Financing of Liabilities Beyond the Service Life of Nuclear Installations

Abstract

Operation of a nuclear installation is connected with the creation of long-term liabilities for spent fuel management and disposal, and also decommissioning of the installation (power plant, storages). This means that the operator will have to expend considerable amount of financial resources over a long period after the closure of installation. These financial resources will have to be created during operation of the installation. Related costs to be expended in future must be fully included in the price of electricity, in order to ensure fair competition among different operators. Financial resources for future coverage of liabilities must be continuously invested in order to compensate for inflation and to gain some real interest.Any failure by the operator to comply with its liabilities poses an economic and potentially an environmental hazard for operator’s country. Due attention must therefore be paid to assessing connected costs, defining liabilities and ensuring appropriate regulatory oversight. Appropriate measures must be well defined and firmly anchored in the legislation of countries operating nuclear installations. This paper reviews the basic principles that should ensure operator’s compliance their liabilities, and maps the current situation in the Czech Republic.