E.ON alters plan for nuclear operations in Germany; spinoff still on track

E.ON said this week that it would take on the responsibility of dismantling its nuclear generating capacity in Germany, rather than transfer it to Uniper, and also said this move  will not affect the planned spin-off of Uniper by early 2016.

“This decision will enable us to implement our corporate strategy and complete the spin-off process on schedule," E.ON CEO Johannes Teyssen said. "It will create good prospects for our employees and establish a new, value-oriented organization for our shareholders.”

The German government has made the decision to begin phasing nuclear generation out of its electricity grid by 2022, and nuclear assets are no longer considered a strategic asset for E.ON. Currently, there are three nuclear-generation stations owned by E.ON in Germany, and the company has minority holdings in three additional facilities. E.ON'snuclear-power business will be managed by a subsidiary, PreussenElekra, which is based in Hanover.

“Our decision to retain our nuclear-power business in Germany has no implications for our fundamental strategy," Teyssen said. "E.ON will focus on the new energy world. PreussenElektra will operate our remaining three nuclear-operation stations in Germany competently and responsibly, and fully meet our asset-retirement and waste-management obligations.”

E.ON's new management set-up will begin to take effect at the beginning of 2016, and during this time, Uniper will launch as a separate company. E.ON's focus will be within renewable energy networks and customer solutions. Uniper's main focus will be on power generation and global energy trading.