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RWE CEO Sees Tough Years Ahead for Conventional Power Plants

  • Hardly possible to cut costs as quickly as hedged prices fall
  • New CEO Schmitz can’t see electricity price trend reversal yet
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RWE AG, Germany’s largest power producer, expects difficult times for its generation business for years to come as it continues to focus on efficiency.

“We were hardly able to cut costs as quickly as hedged prices are falling -- 2017 and 2018 will be tough,” Chief Executive Officer Rolf Martin Schmitz said in his first interview with international media since taking the role last month after the split off of RWE’s green energy business. The Essen, Germany-based company will continue the unit’s “extremely tight and efficient” cost management “so that we can survive with less margin.”