Severe losses by Germany’s Uniper (OTC:UNPPY) to replace shuttered Russian gas flows likely will reach a €7B limit this month, which would force the government to step in again to bail out the company, CEO Klaus-Dieter Maubach said Monday, according to Bloomberg.
“We got the stabilization package from the government we have agreed with a €7B backstop to be reached the fourth quarter, and it will definitely be earlier. Most likely we will reach that ceiling in September,” the CEO said at the Gastech conference in Milan.
Uniper’s (OTC:UNPPY) agreement with Germany’s government says that if replacement cost losses cannot be offset by operating profits from the utility’s other businesses and exceed €7B, the government would step in with additional support.
Separately, German economy minister Robert Habeck said Monday that the country may extend the lifespan of two nuclear power plants by putting the units scheduled to close at the end of this year into a reserve until mid-April, economy and climate minister Robert Habeck said on Monday.
Habeck said the 1.4 GW Isar 2 plant and 1.3 GW Neckarwestheim 2 plant would be activated only during severe grid or power supply bottlenecks.
German utility E.ON (OTCPK:EONGY) said it is ready to deal with the government’s request to keep its Isar 2 nuclear plant in reserve mode.