DUBAI, Nov 3 (Reuters) - RWE is keeping open the option to break up its business, its chief executive said, signalling such a move could become more likely if wholesale power prices continue to slide.
“The case x has not yet occurred but at power prices of 28 euros per megawatt hour things are slowly getting exciting,” Peter Terium told reporters in Dubai.
German wholesale power prices have nearly halved since early 2012, squeezing margins at the group’s power plants to the point where it becomes more economical to simply shut them down.
Terium said the company would expand its business outside Europe to offset falling earnings at its conventional power generation unit, adding the Middle East, North Africa and Turkey would become profit drivers in the future. (Reporting by Tom Kaeckenhoff; Writing by Christoph Steitz)