Grid sale
November 10, 2009
The sale of 10,700 kilometers (6,700 miles) of power lines will take effect on January 1, 2010, a statement from E.ON said. The transaction is still subject to approval by anti-trust authorities.
"The German regional distribution grids, which form by far the largest part of E.ON's network business, are not affected by this sale and will remain an essential part of the infrastructure business managed by E.ON Energie in Munich," E.ON said in a statement.
E.ON's CEO Wulf Bernotat said the deal was an important step towards the integration of Europe's electricity market.
The deal will also help the company resolve a European Union investigation into whether E.ON had thwarted competition. The EU has been putting pressure on energy companies to separate production from generation in a bid to increase competition.
Bernotat said that E.ON has "almost completely fulfilled" its commitment to the European Commission after selling its transmission network as well as 4,800 megawatts of power generation capacity.
Dutch minister: "Assuring security of supply"
“This takeover will help to create a north-west European electricity market in which the Netherlands plays a leading role,” Maria van der Hoeven, the Dutch minister of economic affairs, said in a statement. “The integration is essential to assuring the security of supply.”
Tennet has spent a total of 776 million euros this year on buying the power networks of three Dutch utilities.
The sale could complicate plans by the German government for the eventual creation of national network company, Netz AG, which would bring all four of Germany's high-voltage grids together under one roof.
Last week, the German subsidiary of Swedish power group Vattenfall, Vattenfall Europe, said it would also sell its electric network, but didn't provide details.
According to press reports, Vattenfall is planning to sell its grid to a consortium that includes Goldman Sachs, Deutsche Bank and insurance group Allianz for around 500 million euros.
dc/afp/Reuters
Editor: Susan Houlton