Freshfields Bruckhaus Deringer and Gleiss Lutz have picked up advisory mandates as German energy companies prepare for the Government's plans to phase out nuclear power plants by 2022.

Herbert Smith's German alliance partner Gleiss Lutz is advising E.ON in relation to the plans to close all 17 of the country's nuclear power plants within the next 10 years, which were announced by the German coalition government at the end of May.

Meanwhile, Freshfields is understood to be advising RWE as well as E.ON, with Duesseldorf corporate partner Axel Epe, environment, plan-ning and regulatory partner Herbert Posser and finance and tax partner Jochen Ludicke acting, as well as Berlin environment, planning and regulatory partner Marcel Kaufmann.

Fellow energy companies EnBW and Vattenfall are also believed to have appointed legal advisers, with the pair having ties to firms including Clifford Chance and Linklaters.

The energy giants are considering whether they may be able to challenge the plans or claim compensation, with Gleiss reportedly advising E.ON on a document claiming that energy companies could be protected by German property laws. E.ON, which operates six reactors in Germany, is assessing the financial cost of being forced to shut its plants.

The companies are also opposed to a new tax on nuclear rods which was introduced in September last year, before Japan's Fukushima Daiichi disaster, when the government was planning to extend the lifespan of its nuclear reactors. Chancellor Angela Merkel announced a review of the policy following the crisis in Japan, leading to the U-turn.

E.ON said in a statement: "The company expects due compensation for the financial damages associated with these decisions, which is expected to amount to billions of euros."

One partner advising on the issue said: "Last year the German Government said it would extend the lives of the country's nuclear reactors but now they have changed their minds. It will be a huge financial loss to energy companies if they have to shut down."