We’re active along the entire value chain in power and gas, with operations upstream (power generation and natural gas production), midstream (energy imports and wholesale), and downstream (end-customer supply). Upstream we have one of Europe’s largest electric generation portfolios and a significant position in gas production. Midstream we’re Europe’s biggest natural gas importer and one of its largest energy traders. Downstream we meet the energy needs of more than 30 million customers. The commodity business in power and gas is largely deregulated in the European Union.

We’re also active in the regulated energy network business. We operate transmission and distribution systems in Germany and distribution systems in about a dozen other European countries.

This position offers us a number of competitive advantages:

• The convergence of power and gas upstream (the increase in gas-fired generating capacity) and downstream (the popularity of dual-fuel products) provides us with synergy and growth potential
• The expansion of the European Union and the integration of regional markets offer additional growth potential and, increasingly, opportunities to optimize our risk position and asset portfolio
• Managing a broad range of assets in different energy markets—even in noncontiguous markets—enables us to create more value by sharing expertise and best practices across our organization.

We’re convinced that being active along the entire value chain is the long-term winning business model for energy utilities. It gives us a superb position to meet the new challenges of Europe’s changing energy marketplace.