RWE looking at sale of Npower

mattInternational, Wholesale Utilities Markets

German utility giant RWE is reportedly assessing the sale of British energy firm Npower

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RWE, parent company of Npower, is assessing the sale of the UK company in a rethink of strategy.

This comes after German parliament last week backed a withdrawal from nuclear power by 2022, following Japan’s nuclear crisis.

Nuclear power generates around a quarter of Germany’s total electricity supply.

For heavily nuclear-reliant RWE, this decision could mean a difficult financial future, especially coupled with the company’s net debts of around £24bn.

British MPs have expressed concern, claiming that if Npower were bought by another big six rival, the UK energy market would suffer decreased competition.

The sale of Npower is estimated to earn RWE around £5bn. It is not believed that there is a deal imminent.