When Germany announced its plan to phase out nuclear power stations last month, shares in the big four German power companies rose. The agreement made with the German government would see Eon, RWE, EnBW and Vattenfall pay a nuclear-fuel rods tax of EUR2.3bn until 2016 - but the market had been expecting worse.
But today Moody's has warned that the impact of the tax might yet force a downgrade of the companies' credit ratings.
Britain’s “big six” energy companies will this week warn Chris Huhne, secretary of state for energy, that the government’s proposed “floor price” for carbon emission permits is not enough of an incentive for them to invest in new nuclear power stations.
Executives from the companies, including Centrica, EDF Energy and Scottish Power, now owned by Iberdrola, are due to make their views clear at a dinner with Mr Huhne on Wednesday.
FRANKFURT, Oct. 4 (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 ($42.45 billion) of payments.
The German opposition has reacted angrily over revelations that the government, as part of its decision to extend the life of nuclear power in Germany to the mid 2030s, struck a deal with the nuclear industry to shield it from unfavorable future political decisions.
(Reuters) - Two key German ministers took different positions on Monday on the length of time that nuclear power plants should be extended after Chancellor Angela Merkel reduced expectations for a long extension.
LINGEN, Germany - (Dow Jones)- German Chancellor Angela Merkel Thursday said she is in favor of the country's nuclear power plant operators making further financial contributions in return for longer reactor operating lives, which would come on top of a tax on nuclear fuel her government has proposed to help reduce the public budget deficit.
Germany's nuclear power plants operators have threatened to pull out of nuclear power generation in protest of a proposed tax. The general debate over the future of German nuclear power has heated up again.
Controversial negotiations are underway in Germany between the government and energy providers as companies threaten to shut down their nuclear power plants over a proposed tax on fuel rods and Germany's debate over its nuclear energy future reignites.
LONDON, July 18 (Reuters) - Britain must reform electricity markets if it is to secure the private investment needed to meet its carbon emissions targets, according to a study by KPMG.
The report, which will be published on Monday, said the British government's approach to investment in low-carbon generation was inconsistent and clearer planning was needed to show how emissions targets will be met.
BERLIN, June 7 (UPI) -- The German government will extend the running times of its nuclear power plants by no more than 10 years.
The decision is the product of lengthy government consultations over the weekend, the Berliner Zeitung newspaper reports. It would be a victory for Environment Minister Norbert Roettgen, who has campaigned for no or moderate running time extensions. A host of pro-nuclear state governors had lobbied to extend the running times by as much as 28 years.
FRANKFURT, May 10 (Reuters) - Chancellor Angela Merkel's centre-right coalition may have trouble pushing through planned nuclear lifetime extensions after a German regional election on Sunday went awry for the government.
North Rhine-Westphalia, Germany's most populous state, left Merkel's Christian Democrats (CDU) and their Free Democrat (FDP) allies short of their previous state majority, leaving the make-up of the next government unclear.
