Under the Euro Medium Term Note Programme ... - Finance - EDF

Risk Factors
modifications to all or some of its plants, or that events will not occur that may have an
impact on the operation of its plants or their output or cause a temporary or permanent
shutdown of all or some of its plants. In particular, following the additional safety inspections
carried out after the Fukushima accident, the French Nuclear Safety Agency (ASN) will take
decisions in 2012 that may require EDF to carry out significant works prior to the next safety
re-evaluations and ten-year inspections. This may bring forward relatively significant
expenditures and result in extended shutdowns.
The EDF Group also operates nuclear power plants elsewhere in Europe, in particular the
United Kingdom, as well as in the United States, and it may also be required to make costly
repairs or modifications to these units or it could be faced with events that may impact their
performance, generation or availability. Like in France, following the Fukushima accident, the
safety authorities in the United Kingdom and the United States may take decisions that
require additional works.
Despite the maintenance work carried out by the EDF Group on its power plants, it is
possible that certain plants may not operate at full capacity, in particular due to the age of
certain equipment.
All such events may have a negative impact on the EDF Group’s financial results and
activities.
The EDF Group may not be authorised to operate its nuclear power plants over a
period at least equal to the period used, in particular, to calculate depreciation and
provisions
In connection with the studies associated with the third ten-year inspections of the 900 MW
units, in early July 2009 the ASN publicly stated that it had not detected any generic problem
calling into question EDF’s ability to ensure the safety of its 900 MW reactors for up to 40
years. As required by the regulations, the ASN’s opinion will be subsequently supplemented
by an opinion on each reactor following each of the third ten-year inspections. In 2010, a first
reactor (Tricastin 1) obtained a favourable recommendation from the ASN for operation for
an additional ten years until the fourth ten-year inspection. On 4 July 2011, the ASN issued a
favourable recommendation on the operation of Fessenheim 1 for an additional ten years,
although the recommendation was conditioned on the forthcoming conclusions of additional
safety inspections and the performance of certain works. However, the EDF Group cannot
guarantee that it will obtain the necessary authorisations at the relevant times, or that such
authorisations will not be subject to conditions that entail significant expenditures or
investments for the EDF Group.
Nonetheless, the EDF Group assumes an operating life of 40 years for the purpose of
calculating the accounting treatment associated with the operating life of its nuclear plants in
France (depreciation of fixed assets, provisions, etc.). If the safety authorities decide to close
some units or power plants before this 40-year period, the EDF Group would be required to
accelerate replacement of the corresponding generation capacity and to make additional
investments or electricity purchases on the market. It would also be necessary to review the
depreciation and provisioning plan and reassess the residual operating life of the relevant
plants. This may have a significant adverse impact on the EDF Group’s financial results and
its financial position.
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