European utilities face increased regulatory pressure

RWE used its Q1 earnings call to highlight how price caps and stricter EU rules on emissions are contributing to a tough business climate RWE used its Q1 earnings call to highlight how price caps and stricter EU rules on emissions are contributing to a tough business climate.
By Annemarie Botzki 17 May 2017 0 25937
A solar power plant owned by RWE subsidiary Innogy. (Innogy)

RWE announced ‘solid’ results for Q1 but has raised concerns that a UK price cap and tougher regulation on emissions could lead to costly retrofitting of plants and early closures.

The German utility said declining generation margins and additional burdens for its new subsidiary Innogy on the UK retail market caused a decline in earnings. RWE’s adjusted net income for the quarter was €689 million ($763 million), down from €838 million in the first quarter of last year.

Analysts saw the results in a more...

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