Berlin's electricity grid : decision on the award of concession

It was a conversation in a friendly atmosphere on the last Tuesday in the Red town hall. From Stockholm, the Vattenfall CEO Magnus Hall traveled, accompanied by Tuomo Hatakka, the Germany-in-chief of the Swedish state group. In addition to host Michael Müller had gathered from the government's Finance Senator Matthias Kollatz (SPD). The men talked about the climate goals of the Senate and the withdrawal of Vattenfall's coal, as well as the energy transition at all.

The issue that has been worrying the Vattenfall-men really could not come for procedural reasons: the award of the concession for the operation of the Berlin electricity network. However, so is listening to, would have signaled to the politicians, the managers, the concession will go to the state-owned Berlin energy. That would be extremely bitter for the group, to which the system belongs since the privatisation of Bewag, and the has seen since the beginning of the concession procedure as a favorite – because it is also basically difficult to leave the tried-and-tested Old-concessionaire of a Newcomer out. The court, as the case of the Gasag shows.

The Gas process is messed up

The competent authority in the financial Senator had 2014 the concession for the operation of the network, surprisingly, not the Old concessionaire Gasag, but the first, founded in 2012, the state of Berlin operating energy. The Gasag complains, the legal battle drags on over years, the beginning of April, the next date is in front of the Berlin chamber court. Up to a final decision, the Gasag operates the gas network.

The Berlin energy has applied in the meantime, the concession of the electricity network and thus follows the order of the policy, the wish for a nationalization of the energy infrastructure in the state of Berlin. "The coalition is aiming for a 100% re-municipalisation of the electricity network", so it is in the government contract of the SPD, Left and Greens. Financial Senator Kollatz to comply with this requirement now, apparently. For the session of the Senate on 5. In March he wants to submit the appropriate template. Vattenfall does not come, will take the group all the way to court. And up to the decision sometime in the next decade, the network will operate – and -own.

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Vattenfall offers cooperation

Vattenfall's Manager know, of course, the coalition agreement and are contrary to the country with her offer, which was delivered in August 2016, The group offers in the framework of a so-called model of Cooperation to the Senate a participation in the network society. After five years of living in Berlin could apply to even the majority. Supposedly both Kollatz, as well as Michael Müller sympathy for this proposal had at the time. But the pressure of the coalition groups is too large, especially since the issue of nationalisation is celebrating currently cheerful underway. The re-concession for Vattenfall would strain the coalition.

A total solution for the Berlin-based networks – in addition to Gas and electricity, the district heating network, also in the hands of Vattenfall, however, remains a dream of a red-red-green coalition politicians. Kollatz had worked years ago, and the Gasag-co-owner of Eon as industrial Partner of the country. The recipients of the maneuver, Vattenfall and the French Engie, which should be moved to the sale of your Gasag shares. If that would have worked, would be passed over the Gasag in the possession of the land and of Eon; the dispute would have been terminated, the concession for the gas network would get the now (at least partly) rekommunali focused Gasag.

withdrawal from the coal and from Hamburg,

This calculus is not risen, and the Eon is now at full capacity with the Acquisition of Innogy. This Deal, in turn, could have an impact on the shareholder structure of Gasag, because of the Eon/Innogy competitors Mainova in Frankfurt (Main) complains against Eon/Innogy, which could lead to the Eon of his Gasag shares would have to disconnect and Kollatz the industrial Partner would lose. It's all so complicated and convoluted on the nuclear - and coal exits and the re-municipalisation-dominated energy market. What is the role of Vattenfall plays here in the future, is open.

At the peak of the privatisation and deregulation wave of the Swedish state group had bought between 1999 and 2003, the Hamburg electricity utility HEW, Bewag in Berlin and the Eastern German brown coal business (Veag and Laubag). From Hamburg, Vattenfall has drawn, in the meantime, as well as from the brown coal. And in Berlin, the group is at odds for years with the policy.

Tuomo Hattaka will be back soon

"Berlin is and remains the most important site of Vattenfall in Germany," said Hatakka, in a Letter to the house of representatives in the summer of 2016. By 2020, we will invest two billion euros, including in the "state of the art ,energy transformation-power plants' for the future heat and power supply of the city". Since 2008, Hatakka sits in the Berlin Vattenfall Headquarters in chausseestrasse . The 63-year-old Finn is said to have Fatigue, and a successor would be ready also In January, Tanja came Wielgoß as the person Responsible for the district heating business, Vattenfall. Wielgoß has experience with the political braid in Berlin: it was four years Chairman of the Board of the BSR.

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Berlin-based energy policy move against Vattenfall

Alfons Frese

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