The company said yesterday that an increase in solar and wind capacity had negatively affected the profitability of its power plants, leading to a subsequent decrease in value of approximately 5bn euros.
RWE said earnings had shifted drastically from a 1.3bn euro profit one year ago, to a 2.7bn euro loss today. According to a report in Reuters, this is the company’s first net loss since 1949.
‘Our power plants will earn even less in the coming years’
Speaking on the announcement Chief Executive Officer at RWE Peter Terium said: “Our power plants will earn even less in the coming years than we had feared. We had to take this into account.”
A focus on renewable energy plants in Germany has negatively impacted the earning potential of RWE’s gas fired power plants.
Terium branded the current landscape “the worst structural crisis in the history of energy supply.”
npower drops energy prices
npower recently became the fifth of the big six energy suppliers to implement government led cuts to green levies.
The reductions will see customers pay approximately £50 less on average, although this figure is not close to wiping out the winter price hikes.