In view of the current energy crisis, RWE has been making good money in recent months.
(Photo: dpa)
Dusseldorf In the past nine months, the Essen-based energy group RWE has more than doubled its profit to 2.1 billion euros (EBIT) compared to the previous year. Renewables have also grown considerably, but the water/biomass/gas sector accounts for the bulk of the business. Thanks to the high gas prices, the adjusted Ebitda rose from 430 million euros in the previous year to more than 1.1 billion euros.
The prices for electricity, gas and other energy sources have been rising massively for months. As a result, RWE’s profits are significantly higher. Trading in electricity and gas had already given the company its best result in years in 2021.
“The high demand for electricity combined with the shortage of available European generation capacities meant that RWE’s generation fleet was used extensively,” said a statement on Wednesday when RWE published its figures. The group confirmed its annual forecast of an adjusted operating EBITDA of five to 5.5 billion euros.
Instead of reducing debt, RWE uses its billions in profits for investments. In the first nine months of the year, the Essen-based company invested 3.1 billion euros worldwide – with a focus on renewable energies. The record purchase of the US solar group Con Edison Clean Energy Businesses worth 6.8 billion euros is not even included.
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The profits were allowed to increase in the next few months. RWE boss Markus Krebber announced an earlier phase-out of coal by 2030 overall. In the course of the energy crisis, however, two additional lignite blocks are now going back on the grid. The spontaneous continued operation of the two power plant blocks is extremely lucrative given the current electricity prices. Up to one billion euros in additional profits are possible for the group.
>> Read here: RWE earns a lot from the continued operation of two lignite blocks
Where others are struggling to survive during the crisis, RWE has so far benefited from the high energy prices. In addition to RWE, numerous operators of wind farms and solar parks in Germany are benefiting from the increased electricity prices.
But the record profits could soon be over. In order to finance billions in relief for citizens, it is precisely these crisis beneficiaries who are now to be asked to pay.
For months, some politicians, activists and experts have been calling for a so-called tax on excess profits. The proposal has also been supported by the European Union for a while. The first proposals have now come through from the Federal Ministry of Economics. Instead of a tax, there should be a levy on the random proceeds.
The upper revenue limit from which it is skimmed off should vary depending on the technology. The first details came to light in a paper on Wednesday. In the case of wind and solar energy, the reference revenue should be around the amount of funding under the Renewable Energy Sources Act (EEG) or – if the producers, like many, are currently doing without funding – a flat rate of ten cents per kilowatt hour. The subsidy rate for nuclear power plants that will continue to run after December 31, 2022 should be just as high. The one for lignite, however, is significantly lower.
More: Ministry of Economics specifies plans for skimming off profits from electricity producers – alarm in the industry
