PreussenElektra welcomes understanding between German government and nuclear power plant operators on nuclear phase-out

5 March 2021

The German government and the operators of nuclear power plants have reached an understanding on the constitutional implementation of the nuclear phase-out. In its rulings of 6 December 2016 and 29 September 2020, the Federal Constitutional Court had annulled the 16th amendment to the Atomic Energy Act and demanded an immediate revision after roughly ten years. Based on this understanding, the parties will now seek to negotiate a public-law contract, introduce a statutory regulation and have the EU Commission complete the state aid review by the end of 2021, which will be a prerequisite for the full implementation of the agreement.

PreussenElektra will thus have the opportunity to fully convert its residual electricity quantities from the Krümmel and Brunsbüttel nuclear power plants into electricity without payment. All purchase prices paid provisionally to date will be refunded. For the additional residual electricity quantities of 13 billion kWh required, the parties will arrange transfers from the Krümmel nuclear power plant against payment of about 181 million euros. PreussenElektra will not participate in state compensation payments for residual electricity quantities, but will receive a payment of 42.5 million euros for some of the investments made in 2010/2011 in reliance on a lifetime extension.

Dr Guido Knott, CEO of PreussenElektra, said: "We welcome the agreement that has been reached. It means that years of legal wrangling can be put aside and we can continue to focus on our mission: the safe operation and dismantling of our nuclear power plants."

If the agreement is legally implemented, it will also end the legal dispute between PreussenElektra and Vattenfall regarding the transfer of residual electricity quantities without compensation, which has been pending before the Hamburg Regional Court since December 2018.

Background:

A legal dispute between Vattenfall and PreussenElektra has been pending before the Hamburg Regional Court since December 2018. PreussenElektra holds a 50% stake in the Krümmel NPP and a 33% stake in the Brunsbüttel NPP, both of which are operated by Vattenfall. Power operation was legally terminated in 2011. Of the residual electricity volumes of around 99 billion kWh which remained at that time, PreussenElektra's share amounts to some 47.8 billion kWh.

^{PreussenElektra operates Brokdorf (Schleswig-Holstein), Grohnde (Lower Saxony) and Isar 2 (Bavaria) nuclear power plants to generate power in Germany. The Isar 1 (Bavaria) and Unterweser (Lower Saxony) plants are in the process of being dismantled. Nuclear dismantling of Stade NPP (Lower Saxony) is well advanced and that of Würgassen NPP (North Rhine-Westphalia) has already been completed. It is the aim of PreussenElektra's roughly 2,000 employees to contribute to climate-friendly, reliable and affordable power production in Germany up until 2022 and to guarantee safe and reliable dismantling of the decommissioned plants.}

^{This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties, and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend to update and does not assume any liability whatsoever for updating these forward-looking statements or conforming them to future events or developments.}