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

Risk Factors
A decision by the French public authorities to halt one or more nuclear power
generation segments could have significant negative consequences for the EDF
Group
The public authorities may decide the early termination of one or more segments for other
than industrial considerations. A decision to halt all nuclear power generation by a specific
date cannot be completely excluded. Lastly, it may be decided that any new nuclear
construction project, in which the EDF Group has already invested considerable sums,
should be halted. Such events would have significant negative consequences on the outlook,
financial position, results and image of the EDF Group.
Construction of EPRs may encounter problems or not be completed
The EDF Group has launched construction of the European Pressurised Water Reactor
(EPR) in Flamanville in order to renew its nuclear power generation facilities in France and to
serve as a model for the construction of new facilities abroad.
The EDF Group may not obtain the authorisations required for the construction,
commissioning and operation of the EPR, or authorisations may be challenged by court
rulings. In particular with respect to the Flamanville EPR, which is a “prototype” reactor,
technical or other difficulties may occur during development and construction, or during early
stages of the operation of the EPR. These difficulties could slow or prevent the construction
and commissioning of EPRs or affect their performance. In addition, total constructions costs
could be higher than EDF estimates. After an initial reassessment that was announced at the
end of June 2010, in July 2011, EDF stated that the commissioning of the Flamanville EPR
was now scheduled for 2016 and that its cost would be around €6 billion.
The EPR programme is an essential component of the EDF Group’s strategy. Any event that
delays or blocks this programme or affects the construction of the “prototype” EPR or
subsequent units would thus have a material adverse impact on the EDF Group’s activity
and financial position.
The EDF Group is responsible for most spent fuel and radioactive waste from its
nuclear power plants, especially long life medium- and high-level waste from spent
fuel
In France, as an operator and waste producer, EDF is legally responsible for spent fuel from
the time it leaves the power plant and for radioactive waste processing and long-term
management operations. EDF assumes this responsibility in accordance with guidelines laid
down by the public authorities and under their supervision.
The EDF Group’s liability may be alleged, in particular as a nuclear power operator or
producer within the meaning of applicable legislation on waste, in the event of an accident or
any damage to third parties or the environment from spent fuel or waste, even if they are
handled, transported, kept, warehoused or stored by contractors other than the EDF Group
(especially, in France, the AREVA group and ANDRA), in particular in the event of a breach
by such contractors. If the EDF Group were held liable for damage to third parties, the
specific strict liability scheme applicable to nuclear plant operators would apply, up to the
maximum amounts specified by this scheme.
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