Electricity sales

Electricity sales mirror reduction in power plant use


In the first nine months of 2009, we supplied 207.4 billion kWh of electricity to outside customers, a decrease of 12 % year on year. This drop is largely allocable to RWE Supply & Trading and is primarily due to the fact that trading of externally sourced electricity is not recognised in the sales volume. Excluding the trading activities, electricity sales improved marginally, despite the negative cyclical influence. One reason was that RWE Energy won new customers in the distributor segment.

External electricity sales volume
January – September

RWE
Power

 

RWE Supply & Trading

 

RWE
Energy

 

RWE npower

 

RWE Group1

Billion kWh

2009

2008

 

2009

20082

 

2009

20082

 

2009

2008

 

2009

2008

1

Including electricity sales generated by Amprion (formerly “RWE Transportnetz Strom”) and RWE Innogy.

2

Figures partially adjusted; see commentary Notes on reporting.

Private and commercial customers

0.2

0.2

 

 

25.5

26.2

 

14.6

15.6

 

40.6

42.2

Industrial and corporate customers

 

23.4

23.8

 

27.8

28.5

 

22.0

22.8

 

73.2

75.6

Distributors

9.8

10.1

 

 

34.9

29.3

 

 

69.2

65.3

Electricity trading

 

24.4

52.7

 

 

 

24.4

52.7

Total

10.0

10.3

 

47.8

76.5

 

88.2

84.0

 

36.6

38.4

 

207.4

235.8

RWE Power posted 10.0 billion kWh in external sales (first three quarters of 2008: 10.3 billion kWh). This is much less than the amount of electricity the division produced. We typically sell our German generation within the Group. It is then sold on the wholesale market by RWE Supply & Trading or to end customers and distributors by RWE Energy. Conversely, electricity produced outside Germany is marketed by RWE Power itself, including generation by our Hungarian subsidiary Mátra. External sales also include the production by our German Gundremmingen and Emsland nuclear power stations which is allocable to the minority shareholder in these plants.

Electricity sales by RWE Supply & Trading decreased by 38 % to 47.8 billion kWh. This is largely because the company sourced the electricity it sold on the wholesale market to a far lesser extent from in-house generation, increasing its purchases from third parties at lower cost. As mentioned earlier, electricity trading of purchases from third parties is not recognised in external sales. The supply business with major industrial and corporate customers, formerly conducted by RWE Key Account, experienced a decline in demand caused by the economic crisis. The fact that we generally conclude take-or-pay contracts with our customers in this business had a stabilising effect.

RWE Energy’s electricity sales rose by 5 % to 88.2 billion kWh. In the distributor segment, we won new customers and expanded volumes with existing customers. The economys negative influence on electricity consumption had a counteracting effect, especially with regard to our industrial and corporate customers. Small commercial enterprises were also affected. As of September 30, 2009, RWE Energy supplied electricity to 10.2 million private and commercial customers. Of these, 7.0 million were in Germany, 2.2 million in Hungary and 0.9 million in Poland. These figures exclusively refer to our fully consolidated companies. Our customer base in Germany increased by 58,000 during the first nine months. Our discount company eprimo had signed up 600,000 electricity customers as of September 30. By the end of 2008, this figure was 422,000. Our “ProKlima” tariff, which guarantees German households a fixed price over three years, was very popular. It allows our customers to plan reliably, while remaining flexible given their annual termination right. Another feature of “ProKlima” is that all the electricity sold through it is generated nearly CO2-free in hydroelectric and nuclear power plants. By the end of 2008, 130,000 customers had already opted for this product. Another 270,000 were added in the first nine months of 2009. In April, eprimo also started offering new customers a product with a price guarantee. We already had 138,000 contracts for this product by the end of September.

RWE npower’s electricity sales declined by 5 % to 36.6 billion kWh. The weak economy led to receding sales volumes primarily in the industrial and corporate customer segment as well as to more cost-aware energy consumption by households. Furthermore, RWE npower suffered marginal customer losses. As of September 30, 2009, the company was supplying electricity to 4.2 million homes and small commercial enterprises, 16,000 fewer than at the end of 2008. We currently have a 15 % share of the UK residential market.