Decommissioning costs - some international perspectives and initiatives. Presentation for Panel discussion. Session No. 024: 'Getting a Handle on Decommissioning Costs - a Global Perspective'
Financing for decommissioning: Are the cost estimates valid? Are the financing arrangements suitable? Are the fund management systems appropriate? Cost estimates are estimated, analysed and updated on a regular basis, but cost comparisons are not straight-forward. There is an incomplete understanding of variability between estimates. Multiple internal and external factors impact estimates: Institutional, legal and policy, purpose, Strategies and plans, overall context, Facility characteristics and history Contingencies and risk, Limited actual cost data. The financing arrangements: there exists a range of systems in place for the implementation of Funding Policy and Strategy, but there are Considerable variations in: Calculating funding requirements, contributions/provisions, Allocating risks and requirements for securities Managing funds and accounting, adjusting the system, Managing disbursements, Reporting and supervision. All cost estimates for future decommissioning activities include considerable uncertainties. These uncertainties will gradually diminish with growing experience from current and planned projects. Different costing methods have different data requirements. Their reliability depends on the extent to which various data are available and applicable to the specific case being considered. Independent of the assessment method, some uncertainty is inevitable in all estimates of future costs. Analysis of the costing method may be useful in order to locate the key uncertainties in each specific estimate. NEA's Decommissioning Cost Estimation Group (DCEG) was Created in 2008 to foster the exchange of information and experience. It Aims to enhance the credibility, reliability, and auditability of the cost estimation process. It Helps define international good practices in decommissioning cost estimation. However, some major challenges remain. Weaknesses in: Understanding relations between estimates and actual costs, Lack of relevant cost data, sharing data. How might be addressed: Improved sharing of cost data, Systematic analyses of estimates and actual costs, Developing benchmarking approaches.