FRANKFURT (Reuters) - Utility companies RWE and Vattenfall could receive compensation of up to 1 billion euros (882 million pounds) for lost income from Germany's policy to decommission nuclear power by the end of 2022, according to a draft law seen by Reuters.

Compensation payments for utilities will not exceed a low single-digit billion euros amount and will more likely be in the high three-digit-million euros range, according to a draft proposal being reviewed by Germany's Federal Environment Ministry.

The precise compensation sum depends on electricity prices, and will be finalised in 2023, the proposal showed.

Germany's Tageszeitung was first to report on the compensation amount.

(Reporting by Hans Edzard Busemann; writing by Edward Taylor; editing by Tom Sims)