15 November 2002 – A court action by UK utility Innogy to have TXU Europe wound up over an energy trading dispute was settled yesterday. London’s High Court agreed to dismiss Innogy’s petition after the companies reached the deal but neither firm would give details of the settlement.
Innogy, owned by Germany’s RWE, commented that the settlement was fair and TXU welcomed the dismissal of the petition.
In court, Innogy’s lawyer dismissed suggestions that the move against TXU was motivated by RWE’s interest in the AES-owned Drax power plant. TXU has an important power contract with Drax. The hearing was told that RWE is not intending to buy more generating capacity in the UK.
Earlier on Thursday, TXU said it would shut its Geneva trading base by the end of January. The Geneva office employs about 130 people mainly to trade electricity and gas on the continent.
TXU last month sold UK retail assets to Powergen and has recently put its investments in Germany on the market. It is also looking for a buyer for its stake in a Nordic energy company.
TXU’s US parent company has embarked on a programme of asset sales to shore up its balance sheet and restore confidence in the wake of Enron’s demise and subsequent market concerns.