Uniper May Pass On Some Costs To Consumers Under Rescue Deal -sources

Uniper could be allowed to pass on some of its higher gas costs to consumers under the terms of a rescue package being discussed with the German government, sources told Reuters on Wednesday.

Germany is scrambling to rescue the utility, which has become a high-profile casualty of an economic standoff between the West and Russia that has sent gas prices soaring and raised fears of severe energy shortages this winter.

Berlin is leaning towards taking an equity stake of up to 30% in Uniper as the preferred option for a bailout of the stricken group, sources told Reuters, adding this package would be worth a mid single-digit billion euro amount.

A deal could be agreed this week, they said.

It was not immediately clear by how much Uniper might be allowed to pass on costs under the rescue deal, or what measures the German government could take to shield vulnerable households from a steep price increase.

Uniper declined to comment. Germany's Economy Ministry was not immediately available for comment.

Uniper shares were up 20% at the top of Germany's midcap index.

Details of the bailout are still being discussed and could be addressed at a meeting with German Chancellor Olaf Scholz on Friday, people familiar with the negotiations said.

No final deal has been agreed and details of a package could still change as talks between the German and the Finnish governments, Uniper and its parent Fortum continue, sources said.

Finland owns 51% of Fortum, which in turn holds 78% of Uniper.

A rescue package for Uniper must be agreed by July 25, when the German utility could face more serious funding issues as a result of reduced gas supplies from Russia, the people said.

Uniper, Germany's largest importer of Russian gas, is losing cash on a daily basis as it is forced to buy supplies at much higher prices from alternative sources because Gazprom has reduced deliveries.

There are also plans to raise Uniper's credit line facility from Germany's state-owned KfW bank to 8 billion euros ($8.2 billion) from 2 billion, German daily Handelsblatt reported, citing an economy ministry document.

Germany triggered the "alarm stage" of its emergency gas plan last month but at the time had stopped short of allowing utilities to pass on soaring energy costs.

Governments across Europe are closely watching whether Russian gas flows through the Nord Stream 1 pipeline will restart on time on Thursday after a scheduled maintenance period.