Document summary
The inclusion of a €2.3bn per annum nuclear levy within the €80bn austerity package announced by the German government in June came as a surprise to German utilities and has created much uncertainty regarding the nuclear extension plan. There is no explanation of how the level of the levy has been calculated, although Daiwa feels it may have been based upon the price of carbon. Also there is no guidance as to how far the levy extends post the 2014 forecast period or whether additional levies will be introduced. The critical issue though remains the length of any lifetime extension.