German government compensates nuclear industry in exit from nuclear power

German nuclear operators to get compensation for nuclear exit: court http://www.platts.com/latest-news/electric-power/london/german-nuclear-operators-to-get-compensation-26613982 London (Platts)–6 Dec 2016

* German supreme court says some rights violated by nuclear exit

* But confirms general constitutionality of exit law
* Government needs to set compensation framework by June 2018

Germany’s supreme court (Bundesverfassungsgericht) on Tuesday confirmed that the nuclear exit law from July 2011, although generally conforming with the German constitution, in part violates the property rights of nuclear operators.

Nuclear operators E.ON, RWE and Vattenfall brought the lawsuit after the government decided in 2011 to reverse its planned extension of nuclear runtimes in the wake of the Fukushima nuclear crisis, replacing remaining production quotas with a set deadline for the closure of reactors and a complete phase out of nuclear power by the end of 2022.

The court in Karlsruhe declared that the government needs to put in place “appropriate” compensation for investment based on the initial plan to extend runtimes by around 12 years after the 2009 elections.

The new compensation rules need to be in place by June 30, 2018, the court said in a statement

It did not give any guidance on the compensation sum.

According to a report by German news agency dpa, the operators so far have not quantified their compensation demands, speaking only of “massive economic damage” with dpa quoting estimates of around Eur19 billion.

In October, the government cleared the way for a financial solution to the nuclear storage issues with new rules under which the nuclear operators will pay a combined Eur23.5 billion into a state-run fund for the financing of mid- and long-term nuclear storage in Germany.

In return, the nuclear operators will be released from liability for interim and final storage of nuclear waste, but remain solely responsible for the decommissioning of nuclear power plants as well as the transport of the nuclear waste to the storage repository.

–Andreas Franke, andreas.franke@spglobal.com
–Edited by Alisdair Bowles, alisdair.bowles@spglobal.com

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