SHARE
COPY LINK

ENERGY

Energy company cooperation could curb consumer costs

Rising energy prices could be curbed by an upcoming cooperation between Germany’s three largest electricity providers, EON, Vattenfall and EnBW.

Energy company cooperation could curb consumer costs
Photo: DPA

Beginning in December, a cooperation for network regulation could save tens of millions of euros, head of Vattenfall subsidiary Vattenfall Europe Transmission, Stefan Dohler, said on Monday in Berlin.

Network operators charge electricity providers premiums to use their networks, a practice which experts say is one of the main reasons for high energy prices. But the companies plan to consolidate their efforts, which will eventually lead to savings for customers, he said. A massive reduction in costs, however, would be “too optimistic,” Dohler said.

EON, Vattenfall and EnBW are planning the cooperation for information and control systems, but RWE, one of the country’s other large energy companies, has opted not to participate, which means some western German customers won’t benefit from the linkup.

Until now, each of the four providers operated strictly separated network zones, but now three of them will be interconnected so that available electricity and demand will balance out, Dohler said.

BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

SHOW COMMENTS