The Dutch government has committed to compensating Germany‘s energy giant, RWE, to the tune of €331.8 million (£285m).

RWE will receive the payout as compensation for the income it lost during 2022-2024 when the government imposed a cap on coal production, restricting them to only 35% of their capacity.

In a letter addressed to the Dutch Parliament, Energy Minister Rob Jetten revealed that the agreed compensation figure falls considerably short of RWE’s initial demand of €1.9 billion (£1.6bn).

The rationale for this reduced payout, Mr Jetten explained, lies in the sudden and unexpected removal of the production cap in mid-2022.

This abrupt change in policy direction was prompted by a broader strategy to reduce reliance on natural gas following Russia’s invasion of Ukraine.

Article source: https://www.energylivenews.com/2023/09/19/dutch-government-to-compensate-rwe-e331-8m-for-coal-cap/