Planned tax on nation’s 17 reactors prompts a threat by utilities to shut them down
As an idiomatic phrase, if something "backfires," it means plans for a project have not worked out and with unanticipated negative consequences. It can also mean that the plans were not thought out deeply ahead of time.
Technically speaking, a backfire is an explosion of unburned gas in the exhaust system. Instead of blowing the doors off the competition, the poorly tuned engine blows the tailpipe off the car.
This is exactly what's happening in Germany this week as Chancellor Angela Merkel struggles to save the nation's 17 nuclear reactors and simultaneously tax their profits to buffer the impacts of her government's austerity budget.
Germany's two largest utilities mounted a major campaign to push back on the idea of taxing their nuclear fuel rods to produce €2.3 billion a year or €23 billion ($2.9 billion) over the next decade.
The German newspaper Der Spiegel reports Aug 14 that the utilities threatened to shut down the reactors on their own unless the tax is replaced with a fixed contribution to a renewable energy fund. They claim the tax will severely cut dividends to shareholders and funds for capital investment though none is planned for new reactors.
Real the complete details exclusively at the EnergyCollective online now.
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