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National Funding

Radioactive Waste Management - Appendix 4

Belgium

  • Payments are made into an internal fund managed by the utility.
  • Provisions are discounted, currently at a rate of 8.6%.
  • There are proposals under discussion for the transfer of these funds to an external fund held by the spent fuel management company Synatom.
 

Germany

  • Payments are made into internal funds managed by the utility. These funds are available for investment within the utilities business.
  • Provisions are discounted at a rate of 5.5%.
  • Decommissioning and waste management funds are currently tax free.
  • Provisions are built up over an assumed 25-year lifetime for the power stations.

Finland

  • The nuclear utilities make payments into an external National Nuclear Waste Management Fund, managed by the Ministry of Trade and Industry.
  • Provisions are not discounted.
  • Contributions to the fund are made over the first 25 years of plant operation.
  • The nuclear utilities are entitled to borrow up to 75% of the fund with the Government able to borrow the remainder.

France

  • EDF makes provision in its accounts for decommissioning funding, based on a percentage of each kWh sold.
  • Provisions are not discounted.
  • Provisioning is based on an average decommissioning cost fixed by the Ministry of Industry and updated each year using the retail price index.
  • A separate internal fund has been established to finance the storing and processing of radioactive waste.
  • COGEMA makes provisions for decommissionning based on cost estimates this decommissioning fund is identified and is managed under COGEMA's responsibility.

Japan

  • The nuclear utilities make payments annually into an external fund for the disposal of HLW.
  • The fund is administered and managed by the Radioactive Waste Management Funding and Research Center (RWMC).
  • Payments are made by each utility and are adjusted on a yearly basis, the amount being based on the previous year's production of high-level waste.
  • Provisions are generated by a 200 yen/MWh levy on electricity sales.

Spain

  • Responsibility for decommissioning and waste management rests with the state-owned company Enresa.
  • Enresa manages a fund which is provisioned by a 3 Euro/MWh levy on electricity sales.
  • Provisions are discounted at a rate of 2.5%.

Sweden

  • The nuclear utilities make payments into the Swedish Nuclear Waste Fund (Kärnavfallsfonden). A separate fund exists for each utility.
  • Provisions are calculated on the basis of a 4% discount rate until 2020 and 2.5% thereafter.
  • Contributions to the funds are made during the first 25 years of operation and are based on a levy on nuclear electricity production.

Switzerland

  • The nuclear utilities make payments into two funds (decommissioning and waste management respectively), which are independent legal entities administrated by a management commission appointed by the Federal government.
  • The cost estimates and annual contributions are periodically updated for both funds.
  • The costs are allocated on the basis of the reactor power and are made at the end of each year of the planned 40-year lifetime of each reactor.
  • Provisions are discounted.

UK

  • A mix of arrangements exist in the UK.
  • The private sector nuclear company, part of EDF Energy (formerly British Energy), contributes to a separate fund (the Nuclear Liabilities Fund) to cover its long-term decommissioning liabilities for the AGR power stations and the Sizewell B PWR. Short-term liabilities, and used fuel related issues are covered by provisions within the accounts.
  • The government's Nuclear Decommissioning Authority is responsible for the long-term management of the country's historic and committed nuclear liabilities. Its operations are funded by the government, but a proportion of funding is offset by revenue from the NDA's commercial acitivities.

USA

  • Utilities pay a 0.1 cent/kWh into the Nuclear Waste Fund.
  • By the end of 2008 the Nuclear Waste Fund had accumulated over $31 billion, including interest.
  • The fund is growing by about $750 million per year from utility inputs and $900 million from interest.