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Germany’s E.ON still hopes for extra EUAs

21 Apr 2010 16:00:47 | edcm

German utility E.ON said on Wednesday that it hopes to receive more EU allowances (EUAs), and confirmed it has taken legal action against the country's Emissions Trading Authority (DEHSt) regarding the EUA allocation in Phase II. An E.ON victory in the court could shrink one of the biggest shortfalls in Europe (within the German power sector).

"E.ON has - as [have] a huge number of other utilities and industrial companies [that] are operators of carbon dioxide-emitting plants - taken legal action against DEHSt, representing the Federal Republic of Germany," the utility told ICIS Heren.

The utilities claimed that a methodology used during Phase I of the EU Emission Trading System (ETS) for calculating allocations for lignite-burning plants was not reused in Phase II, consequently cutting their free EUA allocation.

The German Court of First Instance last week rejected a claim by the power producers, but E.ON hinted at the fact that this was not the end of the road.

"We do not speculate on a possible outcome of this case We hope to receive more allowances than originally allocated," E.ON said, adding that the court ruling will not put the company under any risk.

Last week, DEHSt said three utilities had taken legal action, with local media suggesting the two largest German power utilities (E.ON and RWE) might be among them. DEHSt told ICIS Heren on Wednesday it cannot give any information about the companies launching the court case. RWE was not available for comment.

German companies have taken DEHSt to court before and won, when a high court ruled the authority had overcharged administration fees (see EDCM 6 March 2009). MU

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