Overview and nature of the funds

financially liable for any problems arising during the long-term storage of the waste. Yet, high costs can still arise after the disposal facility is closed. For instance, at the Asse II site in Germany, low- and intermediate-level waste needs to be recovered from an abandoned salt mine at an estimated cost of €4-6 billion (US$4.5-6.6 billion) covered by taxpayers; while the fees collected for the disposal of radioactive waste during operation of the mine amount to only €8.25 million (US$9.3 million).246

OVERVIEW AND NATURE OF THE FUNDS

Crucial for every funding system is the management and control of the funds, which can be done internally or externally. Financing decommissioning and waste management can take the following forms:247

• External segregated fund: The operators pay their financial obligation into an external fund. Here, private or state-owned independent bodies manage the funds. One fund can cover the whole industry or there can be one for each operator. An external fund can exist with or without transfer of the liabilities and with or without a short-fall guarantee by the operator.

• Internal non-segregated fund: The operator pays into a self-administrated fund and manages the financial resources, which are held within its own assets.

• Internal segregated fund: The operator is obliged to form and manage funds autonomously.

The assets must be segregated from other businesses or earmarked for decommissioning and waste management purposes.

• Public budget: State authorities take over the financial responsibility including the accumulation of financial resources (for instance via taxes and levies). This option is typically used for legacy nuclear power plant fleets and orphan sites (sites where the former operator has declared bankruptcy or simply does not exist anymore, such as the former

East German reactors).

The segregation of the funds does not ensure their correct use, however. The funds can be restricted, so that the liable organization is not fully free in using the accumulated money. Legal requirements beyond standard accounting principles and general tax law can be applied and restrictions imposed on the funds with respect to accumulation, management, and investment.248 A restriction could limit the use of the funds, so that earmarked assets can only be used for decommissioning or waste management. External segregation of the funds does not automatically mean that the funds are restricted and earmarked. For instance, in Italy the external segregated fund CCSE (La Cassa conguaglio per il settore elettrico) pays all decommissioning costs of the public body Sogin responsible for decommissioning and waste management. But the funds have been partly used for other purposes of public interest than decommissioning, as the state is free to use the money for any purposes.249

246 Kirbach, R. 2009, “Das Lügengrab,” (The grave of lies) Die Zeit, 10 September, viewed 14 July 2019, http://www.zeit.de/2009/38/DOS-Asse/komplettansicht 247 Wealer, B., von Hirschhausen, C., and Seidel, J.P. 2019, “Decommissioning of Nuclear Power Plants and Storage of Nuclear Waste: Experiences from Germany, France, and the UK”, in R Haas et al The Technological and Economic Future of Nuclear Power, Springer VS, Wiesbaden, pp. 261-286. 248 Irrek et al. 2007, “Comparison among different decommissioning funds methodologies for nuclear installations,” Final Report on behalf of the European Commission Directorate-General Energy and Transport, viewed 1 July 2019, https://epub.wupperinst.org/frontdoor/deliver/index/docId/2609/file/2609_EUDecommFunds_FinalReport.pdf 249 Irrek et al. 2007, “Comparison among different decommissioning funds methodologies for nuclear installations — Final Country Report (WP 1/ WP 3) Italy”, Wuppertal Institute.