Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Germany’s E.ON urges new government to fix power grid returns

    Germany’s E.ON urges new government to fix power grid returns

    February 27, 2025
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Power grid

    Essen, Germany — E.ON, Europe’s largest operator of energy networks, on Wednesday heaped pressure on Germany’s incoming government to hike returns on energy networks, warning it could only raise investment if margins were competitive.

    The comments add to the long list of issues Berlin’s next government, likely headed by Friedrich Merz of the conservative CDU party following Sunday’s election win is facing, including pressure to raise defence spending and revive economic growth.
    Along with other grid operators, E.ON has been vocal in its criticism of Germany’s grid regulation, saying it was not favourable enough to attract large investments needed to modernise and maintain crucial power networks.
    “Like any company that operates sustainably, however, we never invest at any price. The prerequisite for this in Germany is a return on our network investments that’s competitive by international standards”, CEO Leonhard Birnbaum said.
    “We cannot invest billions that need to be refinanced … if we don’t get sufficient interest,” he said.
    Birnbaum said returns were more favourable in most European countries and that Germany was an outlier in cutting returns.
    As a result, E.ON will keep investments in the 2024-2028 regulatory period largely stable at 43 billion euros.
    Shares in the company were still up 3.8% at their highest level in nearly four months, with traders and analysts citing a strong outlook for 2025 that foresees adjusted core earnings before interest, tax, depreciation and amortisation (EBITDA) of 9.6 billion euros to 9.8 billion euros in 2025, compared with 9.0 billion last year.
    It also proposed to raise its dividend to 0.55 euros per share for 2024 from 0.53 euros for 2023.
    Due to higher investments this year, which bring higher network returns, E.ON now expects adjusted EBITDA of more than 11.3 billion euros by 2028, up from a previous forecast of more than 11 billion.
    ($1 = 0.9530 euros)

    Reporting by Christoph Steitz and Tom Kaeckenhoff; Additional reporting by Vera Eckert; Editing by Miranda Murray, Tomasz Janowski amd Ludwig Burger – Reuters

    Related News

    China pushes ahead in battery technology race

    Africa’s solar boom: What businesses must do now to reap the benefits

    Otti to acquire EEDC assets in Abia power expansion plan

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    Nigeria unlocks intra-African trade with new PAPSS policy boost

    May 10, 2025

    Ahead of China-US talks, Trump says 80% tariff ‘seems right’

    May 10, 2025

    US oil and gas rig count falls to lowest since January – Baker Hughes

    May 10, 2025

    Nigeria’s Senate passes tax reform bills to boost government revenue

    May 10, 2025

    E-Call up is desirable in Onne ports – Truckers

    May 10, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.