Wednesday, November 16, 2005

EU: Financial resources for the decommissioning of nuclear power plants/Financing closure of the Bohunice VI nuclear power plant

news - EU: Financial resources for the decommissioning of nuclear power plants/Financing closure of the Bohunice VI nuclear power plant

noticias.info/ - Parliament adopted an own-initiative report on the question of the use of financial resources earmarked for the decommissioning of nuclear power plants. Parliament also adopted a consultation report concerning the implementation of protocol No 9 on the Bohunice V1 nuclear power plant in Slovakia.


According to the European Commission, it is a fair assumption that 50 to 60 of the 155 reactors currently operating in the enlarged European Union will need to be decommissioned by 2025. At the moment, the decommissioning strategies and the mode of management chosen for financial resources differ widely between the Member States. Until the Council adopts legally binding instruments in the field of nuclear safety and management of radioactive waste, the Commission intends, on the basis of the Euratom Treaty, to present a non-binding recommendation in 2005 on the subject.

MEPs recognise that it is important, for the protection of human beings and the environment, that nuclear power plants are properly decommissioned after they are shut down definitively. They consider it necessary to ensure that, in each Member State, all nuclear undertakings have sufficient financial resources available needed to cover all the costs of decommissioning, including waste management in order to uphold the polluter pays principle and avoid any recourse to state aid. Parliament notes that the approach to the management of financial resources earmarked for decommissioning differs from one Member State to the other and calls for the sound management of these resources. They call for the use of the financial resources for equitable investments fully in-line with EU competition law. The Commission should, with due regard for the subsidiarity principle, draw up precise definitions concerning the use of financial resources in each Member States, taking into account the decommissioning as well as the management, conditioning and final disposal of the resultant radioactive waste. MEPs consider it necessary for the financial resources to be managed and used with maximum transparency, and for external auditing to be guaranteed.

On 28 April 2004 the Commission sent a letter to 14 Member States (Belgium, the Czech Republic, Finland, France, Germany, Hungary, Italy, Lithuania, the Netherlands, Slovakia, Slovenia, Spain, Sweden and the United Kingdom) which have nuclear plants asking for details of how financial resources, earmarked for decommissioning were used.

This information reveals widely differing situations, in terms both of decommissioning strategies and of the way financial resources are managed. It indicates that the majority of the Member States have chosen the option of external management, i.e. separate from the accounts of the nuclear operator.


Financing the closure of the Bohunice VI nuclear power plant in Slovakia

Parliament adopted this report on the Bohunice V1 nuclear power plant in Slovakia by 377 votes in favour to 222 against with 59 abstentions. Before the final vote Ms Rebecca Harms (Greens/EFA DE) withdrew her name from the report and asked MEPs to vote against the report because MEPs had voted to raise EU spending.

The purpose of the Commissions proposal is to establish the legal framework to enable Community support for the closure of Unit 1 and 2 of the Bohunice nuclear power plant to be provided from 1 January 2007 to 31 December 2013.

MEPs think that the estimated costs of the early closure and decommissioning of the two units are higher than the basis used for the Commission's calculation. Therefore, Parliament wants to raise EU appropriations from ?237 million as in the Commission's proposal to ?400 million for the period from 1.1.2007 to 31.12.2013. The additional amount of ?163 million should be made available by the European Union and especially to those Member States that will benefit from the closure of the nuclear power plant in the context of the annual budgetary procedure. MEPs think that the measures to be supported using Community budget will be defined in more detail by the Commission in 2006 after it receives the decommissioning plans comprising all the necessary information on decommissioning process from the Slovak authorities. On the basis of this plan the Commission will give its yearly approval to measures to be financed. The financial assistance from the Community budget should continue after 31.12.2013.


Background:

During accession negotiations, Slovakia committed to the closure of Unit 1 of the Bohunice nuclear power plant by 31 December 2006 and of Unit 2 by 31 December 2008 at the latest. The European Union has already established a specific assistance programme. In the framework of the Phare programme, a contribution of ?150 million had been earmarked for Slovakia up to 2003. For the period 2004-2006, under Protocol No 9 to the Act of Accession, ?90 million had been earmarked to support decommissioning and the consequences for Bohunice.

The purpose of the Commissions proposal is to establish the legal framework to enable Community support to be provided from 1 January 2007 to 31 December 2013. In the case of Slovakia, Protocol No 9 to the Act of Accession refers only to the Phare programme, which is due to expire and therefore cannot cover the period after 2006. The Protocol mentions the need to continue financing beyond 2006 but does not provide a specific legal basis.

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