116 billion € profit from the lignite …

We received the e-mail below.
Let’s remember: On 1 December 2015, RWE announced that it would reorganize the Group. It was foreseeable that electricity generation from coal would end. So it was bundled in its own business area: RWE Power AG.
When we compare the parent company, the RWE Group, to a farmer, RWE Power AG is a dairy cow which once gave a lot of milk and is now to be vigorously milked till it drops down dead. Then others may care of the disposal of the emaciated carcass: The workers who lose their jobs without sufficient replacement in time, the villages “on the rim”, with a poisonous dust hole in front of their noses (where its too steep embankments in an area endangered by earthquakes and increasing sudden rainfall form a problem for themselves), thousands of resettled in their soulless new villages, the taxpayers, the world climate and so on.

Please read in this post, how this milking to death works:

… that’s why NRW is desertifying a whole region!

The profit of approx. EUR 116 billion was calculated from the covert profits which the RWE Group is expected to achieve in the period from 2018-2045 (= 27 years) from the extraction of lignite and the power generation from it in the Rhenish mining area”.

In order to calculate these covert profits, the profit shifts from RWE Power AG to RWE Supply & Trading GmbH and from there to RWE Vertrieb AG in the year of 2014 were taken as a basis. In this game, RWE Power AG is the mining company, where the work is done.

The transfer of the profits took place by granting excessive intermediary margins of approx. 2.5351 billion euros per year to RWE Supply & Trading GmbH and of approx. 1.7548 billion euros per year to RWE Vertrieb AG. This is corresponding to intermediary margins totaling € 4.2899 billion per year
× scheduled operating period of the opencast mines of 27 years = 115.8273 billion euros = approx. 116 billion euros, see above.

In the compared year, RWE Supply & Trading GmbH sold the electricity practically to just one customer: to RWE Vertrieb AG. For this reason, it received a margin of 2.5351 billion euros from RWE Power AG. This appears to be disproportionately high in relation to the personnel costs of only 243.3 million euros, which have been achieved according to the published profit and loss account at RWE Supply & Trading GmbH. The margin of RWE Supply & Trading GmbH of 2.5351 billion amounts to more than 10 times the total personnel costs incurred by RWE Supply & Trading GmbH.

Similarly, the margin of EUR 1.7548 billion which RWE Vertrieb AG received for the resale of the supplied electricity to the end customer appears to be disproportionately high in relation to the personnel costs of only EUR 141.9 million as well as in proportion to the property, plant and equipment assets of RWE Vertrieb AG of only EUR 3.0 million (according to the published profit and loss account of RWE Vertrieb AG).

The extent of the hidden transfer of profits from RWE Power AG to other companies of the Group was determined on the basis of the ratios of the year 2014. In the meantime, the Group has been fundamentally restructured so that the corresponding comparative figures are not available for the following years. However, on the basis of certain circumstances it can be assumed that similar high profits from the lignite have also been achieved in the years from 2015 and have been shifted and will continue to exist until 2045.

The RWE Group is requested to explain how the profits transferred from RWE Power AG to other companies of the Group have been used so far and for which purposes these profits and any own profits of RWE Power AG are to be used in future.

Kurt Claßen

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