Germany Denies Report on Coal Plant Agreement

Germany denied on Friday a report saying taxpayers might have to pay the country's utility companies more than 1 billion euros ($1.1 billion) to cover the cost of closing some coal-fired power plants.

 

Weekly magazine Der Spiegel reported that German Economy and Energy Minister Sigmar Gabriel had reached such a deal with Peter Altmaier, Chancellor Angela Merkel's chief of staff, and Michael Vassiliadis, head of the IG BCE coal union.

 

The magazine did not cite any sources.

 

"The agreement mentioned in the report does not exist," a government spokesman said in an emailed statement.

 

The report in Der Spiegel said the power stations, including German utility's RWE's plants in Niederaussem and Frimmersdorf, would be treated as emergency reserve capacity for four years as a first step before being shut down.

 

Germany's government is still weighing up proposals on how to cut carbon emissions from coal-fired plants, an economy ministry spokesman told Reuters earlier this week, dismissing a report that a coal levy had been put on ice.

 

The government has faced a backlash over its plans to slap a levy on the oldest and most polluting power plants, with unions saying the measure could put up to 100,000 jobs at risk.