Austrian state-owned energy company Verbund has bowed to political pressure and abandoned a planned joint hydropower venture with German energy giant E.ON - instead working with an alliance of five Austrian utilities.
Austrian electricity generator Verbund and German power group E.ON-Energie, yesterday agreed to form a joint hydropower corporation to be based in Austria under joint ownership. The companies are the largest producers of electricity from hydropower in Austria and Germany respectively and believe the new venture will enable them to optimize the use of environmentally friendly hydropower for electricity production.
Standard & Poor's Ratings Services said Friday it lowered its long-term corporate credit ratings on Austria-based electricity generation utility Verbundgesellschaft (Verbund) to single-'A' from single-'A'-plus.
At a joint press conference on Thursday, dominant Austrian power producer Verbund and regional utility Salzburg AG, announced further cooperation agreements headed up by the sale by Salzburg of a 50 per cent interest in distributor MyElectric Stromvertrieb to a Verbund subsidiary.
Austrian electricity generator Verbund has issued statements in the last few days in an attempt to quell speculation that its proposed hydropower joint venture with German power group E.ON will be scrapped. Verbund insists that discussions are continuing and that it has not fallen out with E.ON Energie, the power division of E.ON, which will have a 37 per cent stake in the new company, European HydroPower GmbH (EHP).