Rheinisch-Westfälisches Elektrizitätswerk AG ---RWE partners to fellow German company E-on, Commission KPMG to study energy market.

RWE AG (until 1990: Rheinisch-Westfälisches Elektrizitätswerk AG) show that they have more integrity than their Germanic partners in the Horizon venture, E-on .

They have commissioned KPMG to study the mechanics of the energy industry in the UK .

The conclusion appears to be that nuclear will not take place without subsidies---Why does an industry which has been trading for more than 40-50 years need financial help?

Answer: Because it never has and never will be viable as a stand alone industry!

Fair play to , let me call them RWE---the other name is too long,---For their integrity in approaching this now and not in 2013-2014 when Wylfa would be ready for build---They are being honest and confronting the issues now---they are not holding a double barrel shot gun to the head of our government yet.

Their partners in this venture---E-on---Are blindly going forward with the deceit that  nuclear can be built without subsidy.

We believe that E-on will start crying for money from the British taxpayer when they feel the government can not turn back!---Would Cameron and his chums fall for this?

With such fundemental differences how can these partners continue to work.

Our advice : Buy shares in Rheinisch-Westfälisches Elektrizitätswerk AG
                    Sell E-on

Reuters Article:----

Britain must reform electricity markets if it is to secure the private investment needed to meet its carbon emissions targets, according to a study by KPMG. The report, which will be published on Monday, said the British government's approach to investment in low-carbon generation was inconsistent and clearer planning was needed to show how emissions targets will be met. The KPMG report, commissioned by German utility RWE, said investment on the scale needed for new nuclear generation is unlikely to be achieved under the current framework and greater investment would be encouraged by a more consistent market design to reward low-carbon energy. A carbon price floor, as planned by the government, may provide some benefits to investors in new nuclear generation but on its own will not be effective in achieving the level of investment required, it said. KPMG, who con! sulted seven potential nuclear project sponsors including Centrica, EDF and EON, said potential investors would generally prefer a price mechanism which exposed them to some degree of market risk. The report suggested paying a premium tariff over and above electricity market revenues or setting a requirement for suppliers to source a certain amount of their energy from low carbon producers.




Reuters 18th July 2010