German utilities to pay 23.6 bln euros into nuclear fund-draft law - Reuters News
14-OCT-2016 12:39:14
Utilities can pay in instalments -draft law
First rate must be 20 pct of total amount -draft
Shares in E.ON, RWE gain on news
Adds details on draft law, shares
BERLIN, Oct 14 (Reuters) - Germany's big utilities will begin paying 23.6 billion euros ($26.39 billion) into a fund on Jan. 1 to hand over liability for the storage of nuclear waste to the government, according to a draft law seen by Reuters on Friday.
The German cabinet is due to approve the draft law on Oct. 19, bringing to an end lengthy negotiations between Berlin and the country's four major energy groups -- E.ON EONGn.DE, RWE RWEG.DE, EnBW EBKG.DE and Vattenfall VATN.UL -- on a storage deal proposed by a government-appointed commission in April. (Full Story)
Utilities have been fighting to get a lower payment, arguing that they have been hammered by plunging power prices, a shift towards renewable energy and Germany's decision to end nuclear power by 2022 following Japan's Fukushima disaster five years ago.
The final sum is lower than a figure of 26 billion euros that was reported last month. (Full Story)
The agreed deal also brings some relief to utilities as the commission said last month every year of delay in implementation would cost utilities 4.6 percent in accrued interest. (Full Story)
Shares in E.ON EONGn.DE jumped 3.4 percent to trade at 6.82 euros per share, while RWE RWEG.DE surged 5.4 percent to 14.09 euros per share by 1005 GMT.
Under the plan, utilities are to transfer 23.6 billion euros to the state, along with responsibility and liability for storing their nuclear waste - the most complex and costly aspect of nuclear decommissioning.
They can opt to pay in instalments up until the end of 2026, with their first payment making up 20 percent of the total. If they decide to pay in instalments there will be an interest rate of 4.58 percent per year on the rest.
Those that opt to pay in instalments will have to provide collateral for what the owe, which could be via a bank guarantee, according to details of the draft law.
12:39:41 dunno if old