UPDATE 1-Vattenfall says CEO Loseth to start before summer 10

STOCKHOLM, Nov 16 (Reuters) - Swedish power producer Vattenfall said on Monday it had appointed a new chief executive to replace Lars Josefsson, who has been heavily criticised in recent weeks in the Swedish media for poor management. State-owned Vattenfall said Oystein Loseth would take over as CEO before summer of 2010 when Josefsson will retire. Loseth is currently CEO of Dutch company Nuon Energy, which is 49 percent owned by Vattenfall. In recent days Swedish media have rounded on Josefsson for a plan to sell the company's power grid and for a contract with Vattenfall's German subsidiary which makes the parent firm liable for nuclear accidents. Vattenfall's owners, the Swedish government, weighed in last week with Enterprise Minister Maud Olofsson saying that the issues had not been handled well by the company and that the brand had taken a "big blow". Over the last two years, Vattenfall has also been plagued with problems at its nuclear power plants in Sweden and Germany and speculation has been mounting that Josefsson would have to fall on his sword. In an interview with Reuters on Friday, Josefsson said he still had the full support of Vattenfall's board of directors and had not faced demands to step down, except from a trade union. He said that he had informed the company in the spring that he would retire next year. Josefsson said a sale of the Swedish grid was being reviewed as part of wider discussions on unbundling power generation and distribution, but was rejected because of timing considerations. The European Commission is keen for power utilities to separate their generating and distribution businesses. Vattenfall also rejected criticism of its dealings with its German subsidiary saying that such agreements were normal business practice. It said it was highly improbable that Vattenfall AB would be liable for compensation in the case of a nuclear accident in Germany. In Germany, Vattenfall said it has insurance worth around 23 billion crowns ($3.4 billion) held together with other German nuclear power operators. ($1=6.800 Swedish crowns) (Editing by Mike Nesbit) Keywords: VATTENFALL CEO/ (Stockholm Newsroom, tel: [phone], e-mail: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.