European Utilities Correspondent
Peter's Feed
Oct 5, 2010

German utilities spook investors with nuclear gamble

FRANKFURT (Reuters) – German utilities’ gamble of sacrificing near-term profits in exchange for extending the lifespans of their 17 nuclear plants is pressuring shares and may misfire if the political situation changes.

Last month, the government agreed with the four operators of Germany’s nuclear power plants to extend the plants’ life by 12 years on average in exchange for at least 31 billions euros of payments.

Sep 21, 2010

German nuclear revenue boost – a sting in the tail?

FRANKFURT (Reuters) – Extending the life of Germany’s 17 nuclear power plants will give the government billions of euros of additional income — but it could leave it a hefty bill for disposing of nuclear waste in years to come.

The coalition has agreed that utilities may operate their nuclear plants 12 years longer in return for a new tax and levies that will earn the government 30 billion euros (25.3 billion pounds), according to Economy Minster Rainer Bruederle.

Sep 20, 2010

Analysis: German nuclear revenue boost – a sting in the tail?

FRANKFURT (Reuters) – Extending the life of Germany’s 17 nuclear power plants will give the government billions of euros of additional income — but it could leave it a hefty bill for disposing of nuclear waste in years to come.

The coalition has agreed that utilities may operate their nuclear plants 12 years longer in return for a new tax and levies that will earn the government 30 billion euros ($38.61 billion), according to Economy Minster Rainer Bruederle.

Sep 6, 2010

Merkel confident about nuclear power extension deal

FRANKFURT/MUNICH (Reuters) – German Chancellor Angela Merkel said she was confident a law extending the lives of nuclear power reactors could be passed without backing from the upper house of parliament, setting up a clash with opposition parties.

Merkel’s centre-right ruling coalition ended months of division on Sunday by agreeing the country’s 17 nuclear power plants should operate longer than planned, giving each reactor an average extension of about 12 years.

Sep 6, 2010

Merkel confident on nuclear plan despite opposition

FRANKFURT/MUNICH (Reuters) – German Chancellor Angela Merkel said on Monday she was confident that a law to extend the lives of nuclear power reactors could be passed without backing from the upper house of parliament, setting up a clash with opposition parties.

Her center-right ruling coalition ended months of division late on Sunday by agreeing that the country’s 17 nuclear power plants should operate longer than planned, giving each reactor an average extension of about 12 years.

Sep 6, 2010

E.ON, RWE rise as on hopes for extra nuclear profits

FRANKFURT, Sept 6 (Reuters) – Shares in Germany’s utilities
E.ON (EONGn.DE: Quote, Profile, Research, Stock Buzz) and RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) climbed on hopes for billions
of euros of extra profits from a decision to extend the
lifespans of nuclear power plants in Europe’s biggest economy.
Late on Sunday, Chancellor Angela Merkel’s ruling coalition
agreed that the 17 nuclear power plants operating in Germany
would get approval to operate longer depending on their age,
giving each power plant an average extension of about 12 years.
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Nuclear power stations are the most profitable large-scale
power plants once building costs are paid off, as the fuel is
cheaper than fossil fuels, companies don’t need carbon
certificates and don’t have to fully insure them.
“Our first reaction is positive because the extension is
longer than we expected,” said Merck Finck analyst Theo Kitz.

Aug 12, 2010

RWE says German nuclear tax would hit dividends

FRANKFURT, Aug 12 (Reuters) – Germany’s RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz),
Europe’s fifth-largest utility, warned government plans to
introduce a nuclear fuel tax in Germany would keep a lid on its
earnings and dividends for years to come.

The statement makes RWE the first utility to detail the
effects of a tax on the fuels of nuclear power stations, which
Berlin plans to claw back profits that power providers made by
charging customers for carbon certificates they got for free.

Aug 10, 2010

GDF Suez seizes International Power

LONDON/FRANKFURT (Reuters) – France’s GDF Suez (GSZ.PA: Quote, Profile, Research) is set to take control of Britain’s International Power (IPR.L: Quote, Profile, Research), the companies said on Tuesday, creating the world’s largest utility with annual revenue of 84 billion euros ($111.5 billion).

The deal comes after talks were aborted earlier this year and will allow GDF access to growth in emerging markets and give it a foothold in the UK and Australia.

Aug 10, 2010

GDF Suez seizes International Power, creates giant

LONDON/FRANKFURT, Aug 10 (Reuters) – France’s GDF Suez
(GSZ.PA: Quote, Profile, Research, Stock Buzz) is set to take control of Britain’s International Power
(IPR.L: Quote, Profile, Research, Stock Buzz), the companies said on Tuesday, creating the world’s
largest utility with annual revenue of 84 billion euros ($111.5
billion).

The deal comes after talks were aborted earlier this year
and will allow GDF access to growth in emerging markets and give
it a foothold in the UK and Australia.

Jul 30, 2010

Li Ka-shing to buy EDF’s UK grids for $9.1 billion

FRANKFURT/HONG KONG (Reuters) – Billionaire Li Ka-shing has offered to buy UK power grids from France’s EDF (EDF.PA: Quote, Profile, Research, Stock Buzz) for 5.8 billion pounds ($9.1 billion), giving his companies a foothold in more lucrative overseas markets.

Cheung Kong Infrastructure (1038.HK: Quote, Profile, Research, Stock Buzz) (CKI) and Hongkong Electric (0006.HK: Quote, Profile, Research, Stock Buzz) (HKE) said they won an auction for three power distribution grids and private power networks owned in Britain by EDF, the world’s second-largest utility.