In the electricity market, the MVV Energie Group has called for greater efficiency based on a market design driven by competitive considerations. One focus here involves the reform of the settlement mechanism governed by the German Renewable Energies Act (EEG) , which was adopted by the Federal Parliament on 3 July 2009. Starting in 2010, this will considerably reduce risks in the sale of electricity, as the electricity generated at EEG plants will no longer have to be physically collected by suppliers. Moreover, there will be greater transparency concerning the settlement of the actual costs of EEG promotion in future.

MVV Energie has already long campaigned for the enhancement of German electricity transmission grids. One key demand involves the abolition of conflicting regulations in the various control areas.

We therefore welcome the proposal made by the Federal Networks Agency to net requirements and only to procure the net balance. The increasing cooperation currently seen between transmission grid operators in the procurement of balancing energy represents another step in the right direction. We hope to see a further substantial improvement in competitive conditions as a result of increased coordination and cooperation between transmission grid operators. This should result in the pooling of control areas and joint operations management for all German transmission grids. We expect this step to lead to a significant improvement in market transparency, closer cooperation and a standardisation of capacity auctions, processes and grid expansion planning. Furthermore, this would accelerate the change in grid operators’ perception of their role towards that of “market facilitators” , i.e. as operators and promoters of a marketplace on which intense competition is lived. All in all, the factors outlined above should improve market efficiency and thus assist the sales and trading businesses of the MVV Energie Group.