Consolidated Financial Statements of the Stadtwerke Leipzig Group ...

Report of the Supervisory Board
Management report of Stadtwerke Leipzig GmbH
Business climate and general conditions
Income situation, fi nancial position, net worth position
Risk report
Forecast report
Annual fi nancial statements
Notes to the fi nancial statements of Stadtwerke Leipzig GmbH
List of abbreviations
04
05
05
12
25
31
36
40
64
3.2.8 Overall risk
We are currently not aware of any risks that
could prejudice the continued existence of
Stadtwerke Leipzig GmbH.
4 Forecast report
4.1 Future economic conditions and industry outlook
Climate protection at the focus of political
debate: The future development of general
energy policies will significantly impact on the
further development of the energy industry. The
German government’s energy plan for 2010 aims
to lay the foundations for a clean, reliable and
affordable energy supply. In particular, it is not
yet clear what effects the proposed extensions of
the service lives of nuclear power stations will
have on the structure of power generation and
competition.
In addition to the political objective of continuing
resolutely expanding power generation using
renewable energies and maintaining the unlimited
priority of renewables as a power source,
the amendment of the Renewable Energies
Act (EEG) is to be brought forward by a year,
putting it high on Germany’s political agenda.
This will mean adjustments to the statutory feedin
tariffs.
Potential areas for emissions-reducing targets
are becoming visible both in the heating market
and in the design of energy-efficient buildings,
and these will have an impact in the years to
come.
Subdued price development on the commodity
markets: The current financial crisis and
associated recession fears are curbing the prices
of fuels, electricity and CO 2 and, at least in the
short term, easing production costs in many
sectors. In the long term, electricity prices can be
expected to start rising again due to the development
of the prices of fuels and CO 2 certificates
and the continuing shortage of generation
capacity.
Balancing the extra costs caused by the Renewable
Energies Act: With effect from 1 January
2010, the Federal Government enacted an
ordinance under the Renewable Energies Act
(EEG) to replace the previous physical delivery
of renewable electricity to power distributors
with a system that simply reallocates the extra
costs caused by the EEG via a redistribution
mechanism. The idea now is that renewable
energy purchased by the transmission system
operators (TSOs) will be sold on the exchange.
As a result, electricity suppliers no longer have
to buy any more EEG power bands as from
January 2010. Instead, the entire demand for
electricity has to be purchased in the market.
Instead of being obliged to purchase EEG
power bands at the average EEG price, the
electricity suppliers must pay a fixed EEG cost
allocation in cents per kWh. The allocation
for the following calendar year must be fixed
by the TSOs by the 31 October each year. The
Annual Financial Statements of Stadtwerke Leipzig GmbH | 31