Costs and financing

clay. RAWRA virtually ignored the concerns of the selected municipalities and their inhabitants, thus creating ongoing conflicts between local governments and central authorities. The Platform Against Deep Repository, whose members include thirty-two towns and villages and fourteen associations, opposes the plans.298 Consequently, geological planning is years behind schedule. New sites are being considered, ones with less likely public resistance but possibly inferior geological conditions. As of 2019, RAWRA is considering nine potential sites.299

The suitability of the chosen site is to be confirmed by 2025, which seems optimistic. In 2030, construction of an underground laboratory should begin, and then after 2050 work on the repository should commence. The goal is to start operation by 2065.

COSTS AND FINANCING

The first Atomic Act stipulated the establishment of a state “nuclear account” administered by the Ministry of Finance. The funds it contains are earmarked for nuclear waste management, including the development, operation, and closure of a deep geological repository in the future. The main source of income comes from fees paid by nuclear waste producers. Thus, the polluter-pays-principle is applied. By 2018, the account held CZK26.9 billion (US$1.24 billion).300 The Act sets a fee of CZK55 (around US$2.53) for every MWh of electricity generated at a nuclear power plant and CZK30 (around US$1.38) for every MWh of thermal energy produced by a research reactor. Other producers of nuclear waste must pay a one-time fee covering costs.301

The Czech government calculated the costs of storing low- and intermediate-level waste at CZK4.57 billion (US$210 million) and the costs for storing spent nuclear fuel and high-level waste at CZK111.4 billion (US$5.13 billion); storage is paid by ČEZ from operational expenditure. According to an analysis from the Czech Technical University, these fees will not be sufficient to cover actual future costs.302

Another financial mechanism addresses the decommissioning of nuclear facilities in the future. Those licensed to operate nuclear facilities must build up financial reserves for decommissioning and draft a schedule, both of which must be approved at least every five years by the State Office for Nuclear Safety. RAWRA must confirm that operators possess these reserves in a special segregated account.

Each year, ČEZ sets aside CZK209 million (US$9.6 million) for decommissioning the Dukovany plant. As of 31 December 2016, CZK6 billion (US$276 million) had been reserved; by the time the plant is shut down, this figure should be CZK22.4 billion (US$1 billion). The total reserve fund for decommissioning the Temelín plant should amount to CZK18.4 billion (US$847 million). As of December 31, 2016, ČEZ had reserved CZK2.8 billion (US$129 million) and annually sets aside CZK198.5 million (US$9.1 million).303

298 List of members of Platform Against Deep Repository: http://www.platformaprotiulozisti.cz/cs/clenove-platformy/ 299 Czech Radioactive Waste Repository Authority (RAWRA) Website, “DGR in Czech Republic”, viewed 29 May 2019, https://www.surao.cz/en/public/deep-geological-repository/dgr-in-czech-republic/ 300 RAWRA 2018, Annual Report on the Activities of Radioactive Waste Repository Authority in 2017 301 Government of the Czech Republic 2017, Decree No. 35/2017 Coll. 302 Knápek, J.,et al. 2017, “Updated Economic Model and Fee Calculation for the Nuclear Account for LLW/ILW and HLW/SNF”, Technical University study 303 Czech State Office for Nuclear Safety 2018, National Report of The Czech Republic under Article 14.1 of the Council Directive 2011/70/EURATOM of 19 July 2011 establishing a Community framework for the responsible and safe management of spent fuel and radioactive waste, viewed 29 May 2019, https://www.sujb.cz/fileadmin/sujb/docs/zpravy/narodni_zpravy/EuroNZ_VP_RAO_2_1A.pdf