nuclear-news

The News That Matters about the Nuclear Industry Fukushima Chernobyl Mayak Three Mile Island Atomic Testing Radiation Isotope

Germany’s energy companies face nuclear liabilities

Question of nuclear liabilities is just one problem weighing on Germany’s energy companies , FT.COM by: Guy Chazan in Berlin and Paul McClean in London, 7 Aug 16  German utilities Eon and RWE report second-quarter earnings this week, on Wednesday and Thursday respectively, with investors looking for an update on talks with the government over how to finance the future storage of Germany’s nuclear waste.

A government commission announced in April that Germany’s big utilities should pay €23.3bn towards the cost of waste storage — about €6.3bn more than they had provisioned for.

Eon said in May it might have to raise capital in order to pay its share of the waste storage costs. But it has been less vociferous than RWE in its criticism of the commission’s decision.

 The question of nuclear liabilities is just one of the problems weighing on the energy companies. Germany’s Energiewende — its radical move towards renewables — has squeezed the power they produce from fossil fuels out of the market.

Meanwhile, the abundance of wind and solar power in Germany has driven down wholesale energy prices, making the conventional power plants Eon and RWE operate uneconomic.

The companies have responded to the crisis in their sector by splitting themselves in two. Eon is grouping its conventional power generation assets and energy trading in a new company, Uniper, while the new look Eon will focus on renewables, networks and customer solutions. Eon confirmed last month that it will float Uniper in September……..https://next.ft.com/content/5878b64c-5a17-11e6-9f70-badea1b336d4

August 8, 2016 - Posted by | general

No comments yet.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

« Previous | Next »