RWE rules out Drax deal

14 November 2002 – RWE is not intending to buy generation assets in the UK, RWE chief financial officer Klaus Sturany said Wednesday.

Press speculation in recent days had suggested that RWE’s Innogy division was poised to bid for the AES-owned Drax coal-fired plant – the largest in the UK at 4065 MW. Drax faces difficulties following the cancellation of its long-term power contract with TXU Europe.

Regarding low wholesale power prices in the UK, Sturany said he thought prices would recover. The important question, he said, was when that would happen. Sturany said the company was focusing on not increasing its net debt, which suggested acquisitions were lower on its list of priorities after buying Czech gas assets and the UK’s Innogy.

Sturany also said that in Germany 80 per cent of RWE’s 2003 generation had been sold.

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