Other Links
Credit Cards
Business Credit Cards
Debit Cards
Gas Cards
Popular Credit Cards
Prepaid Cards
Reward Cards
Secure Credit Cards
Student Credit Cards
Subprime Credit Cards
Advanta
American Express
Buy Right
Chase
Discover
Eufora
Household
New Millenium
Orchard Bank
Vue

E.on As The Chancellor Was In The Back


From Anselm Waldermann

The German energy market is facing a revolution: The Mega Group will E.on 10,000 km power lines sell several power plants. Apparently there was a deal with the EU Commission - much to the anger of the Chancellor. Newspaper ONLINE provides answers to the most important questions.


Hamburg - The pressure at the end was simply too great. After several antitrust proceedings of the European Commission, the German energy giant E.on eingeknickt today: The company is examining claims to sell its transmission networks and several power plants.




AP
electricity pole: A new network operator could make the sector more competitive



For E.on, this means a wholly departure from the previous strategy - to the surprise of competitors, government and consumers.

Newspaper ONLINE answered the important questions:


is now cheaper electricity?


The chance of at least. Consumer were E.on today by the announcement enthusiastically. They had always demanded that the electricity grid and generation should be separated. Only an independent network operators can ensure that all electricity providers to use lines equally. This competition will be revived, the prices tend to hit.
If the other energy companies follow suit?


part, partly. The number two on the market, RWE, the Vorpreschen of E.on earned as a shock. The company immediately clear today that, on their own network festhalte. Precisely because the security there "for good reasons," said a spokesman. Only yesterday, RWE chief Juergen Grossmann

rival EnBW will also not from its transmission network separated. One plane of a voluntary separation, said a spokesman in Karlsruhe. other hand includes a sale of its transmission network is not enough. "We consider all options. There are also other possible ownership structures," said a spokesman.
Why E.on sold its network?


E.on apparently wants the dismantling by the EU Commission pre-empt. The top European authority had repeatedly warned that the major electricity companies away from their nets, so as finally to more competition. This pressure the group now.
The decision also has the advantage that E.on for his network is still a fairly good price to demand. If it would be forced to dismantle, the corporations could only their networks at yourself. A role may also have played that the power lines not as profitable as it used to. Meanwhile, they are under the control of the Federal Network Agency, which has repeatedly cut the network charges. addition, wires and poles often outdated. According to the Federal Network Agency investments are urgently needed. Before this task could E.on by a sales push.
Was there a deal with the EU Commission?


Yes, we can call it. Currently E.on against two antitrust proceedings of the EU Commission. The top European authority accuses the German group is an abuse of its market power. Total threaten E.on billion penalties. Now, the Group procedures by the sales network with them. After group claims there is already an agreement with Brussels. The EU Commission announced an agreement: If E.on his plans to implement the antitrust proceedings could be set.
Why the Chancellor feels betrayed?


Angela Merkel is in an embarrassing situation: For months, it operates in Brussels lobbying for the German electricity industry. Together with Economics Minister Michael Glos said it is in the interest of E.on and Co. always opposed a dismantling of the groups. That E.on now from the joint ausschert front, the government as treason happen.


According to a report by the Frankfurter Allgemeine Zeitung "was Merkel about the projects of E.on chief Wulf Bernotat" not happy ". According to today fell short of commenting on a government spokesman: Take note that the group "business reasons" this step was investigating. Germany had among the other EU countries, even allies found, a sale of the networks off. Instead, the federal government favored a so-called "third option". This provides for the organizational separation of electricity production and transport, but not the ownership unbundling. E.on-turn should make it difficult for the Germans, continue to argue as before - especially as the European economic ministers in Brussels today of all days together to discuss the issue.
core is E.on in his decision but free. The government spokesman clarified: "The question of ownership of the networks is a matter for the company."
How much is such a power grid worth?


billion euros at least, but possibly several billion. Is clear: The sale of E.on network could be one of the grßten transactions of the year in Germany. E.on has more than 10,000 kilometers high and high voltage cables. Only they should be sold. Regional and local lines of the Group reserves. but still the sale of power plants. It is also billions. A neuwertiges nuclear power plant will be good to one billion euros.
Who could E.on the lines?


It can only speculate. It is clear that interested parties bring a lot of money. In question is why the Russian energy group Gazprom, the multiple interest in the German market could recognize. However, the Russians, the German electricity network strictly regulated by, inter alia, the Federal Network Agency.
More likely is an entry of financial investors. They would bring enough money to much-needed investment in the outdated lines and poles to lift. In return, guarantees the operation of an electricity network secure long-term returns without high risk. E.on even stated that the buyer of the transmission networks could be an operator who is not in the field of electricity generation or electricity supply was active - which speaks for financial investors. In government circles says only that a German investor would prefer. The network should not be in foreign hands.
possible network operator is sometimes also referred to the state. This solution would have the advantage that the competition between electricity distributors of independently controlled. In addition would be an important pillar of the basic backup in the hands of society. the other hand, the state is not the best guarantee for an efficient and cost-effective network operations. In addition, the government could barely summon up the necessary billions to compensate for E.on.
What happens to the power plants?


E.on will not only separated from his network, but also by power plants. Overall, plants with a capacity of 4800 megawatts to be sold. This corresponds to the performance of five major Atommeilern. The power plants will be sold to competitors, said E.on.


critics such as Hesse Economics Minister Alois Rhiel (CDU) had always such a move. Through the new producers could compete much better than revived by a new network operator. Currently, the four major groups E.on, RWE, Vattenfall and EnBW than 80 percent of the total power plant capacity in Germany.
What does this mean for E.on strategy?


For E.on would be the separation from the network a strategic U-turn by 180 degrees. Without power lines would the company on the German electricity market at a mere producers and traders. The enormous market power that E.on repeatedly accused would be a good part broken. After the sale, the company also produce large amounts of cash available. This could be invested, probably abroad. This would E.on increasingly becoming an international group - which fits perfectly on the strategy.

How does the stock market?


Fairly left. On the morning quoted E.on shares slightly Plus, in the afternoon slightly negative. Spectacular Kursausschläge there was not. Apparently, investors are not selling much.
With


More News