So RWE announced a new CO2 purchase policy today. Who of us thought it was a big change in the way they run their business model? Ok, only a few of us! It wasn't. Virtually nothing has changed. Ignore it, it's just a technicality. If you're really interested, here is what they have done… They buy EUA's exactly as now, just with a later settlement date, so carbon permits are settled in Jan-15 and Mar-15, not in Dec-14. RWE say it saved €2.1b on their cashflow – but it is merely delayed the purchasing by only 1-3 months. This was hailed as a new "carbon purchase policy" on their cashflow report (page 17), and their CFO discussed it on their webinar. When they say "bought emissions [for 2014], mostly in early 2015" (page 45), they meant they bought them for 2015, not bought them in 2015. However, after a very long and confusing phone call with RWE Investor Relations, they confirmed that yes, they still purchase carbon as they sell electricity – just with a slightly later settlement date.
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