Essen, 13 November 2006This pressinformation is more than two years old

German Federal Network Agency reduces the network costs applied for by envia NETZ by 12 percent

Reduction in network usage charges to be considered in electricity price calculation

envia Verteilnetz GmbH (envia NETZ), Halle, the network operator of envia Mitteldeutsche Energie AG (enviaM), Chemnitz, has been informed about the decision of the Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway (BNetzA), Bonn, on network usage charges. The regulatory authority reduced the network costs applied for by envia NETZ by 12 %. This corresponds to a decline in sales revenue from network usage charges in the high tens of millions of euros. The approved network usage charges which are based on reduced network costs will be effective from 1 October 2006 to 31 December 2007.

The reductions by the Federal Network Agency mainly relate to imputed costs, return on capital employed, expenditure on network reconstruction and development as a result of the continuously rising volume of electricity from renewable energies fed into the network as well as the cost of electricity procurement to compensate for grid losses.

"This decision on network system charges represents a considerable interference with our network business", says Prof. Karl-Heinz Klawunn, Chief Executive Officer of enviaM.
enviaM intends to take account of the reduced network usage charges when calculating its electricity prices. Network usage charges account for about one third of the electricity prices for households and small businesses. Other electricity price components include the cost of generation and distribution as well as public fees, taxes and levies.


Background

enviaM is the leading regional energy service provider in the new federal states. The company supplies around 1.6 million customers with electricity, gas, heat, water and energy-related services in Brandenburg, Saxony, Saxony-Anhalt and Thuringia. 53 % of the value added and 80 % of the purchasing and investment volume remain within eastern Germany. Almost 50 % of electricity requirements are met by indigenous lignite.

envia Verteilnetz GmbH (envia NETZ), Halle, is a wholly-owned subsidiary of envia Mitteldeutsche Energie AG (enviaM). envia NETZ is the network operator of the enviaM group and is responsible for the planning, operation and marketing of the electricity network.

The electricity network of enviaM has a total length of 76,310 km. The high-voltage network is 6,006 km, the medium-voltage network 24,594 km and the low-voltage network 45,710 km long. The network covers the federal states of Brandenburg, Saxony, Saxony-Anhalt and Thuringia.


Additional information as Download:
IR Release: German Federal Network Agency reduces the network costs applied for by envia NETZ by 12 percent


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: This pressinformation is more than two years old