Dr. Ioan ROTARU Romania

Technical Meeting on Topical Issues in the Development of Nuclear Power Infrastructure

4-7 February 2014, Vienna, Austria

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MAIN PLAYERS IN NUCLEAR POWER

NPP Owner/ Operator

Government

Independent Regulator

Nuclear Energy Program Implementing Organization (NEPIO)

Establishing licensing rules

and requirements + Control

NPP Project

organization

Project development [licensee]

NEPIO will be incorporated into the government agency, which will act as the national coordinator.

RELATED DEFINITION Owner: person or entity (registered company, government

organisation) that owns the asset of the NPP.

Shareholders: people or companies investing equity in the owner company.

Operator or Operating organisation: an organization applying for authorization or authorized to operate an authorized facility and responsible for its safety.

Licence: legal document issued by the Regulatory Body granting authorization to perform specified activities related to a nuclear facility or activity.

Licensee: holder of a current licence.

Licensed staff for operation: individual staff approved by the Regulator or Operating Organisation for specific tasks/duties.

IAEA GUIDANCE DOCUMENT

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IAEA Nuclear Energy Series Technical Reports

Initiating Nuclear Power Programmes:

Responsibilities and Capabilities of Owners and Operators No. NG-T-3.1/2009

Content:

Main activities and responsibilities Desirable attributes Organizational aspects First NPP contract structure Interfaces with stakeholders

RESPONSIBILITIES Division of responsibilities between the NPP Owner and the

NPP Operator will depend on the particular arrangements in the country and may be dictated by the Government.

However, it is made clear in the IAEA’s publications that the NPP “operating organization” or NPP “operator” is ultimately responsible for the safety of the nuclear power plant.

NPP Owner would be the organization recognized by law as having the ultimate right to use the NPP and receive the profits from its operation.

NPP Owner may be responsible for financing, but most other activities would be delegated to the NPP operating organization.

OWNER/OPERATOR ARRANGEMENTS

Two types of NPP Owner/Operator relations in use:

1) Owner and Operator are one legal entity. Operator is subsidiary of the Owner (corporate)

2) Owner and Operator are legally different entities, in contractual relations.

In both alternatives, the licensee is the NPP Operator, ultimately responsible for the safety of the NPP.

Both alternatives are in compliance with existing national legislation and licence requirements and consistent with national strategy.

NPP OWNER/OPERATOR INTERFACE (1)

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NPP OWNER (CORPORATE)

NPP OPERATOR

(SUBSIDIARY)

SAME LEGAL ENTITY=LICENSEE Holder of licences (site, construction,

commissioning, operation)

• Selling electricity • Approve strategies

(Board of Directors) • Manage the resources

(HR, financial, etc) for NPP safe operation

• Staff authorized by RB • Responsible for safe

operation in front of NPP Owner

• Receive resources for planned activities as per request

NPP OWNER/OPERATOR INTERFACE (2)

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NPP OWNER

[Legal entity]

NPP OPERATOR

[Legal entity]

COMMERCIAL CONTRACT

• Own NPP assets • Core operation group • Selling electricity • Provide financial resources

to NPP operator as per contract provision (bonus and penalties)

• LICENSEE=Holder of licences (commissioning, operation)

• Staff authorized by RB • Prime responsibility for NPP

safe operation • Manage the resources (HR,

financial, etc) for NPP safe operation

CHALLENGES OF NEWCOMERS 1. NPP Owner’ structures are becoming much more complex due to

specific solutions adopted for NPP project financing (Build Own Operate – BOO, foreign ownership, multiple ownership, with national and foreign owners, etc)

2. New relationships between NPP Owners and Operators are emerging (examples)

No. Alternative description

1. License a non-national (foreign) operating organisation

2. License a national subsidiary of a foreign company with experience in NPP operation

3. License national owner company and contract operation to non-national operating organisation

4. License national owner company and contract operation to a national subsidiary of an operating organisation

5. License national owner company and develop company into operating organisation by seconding/leasing majority of staff from foreign company with experience in NPP operation

SELECTION OF BEST ALTERNATIVE

Key considerations for NPP operator alternative selection:

1. Consistency with national strategy.

2. Compliance with (existing or amendable) national legislation and regulatory requirements.

3. Consistency with IAEA safety standards.

4. Clarity of corporate structures for owner and licensee and interface between them.

5. Clarity of responsibilities and contract arrangements.

6. Clarity of arrangements to meet licence requirements.

7. Optimisation of use of experienced operating organisations.

8. Encouragement of appropriate leadership and safety culture.

POSSIBLE DISCUSSION POINTS

1. When should a country (government or NPP owner) develop specific NPP operating organization capabilities or create a separate NPP operating organization ?

2. How governments and NPP owners can ensure that any option for operating organization will meet the IAEA safety standards ?

3. Expectations of NPP owners/shareholders and how to ensure them without influencing nuclear safety and licensee (responsibility of NPP owners/shareholders for safety)?

4. What competencies must a licensee have and what activities can they subcontract?

5. How to ensure leadership and safety culture at all levels of the NPP owner, licensee and its sub-contractors?

CONCLUSIONS (1/2) New approaches for the NPP ownership represent a challenge

and the implementation of such alternatives take time:

1. no clear references and similar experiences;

2. specific conditions of each country (evolution of the electricity request, electricity market, etc.) will impact on the particular solution.

Motivations for choosing a specific ownership approach will differ among Member States (electricity needs, financing, HRD, knowledge/ technology transfer, etc.).

Government will play a very important role in establishing the new ownership approach (long term radioactive waste management, decommissioning, nuclear civil liability, etc.).

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CONCLUSIONS (2/2)

Shareholders of the NPP Owner organization have an important role in selecting the NPP operator and management of their interfaces.

In all cases, the IAEA Fundamental Principle no. 1 :

“The prime responsibility for safety must rest with the person or organization responsible for facilities and activities that give rise to radiation risks.”

should be followed.

In all cases the relative duties, roles and responsibilities of all involved parties (Government, owners-shareholders, operator, etc) with a potential impact on safety must be clearly established.

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Thanks ! 14