E.ON launched new procurement and marketing unit for power and gas
E.ON has established its own procurement and marketing function for the German, British and Swedish markets as of July 1, 2017. The so-called Market Operations teams in these countries will focus on transactions on wholesale energy markets and the grid operators’ balancing markets. They will be primarily tasked with purchasing power and gas for customers and marketing the production from renewable sources for the E.ON companies. E.ON’s former energy trading business and related market access was transferred to the now independent affiliate Uniper, which had been spun off in September 2016.
In each country E.ON has set up a team of about 20 experts, which will conclude deals for power, natural gas as well as green certificates directly on the markets. This is mainly done for durations of three years in advance up to individual hours for intraday purchases/sales. All activities are clearly focused on hedging E.ON´s price and volume risks instead of proprietary trading.
“Also, we will concentrate more on the marketing and optimization of flexibilities created by the growing integration of our customers’ decentral generation and storage capacities,” says Sven Otten, Senior Vice President Energy Management of E.ON SE in Essen. “In this way we provide the commercial interface into the commodity and network services markets, while at the same time supporting our growing customer solutions business,” he adds.
As of now, E.ON is doing business again on the key energy wholesale markets in Germany, the UK and Sweden. This includes bilateral deals with other energy companies as well as transactions on energy exchanges such as EPEX Spot, PEGAS, ICE, Nord Pool and Nasdaq Nordic.
E.ON already entered the Hungarian and Czech markets on October 1, 2016 and January 1, 2017, respectively. In Italy the market entry is planned for January 1, 2018. The company did not disclose any information on power and gas volumes.
This press release may contain forward-looking statements based on current assumptions and forecasts made by E.ON Group Management and other information currently available to E.ON. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. E.ON SE does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.