Volume risks and opportunities relate to the turnover of the MVV Energie Group’s products and to the procurement of input materials. A major share of these risks and opportunities is attributable to weather conditions during the winter months. Relatively high temperatures in the winter months lead to lower volumes of district heating and gas being sold, a factor which could impact negatively on the company’s earnings position. Correspondingly, very cold winters harbour potential opportunities for the MVV Energie Group. The business activities of the MVV Energie Group are only partly dependent on developments in the overall economy, but were nevertheless affected in the year under report by lower electricity, heating and gas sales to individual industrial and business customers on account of the recession. Not only that, sales volumes may also fluctuate due to defective quality, substitution, customer dependency or new competitors in the liberalised market. Furthermore, procurement also involves risks in the form of any deficiency in the quality or quantity of raw materials and supplies, supply bottlenecks and dependence on suppliers for specific products and utilities.

We rely on our energy trading activities in particular to reduce volume risks and exploit opportunities and we are also designing new competitive products.