External gas sales amounted to 327.8 billion kWh. This was slightly less than in 2007. We recorded competition-induced customer losses in Germany and the UK–our core markets–especially in the low-margin key account business. However, we benefited from higher demand for gas from households for heating purposes due to the cooler weather.

RWE Dea delivered 20.2 billion kWh of gas to external customers–3 % more than a year earlier. Including internal sales, gas sales rose by 4 % to 33.0 billion kWh. This is due to the company’s increased production, especially in Germany.

Gas sales by RWE Energy amounted to 242.1 billion kWh, 6 % lower than in 2007, despite the generally cooler weather. We felt the consequences of increasingly fierce competition in the German gas market. Some of the industrial and corporate customers and power utilities we served switched suppliers or started diversifying their gas procurement. The number of households and small commercial operations we serve only declined slightly. But customers are making more thrifty use of energy. The weather-induced rise in demand had a counteracting effect. Another reason for the decline in gas sales recorded for the division was that we started stating RWE Transgas’ midstream activities under RWE Supply & Trading in 2008. They were previously assigned to the RWE Energy Division.

By the end of 2008, RWE Energy’s fully consolidated companies were supplying gas to 3.6 million customers. Our gas customer base in Germany totalled one million. The number of private customers we serve there declined marginally. We intend to hold our own against the mounting competitive pressure by marketing innovative products. Since September 1, 2008, we have been giving households and small commercial enterprises in Germany the option to purchase gas at a fixed price for a period of three years, similar to our offering in the electricity business. By the end of December, we had already won 130,000 customers for this product. The situation outside Germany was essentially unchanged: RWE Energy supplies 2.3 million customers with gas in the Czech Republic and nearly 0.3 million in the Netherlands.

RWE npower grew its gas deliveries by 3 % to 57.5 billion kWh, despite marginal customer losses. This gain exclusively stems from business with households and small commercial enterprises and is largely due to the increased demand for gas for heating purposes. At the end of 2008, RWE npower provided gas to 2.6 million customers in this segment–roughly 61,000 fewer than at the close of 2007. This is due to fierce competition. We still have a 12 % share of the UK household customer market. The number of customers to whom we deliver both electricity and gas was 2.2 million.