Energy firm RWE made a £21million loss from its UK power generation business after scaling back capacity and closing plants across the country.
The company, which is set to scale back its generating capacity across Germany and Holland by 3100MW, admitted it was looking to at possible further closures in the UK.
RWE has already ceased operations at its coal-fired power station at Didcot for failing to satisfy European emissions requirements, while the oil-fired power station at Fawley, Hampshire has also now been shut.
RWE added that Tilbury power station, which was converted from coal-fired to a biomass station in 2011, ceased generation this month due to emissions regulations.
Chief executive Peter Terium said subsides for the renewables market had made many power stations unprofitable to operate, with falls in carbon dioxide emissions allowances also impacting on revenues.
Across Europe RWE is to take around six per cent of its total European energy output offline, with chief financial officer Bernhard Guenther confirming many of the company’s power stations were running at a loss.
Meanwhile UK electricity revenue was down 4% to 2.94 billion euro (£2.52 billion) on falling volumes supplied to in
Revenue from the company’s upstream gas and oil business dropped 10% for the first half of 2013, with production down from 15.8million boe in 2012 to 15.3million this year, although increased production came from the company’s Clipper South and Devenick fields in the North Sea.
Upstream earnings from RWE Dea dropped 28% to EU305million, with lower prices realised for sales and increased exploration costs.
RWE saw overall income before tax fall 38% to 979 million euro (£837 million).
The company’s coffers were boosted by the a rulling that Russian firm Gazprom had to reimburse RWE for overpayment.dustrial and corporate customers – blamed on competition and economic conditions.
Recommended for you
