Strategy

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There are enormous variations caused by differences in decommissioning strategies, estimates of future inflation, discount rates, employment practises, radiation levels, changes in scope and political and regulatory frameworks. Costs will be greatly affected if any particular plant has had accidents or contamination. Timescales chosen affect the discounted figures. The biggest variations are often caused by the costing approach to spent nuclear fuels, waste materials and the options for disposal, storage or treatment.

The asymmetric risk means the upside potential cannot be realised while downsides are not being managed effectively. Maximum shareholder value comes from limiting these downsides, and ensuring management are focussed on and aligned with the mission, preventing downsides, and capturing upside opportunities.

Uncertainties

Decommology can help you to ensure that:

Management understand the challenges of decommissioning and clean-up;
The Strategy adopted best reflects the assets, the funding profile and the risk appetite of the investors;
Teams are re-purposed and aligned with strategic objectives;
Downside risks are managed, mitigated, and limited; and,
Upside opportunities are identified and captured.