Collateral for nuclear waste management

The Debt Office audits the collateral provided by various nuclear power companies for securing the financing required to manage nuclear waste produced. We then submit the results of our audits to the Government.

Special financing system for nuclear waste management

A party that is responsible for paying nuclear waste-related fees must also provide acceptable collateral that covers all estimated costs for nuclear waste management that are not yet paid to the Nuclear Waste Fund. In addition, the collateral must cover a margin of uncertainty with regard to deficits in the fund that can arise as a result of unforeseen events.

Our task is to assess the financial sustainability of pledged collateral based on the fact that it may not be claimed for several decades.

Thus far, pledged collateral has primarily consisted of guarantees from the owners of the generally smaller enterprises with a permit to conduct nuclear activities.

Collateral consisting of guarantees presents a credit risk; i.e., a risk that the companies providing a guarantee lack the ability to fulfil their undertaking at a later date should a need to claim the collateral arise.

For every audit (once every three years), the Debt Office submits a statement to the Government on the assessed creditworthiness of the companies that have provided guarantees.