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Thursday, Apr 03, 2025

Nuclear Industry Initiates Legal Offensive Against Spanish State Over Cost Claims

Nuclear Industry Initiates Legal Offensive Against Spanish State Over Cost Claims

The nuclear sector demands compensation for alleged costs of €3 billion, with Iberdrola and Endesa seeking €800 million for contract breaches.
The nuclear industry in Spain has launched a series of legal actions amidst increasing tensions related to the planned closure of nuclear power plants.

Representatives from the Nuclear Forum, which encompasses major companies in the sector, have confirmed the filing of up to five lawsuits against the state and the National Radioactive Waste Company (Enresa).

The industry accuses these entities of incurring over €3 billion in excess costs, which they claim unfairly shift €800 million onto the sector due to breaches of contract.

Iberdrola, Endesa, and Naturgy have argued that the government cannot impose inflated charges that jeopardize the economical operation of nuclear facilities, which they attribute to mismanagement by Enresa.

Should the judicial efforts of the electricity sector succeed, similar to previous actions taken by this influential industry, the financial implications for the state could be significant.

One key aspect of the legal claims involves the 'Enresa Fee,' which is the most recent lawsuit lodged against Enresa.

This civil claim addresses alleged financial liability for failing to comply with the 2019 Ordered Closure Protocol for nuclear plants.

According to the energy companies, this protocol stipulated that the 'Enresa Fee' would not exceed 20% above the existing rate at that time.

However, the government increased it by an additional 30%.

This fee is intended to fund services related to radioactive waste management, with the rate set at €10.36 per megawatt-hour (MWh) for the nuclear plants.

The electric companies believe this fee serves as a governmental tool to deter them from considering extending the operational lifespan of their plants.

Endesa and Iberdrola alone are claiming approximately €700 million for this breach, formalizing a legal initiative they had contemplated since October.

Iberdrola has reportedly filed a claim for €300 million, while Endesa has engaged its legal team to prepare a demand valued close to €400 million.

Neither company has commented publicly on this lawsuit against Enresa, which, as a public entity, is legally distinct from the state.

The sector is also challenging the Royal Decree established in June 2024 that encompasses the 'Enresa Fee' and is the basis for the aforementioned lawsuit.

Another significant action is a contentious claim against the 'Seventh General Plan for Radioactive Waste.' This plan, approved by the government in 2023, outlines the decommissioning costs for nuclear plants and the management of radioactive waste, funded by the 'Enresa Fee.' The industry contends that this plan implies an excess cost of €3 billion without any substantive changes to the nuclear facilities.

Of this amount, €2 billion is attributed to the failed centralized temporary waste storage facility (ATC), and the remaining €1 billion is associated with what the sector claims are inflated costs for various 'social initiatives in rural areas,' research and development projects, and waste containers.

The abandonment of the Centralized Temporary Storage facility in the Seventh Plan has led to the cancellation of associated projects, replaced instead with Decentralized Temporary Storage facilities (ATDs).

The Nuclear Forum and its partners have filed a lawsuit arguing that this shift obligates them to provide land to Enresa at no cost.

Nuclenor, the joint venture between Endesa and Iberdrola, has also submitted a separate claim against Enresa due to documented delays in the decommissioning of the Garoa plant, which they assert has resulted in additional costs totaling €100 million.

The companies have stated that they have had to finance the maintenance of these facilities for significantly longer than anticipated due to Enresa's inaction.
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