E.ON would welcome foreigners in German grid
Germany's E.ON wants foreign companies to be able to join a mooted venture that groups all German power grids, the finance chief of Europe's largest utility was quoted as saying.
The most important thing was to ensure better links among regional power markets because that would provide the greatest leverage for cross-border competition.
“It would be conceivable that a network operator active in both the Netherlands and Germany, for instance, has more incentive to work on connections between the countries than a purely domestic operator,” he said.
The paper said this suggested E.ON could sell its power network, which it said analysts valued at around €1.8 billion ($2.80 billion), to Dutch network operator TenneT.
RWE, the German utility that runs the country's long-distance power grid, might join such a German power grid venture, its finance chief told Reuters this week.
European utilities are under pressure from governments, the European Union and regulators to open markets and networks, which often are local monopolies, to get more companies to compete for customers and rein in soaring energy prices.
E.ON was the first utility to break ranks with peers and to agree to divest its long-distance, high-voltage power grid in a surprise move in February. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.