One of the nation's major energy suppliers, Npower, may be sold by the German giant RWE, reports over the weekend suggested, in a deal worth £5bn. RWE is said to be thinking about the move because it needs to relieve itself of debts, and to pay for a strategic commitment for it to invest in a new generation of "green" power stations – but also because of "dissatisfaction" with British energy policy, say sources.
Spanish power group Iberdrola is a likely buyer for Npower, which employs 11,000 people and supplies electricity to about 6.8 million homes in Britain, newspapers said, citing insiders.
Npower made profits of £245m on sales of £7bn last year. RWE has hired Goldman Sachs to review Npower's future. Formerly Innogy plc, and before that part of National Power, Npower was bought by RWE in 2002 for £5.2bn.
The Government is reviewing its energy policy with the aim of encouraging more investment in nuclear and wind power, and to penalise older fossil-fuel plants.Reuse content