Universal Registration Document 2022

On 27 September 2019, due to the cap on nuclear power output set by the “energy transition for green growth” law of 17 August 2015, the French State and EDF signed a protocol agreement whereby the State will compensate EDF for the early closure of Fessenheim.

The compensation paid under the terms of this protocol comprises:

Initial instalments to compensate for expenses incurred after the closure of the plant (end-of-operations expenditure, taxes on basic nuclear facilities, dismantling costs and staff redeployment costs), which will be paid over a 4-year period following the closure. An amount of €370 million was received on 14 December 2020.

This compensation is recognised as income in profit and loss as and when the associated costs are incurred.

Subsequent payments corresponding to the lost income that would have been generated by future power generation up until 2041, based on Fessenheim’s previous output figures and calculated “ex post” on the basis of nuclear power sale prices, particularly observed market prices. There is no reason to recognise such income in the financial statements at this stage.

Since its decoupling from the network, the Fessenheim plant has entered a post-operating phase that will last approximately five years. During that period, units 1 and 2 will continue to be operated and maintained as “defueled core” and “evacuated fuel” reactors. This will require a series of technical and administrative operations. A significant milestone was reached on 18 October 2021 when the last two packages of spent fuel were dispatched from Fessenheim unit 1 to the Orano site at La Hague. The dismantling decree for Fessenheim is expected to be issued in 2026.

The post-operating expenses and income for these two reactors at 31 December 2022 mainly comprise:

expenses of €98 million (salaries and social security charges for labour at the site amounting to €48 million, purchases of goods and services amounting to €47 million, taxes other than income taxes, mainly payroll taxes, energy taxes and local taxes, amounting to €4 million);
the compensation defined in the protocol for expenses that will be incurred after the closure, amounting to €46 million, recognised as an operating subsidy in the income statement under the methods explained above.

Note 5 Provisions and impairment

(in millions of euros)	Notes	2022	2021
Reversals of provisions for risks	Reversals of provisions for risksNotes25	Reversals of provisions for risks20221,262	Reversals of provisions for risks2021628
Increases to provisions for risks	Increases to provisions for risksNotes25	Increases to provisions for risks2022(81)	Increases to provisions for risks2021(159)
Net provisions for risks ⁽¹⁾	Net provisions for risks ⁽¹⁾Notes	Net provisions for risks ⁽¹⁾20221,181	Net provisions for risks ⁽¹⁾2021469
Pensions and similar obligations	Pensions and similar obligationsNotes28	Pensions and similar obligations2022809	Pensions and similar obligations2021748
Spent fuel management	Spent fuel management Notes26	Spent fuel management 2022 849	Spent fuel management 2021 1,282
Long-term radioactive waste management	Long-term radioactive waste management Notes26	Long-term radioactive waste management 2022 204	Long-term radioactive waste management 2021 227
Decommissioning of nuclear power plants and last cores	Decommissioning of nuclear power plants and last cores Notes26	Decommissioning of nuclear power plants and last cores 2022 201	Decommissioning of nuclear power plants and last cores 2021 186
Decommissioning of thermal and hydropower plants	Decommissioning of thermal and hydropower plants Notes27	Decommissioning of thermal and hydropower plants 2022 53	Decommissioning of thermal and hydropower plants 2021 46
Other provisions for expenses⁽²⁾	Other provisions for expenses ⁽²⁾Notes29	Other provisions for expenses ⁽²⁾2022 2,803	Other provisions for expenses ⁽²⁾2021 202
Reversals of provisions for expenses	Reversals of provisions for expensesNotes	Reversals of provisions for expenses20224,919	Reversals of provisions for expenses20212,691
Pensions and similar obligations	Pensions and similar obligations Notes28	Pensions and similar obligations 2022 (835)	Pensions and similar obligations 2021 (915)
Spent fuel management	Spent fuel management Notes26	Spent fuel management 2022 (417)	Spent fuel management 2021 (1,185)
Long-term radioactive waste management	Long-term radioactive waste management Notes26	Long-term radioactive waste management 2022 (128)	Long-term radioactive waste management 2021 (126)
Decommissioning of nuclear power plants and last cores	Decommissioning of nuclear power plants and last cores Notes26	Decommissioning of nuclear power plants and last cores 2022 (273)	Decommissioning of nuclear power plants and last cores 2021 (262)
Decommissioning of thermal and hydropower plants	Decommissioning of thermal and hydropower plants Notes27	Decommissioning of thermal and hydropower plants 2022 (214)	Decommissioning of thermal and hydropower plants 2021 (21)
Other provisions for expenses ⁽²⁾	Other provisions for expenses ⁽²⁾Notes29	Other provisions for expenses ⁽²⁾2022 (3,573)	Other provisions for expenses ⁽²⁾2021 (245)
Increases to provisions for expenses	Increases to provisions for expensesNotes	Increases to provisions for expenses2022(5,440)	Increases to provisions for expenses2021(2,754)
Net provisions for expenses	Net provisions for expensesNotes	Net provisions for expenses2022(521)	Net provisions for expenses2021(63)
Reversals of impairment	Reversals of impairmentNotes	Reversals of impairment2022310	Reversals of impairment2021330
Increases to impairment	Increases to impairmentNotes	Increases to impairment2022(296)	Increases to impairment2021(231)
Net impairment	Net impairmentNotes	Net impairment202214	Net impairment202199
Provisions and impairment	Provisions and impairmentNotes	Provisions and impairment2022674	Provisions and impairment2021505
total reversals	total reversalsNotes	total reversals20226,491	total reversals20213,649
total increases	total increasesNotes	total increases2022(5,817)	total increases2021(3,144)

(1) Increases and reversals of provisions for risks at 31 december 2022 mainly concern energy supply contracts.

(2) At 30 June 2022, other provisions for expenses included an operating provision of €2,749 million for the cost in the second half-year of 2022 of the additional 19.5TWh ARENH allocation introduced by the decree of 11 March 2022 and its implementing orders (see note 3.1). These placed EDF under concurrent purchase and sale obligations for fixed volumes and prices over the period April to December 2022: it was required to sell 19.5TWh of ARENH electricity to eligible suppliers at the price of €46.20/MWh and to purchase 19.5TWh from the same suppliers at the price of €256.98/MWh, in coordination with the Caisse des dépôts et consignation and RTE, under the supervision of the CRE. This provision was used entirely during the second half-year as and when the sales and purchases took place.

Universal Registration Document 2022

Introduction

Note 5 Provisions and impairment