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Eon boss: Revamping deal with RWE will boost Germany's energy sector

By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Essen (dpa) - German energy giants Eon and RWE see their plans to reorganize business operations as a way to strengthen Germany as an energy location, the companies‘ chief executives said on Tuesday at a joint press conference.

Eon chairman Johannes Teyssen and RWE chief Rolf Martin Schmitz met the press to discuss the plans revealed at the weekend and on Monday for Eon to ultimately take over a large stake in utility company RWE‘s subsidiary Innogy in exchange for a range of assets from Eon‘s renewable energy business.

"We are convinced that, in the interest of all customers and in the interest of a more secure and sustained supply, the German and European energy transition can be more successfully achieved with this new arrangement than under the current organization," Teyssen said in Essen.

Under their future arrangement, the two largest German utility companies no longer aim to compete against each other. Eon will no longer produce electricity and instead concentrate on operating energy networks and selling electricity to end-users.

Meanwhile RWE, which until now has solely operated conventional power plants, is to take over completely the field of renewable energy. This move would require breaking up RWE‘s network business and green energy subsidiary Innogy.

Teyssen said that companies that aimed to compete worldwide needed "a clearly larger and more international positioning than previously." The Eon-RWE deal would achieve this, he said.


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(18.03.2018 02:47)

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