Essen, 01 October 2003This pressinformation is more than two years old

RWE Implements New Group Structure

  • Regional sales structure strongly focused on customer needs
  • Integrated sales of electricity, gas and water from a single source
  • Enhanced efficiency through pooled fuel source production and power generation
  • Companies presented worldwide under the uniform RWE umbrella brand
  • Lean Group Center focuses on Group management tasks

The RWE Group as of today is working within the new Group structure. “Our structure puts the customer at center stage. We are establishing the basis for the best possible service, reliability and efficiency. This will enable us to secure organic growth and decisive competitive edge,” said RWE CEO Harry Roels.

The new RWE Energy, headquartered in Dortmund, is pooling its integrated electricity, gas and water sales in 12 regions throughout Germany and Continental Europe. RWE AG and RWE En-ergy together will closely manage operations at RWE Gas, ensuring that the “One face to the customer” business model is strategically implemented and resolutely developed on both the national and international levels.

Based on electricity sales RWE Energy ranks No. 2 in Germany and No. 3 in Europe. Customers will receive direct local service in their respective regions. This will allow each local unit to meet customer demands optimally. The regional companies will assume full responsibility for the opera-tions in their regions.

RWE is transferring its call, billing and grid activities into the regions and placing them under legally independent companies. As a result, the Group will increase cost transparency and allow its regional business activities to be compared directly with those of their competitors. Furthermore, giv-ing the companies legal autonomy puts RWE in a position to cooperate on a local basis even more closely with municipal utilities, which constitute a major customer group. RWE is providing its regional partners with access to its structures, which will immediately afford them the opportunity to integrate their call, billing and grid operations into the companies. In that way they will obtain key cost and efficiency advantages over the competition in collaboration with RWE.

By giving its distribution grid companies legal autonomy, RWE already fulfills the conditions to be in compliance with EU unbundling regulations. Beginning in 2007, corporate law dictates that distribution grids must be separated from the rest of a vertically integrated company’s fields of activity. By establishing independent companies for its electricity and gas transmission grids, RWE has complied in advance with EU requirements stipulating that transmission and long-distance grids be managed separately from other operating activities from the middle of 2004 onwards.

RWE Power, headquartered in Essen and Cologne, oversees exploration and production of fuel sources as well as electricity generation in both Germany and Continental Europe. RWE Power is Germany’s largest power producer and has a very well balanced energy mix, ranging from lignite and hard coal to nuclear, natural gas and renewables. Integrating power generation and fuel source production will enable RWE to tap further efficiency advantages and optimize generation costs.

RWE companies are presented under the unified RWE umbrella brand, both in Germany and abroad. While RWE Energy and RWE Power are active in Germany and Continental Europe, RWE Innogy heads up the Group’s UK energy business. RWE Trading acts as the interface to the energy wholesale market, doubling as a hub for Group-wide commodities. RWE Thames Water de-velops and controls the Group’s worldwide water business. RWE Umwelt oversees waste management operations, while RWE Systems shoulders responsibility for Group-wide services in its role as internal service provider.

Operating as a lean Group Center, RWE AG focuses on Group steering functions and the duties it has as owner. The Group Center will support the Executive Board of RWE AG in overseeing the

companies, providing expert assistance in determining strategies, planning operations, controlling, and selecting and promoting executives throughout the Group. The Group Center has the authority to establish guidelines in all fields of expertise that are binding upon the companies.


Please contact our Investor Relations Team with any questions that you may have:

RWE Aktiengesellschaft
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45141 Essen
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: This pressinformation is more than two years old