The chief executive of E.on, Johannes Teyssen, has called on policy makers in Europe to assist operators of gas power plants to stay open.

Mr Teyssen, who has just been given a five year extension on his contract as head of the German utility, said “Policy makers need to act swiftly on this issue. Otherwise we are going to have to shut down power plants.”
Johannes Teyssen
Operators are under pressure due to the proliferation in renewable energy, the impact of which has severely impacted wholesale electricity prices and the margins of conventional plants. 

The E.on chief added that gas power continues to be a reliable and secure source of energy on days when it is windy or cloudy.

E.on has already announced the probable closure of its Irsching gas power plant in Bavaria

The company posted positive results for 2012 but remains cautious about future prospects due to present power market conditions in Europe.

E.on reported a net profit of 2.62 billion euros ($3.44bn) for 2012, after logging losses of 1.8 billion euros ($2.3bn) in 2011.

However the company warned that 2013 was unlikely to replicate such a good performance in earnings.

 The Financial Times reports Mr Teyssen as saying, “We’re tapping growth markets like Turkey, Russia and Brazil. In addition, we’re making above-average investments in renewables”.

Eon was also keen to grow in distributed generation, providing decentralised power plants.

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