Tuesday, 9 July 2013

RWE Sees End of Europe’s 40-Year-Old Gas Pricing for Gazprom - Bloomberg

"RWE AG (RWE) expects a 40-year-old system for setting European gas prices that has cost Germany’s second-largest utility hundreds of millions of euros to be cast aside after an arbitration ruling against Russia’s OAO Gazprom. (GAZP)
A Vienna tribunal decided RWE paid Gazprom too much from May 2010 and the Moscow-based gas-export monopoly needed to introduce market rates for the fuel, according to the German power producer. In reaction, Russian President Vladimir Putin defended the decades-old regime of linking rates to oil indexes.
“We have a solution which partly replaces oil indexation by gas indexation,” said RWE Chief Financial Officer Bernhard Guenther in an interview at its head office in Essen. “Going forward we will claw the small money back which we might now still lose on the remaining oil-indexed part.”"

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