Nuon warns government on borrowing

Tuesday 25 November 2008

Energy concern Nuon will hold the state responsible for any damages it incurs from new stricter rules for the solvency rate of its power grids, reports Tuesday’s Financieele Dagblad.

The warning coincides with a parliamentary vote on lowering the maximum amount of borrowing allowed to finance power networks from 70% to 50% due today.

Nuon says this is unnecessary because its grid company has a stable cash flow which means there is no risk with borrowing.

The process to separate Nuon’s grid operations from commercial activities (in line with new legislation) is well under way and it is unfair to change the rules ‘at the last minute’, the company tells the paper.

A majority of MPs support tighter solvency regulations but economic affairs Maria van der Hoeven is not obliged to accept their decision. Last week she said that a 60% limit on borrowing could be a solution, reports the Financieele Dagblad.

© DutchNews.nl

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