Who funds waste management and the decommissioning of nuclear power plants?

The cost of decommissioning nuclear power plants and managing nuclear waste is included in electricity consumers’ bills. The long-term costs of decommissioning and nuclear waste management (and thus the amount that must currently be set aside from the price billed to consumers) are calculated by the Nuclear Provisions Commission. In 2022, the amount set aside totaled more than 17.8 billion euros. A portion of this amount is reserved for the decommissioning of nuclear power plants (8.7 billion euros), with the remainder (9.1 billion) set aside for waste management.

These nuclear provisions are based on a scenario in which our country opts for geological storage at a depth of 400 meters in clay. However, it is up to the federal government to decide which option our country should choose. Choosing a different solution, maybe one that is more complex or more costly, will obviously have an impact on the final price.

Nuclear plant closures have a negative impact on nuclear provisions. Since the nuclear “fund” is linked to the electricity bill for nuclear power, this means that the amount set aside for nuclear provisions will increase only as long as nuclear power is generated. In other words, the longer nuclear power plants remain in operation in our country, the higher the nuclear provisions will be.

Despite this contribution to nuclear provisions, which is included in the electricity bills of consumers, nuclear power remains a competitive source of electricity, with relatively low production costs. Consumers therefore pay the full amount of the bill. In addition, since 2008, operators of Belgian nuclear reactors and facilities have also paid an annual tax, known as the “distribution contribution.” In Belgium, these operators are ENGIE Electrabel and Luminus.

SYNATOM collects this contribution on behalf of the Belgian government and sets aside nuclear provisions to cover all expenses related to the decommissioning of nuclear power plants and the management of irradiated nuclear fuel (waste). SYNATOM also provides financial support for research and development in the field of permanent storage of radioactive waste and ensures the supply of enriched uranium to nuclear operators.

As part of the comprehensive agreement between the government and the operator Engie Electrabel on the extension of the two newest nuclear reactors (Doel 4 and Tihange 3), an agreement was also reached on the cost of nuclear waste.

The cost of decommissioning the nuclear reactors has been set at 8 billion euros. This cost remains the responsibility of the operator.

For nuclear waste management, Engie must provide 15 billion euros. This is a maximum amount, which means that any additional costs will, in principle, be borne by the Belgian government. This amount for nuclear waste management must therefore be invested in a new fund, called “Hedera,” so that the total can reach €60 billion over the coming decades. If it later turns out that the nuclear waste management fund is insufficient, the government (and no longer Engie Electrabel) will have to cover the shortfall. It is therefore very important that this new fund be well managed and that the money it contains be used solely for nuclear waste management (and not, for example, to plug a hole in the Belgian government’s budget). Engie still bears the risk associated with volume, so that if it later turns out there is more nuclear waste than anticipated, the amount could rise further, and Engie will have to contribute even more money. Engie’s volume estimates should be close to reality.

In total, the cost to the operator, Engie-Electrabel, therefore amounts to 23 billion euros.