With global energy demand showing no signs of slackening, energy prices are likely to continue to rise. Improving the energy efficiency of our customers’ households and businesses is an important way to help lessen the upward pressure on prices. We view energy advice as an important part of our business strategy. Every kilowatt-hour that’s not consumed improves security of supply and protects the earth’s climate. On top of that it saves our consumers money and contributes to customer satisfaction.

Our energy supply companies offer their customers a wide variety of energy-saving information and advice e.g. in brochures, on CDs, on DVDs, online, at our customer centers and at special events. Our online offerings include energy usage calculators and other interactive tools. Going forward, smart electricity meters will play an increasingly important role in our energy-saving strategy.

 

The advice we provide has been effective. Since 1997, E.ON Nordic’s business customers in Sweden have used the company’s energy-consulting services to reduce their annual electricity consumption by an average of 120 gigawatt-hours, which prevents nearly 100,000 metric tons of carbon dioxide from entering the atmosphere. In 2007, E.ON UK invested over EUR70 million in energy-saving measures for customers, resulting in lifetime CO₂ savings of four metric tons of CO₂, or a customer saving of over EUR217 million based on current energy prices.

In Sweden, E.ON Nordic rolled out an interactive web-based tool called "Klimatskolan" ("Climate School") in 2007. The tool, which offers consumers specific examples of how they can reduce their carbon footprint, was part of an integrated media campaign that included radio and TV ads. Over a five-week period, about 230 users visited the Climate School portal on a daily basis. We intend to launch similar initiatives at some of our other market units in 2008.

 

E.ON U.S. also has innovative energy-saving programs. In a program called Demand Conservation, customers receive a device installed in the central air conditioning unit in their home or business. The device briefly shuts down some units during periods of peak electricity demand in the summer. Some electric water heaters also qualify for the program, which gives customers a credit on their energy bill for each unit installed on their premises. Nearly 100,000 devices are already in service, resulting in savings of about 100 megawatt-hours.

 

In September 2007, E.ON Ceská Republika began a communications campaign to launch E.ON EnergiePlus+, a program to encourage its customers to use energy more efficiently. More than 1,000 energy-efficient home appliances have been installed under the program. E.ON Ceská Republika pays rebates of up to 28 percent on qualifying appliances.

In the fall of 2007, E.ON Ruhrgas launched an advice and promotion initiative for Germany’s natural gas heating market. The centerpiece of the initiative is a program which began in April 2008, aimed at promoting high-efficiency gas and solar heating systems. In addition, E.ON Ruhrgas will work with partners in the appliance industry in offering customers financial support in the change to climate-friendly heating technologies. The initiative also includes advanced training for heating technicians on the subject. We expect the replacement program to prevent the emission of about 400,000 metric tons of carbon dioxide, which is roughly equal to the heating-related emissions of a city with 100,000 inhabitants.

In most European countries, smart electricity meters are set to play a key role in improving energy efficiency. That’s why we are supporting the large-scale rollout of smart metering. This technology makes it possible to remotely monitor consumption data in real time, enabling customers to better manage their electricity usage. Studies have shown that the mere presence of a smart meter in a home leads to a 4-percent reduction in electricity consumption. As part of the E.ON@future initiative, we have a groupwide smart-metering task force studying the applications of this technology. The objective is to develop a smart-metering standard for the entire E.ON Group.