Dutch Government to compensate RWE €331.8m for coal cap

The Dutch government will provide Germany’s RWE with a compensation of €331.8 million due to income losses resulting from a coal production cap set at 35% of capacity for the 2022-2024 period

The Dutch government has committed to compensating Germany‘s energy giant, RWE, to the tune of €331.8 million (£285m).

RWE will receive the payout as compensation for the income it lost during 2022-2024 when the government imposed a cap on coal production, restricting them to only 35% of their capacity.

In a letter addressed to the Dutch Parliament, Energy Minister Rob Jetten revealed that the agreed compensation figure falls considerably short of RWE’s initial demand of €1.9 billion (£1.6bn).

The rationale for this reduced payout, Mr Jetten explained, lies in the sudden and unexpected removal of the production cap in mid-2022.

This abrupt change in policy direction was prompted by a broader strategy to reduce reliance on natural gas following Russia’s invasion of Ukraine.

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