Essen, 27 September 2007This pressinformation is more than two years old

RWE reaches agreement with German Federal Cartel Office over CO2 proceedings

  • Official investigation of unlawful action dropped
  • RWE auctions electricity to industrial customers

The German Federal Cartel Office has dropped its case against RWE for alleged unlawful inclusion of CO2 costs in its industrial power pricing. The basis of the agreement is a commitment by RWE to auction off power products from depreciated hard coal and lignite power plants. The form of auction is geared to industrial customers and key accounts (measured on a load factor basis) in Europe and is tailor-made to their needs.

The German Federal Cartel Office has dropped its case against RWE for alleged unlawful inclusion of CO2 costs in its industrial power pricing. The basis of the agreement is a commitment by RWE to auction off power products from depreciated hard coal and lignite power plants. The form of auction is geared to industrial customers and key accounts (measured on a load factor basis) in Europe and is tailor-made to their needs.

RWE remains convinced that the inclusion of CO2 costs in its power pricing is beyond reproach. Comparable pricing mechanisms in other European electricity markets and countless opinions from independent experts support this stance. However, the newfound understanding is preferable to protracted legal battles through several courts. In making this commitment to the market, RWE has reached an agreement with the German Federal Cartel Office that will start to have a positive effect on customers by as early as next year.

For the supply period 2009 to 2012, RWE will offer European industrial companies around 1,600 megawatts annually, at auctions held on a quarterly basis. This equates to a total volume of 6,300 megawatts or 46,000 GWh and approximates the annual sales volume of RWE to its industrial customers in Germany.

The programme covers almost the entire period of the second National Allocation Plan for CO2 allowances (NAP II). The first auction will take place in the opening quarter of 2008. Electricity products will be auctioned in steps of one megawatt at a time. This means that even smaller customers, who will be able to pool their demand within purchasing collectives, will have the opportunity to take part in the auctions. The starting price for the auction will be the full cost of one depreciated hard coal or lignite power plant. Customers will have the CO2 allowances RWE receives for the auctioned product credited to them free of charge.

With this auction process, RWE is giving its key accounts an additional form of power procurement, which will further intensify competition on the European electricity markets.


Additional information as Download:
IR Release: RWE reaches agreement with German Federal Cartel Office over CO2 proceedings (PDF; 27 KB)



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: This pressinformation is more than two years old