EN Official Journal of the European Union CE 88/141

(2004/C 88 E/0149)

WRITTEN QUESTION P-3375/03

by Antonios Trakatellis (PPE-DE) to the Commission

(10 November 2003)

Subject: Nuclear safety: plant decommissioning and incorporation of costs

Ahead of the accession of ten new Member States, it is a matter of priority to improve nuclear safety in the European Union, the accession states and the applicant countries. After carrying out an assessment, the Commission requested the closure of certain units which cannot be brought up to internationally acceptable safety standards at a reasonable cost (Kozloduy 1-4, Ignalina 1 and 2, and Bohunice 1 and 2) together with an improvement in safety of the other reactors in the applicant countries to a level comparable to that for equivalent reactors currently operating in the Union. However, Bulgarian officials have recently raised the issue of re-opening negotiations on the closure of Kozloduy 3 and 4, which has justifiably given cause for concern.

How will the Commission ensure that States comply with the commitments they have given in memoranda signed between them (e.g. Bulgaria) and the Commission, and in the context of their partnerships with the EU, to close down and decommission dangerous plants which cannot be brought up to internationally acceptable safety standards at reasonable cost?

What measures, appropriations and loans for the decommissioning of dangerous plants which cannot be brought up to internationally acceptable safety standards at reasonable cost have been authorised or put into effect and what measures have been taken to prevent the funding of projects and programmes in States which are in breach of or non-compliance with their international commitments?

What steps will the Commission take to incorporate the external costs of nuclear energy arising from expenditure on decommissioning or modernisation with safety improvements in order to prevent distortion of competition on the market in electricity in the Union?

Answer given by Mr Verheugen on behalf of the Commission

(8 December 2003)

Bulgaria committed itself to the closure of units 1 and 2 of Kozloduy Nuclear Power Plant by the end of 2002, in the framework of the provisional closure of the Energy Chapter of the Accession Negotiations on 18 November 2002. Bulgaria furthermore committed itself to the closure of units 3 and 4 in 2006. In the context of the so-called ‘Peer Review’ mechanism under the auspices of the European Council, the Union has commissioned an expert mission to Bulgaria, as agreed in the Accession Negotiations. This mission took place on 17 to 19 November 2003, and the results will be assessed by the Council.

The commitments to close the Ignalina Nuclear Power Plant in Lithuania and to close the V1 Bohunice Nuclear Power Plant in Slovakia have been included in Protocols to the Accession Treaty. The Commission will propose a similar inclusion of the closure commitments for the Kozloduy Nuclear Power Plant in the Accession Treaty for Bulgaria at the appropriate time.

The Commission expects that the countries fully adhere to their closure commitments as part of future Union primary law, and will continue to carefully monitor this adherence.

In order to support the decommissioning efforts and to address the consequences of the closure and decommissioning the Community has provided, through financing decisions up to 2003:

— Slovakia: EUR 90 million;

— Lithuania: EUR 210 million;

— Bulgaria: EUR 158,75 million.

Regarding the post-accession period, Lithuania will receive, from 2004 to 2006, additional financial assistance for decommissioning, to an amount of EUR 285 million. The Union, furthermore, took a commitment to continue to provide adequate additional Community assistance to Lithuania's decommissioning effort also after 2006.

Regarding Slovakia, financial assistance for 2004 to 2006 amounts to EUR 90 million. The Union acknowledges that the decommissioning process will have to continue beyond 2006 and that this effort represents for Slovakia a significant financial burden. Decisions on the continuation of Community assistance in this field after 2006 will take this situation into account.

Regarding Bulgaria, the EUR 158,75 million already programmed could be increased to EUR 200 million subject to the authorisation of the Budgetary Authority. Moreover, at the occasion of the provisional closure of the Energy Chapter, in which Bulgaria committed to the closure of units 3 and 4 in 2006, the Union expressed its readiness to give consideration to further assistance. A Euratom loan of EUR 212,5 million, for the modernisation of units 5 and 6, is part of the assistance package.

The bulk of the assistance provided is channelled through special decommissioning funds administered by the European Bank for Reconstruction and Development (EBRD) and to which other donors contribute.

The rules of the three International Decommissioning Support Funds contain explicit provisions as regards the conditionality of these programmes to the respect of the closure commitments taken.

In the Union, the operators of nuclear plants set aside provisions for covering the future costs of decommissioning and management of related radioactive wastes. These provisions are typically raised by taking a percent from the price of the energy sold. Decommissioning costs are therefore included in the generation costs of the electricity produced. The modifications to the plants that result from safety requirements are in general treated as an investment, and as such are subject to the financial rules of each country.