Accounting principles and methods
Decommissioning provisions for power plants in operation are associated with fixed assets.
The discount effect generated at each closing to reflect the passage of time is recorded in financial expenses.
Changes in provisions resulting from a change in discount rates, a change in the disbursement schedule or a change in cost estimate are recorded:
- as an increase or decrease in the corresponding assets, up to the net book value, if the provision was initially covered by balance sheet assets;
- in the income statement in all other cases.
Provisions related to nuclear generation mainly cover the following:
- back-end nuclear cycle expenses: provisions for spent fuel management, for waste removal and conditioning (where relevant), and for long-term radioactive waste management are established in accordance with the obligations and final contributions specific to France;
- costs for decommissioning power plants;
- costs relating to fuel in the reactor when the reactor is shut down (provisions for last cores). These correspond to the cost of the fuel stock in the reactor that is not totally spent at the time of the final reactor shutdown and cannot be reused due to technical and regulatory constraints, the cost of processing for that fuel, and the cost of removal and storage of the resulting waste.
Obligations can vary noticeably depending on each country’s legislation and regulations, and the technologies and industrial scenarios involved.
The provisions established by EDF for the nuclear generation fleet principally result from the Law of 28 June 2006 on long-term management of radioactive 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 26.6).
The calculation of provisions incorporates a level of risks and uncertainties as appropriate to the operations concerned. It also includes uncertainty factors as described in note 1.2.2.
