* Bill of 23.6 billion euros for waste storage - draft law
* Utilities can pay in instalments to 2026
* First payment must be 20 pct of total sum
* Shares in E.ON, RWE, EnBW rise on clarity
(Recasts, adds funding breakup, details)
By Markus Wacket
BERLIN, Oct 14 Germany's leading utilities will
start contributing next year to a 23.6 billion euro ($26.4
billion) fund as a condition for shifting liability for nuclear
waste storage to the government, giving investors greater
clarity over their future finances.
The new legislation, seen by Reuters on Friday, will remove
uncertainty about the costs of storing waste -- the most complex
and costly aspect of nuclear decommissioning -- which has been a
major drag on German utility stocks.
The utilities will remain responsible for dismantling the
country's nuclear plants, the last of which will be shut down in
2022 as part of Germany's abandonment of the technology, a
decision triggered by Japan's Fukushima disaster five years ago.
The German cabinet is set to approve the law on Oct. 19,
bringing to an end lengthy negotiations between Berlin and the
country's four major energy groups -- E.ON, RWE
, EnBW and Vattenfall -- on a waste
storage deal proposed in April.
With a combined liability of about 16.7 billion euros, E.ON
and RWE will have to stump up most of the funds. E.ON has said
it might carry out a share sale to raise about 2 billion euros
to help achieve this.
E.ON and RWE shares led German blue-chips higher
following the news and were up 3.7 percent and 5.4 percent,
respectively. Shares in EnBW, most of which is owned by the
German state of Baden-Wuerttemberg, were also up 3.2 percent.
"The draft law gets us hard facts following reports and
speculation over the past days and as a result the uncertainty
that has paralysed the sector more and more disappears," said
Frederik Altmann, equity trader at Frankfurt-based Alpha.
The utilities had been pushing to get favourable terms from
the government, arguing they have been hammered by plunging
power prices, a shift towards renewable energy and Germany's
nuclear exit, which has taken its toll on their finances.
Under the deal, companies can transfer the funds in one lump
sum on Jan. 1, 2017, or in several instalments over the next
If utilities opt to pay in stages, their first payment must
be a fifth of the total. They will have to pay interest of 4.58
percent per year on the remaining amount, an incentive to pay as
much as possible up front.
Those utilities that decide to pay in instalments will also
have to provide collateral for what they still owe, which could
be via a bank guarantee, according to details of the draft law.
E.ON, RWE, EnBW and Vattenfall all declined to comment.
($1 = 0.8928 euros)
(Additional reporting by Christoph Steitz, Anika Ross and
Patricia Uhlig in Frankfurt; Writing by Caroline Copley and
Christoph Steitz; Editing by Jane Merriman and Keith Weir)