Group bears losses itself
RWE does not want to levy a gas surcharge
8/11/2022 1:32 p.m
From October, companies can pass on the increased costs of procuring gas to their customers. The energy company RWE does not want to make use of it. One reason is the high profits this year.
The energy company RWE wants to bear the losses from the increased gas prices itself and not claim them through the gas surcharge. “The aim of the gas levy is for companies that find themselves in financial difficulties (…) to use the levy to distribute the losses from the procurement of replacement gas,” said RWE CEO Markus Krebber. With the surcharge, which is to apply to all gas consumers from October, the federal government wants to protect energy companies from falling that have gotten into trouble due to the lack of gas deliveries from Russia. “We refrain from taking advantage of that,” said Krebber. RWE will “bear the losses from the procurement of replacement gas itself”.
The amount of the levy will be announced on Monday. Economics Minister Robert Habeck had mentioned a range of 1.5 to 5 cents per kilowatt hour. It is still unclear whether VAT will also be charged on the surcharge. Krebber describes it as a “right solution” that the gas surcharge should be borne by the gas customers.
More than five billion euros for the green portfolio
Meanwhile, the company, which purchases comparatively little gas from Russia, is making profits. RWE is also working on alternatives to natural gas and is promoting its renewable energy business. The gas storage tanks are 85 percent full. RWE held back on a possible lifetime extension of German nuclear power plants. This is a matter of politics, said Krebber.
In the current year, the group will invest more than five billion euros in the expansion of the green portfolio – around 30 percent more than originally planned, RWE announced when it presented its half-year figures. RWE can fall back on bulging coffers. Net assets were 1.9 billion euros at the end of June, after 360 million at the end of 2021. RWE had already presented results at the end of July and raised the forecast. At Group level, RWE expects adjusted operating income (Ebitda) of 5 to 5.5 billion euros in 2022 instead of the previous 3.6 to 4 billion euros.
RWE was able to grow in the first six months – here the adjusted Ebitda in the core business now totaled almost 2.4 (1.2) billion euros, as the group confirmed. The bottom line was almost 1.6 billion euros, after 870 million at the same time last year.
Thanks to a new wind farm and better wind conditions, offshore wind farms earned more from January to June. Onshore wind farms and the solar business also performed better than a year ago. RWE also grew in energy trading. “The result that we generate will benefit the energy transition,” emphasized Krebber.