nuclear-news

German nuclear companies doubtful future prospects

Merkel may have to settle for nuclear reactor lifetimes shorter than the 60 or so years in other European countries after she lost control of parliament’s upper house in a defeat for her Christian Democrats in a state election in May. The Social Democrats and Green Party, which set Germany on course to phase out nuclear power in 2000, oppose an extension.

E.ON, RWE Poised to Cut Spending as Nuclear Tax Erodes Profits, Bloomberg,By Nicholas Comfort – Aug 10, 2010 E.ON AG and RWE AG, two of the worst performers in Germany’s benchmark DAX share index this year, are poised to cut dividends and investment because a proposed tax on nuclear reactors will erode the utilities’ profits.

Germany wants 2.3 billion euros ($3 billion) a year from the nuclear industry from 2011 to trim the budget deficit, the government said in June. That led Dusseldorf-based E.ON to extend its drop this year to 20 percent while RWE, based in Essen, is down 18 percent. HeidelbergCement AG has posted the biggest decline in the 30-member DAX, which is up 6.6 percent……….

The nuclear industry is also waiting on Chancellor Angela Merkel to fulfill an election pledge and allow reactors in the country to run past scheduled shutdown dates……….

Merkel may have to settle for nuclear reactor lifetimes shorter than the 60 or so years in other European countries after she lost control of parliament’s upper house in a defeat for her Christian Democrats in a state election in May. The Social Democrats and Green Party, which set Germany on course to phase out nuclear power in 2000, oppose an extension.

E.ON, RWE Poised to Cut Spending as Nuclear Tax Erodes Profits – Bloomberg

August 11, 2010 - Posted by Christina Macpherson | business and costs, Germany | antinuclear, nuclear costs