The Energy Regulation and Markets Review - Stikeman Elliott

Germany
Also in consideration of the statutory and regulatory measures, the structure of
both the gas and electricity markets with respect to the transmission of energy has changed
significantly during the past few years. Most importantly, within the past two years, three
of the four major incumbent vertically integrated energy suppliers in Germany have sold
or are in the process of selling (the majority stake of) their respective gas or electricity
TSO to third parties. This relates, in particular, to the following transactions:
a E.ON sold its entire electricity transmission network to TenneT, the Dutch
national electricity TSO, for an estimated €1.1 billion in 2010.
b Vattenfall sold its entire electricity transmission network to Elia, the Belgian
electricity TSO, and the Australian fund IFM for an estimated €810 million in
2010.
c RWE sold 75 per cent of the shares of its electricity transmission network operated
by Amprion to a consortium of buyers for an estimated €700 million in 2011.
d RWE sold its entire gas transmission network operated by Thyssengas to the
Macquarie infrastructure funds in 2011.
e E.ON is currently in the process of selling (part of) its gas transmission network
operator Open Grid Europe.
With the notable exception of EnBW, all of the four major incumbents have drastically
changed their business models. These companies now rather focus on the generation and
energy trading activities, and supply of energy, as these markets are not subject to the
strict regulatory regime of the EnWG.
ii Transmission/transportation and distribution access
Under the EnWG, operators of energy supply networks at all levels (transmission and
distribution) have to provide access to third parties. The conditions for such third-party
access to the electricity and gas supply networks are provided for in more detail in the
EnWG and particularly in the applicable ordinances governing the access to energy
supply networks (StromNZV and GasNZV). As a matter of principle, access must
be granted in a non-discriminatory, transparent and economically reasonable manner.
Furthermore, the law specifies the terms and conditions of network access agreements.
Regarding the electricity sector, network access is granted by allowing network
users (i.e., downstream or upstream network operators, energy suppliers and traders,
and supply customers) the transport of electricity on a contractual basis, normally either
all-inclusive contracts that cover both the network usage and the electricity supply or,
alternatively, on the basis of a separate network access agreement.
Gas network operators are required to offer entry and exit capacities in accordance
with the compulsory ‘two-contract model’ implemented in 2006 and applied on the
basis of a comprehensive cooperation agreement concluded by all gas network operators.
Accordingly, for the transportation of gas only two separate, tradeable contracts with
the respective entry and exit network operators for the feed-in (entry contract) and the
offtake (exit contract) of the gas are necessary. Thus, the transport customer does not
need to establish a transaction-dependent transport path based on the relevant network
connection points of interconnected networks.
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