Germany’s biggest power producer has decided not to extend agreements to buy wholesale power from generator STEAG GmbH.

Bloomberg reports unnamed insiders as saying that RWE (FWB: RWE) are citing lack of energy demand for the decision not to extend agreements with generator and trader STEAG for several hundred megawatts of hard coal-fired power that expire in the next two years.

RWE also isn’t renewing contracts with other operators of two smaller hard-coal plants, the news agency reported.

RWE
Power prices have slumped in Germany and power consumption has fell to its lowest point since 2009, cutting margins at gas- and coal-fired power stations.

Stephanie Schunck, a spokeswoman at RWE, declined to comment on decisions not to extend contracts because the matter is private. A decision on 1,450 megawatts of contracted hard coal plants will be taken at the end of 2013, Chief Financial Officer Bernhard Guenther said on October 15th.

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