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E.ON considers power grids spin-off, capital hike: WirtschaftsWoche
October 13, 2016 / 6:26 AM / a year ago

E.ON considers power grids spin-off, capital hike: WirtschaftsWoche

FRANKFURT (Reuters) - German utility E.ON (EONGn.DE) is considering spinning off at least part of its power grids or raising capital to offset falling grid fees, a pending payment for radioactive storage and possible writedowns, a German magazine reported.

A hot air balloon with the logo of German energy giant E.ON flies at dawn in Ronda, southern Spain, July 21, 2016. REUTERS/Jon Nazca

Weekly WirtschaftsWoche said on Thursday, citing company sources, that E.ON would present its plans when it publishes third-quarter financial results, due on Nov. 9.

E.ON declined to comment on the report.

E.ON spun off a majority stake in its power generation and energy trading business Uniper as part of a strategic overhaul last month and is expected to have to write down the value of the asset, hitting its already weakened balance sheet.

It is also expected to have to pay billions of euros once Germany’s nuclear power plant operators agree a deal with the government over funding radioactive storage.

A commission tasked with finding a solution to funding storage of radioactive waste said in April it wanted Germany’s “big four” utilities - E.ON, RWE (RWEG.DE), EnBW (EBKG.DE) and Vattenfall [VATN.UL] - to pay 23.3 billion euros ($26 billion) into a state-fund to cover the costs.

Reporting by Maria Sheahan; Additional reporting by Hans Seidenstuecker; Editing by Susan Fenton

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