Earnings trend RWE npower

RWE npower’s operating result is expected to be significantly down year on year. If Sterling remains weak, currency effects will hamper earnings. From our current point of view, the generation business will continue to display positive development. Income from the short-term position management of our power plants is unlikely to match the unusually high level achieved in 2008. Costs incurred in connection with emissions trading are expected to roughly equal those of 2008. RWE npower will probably have to purchase approximately 35 % of the CO₂ certificates it requires on the market. The market environment for our electricity and gas supply businesses remains very difficult. Fierce competition harbours substantial risks. In addition, government programmes that oblige UK utilities to promote energy savings for homes and local authorities and provide assistance to low-income customers will probably result in additional burdens. The additional expense compared with 2008 could amount to some €100 million. Moreover, the UK recession is causing bad debt to rise across all customer segments. Furthermore, staff costs will increase as RWE npower expands its sales force.