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ENERGY

RWE to sell chunk of German gas grid

Energy company RWE is selling its German gas grid following a formal complaint by the European Commission on Wednesday.

RWE to sell chunk of German gas grid
Photo: DPA

The number-two player in the industry made the move in response to an anti-trust suit, which alleged that the company’s possession of the gas pipeline in the state of North Rhine-Westphalia impeded competition. The accusation could lead to billions of euros in fines for RWE.

At roughly 4000 kilometres in total length, the grid gives RWE possession of roughly one-tenth of the entire German grid valued at just under €1 billion.

“RWE will sell its portion of the grid under the supervision of a trustee,” the European Commission reported. “All buyers must first be approved by the Commission.”

A consortium of 36 public organisations that includes Dutch corporation Gasunie and other utility companies is reviewing an offer to purchase the grid, a spokesperson from the Bochumer Stadtwerke confirmed.

European Commissioner for Competition Neelie Kroes welcomed RWE’s offer to sell its portion of the grid: “This full acceptance of responsibility will essentially change the German gas market in creating more room for competition and giving end-users more choice.”

The administration expects competitive but fair prices, according to an EU spokesperson.

The grid is expected to be sold in May.

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.

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