Universal Registration Document 2021

6. Financial statements

15.1.3 Coverage of EDF’s long-term nuclear obligations

The Group’s long-term nuclear obligations in France concerned by the regulations for dedicated assets related to nuclear generation are included in the EDF group’s consolidated financial statements at the following values:

(in millions of euros) 31/12/2021 31/12/2020
Provisions for spent fuel management – portion unrelated to the operating cycle as defined in the regulations

Provisions for spent fuel management – portion unrelated to the operating cycle as defined in the regulations

31/12/2021

1,726

Provisions for spent fuel management – portion unrelated to the operating cycle as defined in the regulations

31/12/2020

1,297
Provisions for long-term radioactive waste management

Provisions for long-term radioactive waste management

31/12/2021

14,233

Provisions for long-term radioactive waste management

31/12/2020

13,300
Provisions for nuclear plant decommissioning

Provisions for nuclear plant decommissioning

31/12/2021

17,730

Provisions for nuclear plant decommissioning

31/12/2020

17,489
Provisions for last cores – portion for future long-term radioactive waste management

Provisions for last cores – portion for future long-term radioactive waste management

31/12/2021

587

Provisions for last cores – portion for future long-term radioactive waste management

31/12/2020

590
PRESENT COST OF LONG-TERM NUCLEAR OBLIGATIONS PRESENT COST OF LONG-TERM NUCLEAR OBLIGATIONS31/12/202134,276 PRESENT COST OF LONG-TERM NUCLEAR OBLIGATIONS31/12/202032,676
REALISABLE VALUE OF DEDICATED ASSETS REALISABLE VALUE OF DEDICATED ASSETS31/12/202137,454 REALISABLE VALUE OF DEDICATED ASSETS31/12/202033,848
REGULATORY COVERAGE RATE REGULATORY COVERAGE RATE31/12/2021109.3% REGULATORY COVERAGE RATE31/12/2020103.6%

At 31 December 2021, by the regulatory calculations provisions are 109.3% covered by dedicated assets. The potential regulatory caps on the realisable value of certain investments set in the Environment Code were not applicable at 31 December 2021.

At 31 December 2020, by the regulatory calculations provisions were 103.6% covered by dedicated assets. Again, the regulatory caps were not applicable.

15.2 EDF Energy’s nuclear provisions

The specific financing terms for long-term nuclear commitments related to EDF Energy are reflected as follows in the EDF group’s financial statements:

  • the obligations are reported in liabilities in the form of provisions amounting to €17,889 million at 31 December 2021;
  • in the assets, EDF Energy reports receivables corresponding to the amounts payable under the restructuring agreements by the Nuclear Liabilities Fund (NLF), for non-contracted obligations or decommissioning obligations, and by the British Government for contracted obligations (or historical liabilities).

These receivables are discounted at the same real rate as the obligations they are intended to finance. They are included in “Financial assets” in the consolidated balance sheet (see note 18.1.3) at the amount of €15,986 million at 31 December 2021 (€13,034 million at 31 December 2020).

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

(in millions of euros) 31/12/2020 Increases Decreases Discount effect Translation adjustments Other movements 31/12/2021
(in millions of euros)

Provisions for spent fuel management

 31/12/2020

1,286

 Increases

20

 Decreases

(188)

 Discount effect

96

 Translation adjustments

90

 Other movements

97

 31/12/2021

1,401
(in millions of euros)

Provisions for waste removal and conditioning

 31/12/2020

546

 Increases

4

 Decreases

-

 Discount effect

38

 Translation adjustments

39

 Other movements

12

 31/12/2021

639
(in millions of euros)

Provisions for long-term radioactive waste management

 31/12/2020

1,106

 Increases

6

 Decreases

-

 Discount effect

78

 Translation adjustments

82

 Other movements

143

 31/12/2021

1,415
(in millions of euros)Provisions for the back-end of the nuclear cycle 31/12/20202,938 Increases30 Decreases(188) Discount effect212 Translation adjustments211 Other movements252 31/12/20213,455
(in millions of euros)

Provisions for nuclear plant decommissioning

 31/12/2020

10,170

 Increases

-

 Decreases

(242)

 Discount effect

739

 Translation adjustments

750

 Other movements

1,178

 31/12/2021

12,595
(in millions of euros)

Provisions for last cores

 31/12/2020

2,172

 Increases

-

 Decreases

(341)

 Discount effect

17

 Translation adjustments

141

 Other movements

(150)

 31/12/2021

1,839
(in millions of euros)Provisions for decommissioning and last cores 31/12/202012,342 Increases- Decreases(583) Discount effect756 Translation adjustments891 Other movements1,028 31/12/202114,434
(in millions of euros)PROVISIONS RELATED TO NUCLEAR GENERATION 31/12/202015,280 Increases30 Decreases(771) Discount effect968 Translation adjustments1,102 Other movements1,280 31/12/202117,889

“Other movements” include the changes in nuclear liabilities with a corresponding adjustment in the amount of reimbursements receivable from the NLF and the British government, and the change in the provision for last cores via an adjustment to fixed assets.

The overall change of the “other movements” regarding Provisions for decommissioning for an amount of €1.2 billions mainly results from the unexpected early end of generation at Dungeness B in June 2021 (see note 15.2.3).