Bloomberg News

EON, RWE Get $237 Million Nuclear Tax Back, Await Federal Ruling

October 25, 2011

Oct. 25 (Bloomberg) -- EON AG and RWE AG, Germany’s biggest utilities, have been conditionally reimbursed 170 million euros ($237 million) in nuclear fuel taxes after two courts ruled in their favor.

EON, the country’s biggest nuclear power generator, got a “tentative reimbursement” of 96 million euros in taxes on its Grafenrheinfeld reactor, spokesman Mirko Kahre said by phone today. RWE received 74 million euros that was charged for the Gundremmingen plant, spokeswoman Annett Urbaczka said.

EON and RWE had received favorable rulings from courts in Hamburg and Munich after protesting the levy. Whether the utilities can keep the money will depend on how the federal fiscal court decides on the tax, the spokespeople said.

The levy was drafted last year to accompany a proposal by Chancellor Angela Merkel to extend the life of reactors into the mid-2030s. The government scrapped the extension plan after the Fukushima disaster in Japan in March while upholding the tax, intended to trim the budget deficit.

Bernhard Jeggle, an analyst at Landesbank Baden- Wuerttemberg, in a Sept. 20 note rated the chance of a successful legal challenge to the levy at “significantly below 50 percent.”

EON, RWE, EnBW Energie Baden-Wuerttemberg AG and Vattenfall AB have extended cost-cutting and asset-sale programs to curb losses from Germany’s decision to close the country’s reactors. EON in August reported its first quarterly loss in a decade, citing costs linked to the fuel tax and the nuclear exit. RWE said Aug. 7 the policy reduced first-half profit by about 900 million euros.

--Editors: Alex Devine, Stephen Cunningham

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus