Annexes to COM(2007)794 - Second Report on the use of financial resources earmarked for the decommissioning of nuclear installations, spent fuel and radioactive waste - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2007)794 - Second Report on the use of financial resources earmarked for the decommissioning of nuclear installations, spent fuel and ... |
|---|---|
| document | COM(2007)794  |
| date | January 1, 1945 |
A more detailed analysis of the situation in Member States and wider consultation with stakeholders has resulted in a significantly different understanding of the situation. Funding methodology cannot be simply divided into internal or external funds; there are large variations in methodology and the degree of ring fencing provided by the various mechanisms especially in the case of external funds. Where an operator maintains full responsibility for decommissioning and waste management, the operator argues for maintaining its right for the financial management of funds created for this purpose. This situation may be unacceptable and the attention should be focussed on the various factors that affect fund adequacy, liquidity and security and, combined with close restrictions on fund use and transparent management.
It seems that current concerns are largely due to the lack of application of national legislative requirements and best practices. These concerns could be better addressed by independent oversight of the decommissioning funds, rather than further legislation - whether national or supranational.
The recent change in relevant French law highlights the role that an external body plays in overseeing such issues. The reports of the Court of Auditors were influential in the changes to legislation and the Commission's work was also recognised in the explanatory memorandum that accompanied the new law. A similar strengthening of the role of external oversight can be perceived in other Member States. A notable feature of the new legislation is that it requires practice based on requirements regarding prudence and secure management which are not clearly defined but rather subject to independent oversight.
The Commission is aware that there is a need for improvements to assure the availability of adequate funding when required and their transparent and secure management. The Commission will address these issues as follow-up action to the publication of the Recommendation together with the advisory group representing all Member States.
4. CONCLUSIONS
The decommissioning of nuclear plants is set to become an increasingly important issue in the years ahead. It is a fair assumption under the present policies that about one third of the reactors currently operating in the European Union will need to be decommissioned by 2025.
Despite specific national legislation, there are grounds for progress in several aspects of fund adequacy, management and use, in particular through detailed monitoring and reporting at both national and EU level.
Differences in decommissioning strategies and fund management may lead to a distortion on the liberalised EU energy markets. Decommissioning costs including the final disposal of the waste has to be seen as part of the electricity production costs and should be compatible with state aid rules.
Member States need to ensure more transparency in reporting on the financial resources for decommissioning. Liability assessments should follow agreed accounting principles with publicly available estimates and provisions.
Differences between Member States are partly due to the structure and ownership of energy utilities before the creation of the internal market in electricity. The liberalisation of energy markets has brought an increased need for transparency and more harmonisation in the management of these financial resources. The Commission believes it is important to continue the effort and the cooperation with all parties concerned. The main scope is to ensure both that financial resources are set aside to meet the requirements of nuclear plant decommissioning and that they will actually be available as and when required. The resources need to be managed with full transparency ensuring adequate funds for a high level of nuclear safety with respect to decommissioning and radioactive waste management. The information on decommissioning financing cannot be retained on the basis of confidentiality. The benefits of harmonised decommissioning funding methodologies should be explored in the EU. This assessment should take into account the differences in strategies between the Member States avoiding compromising safety and security. Common approaches in the case of new constructions should be rigorously pursued.
The Commission should focus on the adequacy of funding, its financial security and the ring fencing that is required in order to ensure the funds are only used for the purposes intended. For future nuclear constructions a common approach to methodology should be progressed but for currently operating systems the Commissions activities need to be based upon independent evaluation and reporting.
The working document accompanying this report contains a table of accumulated funds in relation to total liability and plant operational lifetime. The content of the working document is based upon the information provided by the Member States collected via reference studies undertaken since 2004. Member States are requested to correct, if necessary, the information provided and the Commission will reissue the document at appropriate intervals.
The accompanying working document will be used as a basis for future continued consultation with Member State experts.
Sources for the information in this report can be found in the Commission's Staff Working Document: EU decommissioning funding data[10].
[1] Report on the use of financial resources earmarked for the decommissioning of nuclear power plants, COM(2004)719 Final of 26.10.2004
[2] European Parliament resolution on the use of financial resources earmarked for the decommissioning of nuclear power plants (2005/2027(INI)), P6_TA-PROV(2005)0432
[3] OJ L 330 (28.11.2006)
[4] Web page: http://ec.europa.eu/energy/energy_policy/index_en.htm
[5] TEGDE: Technical Group for Decommissioning (IAEA)
[6] WPDD: Working party for dismantling and decommissioning (NEA)
[7] OJ L 411/10 (30.12.2006)
[8] OJ L 131/1 (23.5.2007)
[9] Nuclear safety in the European Union. COM(2002) 605 final of 6.11.2002
[10] SEC(2007) 1654.