Npower’s owner set for £4bn hit

Share

THE German owner of Npower is set to write off hundreds of millions of pounds on the value of its British power plants in the latest sign of a deepening crisis among the big six energy suppliers.

RWE, one of Europe’s largest power companies, will reveal the British loss as part of an expected €4.8bn (£4bn) writedown of the value of its fleet of power stations.

The loss arises from pollution taxes that are forcing the closure of old coal-fired plants. Big subsidies for renewable energy, meanwhile, have made even gas-burning plants, which are much cleaner than coal stations, loss-making.

The hit will alarm Whitehall, which is increasingly worried about the lights going out. Companies have stopped building new power stations amid a political and regulatory backlash, sparked last year by Ed Miliband’s pledge to freeze energy prices.

via Npower’s owner set for £4bn hit | The Sunday Times.

Share

Comments

comments