Municipal shareholders tell RWE to take hard line in coal compensation talks
Municipal shareholders in RWE have called on Germany’s biggest power producer to drive a hard bargain in talks with the government over compensation for a planned phase-out of coal-fired power plants, news agency Reuters reports. “From the municipalities’ point of view, the decisions can only be absorbed financially if there is adequate compensation,” said Ernst Gerlach, head of the Association of Municipal RWE Shareholders. “RWE should take a tough stance in the pending negotiations over power plant shutdowns,” he said, adding that municipalities hold about 18 percent in RWE.
Germany’s coal exit commission has recommended settling questions related to compensation for operators of lignite plants as well as for employees in “mutual agreements”. Compensation should depend on CO2 emissions, ownership structure, linkages with the mining sector and the respective number of affected employees, the task force said in its final report.