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20.2 Notes to the consolidated financial statements for the year ended December 31, 2016
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
At December 31, 2016, the use of a discount rate of 25 bp higher or 25 bp lower
than the rate used (4.10%) would have had the effect of changing the value of end-
of-lifecycle provisions falling within the scope of the French law of June 26, 2006
by (360) million euros with a discount rate by +25 bp and +394 million euros with
a discount rate by -25 bp.
By letter dated February 28, 2017, the Minister of Economy and Finance and the
Minister of Environment, Energy and Oceans informed the Chairman of the Board
of Directors of AREVA NC of their decision to modify the formula for calculating the
regulatory cap on the discount rate, as from 2017. This decision will translate into a
change in the order of March 21, 2007, amended by the order of March 24, 2015.
The new formula would gradually lead, over a period of 10 years starting with the
regulatory cap recognized at December 3, 2016 (4.3%), to, in 2026, a cap equal
to the average for the last four years of the 30-year Treasury Constant Maturity Rate
(TEC 30) plus 100 basis points.
Final waste removal and disposal
AREVA sets up a provision for expenses related to radioactive waste.
These expenses include:
p
the removal and near-surface disposal of short-lived, very low-level and low-level
waste and its share of monitoring of Andra’s Centre de la Manche and Centre de
l’Aube disposal facilities, which received or still receive these waste;
p
the removal and underground disposal of long-lived low-level waste (graphite);
p
the removal and disposal of long-lived medium- and high-level waste covered by
the French law of December 30, 1991 (now codified in articles L. 542-1
et seq.
of
the French Environmental Code). The provision is based on the assumption that
a deep geologic repository will be deployed(hereinafter called Cigéo).
Concerning the ministerial order of January 15, 2016, which set the cost pertaining
to implementation of Cigéo at 25 billion euros, that impact had already been taken
into account in 2015 and there was no change in that assumption in 2016.
For purposes of sensitivity analysis, any increase of one billion euros in the amount
of the estimate for the Cigéo project would lead to an additional charge of 29million
euros by AREVA, based on the method used to establish the existing provision.
TENTATIVE SCHEDULE OF PROVISION DISBURSEMENTS
The following table shows the forward payment schedule of provisions both within and outside the scope of the law of June 28, 2006, excluding Andra’s monitoring costs:
(in millions of euros)
December 31, 2016
NewCo
2017
292
2018 – 2020
1,402
2021 – 2025
1,592
2026 – 2035
1,667
2036 and beyond
8,525
TOTAL PROVISIONS BEFORE DISCOUNTING
13,478
ASSETS EARMARKED FOR END-OF-LIFECYCLE OPERATIONS
Continuing operations
(in millions of euros)
December 31, 2016
December 31, 2015
Receivables related to end-of-lifecycle operations
-
739
Earmarked assets
-
5,383
TOTAL
-
6,122
218
2016 AREVA
REFERENCE DOCUMENT