Euradwaste '08 - EU Bookshop - Europa

The results can be summarised as follows:
The Polluter pays principle for decommissioning is widely accepted. However, only in few
countries it is the basis for granting an operating license.
Costs estimates are subject to high degree of risks and uncertainties.
Differences in reported cost estimates occur due to varying discounting mechanisms and the
timing of dismantling.
Not all Member States require that funds be managed externally and segregated from the
operator.
A number of Member States seem to be moving towards the increased restriction of funds.
This development might be further accelerated by pressure from the financial markets.
In most countries there are only limited rights for the public to access information on decommissioning
costs and funds.
Many operating companies and governments are satisfied with the current situation and
have concerns towards an EU harmonization process of nuclear decommissioning financing.
The discussions on decommissioning funds so far have focused on nuclear power plants.
Decommissioning of other facilities must not be overlooked, in particular for high cost facilities,
such as reprocessing plants or facilities having experienced incidents or accidents.
4. Discussion of financial consequences and risks
What are the financial consequences and risks of the different decommissioning financing systems
from governance, accounting, valuation and investment perspectives?
From a governance perspective, the higher the potential conflict of interests within a particular
decommissioning methodology, the greater the need for additional checks and balances.
Externally managed funds have a lower risk of conflicts of interest.
Using the accounting perspective leads to the conclusion that reliability and comparability
of accounting have to be improved.
The valuation perspective is particularly important to investors. A reliable valuation has to
allow a comprehensive risk assessment. To enable this to happen, transparency is paramount.
The incentive to finance part of future decommissioning costs through a high investment
performance is evident. However, high performance investments can conflict with the prudence
principle, which plays an important role in the field of financial asset management.
5. Conclusions
Member States must ensure that adequate funds will be available when necessary, and that – using
the 'Polluter Pays Principle’ – risks and uncertainties are eliminated as far as possible. These steps
include:
The identification of risks such as the changing of ownership of utilities or the existence of
two or more different decommissioning financing schemes in one market.
Increasing transparency; experience shows that transparency is a key issue for any internal
or external fund. Given this, an operator has to define and establish a procedure which is effective,
clear and transparent.
Assuring a high degree of independence between actors in the governance chain is crucial.
This must include organisational and structural independence of the different organisation as
well as personal independence, particularly with regard to the independence of the fund
manager from the operator and the independence of the licensing authorities. In principle
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