Respected German business daily Handelsblatt is reporting that E.ON will announce record-breaking losses on November 9th.
E.ON hasn’t responded to the paper’s claim that the next announcement will feature a loss greater than the $7.7bn experienced by the company last year.
The cost of decommissioning the company’s nuclear power plants as well as overvaluation of its spin-off fossil fuels business Uniper, are being cited as the main drivers behind the results.
In addition the company has been affected by wholesale electricity prices plummeting due to a supply glut from the subsidization of wind and solar power. Reuters referred to sources as saying tough conditions would continue this year.
Shares in the utility fell Wednesday, on news that the German government had approved a draft law that would require the operators of nuclear power plants to pay into a fund for the long-term storage of fuel waste.
The energy companies reacted with some relief to news that that the government will in the future assume responsibility for the intermediate and final storage of radioactive waste.
“With this legislation, the company sees a chance to achieve a social consensus regarding an issue that has been controversial for decades,” E.ON said in a statement.
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