SHARE
COPY LINK

ENERGY

Energy firms: Merkel stole our assets with nuclear shutdown

Three energy giants Tuesday went to Germany's top court to challenge the decision by Chancellor Angela Merkel's government to phase out nuclear power after the Fukushima disaster five years ago.

Energy firms: Merkel stole our assets with nuclear shutdown
A nuclear plant in northern Germany. Photo: DPA

Energy giants E.ON, RWE and Sweden's Vattenfall want the Constitutional Court to rule that the move was an expropriation of their assets.

They hope that would bolster damages claims they have already launched in lower regional courts where they are reportedly demanding at least €15 billion in separate cases.

Merkel's government in the days after the March 11, 2011 earthquake, tsunami and subsequent Fukushima reactor meltdowns decided to halt operations of Germany's eight oldest nuclear plants and to shutter the other nine by 2022.

The move, shortly before key regional elections, marked a sharp reversal for Merkel, who had previously overturned a phase-out ordered by an earlier government in 2002 and extended the lifespan of Germany's nuclear fleet until 2036.

Today, eight of Germany's 17 nuclear plants remain in operation.

SEE ALSO: How Fukushima triggered Germany's energy revolution

The energy companies have booked heavy losses amid the nuclear phase-out and shift towards green energy, much of it produced by wind and solar plants operated by households, small businesses and municipalities.

The glut of government-subsidised renewable power has led to a collapse in wholesale electricity prices.

The companies filed the first of a spate of legal cases in 2012.

The chief of Germany's biggest power company E.ON, Johannes Teyssen, told the Constitutional Court: “This is not a political issue or about whether you are for or against nuclear power.

“The question is simply: do we have the right, overnight, to deprive people… of their assets without compensation?”

E.ON this month said it suffered a seven-billion-euro net loss in 2015, blaming in part the massive write-downs on the value of its electricity plants.

Critics argue that the big energy companies benefited from massive state subsidies when the nuclear plants first went into operation.

Safely decommissioning all the plants and storing their radioactive parts and waste will cost around 50 billion euros, experts estimate.

Industry observers say the companies hope to use a favourable court ruling as leverage in parallel talks on state aid for decommissioning the atomic plants.

However, Environment Minister Barbara Hendricks said Tuesday that “the government will not agree to any deals”.

The Constitutional Court hearings run until Wednesday, and a ruling is not expected for several months.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

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