Universal Registration Document 2021

Most of the provision for the long-term management of waste concerns high-level waste (HLW) and intermediate-level long-lived waste (LLW). It is based on the assumption of geological disposal, which is the international benchmark for the ultimate disposal of high-level long-lived radioactive waste, and on the work carried out in 2006 with ANDRA, the public authorities and other producers of radioactive waste (see note 15.1 of the appendix to the consolidated financial statements for the fiscal year ended 31 December 2021 and see section 1.4.1.1.2.3 “The issues relating to the nuclear activity”).

French Act no. 2006-739 dated 28 June 2006 provided for a dedicated storage centre for Low-Level Long-Lived waste (LLW-LL), such as graphite. The overall industrial scheme for the management of all LLW-LL is being defined within the framework of the PNGMDR (see section 1.4.1.1.2.3 “Issues relating to the nuclear activity”).

In the United Kingdom, under the terms of agreements entered into with the authorities (see section 1.4.5.1.2.2 “Nuclear generation”), the liability and certain costs associated with the management of certain radioactive waste are transferred to the UK Government. The supplementary agreement entered into with the government in 2021 clarifies how the costs associated with waste management will be recovered.

Main risks

• As a nuclear operator or producer of radioactive waste, within the meaning of the legislation applicable to waste, the Group could be held liable, in particular in the event of an accident involving damage to third parties or to the environment in connection with spent fuel or The Group may be held liable even if these products are handled, transported, held, stored or warehoused by parties other than the Group, in particular, in France, by the Orano Group and the French national agency for radioactive waste (ANDRA).
• All of the Group’s High-Level and Intermediate-Level Long-Lived waste may not constitute “ultimate radioactive waste” within the meaning of Article L. 542-1-1 of the French Environmental In this case, it may not be possible to store this waste directly in a deep geological repository, especially since the Nuclear Order of 10 February 2016 issued pursuant to French Act no. 2015- 992 relating to the energy transition for green growth allows for the reclassification of radioactive materials as radioactive waste and vice-versa by the administrative authority. Moreover, the Group has no control over the time taken by the public authorities to issue permits for such ultimate storage, nor over the technical guidelines that are set forth. This may create uncertainties regarding the fate of the waste, the liability and the resulting costs for EDF.
• The reservations that remain and the supplementary investigation being carried out by ANDRA to obtain approval for the construction of the geological storage area starting in 2022 could lead to a revision of the provisions for long-term radioactive waste management.
• The provisions may need to be updated in the light of the findings of the studies conducted under the French National Plan for the Management of Radioactive Materials and Waste (PNGMDR) on the storage of low-level long-lived waste.
• Pursuant to the restructuring agreements of British Energy, EDF Energy Nuclear Generation remains financially, technically and legally liable for the management, storage and processing of waste that does not come within the scope of the aforementioned agreements.
• Failure to control the costs and time-frames for completion with respect to the solutions for the treatment and ultimate storage of waste for which the Group is liable would have a negative impact on the Group’s financial position and reputation.
• For nuclear power plants which EDF does not operate, but in which it has financial interests (Belgium, China), the Group is exposed financially in proportion to its shareholding to contributing to future expenditures related to the management of spent fuel and waste.

Control actions

• The control strategy consists in developing and securing radioactive waste treatment channels to meet the present and future needs of the Group’s nuclear facility decommissioning and operating projects. To this end, the structuring of the Cyclife subsidiaries has in particular been consolidated in order to offer a range of appropriate waste treatment solutions.
• For CIGEO (the geological disposal centre project developed by ANDRA for high-level waste and intermediate-level long-lived waste), the control strategy 

  consists in securing the project by proposing to ANDRA technical optimisations and supporting the development strategy and implementation of the disposal, in order to meet the target cost of €25 billion ⁽¹⁾ (see section 1.4.1.1.2.3 “The issues relating to the nuclear activity”). To this end, a cooperation agreement was signed at the end of 2020 between EDF and ANDRA

• The Group participates, as a producer, in the various working groups on the storage of graphite waste. In addition, EDF is very actively involved in the PNGMDR steering committee
• In the United Kingdom, arrangements are in place for the management of spent fuel from AGR and PWR reactors

• in accordance with its safety and sustainable development policies, EDF Energy implements actions to continuously improve and minimise the quantities of spent fuel and waste generated;

• the arrangements for the management of spent fuel from the AGRs were defined at the time of the restructuring of British Energy. Spent fuel from AGRs is disposed of at the Sellafield reprocessing site for long-term storage. EDF Energy finances this storage (as well as the reprocessing carried out in previous years);
• the Sizewell B PWR spent fuel is stored on site in a dedicated dry storage     facility. This facility will provide safe storage for all spent fuel produced during the lifetime of Sizewell B. At the end of this long-term surface storage, the Sizewell B PWR spent fuel will be transferred to the future British geological disposal facility. This strategy is approved by the NDA and financed by the Nuclear Liabilities Fund.

c) Provisions and management of dedicated assets

Context

Note 15.1 “Nuclear provisions in France” of the appendix to the consolidated financial statements as at 31 December 2021 sets out the amounts of expenses under the economic conditions at the end of 2021 as well as the corresponding provisions relating to:

• the decommissioning of France’s nuclear power generation fleet;
• the last cores;
• the long-term management of waste, and the recovery and packaging of waste.

This note also provides sensitivity analyses of the Group’s provisions and income regarding a change in the discount rate for the various categories of provisions. All these provisions represent several tens of billions of euros.

Note 17.1 “Other provisions for decommissioning” of the appendix to the consolidated financial statements for the fiscal year ended 31 December 2021 presents the same items for Framatome and Cyclife France (formerly SOCODEI) and their basic nuclear facilities in France.

Note 15.1.2.4 of the appendix to the consolidated financial statements for the fiscal year ended 31 December 2021 presents the market value of EDF’s portfolio of dedicated assets to cover the costs of long-term nuclear commitments (radioactive waste and decommissioning) at 31 December 2021.

In the United Kingdom, the funds for nuclear liabilities are managed by a body independent of EDF set up by the UK Government (Nuclear Liabilities – NLF) for the existing nuclear fleet. For HPC-related liabilities, the funds will be managed by FundCo, a body (Trust) independent of HPC’s shareholders (EDF Energy and CGN) and the UK Government. Operators therefore have no assets to manage for this purpose (see section 1.4.5.1.2.2 “Nuclear generation”). 

Main risks

• All of the contingencies and uncertainties regarding these provisions may have a material adverse impact on the Group’s financial position (see note 15.1 of the appendix to the consolidated financial statements for the fiscal year ended 31 December 2021).

(1) Economic cost 2011 (see note 28.2 to the financial statements for the year ended 31 December 2021).