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ENERGY

EU ‘could revoke’ green German energy rules

Germany could face a probe into whether it has breached EU competition rules by letting consumers partly foot the bill as it switches to renewable energy, Der Spiegel reported on Sunday.

EU 'could revoke' green German energy rules
Photo: DPA

After Japan’s 2011 Fukushima nuclear accident, Chancellor Angela Merkel decided to phase out nuclear power by 2022, an about-turn that started with the immediate closure of the country’s eight oldest plants.

Since then Germany has accelerated a boom in wind farms, solar power and biofuels, promoted by subsidies and legal reforms, with the goal of generating half of its electricity from renewables by 2030.

But the ambitious push is costly and has led to a hike in the price of electricity.

According to the weekly news magazine, which did not cite its sources, the European Union’s Competition Commissioner, Joaquin Almunia, is particularly concerned about the fact that consumers have to help bear the cost through a tax surcharge.

“On Wednesday, the European Commission wants to open a procedure against Germany for this assistance,” the magazine said, adding that Brussels would likely also insist that energy firms pay back millions of euros in aid received from the state.

The weekly said EU Energy Commissioner Guenther Oettinger last week questioned Germany’s conformation with the 28-member bloc’s competition rules on renewable energy development.

Among other things, he criticised Germany’s policy of providing local wind energy producers with aid while foreign companies competing in the same market do not receive such assistance.

AFP/hc

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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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