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ENERGY

Consumers to lose out to energy-guzzlers

Dozens of German energy-guzzling companies have applied for special exemption from grid charges, meaning that private consumers will end up paying more for their electricity.

Consumers to lose out to energy-guzzlers
Photo: DPA

According to a report in the Frankfurter Rundschau newspaper, the Economics Ministry has revealed that 159 large companies have applied for a special exemption from grid charges up until December 2, way more than was announced by the various industry associations.

The new exemptions for intensive energy-consuming companies were brought in – almost without anyone noticing – by the German government during the summer. It was only revealed last month that this would increase electricity bills for everyone else.

The grid charges are meant to cover the maintenance and extension of Germany’s power grid, which has to be adjusted followed the government’s decision to shut down its nuclear power stations by 2022.

According to the exemption, companies that use more than 10 million kilowatt hours per year will not have to pay.

Following an initial report by the newspaper about the special exemption, industry associations denied that it would have any impact on consumers, since only around 20 companies would apply. That statement has now been revealed as untrue.

Green Party MP Ingrid Nestle, who made the official information request to the ministry, was incensed by the discrepancy. “The industry is trying to manipulate us with false numbers,” she said.

It is unclear how much the exemptions will cost private consumers, but the Economics Ministry estimates that it will come to at least €231 million – an increase of 0.75 cents per kWh, between €26 and €40 per year for a three-person household.

Nestle is particularly angered by the surreptitious nature of the deal. “We need a transparent discussion about exempting energy-intensive industries, not midnight deals with lobby groups,” she said.

She also called for the “brazen gift” to the energy-guzzling companies to be taken back.

The Local/bk

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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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