EnBW loss from policy change

22 July 2011

A financial notice from EnBW has noted the "considerable financial burden" of Germany's recent nuclear policy shift as the cause for a projected loss. 


The ad-hoc statement was required by law due to the material change in the company's situation since the last published quarterly results. It came just four days after EnBW announced an intention to sue the German government over the imposition of a tax on nuclear fuel that is set to cost the firm a 'nine digit' sum each year.


"The shutdowns of two nuclear power plants [Neckarwestheim 1 and Phillipsburg 1] has caused considerable financial burdens," said EnBW, noting additions to its provisions for nuclear assets that have increased due to the advancement of decommissioning dates. These are the main reasons, it said, for non-operating losses of €600 million ($860 million) that are to be reported in the next six-monthly financial statement.


These effects, combined with some unspecified expenses, "give rise to a group net loss of around €590 million in the six-monthly financial statements for 2011." When several other factors are taken into account, the end result for the EnBW group would be earnings of about €875 million, around 24% below last year's figures.


Another nuclear generator, Vattenfall, has already warned of the SEK 10 billion ($1.5 billion) impact it will suffer in 2011 from the shutdown of the Brunsbüttel and Krümmel plants, of which it owns 66.7% and 50% respectively. The company, owned by the Swedish state, has said it expects fair treatment and compensation for losses arising from Germany's reaction to the Fukushima accident.
Researched and written
by World Nuclear News