German utility RWE AG's (RWE.XE) chief executive intends to make further significant cost cuts to help mitigate pressure on earnings from recession-related weak energy demand in Europe and poor power prices, daily newspaper Handelsblatt reports Tuesday.

Without identifying its sources the newspaper says RWE's CEO Peter Terium plans to expand the savings program by at least 1 billion euros ($1.3 billion). Mr. Terium is expected to present such plans to the company's supervisory board at a two-day meeting in Poland 's capital Warsaw in September, the report adds.

A company spokeswoman declined to comment on the report, but referred to previous statements by the management board.

Mr. Terium has repeatedly said RWE will continue to reduce operating costs and enhance efficiency as the utility's core power generation business suffers from poor energy demand. Apart from faltering energy consumption in a weak economy, rapidly expanding renewable energies are eating into the profitability of conventional power plants.

The additional cost cuts would come on top of a EUR1 billion savings program through 2014.

RWE is also pushing through separate efficiency measures at its pan-European power production unit RWE Generation SE, which media reports have previously said would contribute another EUR500 million in savings.
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