E.ON and RWE opt to clear nuclear waste bill with single payment

Germany‘s two top power utilities have agreed with the government to pay their contribution to the country’s nuclear waste storage costs in one lump sum payment.
Terium and Teyssen
The utilities had been presented with the option of contributing this year to a $24.7bn fund in exchange for shifting liability for nuclear waste storage to the state, giving investors greater clarity over the companies’ future finances.

Under the deal, E.ON and RWE must pay about EUR10bn and EUR6.8bn respectively.

Reuters reports that the companies had been pushing for favourable terms of payment and the October deal allows them to transfer the funds at one stroke by mid-2017 or in several more costly instalments over the next decade.

“We don’t need to draw on the possibility of payment by instalments,” RWE Chief Executive Rolf Martin Schmitz said in an interview with Die Welt, adding that RWE was “well positioned” after raising billions in a stock listing of a minority holding in energy group Innogy.

E.ON CEO Johannes Teyssen also told newspaper Rheinische Post that the group had enough financial flexibility to avoid paying in several steps.

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