Belgium sets profit sharing rules for Tihange-1 lifetime extension

After months of negotiations with Electrabel (GDF SUEZ) and EDF, the owners of the Tihange-1 nuclear power plant, the Belgian government has presented an amendment to share the profits resulting from the lifetime extension of the plant until 2025. The profit sharing scheme remains similar to that agreed by the government in July 2013: until a certain sale price that covers production costs, €600m amortization for the lifetime extension and a 9.3% net return on investment, the plants owners will retain profits. The said price is estimated at €41.8/MWh; if the price is lower, profitability will erode for the operators and the state will not receive anything. If the price is higher, the plant's owners will have to pay back 70% of the profit to the State. Belgium expects to raise €1.25bn over 10 years. This amount does not take into account the nuclear tax beyond 2015 (about €90m for Tihange-1), which should bring another €900m in revenues to the Belgian state between 2015 and 2025.