E.ON takes over Innogy from RWE - Consequences for the energy market consumers
The deal was virtually made over night. This morning two of the four major electric utilities companies active on the German market, RWE and E.ON, revealed that RWE’s subsidiary Innogy, responsible for the production of sustainable electricity, had been divided. It now belongs partially to both of them.
According to statements of Prof. Andreas Löschel in an interview with the German radio station Deutschlandfunk, this seems to be part of a continuous process on the German energy market, where companies seem to gain more efficiency by concentrating on a certain part of the value chain. RWE will therefore only be responsible for the production of electricity from renewable and fossil resources, while E.ON focuses on the distribution. However, as state authorities closely supervise the electrical grid, Löschel does not expect significant changes in the electricity price. The entire interview can be found on the homepage of the Chair of Microeconomics with a Focus on Energy and Resource Economics of the WWU Münster.
