Report: Swedish government to push utility Vattenfall

Jul 23, 2009, 6:37 GMT

Stockholm - The board of state-owned Swedish utility giant Vattenfall has more work cut out for itself before it can restore the group's reputation following several incidents at nuclear plants it operates in Germany and Sweden, a Swedish official was quoted as saying Thursday.

'Vattenfall has shortcomings in its processes and follow-up,' Ola Altera, state secretary at the ministry of enterprise, energy and communication, was quoted as telling Stockholm daily Dagens Nyheter.

Vattenfall has been criticized in Germany in the wake of a recent short circuit at one of its plants near Hamburg, while the Swedish Radiation Safety Authority recently imposed tighter supervision of the Ringhals plant with four reactors located on the west coast of Sweden.

Altera visited Germany last week and briefed officials about measures the Swedish government has taken.

He said the Swedish government had confidence in the Vattenfall board that has 'done a lot since 2006, but there is obviously more to do.'

The Swedish government wants the Vattenfall board to restore confidence in the Vattenfall brand, further improve the security culture at its plants, focus on profitability and ensure that the utility plays a leading role in the transformation to renewable energy sources.

Nuclear power accounts for about half of Sweden's electricity.

Sweden once had as many as 12 nuclear reactors in operation, but two reactors at the Barseback plant in southern Sweden have been decommissioned, most recently in May 2005.