Earnings trend RWE Power

RWE Power is expected to post another improvement in its operating result. It has already sold forward more than 90 % of its German 2009 generation. Since most of the forward sales were made in 2007 and 2008, we are still benefiting from wholesale electricity prices which recorded a significant increase until the middle of last year. However, we also anticipate substantial burdens: From our current point of view, the outage planned for the Biblis power station is estimated to reduce earnings by some €0.6 billion. Block A is expected to be offline for six-and-a-half months (end of February to mid-September) and Block B for four months (end of January to end of May). In addition, costs will be higher as a result of higher fuel prices. From our present point of view, they will increase by between €0.5 and 0.6 billion. Expenses arising from the shortage of CO₂ certificates are anticipated to be €0.1 billion higher than in 2008 (€1.1 billion). We expect that RWE Power will have to buy about 40 % of the CO₂ certificates it needs in Germany this fiscal year or obtain them via CDM/JI projects insofar as possible. We expect operating and maintenance costs to rise in 2009 as well.