Funding of future dismantling and decommissioning costs in the Finnish State Nuclear Waste Management Fund

The financial provisions for all nuclear waste management, including dismantling and decommissioning (D and D), in Finland have been arranged through the State Nuclear Waste Management Fund, which was founded in 1988. A producer of nuclear waste is fully responsible for its nuclear waste management, including D and D.The main objectives of the system, created through the legislation, are: (a) at any time there shall be sufficient funds available to take care of the nuclear waste management measures caused by the waste produced up to that time; and (b) the financial burden caused by the production of wastes shall, in a timely manner, be reflected in the cost of electricity produced through the activity giving rise to those wastes.The part of liability that is not covered by money in the Fund must always be fully guaranteed. The State Nuclear Waste Management Fund is a special purpose fund, segregated from the State budget. The licence holders are entitled to borrow back 75% of the capital of the Fund against the provision of full guarantees and at current interest rates. In addition, the State has the right to borrow the rest of the capital. Plans and cost estimates for the remaining nuclear waste management measures are updated yearly by the nuclear power companies and approved by the authorities. The assessed liability and fees to be paid into the Fund by the companies are then confirmed. No discounting is used.The funding system in Finland seems to work well and so far no serious problems have arisen as regards the future availability of sufficient capital for nuclear power plant D and D. (author)