SKB report Plan 2022 on future cost of RWM and decommissioning available in English / Large losses for the nuclear waste fund in 2022

On 30 September 2022 the nuclear waste company SKB submitted the ”Plan 2022” report to the Swedish National Debt Office. The authority uses the report and underlying documentation for calculations in order to propose nuclear waste fees and financial guarantees for the period 2024-2026. A draft proposal is expected for comments in June and the proposal is to be submitted to the government by 30 September 2023. The government will take a decision at the end of the year. In an additional news, the nuclear waste fund where the nuclear waste fees are paid fell in real terms by 23% in 2022. It remains to be seen how this will affect future levels of the fees and securities.

The nuclear waste fund contains the funds to guarantee that the state, and thus the taxpayers, do not have to cover the nuclear industry's remaining costs for handling and long-term storage of the nuclear waste. And for the decommissioning of all Swedish nuclear facilities. In 2022, the value of the fund fell by SEK 10 billion from SEK 83 to 73 billion. The return was thus -10.7%, and in real terms when including the including inflation -23%.

At present the nuclear waste fee for the nuclear power plants is between 3 and 5 öre/kWh and it is paid into a nuclear waste fund. The fees are complemented with economic securities to guarantee that fees are paid even if a reactor is shut early compared to the estimates for the fees, and also for unexpected cost increases or if the nuclear waste fund does not grow according to forecasts.

In the “Plan 2022” report the nuclear waste company SKB estimates that management and disposal of the Swedish radioactive waste and the decommissioning of all nuclear facilities will cost an additional SEK 124 billion. There are two calculations in the report. One that is called the reference scenario and is based on how long the industry expects the remaining reactors to be operated, i.e., for 60 years. A second calculation is called the financing scenario, which is based on the assumption that the nuclear waste fees are to be calculated on operating times of 50 years and that the sum is adjusted for cost increases and for unforeseen costs and risks.

So far, the nuclear waste company SKB has used SEK 49 billion of the funds that are paid into the nuclear waste fund via fees from the nuclear power industry. According to the financing scenario, the future costs will be SEK 124 billion, an increase from a calculation of 110 billion three years ago in the report “Plan 2019”. With the losse during 2022 there is currently SEK 73 billion in the fund. This means that there are SEK 51 billion missing that must be paid in to the fund to cover the current calculation produced by the power industry.

The plan report is submitted every three years and the Swedish National Debt Office's review must lead to a government decision on nuclear waste fees and financial guarantees for the period 2024-2026. The authority must evaluate the calculations in order to propose to the government nuclear waste fees and financial guarantees for the period 2024-2026 by 30 September 2023 at the latest. A proposal is expected to be submitted in the spring or around the summer of 2023 and the government will take a decision at the end of the year.

Links:

SKB TR-22-12 “Plan 2022: Costs from and including 2024 for the radioactive residual products from nuclear power”, December 2022 >>

News article about the Plan 2022 submission on the MKG Swedish web site, 220930 >>

News article about the large losses for 2020 for the nuclear waste fund in the MKG Swedish web site, 230221 >>

Links to more information on the web site of the Swedish National Debt Office >>

Links to more information on the web site of the Swedish Nuclear Waste Fund >>

News on the MKG Swedish web site that SKB has released the "Plan 2022 report, 220930 >>