Universal Registration Document 2020

15.1Provisions related to nuclear generation and dedicated assets in France

15.1.1Nuclear provisions

In France, the provisions established by EDF SA for the nuclear generation fleet result principally from the Law of 28 June 2006 on long-term management of radio active materials and waste, and the associated implementing provisions concerning secure financing of nuclear expenses.

In compliance with the accounting principles described above:

EDF books provisions to cover all obligations related to the nuclear facilities it operates;
EDF also holds dedicated assets for secure financing of long-term obligations (see note 15.1.2).

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 described in note 1.3.4.2.

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

(in millions of euros)	Notes	31/12/2019	Increases	Decreases	Discounteffect	Other movements	31/12/2020
Provisions for spent fuel management	Provisions for spent fuel management Notes 15.1.1.1	Provisions for spent fuel management 31/12/2019 10,823	Provisions for spent fuel management Increases 625	Provisions for spent fuel management Decreases (744)	Provisions for spent fuel management Discounteffect 626	Provisions for spent fuel management Other movements (8)	Provisions for spent fuel management 31/12/2020 11,322
amount unrelated to the operating cycle	amount unrelated to the operating cycle Notes	amount unrelated to the operating cycle 31/12/2019 1,152	amount unrelated to the operating cycle Increases 65	amount unrelated to the operating cycle Decreases (14)	amount unrelated to the operating cycle Discounteffect 109	amount unrelated to the operating cycle Other movements (15)	amount unrelated to the operating cycle 31/12/2020 1,297
amount outside the scope of the Law of 28 June 2006	amount outside the scope of the Law of 28 June 2006 Notes	amount outside the scope of the Law of 28 June 2006 31/12/2019 1,019	amount outside the scope of the Law of 28 June 2006 Increases 41	amount outside the scope of the Law of 28 June 2006 Decreases (35)	amount outside the scope of the Law of 28 June 2006 Discounteffect 51	amount outside the scope of the Law of 28 June 2006 Other movements -	amount outside the scope of the Law of 28 June 2006 31/12/2020 1,076
Provisions for waste removal and conditioning	Provisions for waste removal and conditioning Notes 15.1.1.2	Provisions for waste removal and conditioning 31/12/2019 805	Provisions for waste removal and conditioning Increases 6	Provisions for waste removal and conditioning Decreases (25)	Provisions for waste removal and conditioning Discounteffect 46	Provisions for waste removal and conditioning Other movements (832)	Provisions for waste removal and conditioning 31/12/2020 -
Provisions for long-term radioactive waste management	Provisions for long-term radioactive waste management Notes 15.1.1.2	Provisions for long-term radioactive waste management 31/12/2019 10,531	Provisions for long-term radioactive waste management Increases 101	Provisions for long-term radioactive waste management Decreases (221)	Provisions for long-term radioactive waste management Discounteffect 1,016	Provisions for long-term radioactive waste management Other movements 1,873	Provisions for long-term radioactive waste management 31/12/2020 13,300
Provisions for the back-end of the nuclear cycle	Provisions for the back-end of the nuclear cycle Notes	Provisions for the back-end of the nuclear cycle 31/12/2019 22,159	Provisions for the back-end of the nuclear cycle Increases 732	Provisions for the back-end of the nuclear cycle Decreases (990)	Provisions for the back-end of the nuclear cycle Discounteffect 1,688	Provisions for the back-end of the nuclear cycle Other movements 1,033	Provisions for the back-end of the nuclear cycle 31/12/2020 24,622
Provisions for nuclear plant decommissioning	Provisions for nuclear plant decommissioning Notes 15.1.1.3	Provisions for nuclear plant decommissioning 31/12/2019 16,937	Provisions for nuclear plant decommissioning Increases 133	Provisions for nuclear plant decommissioning Decreases (181)	Provisions for nuclear plant decommissioning Discounteffect 780	Provisions for nuclear plant decommissioning Other movements (180)	Provisions for nuclear plant decommissioning 31/12/2020 17,489
Provisions for last cores	Provisions for last cores Notes 15.1.1.4	Provisions for last cores 31/12/2019 2,624	Provisions for last cores Increases -	Provisions for last cores Decreases (99)	Provisions for last cores Discounteffect 94	Provisions for last cores Other movements 92	Provisions for last cores 31/12/2020 2,711
Provisions for decommissioning and last cores	Provisions for decommissioning and last cores Notes	Provisions for decommissioning and last cores 31/12/2019 19,561	Provisions for decommissioning and last cores Increases 133	Provisions for decommissioning and last cores Decreases (280)	Provisions for decommissioning and last cores Discounteffect 874	Provisions for decommissioning and last cores Other movements (88)	Provisions for decommissioning and last cores 31/12/2020 20,200
PROVISIONS RELATED TO NUCLEAR GENERATION	PROVISIONS RELATED TO NUCLEAR GENERATION Notes	PROVISIONS RELATED TO NUCLEAR GENERATION 31/12/2019 41,720	PROVISIONS RELATED TO NUCLEAR GENERATION Increases 865	PROVISIONS RELATED TO NUCLEAR GENERATION Decreases (1,270)	PROVISIONS RELATED TO NUCLEAR GENERATION Discounteffect 2,562	PROVISIONS RELATED TO NUCLEAR GENERATION Other movements 945	PROVISIONS RELATED TO NUCLEAR GENERATION31/12/2020 44,822
Provisions related to nuclear generation within the scope of the Law of 28 June 2006^*	Provisions related to nuclear generation within the scope of the Law of 28 June 2006 ^* Notes	Provisions related to nuclear generation within the scope of the Law of 28 June 2006 ^* 31/12/2019 40,701	Provisions related to nuclear generation within the scope of the Law of 28 June 2006 ^* Increases 824	Provisions related to nuclear generation within the scope of the Law of 28 June 2006 ^* Decreases (1,235)	Provisions related to nuclear generation within the scope of the Law of 28 June 2006 ^* Discounteffect 2,511	Provisions related to nuclear generation within the scope of the Law of 28 June 2006 ^* Other movements 945	Provisions related to nuclear generation within the scope of the Law of 28 June 2006 ^*31/12/2020 43,746
Provisions related to nuclear generation outside the scope of the Law of 28 June 2006^*	Provisions related to nuclear generation outside the scope of the Law of 28 June 2006 ^* Notes	Provisions related to nuclear generation outside the scope of the Law of 28 June 2006 ^* 31/12/2019 1,019	Provisions related to nuclear generation outside the scope of the Law of 28 June 2006 ^* Increases 41	Provisions related to nuclear generation outside the scope of the Law of 28 June 2006 ^* Decreases (35)	Provisions related to nuclear generation outside the scope of the Law of 28 June 2006 ^* Discounteffect 51	Provisions related to nuclear generation outside the scope of the Law of 28 June 2006 ^* Other movements -	Provisions related to nuclear generation outside the scope of the Law of 28 June 2006 ^*31/12/2020 1,076

*Scope of application of the law of 28 June 2006 on the sustainable management of radioactive materials and waste and its application decrease concerning secure financing of nuclear expenses. The provisions that do not fall within the scope of this law are provisions for the back-end of the nuclear cycle concerning non-EDF installations (see below).

The discount effect comprises the €1,520 million cost of unwinding the discount, and the €1,042 million effects of the change in the real discount rate in 2020 which were recorded in the income statement for provisions with no related assets (costs of unwinding the discount).

Other movements mainly include:

the €707 million effect of the change in the real discount rate at 31 December 2020 for provisions with related assets;
reclassification of €841 million previously included in provisions for waste removal and conditioning and €813 million previously included in provisions for nuclear plant decommissioning (corresponding to the cost of interim storage and processing of steam generators in a centralised facility), as provisions for long-term radioactive waste management, to ensure consistency with the most recent official breakdown of nuclear expenses in defined operations attached to the amended ministerial order of 21 March 2007 on secure financing of nuclear expenses.

Concerning non-EDF installations:

EDF, COGEMA (now Orano Recyclage) and the French Atomic Energy Commission(Commissariat à l’énergie atomique or CEA) signed an agreement inDecember 2004 which transferred the management and financing of final shutdown, decommissioning and waste recovery and reconditioning for the UP1reprocessing facility at Marcoule to the CEA. In return, EDF paid the CEA a one-time financial contribution covering its full share of the cost of outstanding operations, while remaining the owner of its final waste and bearing only the transport and storage costs;
EDF, AREVA and AREVA NC (now Orano Recyclage) signed two agreements inDecember 2008 and July 2010 defining the legal and financial terms for the transfer to AREVA NC of EDF’s contractual obligations regarding its financial contribution to the dismantling of La Hague installations and the recovery and conditioning of waste. In application of those agreements, EDF paid Orano Recyclea one-time financial contribution covering its full share of the cost of outstanding operations, while remaining the owner of its final waste and bearing only the transport and storage costs.

Universal Registration Document 2020

6. Financial statements

15.1Provisions related to nuclear generation and dedicated assets in France

15.1.1Nuclear provisions