🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Costs for Germany's nuclear exit could rise to 70 billion euros

Published 20/04/2015, 13:15
© Reuters. Stalks of wheat grow in a field next to the EnBW nuclear power plant in Phillipsburg
RWEG
-
EONGn
-
VATN
-

BERLIN (Reuters) - The bill for shutting down Germany's nuclear power plants and building a safe disposal site for nuclear waste could rise to 70 billion euros (50.3 billion pounds), the head of a government commission told daily Frankfurter Rundschau in an interview

E.ON (DE:EONGn), RWE (DE:RWEG), EnBW and Vattenfall (VATN.UL) are due to switch off their nuclear plants by a 2022 deadline set by Chancellor Angela Merkel's government after the Fukushima disaster in Japan in 2011.

A decision by E.ON to restructure its business and spin off its conventional power plants raised additional fears that taxpayers may end up footing a portion of the bill for dismantling the nuclear plants and storing waste.

"There are significant financial risks coming up for the state," said Michael Mueller, head of the government's task force charged with finding a disposal site for nuclear waste.

The costs for the nuclear exit could rise to up to 70 billion euros over the next decades, meaning that the 36 billion euros ($42 billion) in provisions set aside by the four nuclear operators were not sufficient, he added.

Spokesmen from E.ON and EnBW said in separate statements that the companies' provisions were sufficient and that they were certified on a regular basis by external auditors.

Economy Minister Sigmar Gabriel has told lawmakers from his centre-left Social Democrat (SPD) party that he wants to look into creating a public body to oversee the multibillion-euro risks associated with the nuclear switch-off.

© Reuters. Stalks of wheat grow in a field next to the EnBW nuclear power plant in Phillipsburg

The government is sounding out the option of subjecting the balance sheets of the four nuclear power plant operators to a stress test to ensure their provisions are adequate.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.