Reuters - Germany to shut nuclear liability loophole -sources

* E.ON, RWE to split up companies

* Govt wants to ensure utilities liable for nuclear shutdown costs
* Subsidiaries to have liability for parent companies (Adds details on companyrestructuring, bullets)

BERLIN, May 30 Germany plans to ensure that utility companies remain liable for the costs of shutting down the country's nuclear power plants even if they split up, government sources said on Monday.

The move, which will be announced on Wednesday, is designed to close a loophole ahead of the annual general meeting of E.ON on June 8, when shareholders will vote on plans to spin off the utility's power plant and energy trading unit.

Germany's No.2 utility RWE also plans to hive off its renewables, grids and retail units into a separate entity and sell a 10 percent stake in an initial public offering.

The German cabinet approved a draft law last year that ensures power firms will remain liable for the shutdown and decommissioning costs for as long as it takes, even if they spin off subsidiaries that own the nuclear entities.

However, there is some legal uncertainty as to whether this will still apply if the nuclear assets remain with the parent company, as E.ON and RWE now plan to make the case.

As a result, the statement on Wednesday is designed to ensure that the taxpayer will not have to fork out for the costs if the parent company goes bankrupt by ensuring that any improved law will still have a retroactive effect.