Regulation evolution in Sweden with emphasis on financial aspects of decommissioning

It is generally agreed that it should be the polluters that pay. A corollary to this principle is that it is those who benefit from e g nuclear electricity generation that should pay all the future costs for decommissioning and waste management. In order for such a corollary to be implemented in practice it is necessary that costs can be estimated, that appropriate funds can be accumulated, and that money can be made available at the time when it is needed. This is the principle underlying the recent (2006) recommendation of the European Union Commission on financial resources for decommissioning. The Commission states that a segregated fund with appropriate controls on use is the preferred option for all nuclear installations, and a clear recommendation to this effect is made for new installations. Furthermore, as regards the estimation of decommissioning costs, the Commission recommends a prudent calculation of costs based on appropriate risk management criteria and external supervision. The commission finds that experience shows that exchange of information between national experts concerning the various approaches to and financial arrangements for decommissioning and waste management is an excellent way of facilitating a common response to safety challenges. However, stringent requirements on assessing and securing assets for liabilities have been in force since many years through the various national implementations of the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS). Thus, precise calculations are to be presented each year (except for ongoing court cases), and in case estimation is difficult, various scenarios should be considered and a weighed average presented. In Sweden, the Law of Finance (SFS 2006:647) regulates how the costs for decommissioning and waste management are to be calculated and paid. A fee is levied on the use of nuclear electricity and accumulated in the waste fund. In addition, the nuclear companies are obligated to provide securities for future fees (to cover the eventuality of an early shutdown) as well as for possible underestimations in the assessments. (authors)