Contents
THE EUROPEAN COMMISSION,Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 108(2) thereof,Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof,Having called on interested parties to submit their comments pursuant to the provision(s)note cited above and having regard to their comments,Whereas:
HAS ADOPTED THIS DECISION:
Article 1#
The aid which Czechia is planning to implement to support the construction and operation of a new nuclear power plant at the Dukovany site is compatible with the internal market.
Inputs into the financial model that are subject to changes
Post EPC tender
| Input | Description of the input | Sheet | Row | Justification for the update |
|---|---|---|---|---|
| Development phase 2 duration | Duration of phase 2 of the project’s development | Inp_C | 43 | Updated to reflect the EPC selection outcome. The exact timing will be confirmed on the basis of the winning EPC tender. |
| Construction period duration | Duration of the construction period of the project | Inp_C | 47 | Updated to reflect the EPC selection outcome. The exact timing will be confirmed on the basis of the winning EPC tender. |
| Full operation period | Duration of the full operation period of the project (excluding trial operations) | Inp_C | 51 | Updated to reflect the EPC selection outcome. The exact timing will be confirmed on the basis of the winning EPC tender. |
| Base capex – development phase 2 | Cost for phase 2 of the project’s development | Inp_C | 59 | Updated to reflect the EPC selection outcome. The costs will be confirmed on the basis of the winning EPC tender. |
| Base capex – construction phase | Cost for the construction phase of the project | Inp_C | 60 | Updated to reflect the EPC selection outcome. The costs will be confirmed on the basis of the winning EPC tender. |
| Gross plant capacity | The gross capacity of the plant (not including any deduction for own consumption) | Inp_C | 112 | Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. |
| Own consumption | Amount of consumption needed to operate plant | Inp_C | 113 | Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. |
| Trial period availability | Availability of the plant during the trial period | Inp_C | 132 | Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. |
| Post-trial period availability | Availability of the plant during full operations | Inp_C | 135, 138 | Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. |
| Development phase 2 capex phasing | Profile of spend during the phase 2 of the project’s development phase | Inp_V | 43-48 (chosen at Inp_C 65) | Updated to reflect the EPC selection outcome. The costs and exact timing will be confirmed on the basis of the winning EPC tender. |
| Construction capex phasing | Profile of spend during construction | Inp_V | 53-61 (chosen at Inp_C 66) | Updated to reflect the EPC selection outcome. The costs and exact timing will be confirmed on the basis of the winning EPC tender. |
| Availability assumptions | Annual profile of plant availability | Inp_V | 70-82 (chosen at Inp_C 138) | Updated to reflect the EPC selection outcome. The parameters affecting availability assumptions depend on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. However, the update cannot reduce the availability assumptions in the Financial Model of 15 March 2024 which are based on the plant’s designs complying with minimum European Utility Requirements for LWR Nuclear Power Plants. |
| Variable cost | Costs which are largely determined by plant output (e.g. fuel, disposal of non-radioactive waste, decom. provision) | Inp_V | 143-220 (chosen at Inp_C 226) | Updated to reflect the EPC selection outcome. The costs and will be confirmed on the basis of the winning EPC tender. |
| Fixed cost | Costs which will be incurred regardless of plant output (e.g. wages, office supplies, security) | Inp_V | 237-279 (chosen at Inp_C 225) | Updated to reflect the EPC selection outcome. The costs and will be confirmed on the basis of the winning EPC tender. |
| Lifecycle cost | Costs which will be incurred for the replacement and major refurbishment of components in the NPP | Inp_V | 286-295 (chosen at Inp_C 227) | Updated to reflect the EPC selection outcome. The costs and will be confirmed on the basis of the winning EPC tender. |
| Operational cost | Profile of values of parameter c in the remuneration formula. | Inp_V | 502-506 | Updated to reflect the EPC selection outcome. The costs and will be confirmed on the basis of the winning EPC tender. |
| Additional costs due to load following | Costs not captured in other cost items that are driven by the load following operation of the plant | Inp_V | 300 – 304 (chosen at Inp_C 228) | Justified by EPC outcome (the costs will be specified based on the technical specification of the bidder) |
| Original debt – Interest rate fixed/floating | Determines whether the interest rate for the RFA is a fixed or floating rate | Inp_C | 337 | Updated to reflect the terms of the RFA. |
| Original debt – Interest rate – margin during operation | The cost of debt for the RFA during the operation phase | Inp_C | 346-356 | Updated to reflect the terms of the RFA. |
| Original debt – fees | Fees related to securing the RFA | Inp_C | 359-361 | Updated to reflect the terms of the RFA. |
| Standby debt repayment mode | The principal repayment option of any standby debt | Inp_C | 376 | Updated to reflect the terms of the RFA. |
| Standby debt – Interest rate fixed/floating | Determines whether the interest rate for the standby debt is a fixed or floating rate | Inp_C | 380 | Updated to reflect the terms of the RFA. |
| Standby debt – interest rate – margin during operation | The cost of debt for the standby debt during the construction phase | Inp_C | 389-399 | Updated to reflect the terms of the RFA. |
| Standby debt – fees | Fees related to securing the standby debt | Inp_C | 402-404 | Updated to reflect the terms of the RFA. |
| Fuel cost depreciation | Duration of depreciation of fuel costs | Inp_C | 230 | Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. |
| Lifecycle cost depreciation | Duration of depreciation of lifecycle costs | Inp_C | 233 | Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. |
| Working capital days | Days between generation of electricity and payment | Inp_C | 251-253 | Updated to reflect the EPC selection outcome (payment terms with the EPC Supplier and with the SPV). Current assumption in the model may be updated to align with the RFA drawdown and repayment terms and any contractual provisions in the EPC contract. |
| Start of debt active funding period | Beginning of drawdown of RFA | Inp_C | 276 | Updated to reflect the EPC selection outcome. The exact timing is tied with the start of Development Phase 2 and will be confirmed on the basis of the winning EPC tender. |
| Dividends restriction by retained earnings | Determines whether dividends are restricted by retained earnings | Inp_C | 455 | Updated to reflect the EPC selection outcome. The EPC tender will define construction costs and therefore the debt amount and the final financing structure. Also, the form of equity could impact this input. |
| Reference quantity (k) profile | Profile of values for the k parameter in the remuneration formula | Inp_V | 473-485 (chosen at Inp_C 185) | Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. |
| Alpha parameter profile | Profile of values for the alpha parameter used in the remuneration formula | Inp_V | 489-493 (chosen at Inp_C 187) | Updated to reflect the EPC selection outcome. The parameter depends on the technical specifications and operating costs of the plant and will be confirmed on the basis of the winning EPC tender. |
| Load following assumptions – pasted from revenue model – % of revenue | Impact on revenues which represent the benefit of load following behaviour (modelled in the revenue model) | Inp_V | 523-540 (chosen at Inp_C 198) | Updated to reflect the EPC selection outcome. The parameters affecting load following availability assumptions depend on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. However, the update cannot reduce the availability assumptions in the Financial Model of 15 March 2024 which are based on the plant’s designs complying with minimum European Utility Requirements for LWR Nuclear Power Plants. |
| Load following assumptions – pasted from revenue model – % of operational cost | Impact on costs which represent the benefit of load following behaviour (modelled in the revenue model) | Inp_V | 536-542 (chosen at Inp_C 199 | Updated to reflect the EPC selection outcome. The parameters affecting load following availability assumptions depend on the technical specifications of the plant and will be confirmed on the basis of the winning EPC tender. However, the update cannot reduce the availability assumptions in the Financial Model of 15 March 2024 which are based on the plant’s designs complying with minimum European Utility Requirements for LWR Nuclear Power Plants. |
| Target DSCR | The target Debt Service Cover Ratio for total debt service | Inp_C | 297, 328-330 | Justified by finalisation of RFA and EPC tender (construction costs will be confirmed through the EPC tender). |
| Target LLCR | The target loan life cover ratio for total debt service | Inp_C | 301 | Justified by finalisation of RFA and EPC tender (construction costs will be confirmed through the EPC tender). |
| Target PLCR | The target project life cover ratio for total debt service | Inp_C | 304 | Justified by finalisation of RFA and EPC tender (construction costs will be confirmed through the EPC tender). |
| Original debt – debt tenor and moratorium period | The total tenor of the RFA | Inp_C | 311-312 | Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. |
| Original debt repayment mode | The principal repayment profile for the RFA | Inp_C | 329 | Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. |
| Maintenance reserve account details | Account used to cover a portion of anticipated maintenance over a defined forecast period | Inp_C | 466-472 | Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. |
| Debt service reserve account | Account used to cover a portion of anticipated debt service over a defined forecast period | Inp_C | 482-502 | Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. |
| Decommissioning reserve account details | Account to cover anticipated decommissioning costs | Inp_C | 474-480 | Updated in case of costs increases covered by Legitimate grounds. |
| Decommissioning reserve | Profile of funding requirement for the decommissioning reserve | Inp_V | 310-315 (chosen at Inp_C 477) | Updated in case of costs increases covered by Legitimate grounds. |
| Original debt sculpting factor | Sculpting factor of RFA principal repayment | Inp_V | 354-364 (chosen at Inp_C 330) | Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. |
| Fixed debt repayments | Profile of fixed debt principal repayment per year | Inp_V | 378-388 (chosen at Inp_C 335 | Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. |
| Floating rate for original debt | Profile of floating rate for the RFA cost of debt | Inp_V | 390-397 (chosen at Inp_C 340) | Updated to reflect the EPC selection outcome and the RFA as the investment costs and amount of the RFA will be confirmed on the basis of the winning EPC tender. |
| Inflation assumptions | Macroeconomic assumptions related to the chosen indexation mechanisms | Inp_V | 15-24 (chosen at Inp_C 239-245) | Updated to calculate nominal value of CAPEX from over-night CAPEX inputs received in EPC tender. |
| VAT rate | Rate of value add tax applicable to the project | Inp_C | 548 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| VAT applicability | Revenue and cost items for which VAT is applicable | Inp_C | 544-556 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Business tax – Maximum allowable interest as % of EBITDA | Maximum allowable interest expense expressed as a % of EBITDA which is used to calculate taxable income | Inp_C | 562 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Business tax rate | Rate of business tax applicable to the project | Inp_C | 576 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Capital allowance rate – general and special rate pool | Rates for capital allowances | Inp_C | 581-583 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Project costs taxation | Determines capital allowance taxation related to specific cost items | Inp_C | 587-589 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Accounting depreciation | Accounting depreciation information across different asset categories | Inp_V | 324-336 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Tax depreciation | Tax depreciation information across different asset categories | Inp_V | 338-350 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
During the PC
| Input | Description of the input | Sheet | Row | Justification for the update |
|---|---|---|---|---|
| Variable cost | Costs which are determined by plant output (e.g. fuel, disposal of non-radioactive waste, decom. provision) | Inp_V | 143-220 (chosen at Inp_C 226) | Variable cost will be updated to reflect cost overruns in Legitimate Grounds events.Variable cost which constitute 'c' will be updated periodically as part of the remuneration formula review. |
| Fixed cost | Costs which will be incurred regardless of plant output (e.g. wages, office supplies, security) | Inp_V | 237-279 (chosen at Inp_C 225) | Updated to reflect cost overruns in Legitimate Grounds events. |
| Additional costs due to load following | Costs not captured in other cost items that are driven by the load following operation of the plant | Inp_V | 297 – 306 (chosen at Inp_C 228) | In case a Legitimate Grounds event leads to an overrun in additional load following costs, the input ‘additional cost due to load following’ will be updated in the financial model accordingly.Additional cost due to load following will be also revisited and updated as part of the periodic PC remuneration formula review. |
| Overrun capex – development phase 1 | Quantum of any overrun spend occurring during the first phase of development | Inp_C | 70 | Updated to reflect cost overruns in Legitimate Grounds events. |
| Overrun capex – development phase 2 | Quantum of any overrun spend occurring during the second phase of development | Inp_C | 71 | Updated to reflect cost overruns in Legitimate Grounds events. |
| Overrun capex – construction phase | Quantum of any overrun spend occurring during construction | Inp_C | 72 | Updated to reflect cost overruns in Legitimate Grounds events. |
| Percentage of overrun which is LG | Proportion of overruns which are due to Legitimate Grounds issues | Inp_C | 77 | Justified by cost overruns in Legitimate Grounds event Updated to reflect cost overruns in Legitimate Grounds events. |
| Overrun capex – development phase 1 | Profile of any overrun spend occurring during the first phase of development | Inp_V | 415-420 (chosen at Inp_C 83) | Updated to reflect cost overruns in Legitimate Grounds events. |
| Overrun capex – development phase 2 | Profile of any overrun spend occurring during the second phase of development | Inp_V | 425-430 (chosen at Inp_C 84) | Updated to reflect cost overruns in Legitimate Grounds events. |
| Overrun capex – construction phase | Profile of any overrun spend occurring during construction | Inp_V | 435-440 (chosen at Inp_C 85) | Justified by cost overruns in Legitimate Grounds event Updated to reflect cost overruns in Legitimate Grounds events. |
| Inflation assumptions | Macroeconomic assumptions related to the chosen indexation mechanisms | Inp_V | 15-24 (chosen at Inp_C 239-245) | Updates to reflect movements in the value of the respective indices over time. Update of the values will be overseen by MIT. |
| VAT rate | Rate of value-add tax applicable to the project | Inp_C | 548 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| VAT applicability | Revenue and cost items for which VAT is applicable | Inp_C | 544-556 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Business tax – Maximum allowable interest as % of EBITDA | Maximum allowable interest expense expressed as a % of EBITDA which is used to calculate taxable income | Inp_C | 562 | Justified by changes to tax law Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Business tax rate | Rate of business tax applicable to the project | Inp_C | 576 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Project costs taxation | Determines capital allowance taxation related to specific cost items | Inp_C | 587-589 | Updated in case of legislative changes in both directions (increase or decrease compared to initial assumptions). |
| Reference quantity (k) profile | Profile of values for the k parameter used in the remuneration formula | Inp_V | 473-485 (chosen at Inp_C 185) | The reference quantity will be determined ex ante every five years. The value of k will change over the PC (during these periodic reviews), reflecting the expected output of the plant for each year based on maintenance activities, before the impact of any load following operation.This parameter will also be updated in case of Legitimate Grounds. |
| Alpha parameter profile | Profile of values for the alpha parameter used in the remuneration formula | Inp_V | 489-493 (chosen at Inp_C 187) | The alpha parameter will be determined ex ante every five years (as stated in recital 97). The alpha parameter is defined equal to f/c each year, and its value will need to be updated in line with any update to c, over the PC. |
Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.