Waste Management in the Nuclear Fuel Cycle - 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.
• 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.
• The internal funds are available for investment within the utilities business.

Finland

• The nuclear utilities make payments into an external fund, managed by the Ministry of Industry and Business.
• 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 make 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.

Spain

• Responsibility for decommissioning and waste management rests with the state owned company ENRESA.
• ENRESA manage 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 an external fund, the Nuclear waste Fund. 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 (MW) and are made at the end of each year of the 40 year life time of each reactor.
• Provisions are discounted.

UK

• A mix of arrangements exist in the UK.
• The private sector nuclear company, British Energy, contributes to a separate fund to cover its long term decommissioning liabilities. Short term liabilities, and spent fuel related issues are covered by provisions within the accounts.
• The public sector company, British Nuclear Fuels has part of its liabilites covered by an internal fund (the Nuclear Liabilities Investment Portfolio) and part by a promissory note from the UK Government (the Magnox undertaking).
• British Energy discount their provisions at 3%, BNFL at 2.5%