Annual Report 2010 - Enel.com

31. Provisions for risks and charges - €9,026 million
Millions of euro Accruals
Taken to
income
statement
Utilization
and other
changes
220 Enel Annual Report 2010 Consolidated financial statements
Reclassification
to liabilities
held for sale
at Dec.
31, 2009
restated at Dec. 31, 2010
of which
short term
Provision for litigation, risks and other
charges:
- nuclear decommissioning
- non-nuclear plant retirement and site
3,054 136 (120) (50) - 3,020 185
restoration 529 17 - (50) (30) 466 5
- litigation 781 175 (30) (30) - 896 104
- CO 2 emissions charges 42 - (5) (25) - 12 12
- taxes and duties 543 222 (96) 54 - 723 119
- other 1,514 424 - (176) (73) 1,689 523
Total 6,463 974 (251) (277) (103) 6,806 948
Provision for early-retirement incentives 2,383 374 (6) (524) (7) 2,220 693
TOTAL 8,846 1,348 (257) (801) (110) 9,026 1,641
Nuclear decommissioning provision
The nuclear decommissioning provision includes the following:
> €2,618 million (€2,728 million at December 31, 2009)
for the V1 and V2 plants at Jasklovske Bohunice and
the EMO 1 and 2 plants at Mochovce, and also includes
the provision for nuclear waste disposal in the amount
of €196 million (€261 million at December 31, 2009),
the provision for spent nuclear waste disposal in the
amount of €1,571 million (€1,604 million at December
31, 2009), and the provision for nuclear plant disposal
in the amount of €851 million (€863 million at December
31, 2009). The estimated timing of the outlays described
above takes account of current knowledge of
environmental regulations, the amount of time used
to estimate the costs, and the difficulties presented by
the extremely long time span over which such costs
could arise. The charges covered by the provisions are
reported at their present value using discount rates of
between 4.15% and 4.55%;
> €402 million (€326 million at December 31, 2009) for
the costs to be incurred at the time of disposal of nuclear
plants by Enresa, a Spanish public enterprise responsible
for such activities in accordance with Royal
Decree 1349/03 and Law 24/05. Quantification of the
costs is based on the standard contract between Enresa
and the electricity companies approved by the Ministry
for the Economy in September 2001, which regulates
the retirement and closing of nuclear power plants. The
time horizon envisaged, three years, corresponds to
the period from the termination of power generation
to the transfer of plant management to Enresa (postoperational
costs).
Non-nuclear plant retirement and
restoration provision
The provision for “non-nuclear plant retirement and site
restoration” represents the present value of the estimated
cost for the retirement and removal of non-nuclear plants
where there is a legal or constructive obligation to do so.
Litigation provision
The “litigation” provision covers contingent liabilities that
could arise in respect of pending litigation and other disputes.
It includes an estimate of the potential liability relating
to disputes that arose during the period, as well as
revised estimates of the potential costs associated with
disputes initiated in prior periods. The estimates are based
on the opinions of internal and external legal counsel.