Energy companies are ready for a joint solution to finance the phase out of nuclear power generation in Germany

04/27/16

Plans of commission for the examination of the financing of the nuclear phase out (KFK) nevertheless overburden energy companies’ economic capabilities

Today in Berlin, the KFK commission has announced its suggestions on financing the phase out of nuclear power generation in Germany. The suggestions include a huge risk premium and overburden the concerned energy companies’ economic capabilities. Thus, the energy companies cannot accept the suggestions as they are least of all due to their responsibilities towards their employees, their customers and their shareholders. Before making a final assessment the companies will conduct an in-depth analysis of the report.

The concerned energy companies have been actively supporting the energy transition in Germany (“Energiewende”). Furthermore, they have built up the necessary provisions for the phase out of nuclear power generation. These provisions amount to more than 40 billion Euros and have been approved by the German Government and the KFK to be adequately and correctly represented in the companies’ balance sheets.

The companies operating nuclear power stations are strongly committed to their responsibilities with regards to the phase out of nuclear power generation. This is also shown by the provisions being very conservatively calculated also when compared internationally. All possible risks are being met by these provisions. Regardless of this, the temporary and final storage of nuclear waste in Germany is an operative task of the German Government who is politically responsible for this. The KFK suggests for the companies’ storage of nuclear waste provisions to be transferred to a state owned fund. The energy companies can well understand the general logic of such a responsibility distribution.

During the process, the energy companies have supported the KFK commission in a constructive manner also by providing maximum transparency on the economic capabilities of the companies as well as technical feasibility assessments of possible solutions that were being discussed. In talks with the KFK, the companies have been willing to accept a risk premium to enable a consensus. In order to achieve such an agreement, the companies have transparently presented their financials and offered to go as far as their utmost economic limits would permit. However, these limits have been exceeded by the amount of the risk premium suggested by the KFK. Nevertheless, the energy companies are still interested in achieving a consensual solution regarding the organization and financing of the nuclear phase out in Germany. They are therefore ready to add in their suggestions to further political discussions.

This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.