (501)	PROVISIONS FOR RISKS (51)	(107)	-	2,688

(1) The €285 million of reversals from provisions for losses on contracts mainly relate to the long-term contract with Dunkerque LNG (€184 million).
(2) The €768 million of provisions for unrealised exchange losses at 31 December 2019 mainly concern losses on hybrid bonds.
(3) See notes 6 and 11.2.

Note 28 Provisions related to nuclear generation – Back-end of the nuclear cycle, plant decommissioning and last cores

The provisions established by EDF 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 1.15:

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 38).

The calculation of provisions incorporates a level of risks and unknowns that depend on the operations concerned. The valuation of costs also carries uncertainty factors such as:

changes in legislation, particularly regarding safety, security and environmental protection, and financing of long-term nuclear expenses;
changes in the regulatory decommissioning process and the time necessary for issuance of administrative authorisations;
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.

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

		Increases		Decreases		Other changes
(in millions of euros)	31/12/2018	Operating	Financial	Utilisation	Reversals		31/12/2019
Provisions for spent fuel management	Provisions for spent fuel management 10,698	Provisions for spent fuel management Increases 535	Provisions for spent fuel management Decreases 515	Provisions for spent fuel management Other changes (823)	Provisions for spent fuel management (67)	(35)	10,823
Provisions for removal and conditioning of waste	Provisions for removal and conditioning of waste 751	Provisions for removal and conditioning of waste Increases 29	Provisions for removal and conditioning of waste Decreases 36	Provisions for removal and conditioning of waste Other changes (29)	Provisions for removal and conditioning of waste -	18	805
Provisions for long-term radioactive waste management	Provisions for long-term radioactive waste management 9,846	Provisions for long-term radioactive waste management Increases 160	Provisions for long-term radioactive waste management Decreases 650	Provisions for long-term radioactive waste management Other changes (232)	Provisions for long-term radioactive waste management -	107	10,531
Provisions for the back-end of the nuclear cycle	Provisions for the back-end of the nuclear cycle 21,295	Provisions for the back-end of the nuclear cycleIncreases724	Provisions for the back-end of the nuclear cycleDecreases1,201	Provisions for the back-end of the nuclear cycleOther changes(1,084)	Provisions for the back-end of the nuclear cycle (67)	90	22,159
Provisions for nuclear plant decommissioning	Provisions for nuclear plant decommissioning 15,985	Provisions for nuclear plant decommissioning Increases 105	Provisions for nuclear plant decommissioning Decreases 694	Provisions for nuclear plant decommissioning Other changes (141)	Provisions for nuclear plant decommissioning -	294	16,937
Provisions for last cores	Provisions for last cores 2,526	Provisions for last cores Increases -	Provisions for last cores Decreases 97	Provisions for last cores Other changes -	Provisions for last cores -	1	2,624
Provisions for decommissioning and last cores	Provisions for decommissioning and last cores 18,511	Provisions for decommissioning and last coresIncreases105	Provisions for decommissioning and last coresDecreases791	Provisions for decommissioning and last coresOther changes(141)	Provisions for decommissioning and last cores -	295	19,561
TOTAL PROVISIONS RELATED TO NUCLEAR GENERATION	TOTAL PROVISIONS RELATED TO NUCLEAR GENERATION 39,806	TOTAL PROVISIONS RELATED TO NUCLEAR GENERATIONIncreases829	TOTAL PROVISIONS RELATED TO NUCLEAR GENERATIONDecreases1,992	TOTAL PROVISIONS RELATED TO NUCLEAR GENERATIONOther changes(1,225)	TOTAL PROVISIONS RELATED TO NUCLEAR GENERATION (67)	385	41,720

(1) The discount effect comprises the €1,543 million cost of unwinding the discount, and the effects of the change of real discount rate in 2019, recognised via the income statement for provisions with no related assets (€449 million) (cost of unwinding the discount).
(2) Other changes mainly include the effects of the change of real discount rate at 31 December 2019 for provisions with related assets (€361 million).
(3) See notes 6 and 11.2.

6. Financial statements

Note 27 Provisions for risks

Note 28 Provisions related to nuclear generation – Back-end of the nuclear cycle, plant decommissioning and last cores