E.ON Optimistic for Datteln Power Plant, Cancels Sale of GASAG Share

Despite the election standoff in North Rhine-Westphalia, Johannes Teyssen, the new CEO of E.ON AG, Germany’s largest utility, is reportedly still optimistic that E.ON’s coal-fired power plant building project in Datteln can go ahead.

The two major parties, the Christian Democratic Union (CDU) as well as the Social Democratic Union (SPD) had both express support for Datteln in the past, Mr Teyssen said. As one or both of them will form a coalition government, Mr Teyssen expects the Datteln plant to eventually start operations, though possibly later than envisaged. E.ON had to stop building the Datteln plant after the company suffered a setback in a legal dispute over the zoning plan for the area.

In a telephone conference yesterday, in which Mr Teyssen explained Q1 figures, he warned of euphoria despite the fact that E.ON managed to increase its adjusted EBIT by 20% to EUR 3.7 billion. Electricity and gas demand was still below pre-crisis levels, he said.

E.ON cancelled its plans to sell its shares in the Berlin-based gas supplier GASAG, Mr Teyssen also told the participants of the telephone conference. According to Frankfurter Allgemeine Zeitung, bids fell short of E.ON’s expectations.

Source: Rheinische Post, Frankfurter Allgemeine Zeitung, 12 May 2010, page 17

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