The Group recognises provisions when it has a present obligation (legal or constructive) arising from a past event, an outflow of resources will probably be required to settle the obligation, and the obligation amount can be estimated reliably.
If it is anticipated that all or part of the expenses covered by a provision will be reimbursed, the reimbursement is recognised under receivables if and only if the Group is virtually certain of receiving it.
Provisions are determined based on the Group’s expectation of the cost necessary to settle the obligation. Estimates are based on management data from the information system, assumptions adopted by the Group, and if necessary, experience of similar transactions or operations, based on independent expert reports, or contractor quotes. The various assumptions are reviewed for each closing of the accounts.
In the case of decommissioning provisions for power plants in operation, adjustments are recorded via fixed assets.
The discount effect generated at each closing to reflect the passage of time is recorded under “Discount effect” in financial expenses.
Changes in provisions resulting from a change in discount rates, a change in the disbursement schedule or a change in contractor quote are recorded:
Provisions related to nuclear generation mainly cover the following:
Obligations can vary noticeably depending on each country’s legislation and regulations, and the technologies and industrial scenarios involved.
The breakdown between current and non-current provisions related to nuclear generation is as follows:
31/12/2020 | 31/12/2019 | |||||
|---|---|---|---|---|---|---|
(in millions of euros) | Current | Non-current | Total | Current | Non-current | Total |
| Provisions for the back-end of the nuclear cycle | Provisions for the back-end of the nuclear cycle 31/12/2020 1,430 | Provisions for the back-end of the nuclear cycle 31/12/2019 26,137 | 27,567 | 1,432 | 23,822 | 25,254 |
| Provisions for decommissioning and last cores | Provisions for decommissioning and last cores 31/12/2020 723 | Provisions for decommissioning and last cores 31/12/2019 32,196 | 32,919 | 364 | 31,761 | 32,125 |
| Provisions related to nuclear generation | Provisions related to nuclear generation 31/12/2020 2,153 | Provisions related to nuclear generation 31/12/2019 58,333 | 60,486 | 1,796 | 55,583 | 57,379 |
The breakdown of provisions by company is shown below:
(in millions of euros) | EDF Note 15.1 | EDF Energy Note 15.2 | Belgium Note 15.3 | Total |
|---|---|---|---|---|
| Provisions for spent fuel management | Provisions for spent fuel management EDF Note 15.1 11,322 | Provisions for spent fuel management EDF Energy Note 15.2 1,286 | Provisions for spent fuel management Belgium Note 15.3 - | Provisions for spent fuel management Total 12,608 |
| Provisions for waste removal and conditioning | Provisions for waste removal and conditioning EDF Note 15.1 - | Provisions for waste removal and conditioning EDF Energy Note 15.2 546 | Provisions for waste removal and conditioning Belgium Note 15.3 - | Provisions for waste removal and conditioning Total 546 |
| Provisions for long-term radioactive waste management | Provisions for long-term radioactive waste management EDF Note 15.1 13,300 | Provisions for long-term radioactive waste management EDF Energy Note 15.2 1,106 | Provisions for long-term radioactive waste management Belgium Note 15.3 7 | Provisions for long-term radioactive waste management Total 14,413 |
PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2020 | PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2020 EDF Note 15.1 24,622 | PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2020 EDF Energy Note 15.2 2,938 | PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2020 Belgium Note 15.3 7 | PROVISIONS FOR THE BACK-END OF THE NUCLEAR CYCLE AT 31/12/2020 Total 27,567 |
Provisions for the back-end of the nuclear cycle at 31/12/2019 | Provisions for the back-end of the nuclear cycle at 31/12/2019 EDF Note 15.1 22,159 | Provisions for the back-end of the nuclear cycle at 31/12/2019 EDF Energy Note 15.2 3,088 | Provisions for the back-end of the nuclear cycle at 31/12/2019 Belgium Note 15.3 7 | Provisions for the back-end of the nuclear cycle at 31/12/2019 Total 25,254 |
| Provisions for nuclear plant decommissioning | Provisions for nuclear plant decommissioning EDF Note 15.1 17,489 | Provisions for nuclear plant decommissioning EDF Energy Note 15.2 10,170 | Provisions for nuclear plant decommissioning Belgium Note 15.3 377 | Provisions for nuclear plant decommissioning Total 28,036 |
| Provisions for last cores | Provisions for last cores EDF Note 15.1 2,711 | Provisions for last cores EDF Energy Note 15.2 2,172 | Provisions for last cores Belgium Note 15.3 - | Provisions for last cores Total 4,883 |
PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2020 | PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2020 EDF Note 15.1 20,200 | PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2020 EDF Energy Note 15.2 12,342 | PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2020 Belgium Note 15.3 377 | PROVISIONS FOR DECOMMISSIONING AND LAST CORES AT 31/12/2020 Total 32,919 |
Provisions for decommissioning and last cores at 31/12/2019 | Provisions for decommissioning and last cores at 31/12/2019 EDF Note 15.1 19,561 | Provisions for decommissioning and last cores at 31/12/2019 EDF Energy Note 15.2 12,195 | Provisions for decommissioning and last cores at 31/12/2019 Belgium Note 15.3 369 | Provisions for decommissioning and last cores at 31/12/2019 Total 32,125 |
PROVISIONS RELATED TO NUCLEAR GENERATION AT 31/12/2020 | PROVISIONS RELATED TO NUCLEAR GENERATION AT 31/12/2020 EDF Note 15.1 44,822 | PROVISIONS RELATED TO NUCLEAR GENERATION AT 31/12/2020 EDF Energy Note 15.2 15,280 | PROVISIONS RELATED TO NUCLEAR GENERATION AT 31/12/2020 Belgium Note 15.3 384 | PROVISIONS RELATED TO NUCLEAR GENERATION AT 31/12/2020 Total 60,486 |
Provisions related to nuclear generation at 31/12/2019 | Provisions related to nuclear generation at 31/12/2019 EDF Note 15.1 41,720 | Provisions related to nuclear generation at 31/12/2019 EDF Energy Note 15.2 15,283 | Provisions related to nuclear generation at 31/12/2019 Belgium Note 15.3 376 | Provisions related to nuclear generation at 31/12/2019 Total 57,379 |
