2011 Annual Report - OTCIQ.com

126 Notes
The accretion expense resulting from the changes in provisions
is shown in the financial results (see Note 9).
As of December 31, 2011, the interest rates applied for the
nuclear power segment, calculated on a country-specific basis,
were 5.2 percent (2010: 5.2 percent) in Germany and 3.0 percent
(2010: 3.0 percent) in Sweden. For the other provision items,
the interest rates used ranged from 0.3 percent to 3.7 percent,
depending on maturity (2010: 0.7 percent to 4.4 percent).
Provisions for Non-Contractual Nuclear Waste
Management Obligations
Of the total of €9.2 billion in provisions based on German and
Swedish nuclear power legislation, €8.1 billion is attributable
to the operations in Germany and €1.1 billion is attributable
to the Swedish operations. The provisions comprise all those
nuclear obligations relating to the disposal of spent nuclear
fuel rods and low-level nuclear waste and to the retirement and
decommissioning of nuclear power plant components that are
determined on the basis of external studies and cost estimates.
The provisions are classified primarily as non-current provisions
and measured at their settlement amounts, discounted to
the balance sheet date.
The asset retirement obligations recognized for non-contractual
nuclear obligations include the anticipated costs of runout
operation of the facility, dismantling costs, and the cost of
removal and disposal of the nuclear components of the
nuclear power plant.
Provisions for Contractual Nuclear Waste Management
Obligations
Of the total of €6.1 billion in provisions based on German and
Swedish nuclear power legislation, €5.1 billion is attributable
to the operations in Germany and €1.0 billion is attributable
to the Swedish operations. The provisions comprise all those
contractual nuclear obligations relating to the disposal of
Additionally included in the disposal of spent nuclear fuel rods
are costs for transports to the final storage facility and the
cost of proper conditioning prior to final storage, including
the necessary containers.
The decommissioning costs and the cost of disposal of spent
nuclear fuel rods and low-level nuclear waste also respectively
include the actual final storage costs. Final storage costs consist
mainly of investment and operating costs for the planned
final storage facilities Gorleben and Konrad based on Germany’s
ordinance on advance payments for the establishment of
facilities for the safe custody and final storage of radioactive
wastes in the country (“Endlager voraus leistungs verordnung”)
and on data from the German Federal Office for Radiation Protection
(“Bundes amt für Strahlen schutz”). Advance payments
remitted to the Bundes amt für Strahlen schutz in the amount
of €884 million (2010: €839 million) have been deducted from
the provisions. These payments are made each year based on
the amount spent by the Bundes amt für Strahlen schutz on the
construction of the final storage facilities Gorleben and Konrad.
The cost estimates used to determine the provision amounts
are all based on studies performed by external specialists and
are updated annually. The amendments to the German Nuclear
Energy Act of August 6, 2011, were taken into account in the
measurement of the provisions in Germany.
Changes in estimates increased provisions in 2011 by €108 million,
and reclassifications to provisions for contractual waste
management obligations reduced provisions by €302 million, at
the German operations. There were no changes in estimates
affecting provisions at the Swedish operations in 2011.
The following table lists the provisions by technical specification
as of the dates indicated:
Provisions for Non-Contractual Nuclear Waste Management Obligations
December 31, 2011 December 31, 2010
€ in millions
Germany Sweden Germany Sweden
Decommissioning 6,483 374 6,055 347
Disposal of nuclear fuel rods and operational waste 2,491 728 2,674 717
Advance payments 884 – 839 –
Total 8,090 1,102 7,890 1,064
spent nuclear fuel rods and low-level nuclear waste and to
the retirement and decommissioning of nuclear power plant
components that are measured at amounts firmly specified
in legally binding civil agreements.
The provisions are classified primarily as non-current provisions
and measured at their settlement amounts, discounted to the
balance sheet date.