Delta to go to court over nuclear power plant

Thursday 23 April 2009

Energy concern Delta is to take legal steps to prevent rival Essent from allowing its proposed new owner, Germany’s RWE, from becoming joint owner of the Netherlands only nuclear power plant.

In a statement on Wednesday, Delta said Essent is trying to create a 'legal construction of convenience' which would effectively give RWE 50% control of the Borssele plant.

The nuclear facility, which produces around 7% of Holland’s electricity, is owned by EPZ which is a joint venture between Delta and Essent.

In a letter to Delta last week, Essent proposed that its 50% legal ownership in EPZ should come under the control of its local government shareholders. The economic ownership would then be transferred to RWE as an integral part of its takeover of Essent.

But Delta’s local government shareholders want the nuclear power station to remain in public hands and have demanded that Essent offers its stake in Borssele to Delta 'to safeguard public interest'.

'Delta entered a partnership [EPZ] with a carefully selected partner, Essent, and we want to keep it that way,' says Delta CEO Peter Boerma in the statement.

RWE agreed to takeover Essent for €9.3bn in February this year.

© DutchNews.nl

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