6. Financial statements

Series effects are mainly of two types:

  • first, in a fleet using the same technology, many of the studies do not need to be repeated each time;
  • second, in a fleet using the same technology, robots and tooling can be largely reused from one site to another.

Such series effects are comparable in nature to the effects observed during construction of the fleet, in terms of studies or component manufacturing plants.

For example, for the 900MW fleet, a series effect of approximately 20% is expected between the first-of-a-kind reactor with 2 units and an average 2-unit reactor.

Series and mutualisation effects in particular explain why it is not appropriate simply to compare the average decommissioning cost per reactor between the French fleet and other countries’ nuclear fleets.

The figures only marginally reflect changes in productivity and the learning effect. The external audit of the decommissioning cost for the fleet currently in operation, ordered by the DGEC, considered that the learning effect incorporated into the estimate was conservative.

For reasons of prudence, the estimate also includes an assessment of risks, contingencies and uncertainties.

EDF considers that the work done to revise the estimate answers the recommendations issued after the audit. The approach adopted and its results have been presented to the administrative authority and gave rise to further questions and discussions.

EDF is also continuing to support its analyses through an international comparison, making it sure it takes into consideration a number of factors that could distort direct comparisons, for example differences in the scope concerned by costs estimate, or national and regulatory contexts.

The results of this detailed approach led to limited changes overall in the cost estimate and the associated provisions at 31 December 2016, apart from the consequences of the change in the depreciation period for 900MW series plants (excluding Fessenheim) at 1 January 2016, and the effect of changes in discount rates at 31 December 2016, i.e.:

  • an increase of €321 million in the estimated decommissioning costs and an increase of €334 million in the estimated cost of long-term management of long-lived medium-level waste;
  • a decrease of €(451) million in the provision for plant decommissioning, and an increase of €162 million in the provision for long-term management of long-lived medium-level waste, with corresponding changes in the underlying assets.

After its revision in 2016, it was decided that the estimate would be reviewed annually. Reviews since 2017 have led to non-significant adjustments.

The scope of the provision for very low-level and low and medium-level waste includes the cost of demolishing back-up diesel facilities and installations for processing control rod cluster guide tubes commissioned in 2019, and this resulted in a €43 million increase in the provision.

For permanently shut-down nuclear power plants

Unlike the PWR fleet currently in operation, the first-generation reactors now shutdown used a range of different technologies: a PWR reactor at Chooz A, UNGG (natural uranium graphite gas-cooled) reactors at Bugey, St-Laurent and Chinon, a heavy water reactor at Brennilis, and a sodium-cooled fast neutron reactor at Creys-Malville.

The decommissioning costs are based on contractor quotes, which take account of accumulated industrial experience, unforeseen and regulatory developments, and the latest available figures.

In 2015 the industrial decommissioning strategy for UNGG plants was totally revised. The previously selected strategy was based on a scenario involving “underwater” dismantling of caissons (UNGG reactor buildings) for four of the reactors, with direct graphite storage in a centre currently under examination by ANDRA (see Long-lived low-level waste, note 28.2). Several new technical developments showed that the alternative “in-air” dismantling solution for the caissons would improve industrial control of operations and was apparently more favourable in terms of safety, radioprotection and environmental impact. The Company therefore selected a new “in-air” dismantling scenario as the benchmark strategy for all six caissons. This scenario includes a consolidation phase, building on experience acquired from dismantling the first caisson before beginning work on the other five. The decommissioning phase will ultimately be longer than previously planned, leading to higher contractor quotes due to the induced operating costs.

Updating the industrial decommissioning scenario for first-generation power plants, particularly UNGG plants, led to a €590 million increase in the provision at 31 December 2015.

After the revision of the estimated cost in 2015, the decision was made that it should be reviewed annually. The 2016 review led to non-significant adjustments, apart from one increase of €125 million for a specific installation (the Irradiated Materials Workshop at Chinon). Since 2017, this annual review has given rise to non-significant adjustments.

The amended industrial scenario in 2015 was presented to the ASN’s commissioners on 29 March 2016.

In 2018 the ASN issued its main questions and conclusions about the UNGG strategy file. A consensus was reached regarding “in-air” dismantling for all reactors, the usefulness of an industrial demonstrator, and the timetable for dismantling the first-of-a-kind reactor (Chinon A2), but discussions continued regarding the dismantling timetable for the other 5 reactors. EDF’s proposed schedule allows for significant experience-based adjustments (after dismantling the first reactor) before beginning almost simultaneous dismantling of the other 5 reactors. On 12 February 2019, EDF presented all the information justifying EDF’s chosen timetable to the ASN’s commissioners. The ASN then issued draft decisions that were submitted to public consultation between July and November 2019, setting the deadline for filing regulatory applications for authorisation of dismantling work, and the dismantling schedule to be included in the applications. In those draft decisions, the ASN has acknowledged that the required operations are complex, and that EDF’s proposed risk control strategy (industrial demonstrator, significant experience with a first reactor) is justified. However, it is asking for work on the five reactors after the first-of-a-kind reactor to be brought forward slightly and begin no later than 2055.

The results of this consultation, which is now closed, should not fundamentally call into question the draft decisions.

In view of the ASN’s draft decisions, the nuclear provisions were increased in 2019 by a total €108 million (via profit and loss): €77 million for decommissioning provisions for permanently shut-down nuclear power plants and €31 million for provisions for long-term radioactive waste management (long-lived low-level waste, very low-level and low and medium-level waste). The final decisions are expected to be issued in 2020.

28.4 Provisions for last cores

These provisions cover the future expenses resulting from scrapping fuel that will only be partially irradiated when the reactor is shut down. They are measured based on:

  • the cost of the loss on fuel in the reactor that is not totally spent at the time of final reactor shutdown and cannot be reused due to technical and regulatory constraints;
  • the cost of fuel processing, and waste removal and storage operations. These costs are valued in a similar way to provisions for spent fuel management and long-term radioactive waste management.

These unavoidable costs are components of the cost of nuclear reactor shutdown and decommissioning. As such, they are fully covered by provision from the commissioning date and an asset associated with the provision is recognised.