RWE does not want to take advantage of the gas surcharge - after billions in profits from high energy prices

Created: 08/11/2022, 1:25 p.m

By: Lisa Mayerhofer

Flags fly in front of the headquarters of the energy company RWE.

(Archive image) © Rolf Vennenbernd/dpa/Symbolbild

The energy giant RWE does not want to take advantage of the gas surcharge planned by the government.

The Essen-based group was able to benefit greatly from the high energy prices.

Essen – In view of the energy crisis, the federal government has decided on a gas levy in order to continue to ensure the gas supply for the population.

From autumn, consumers will be faced with higher prices because gas importers such as Uniper and RWE can pass on the vast majority of their high additional costs through the surcharge.

Uniper was in dire straits as a result of skyrocketing gas prices and was rescued by the federal government.

RWE does not want to claim the gas surcharge

The energy company RWE has now announced that it will not claim the gas surcharge.

“RWE is a financially strong and robust company.

We are therefore considering refraining from claiming our losses from the gas replacement procurement for this surcharge for the time being," said RWE CEO Markus Krebber on Thursday in Essen.

"We would then (...) carry them ourselves."

RWE did not provide any information about the expected amount.

The amount of the losses will depend on how much gas still comes from Russia.

"It's about a relevant amount," said Krebber.

However, he described it as a "right solution" that the gas surcharge should be borne by the gas customers.

"Of course, that gives an incentive to continue saving gas due to the rising gas prices."

RWE has made good money from the high energy prices

The fact that companies that have suffered losses but are not in economic distress also claim the gas surcharge is due to the fact that the legislature cannot differentiate between them.

"But a company can say from its point of view that we can absorb it ourselves in our business portfolio, which is very robust.

In this respect, we refrain from making use of it.”

No wonder: the energy giant earned fairly well in the first half of the year and is therefore also considered a winner of the crisis.

At the end of July, RWE had already presented preliminary figures and significantly raised its forecast for the year as a whole.

The group is therefore expecting an adjusted operating result of 5 to 5.5 billion euros.

That is more than a third more than before, and RWE had already corrected the old range upwards in mid-February.

The reasons for the increase included good business in energy trading, where RWE is benefiting from high energy prices.

The amount of the gas surcharge planned by the government is to be announced on Monday 15 August.

Economics Minister Robert Habeck (Greens) had mentioned a range of 1.5 to 5 cents per kilowatt hour.

It is still unclear whether VAT will also be charged on the surcharge.