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RWE’s Terium stands over decision to suspend dividend

The boss of Germany‘s largest power producer is defending the company’s decision to scrap the group’s annuPeter Teriumal dividend.

Peter Terium of RWE on Wednesday said the move had been necessary, warning that the utility was facing a downgrade by credit agencies soon.

“The fact that the supervisory board unanimously approved this proposal shows that this decision, while difficult, was necessary,” he said in a speech at the group’s annual general meeting.

“The suspension of the pay-out is a difficult step, for all of us. But it’s inevitable if we want to get RWE back on track. The future of RWE will be decided now.”

The proposal in February to shelve the dividend for ordinary shares for the first time in at least six decades is a direct response to an ongoing decline in wholesale power prices.

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