Power failure: E.On reports €7bn annual loss

German firm restructuring to focus on renewable energy

EON power station Dortmund

E.On power station, Dortmund, Germany

German energy giant E.On has posted a net annual loss of €7bn (£5.4bn).

The company blamed falling wholesale electricity prices for the collapse and said that the German government’s move towards renewables had also hit profit margins.

E.On is one of the Big Six energy firms, and it is the second year in a row it has reported a loss.

Yesterday Npower, another Big Six German energy provider, revealed it was to cut 2,500 jobs after a £99m loss.

E.On is in the process of restructuring the company, with fossil-fuel based power stations being moved to a different division of the company, named Uniper, while E.On itself will focus on renewable energy.

E.On chief executive Johannes Teyssen said: “Our numbers reflect the far-reaching structural transformation that our industry is experiencing and that continues unabated in the current year.”

According to the BBC, Germany’s four largest energy providers have all written down the value of their power stations as a result of the collapse in wholesale energy prices which are at their lowest level since 2002.

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