Consolidated Financial Statements of the Stadtwerke Leipzig Group ...

2.5.1 Trading
Most of the segment’s external turnover of
€2,742 million in the 2009 financial year (2008:
€2,888 million) came from the business units
Wholesale Energy Trading and Energy Marketing.
Wholesale Energy Trading: In 2009, turnover
in Wholesale Trading totalled €2,041 million
(2008: €2,193 million) in electricity trading and
€131 million (2008: €152 million) in gas trading.
The gradual expansion of business continued
in line with our growth strategy, leading in
2009 to an increase in sales of 1,620 GWh in the
electricity field and 1,083 GWh in the gas field.
By contrast, turnover fell by €152 million in the
electricity field and €21 million in the gas field as
a result of the sharp fall in prices.
The higher sales were caused by increases in
physical trading volume and market liquidity.
The turnover also contains income from the
nationwide marketing of structured supply contracts
and services to distributors and industrial
customers. In addition to our own customer
portfolio, we also serve and deliver to electricity
and gas customers nationwide in cooperation
with partners.
By expanding distribution and trading activities
and extending the company’s range of standardised
and structured products, the Wholesale
business unit is taking advantage of existing
profit opportunities. Competitive advantages
result in particular from our position as one of
the leading traders in the municipal sector and
as a distribution-oriented portfolio manager
for small- to medium-sized distributors, major
public clients and industrial customers.
The electricity needed for wholesale and retail
trading was purchased on the wholesale market
during the financial year. The contractual relations
with VNG on the supply of gas, and the
district heating supply contract with Vattenfall
Europe Generation AG & Co. KG, Berlin (Vattenfall),
were continued. Increasing amounts were
purchased on the wholesale market to supply
customers with gas. The energy supply contract
with EuKG on the procurement of electricity and
district heating from the gas and steam turbine
plant also remained unchanged as in previous
years. Wholesale trading secured the supply of
fuel (wood and oil) to the Generation business
unit by concluding both framework and individual
contracts with different suppliers.
Energy Marketing: Stadtwerke Leipzig GmbH’s
sales revenues in the Energy Marketing business
unit totalled €485 million in 2009 (2008:
€453 mil lion). Retail electricity trading business
was the main source of turnover in this business
unit with a share of 55% or €266 million
(2008: €252 million). The increase in turnover
was essentially price-induced, caused by higher
procurement and network costs.
The electricity market for private and commercial
customers became increasingly dynamic in
the 2009 financial year. A large number of new
providers, volatile energy prices and a higher
profile of the subject in public discussion led to a
growing awareness among the customers. Incentives
offered by competitors, such as bonus payments,
influenced customer decisions. In 2009,
necessary adjustments of prices to cost developments
could only be enforced after a time delay.
Measures aimed at adjusting to the changed
market conditions concentrated on further
expanding the new, regionalised distribution
structures in nationwide sales, developing a new
product concept with prices for medium-sized
business customers adjusted to their individual
consumption, and optimising procurement.
22 | Annual Financial Statements of Stadtwerke Leipzig GmbH