11.3 per cent of network costs not accepted
The Federal Network Agency approved the electricity network charges of the distribution system operator RWE Rhein-Ruhr Verteilnetz GmbH today. In its decision, 11.3 % of the network costs that were applied for were not accepted. This results in a decline in turnover for the network usage charges of around 150 million Euros. Until now, the turnover from network usage charges for electricity was just under 1.3 billion Euros.
The new network usage charges apply for all energy suppliers in the network area of RWE Rhein-Ruhr Verteilnetz GmbH from 01.10.2006 to 31.12.2007.
The reductions by the Federal Network Agency mainly relate to imputed costs such as depreciations and return on capital employed. “The decision constitutes a significant infringement of our network business and signifies a severe diminution of our tangible fixed assets”, said Hans-Dieter Erfkemper, CEO of RWE Rhein-Ruhr.
The decision by the Federal Network Agency is not expected to result in a reduction of the tariff rates of RWE Rhein-Ruhr in the current year. In last year’s tariff rate application, lower network usage charges were already applied in coordination with the licensing authority. Customers have already been profiting from this since the start of January 2006.
RWE Rhein-Ruhr is holding discussions with the North Rhine Westphalian Ministry of Economics about the practical effects of the reductions on the network usage charges. However, based on current knowledge, the cost increases on the procurement side will overcompensate the reduction effects in the network charges.
RWE Rhein-Ruhr AG, which has its headquarters in Essen, is the largest regional energy supplier and one of the biggest distribution system operators in Germany. It provides some 2.5 million customers with electricity, gas, water and associated services from a single source – from Wesel to Bad Kreuznach, from Düren to Siegen. With its independent companies for the distribution system operator, the network services and customer service, the structure of the company already fulfils the EU's unbundling requirements. RWE Rhein-Ruhr employs around 6,000 staff. Its parent company is RWE Energy AG.