Great pressure on costs due to new network fees

Individual services and processes to be reviewed

(PresseBox) ( Essen, )
Fees for use of the network of E.ON Gastransport (EGT) will drop appreciably as of 1 October 2009. Following examination and approval of its network fees by the Federal Network Agency, the company faces the major challenge of having to cut costs and at the same time maintain network operations at a high qualitative level.

"In view of the fee assessment received, we will have to make considerable efforts to maintain the economic viability of our network operations," is how Stephan Kamphues, CEO of EGT, summed up the situation. "Our aim is to carry on providing as far as possible the many services that our customers are used to. Yet the Federal Network Agency's decision will inevitably have consequences. Parts of our customer service and a whole number of internal processes will be reviewed."

In individual cases, there will be major changes in specific fees in either the upward or downward direction. This is due, firstly, to the allocation of fuel gas costs by the Federal Network Agency to entry and exit fees. This allocation deviates greatly from the application filed by EGT. Secondly, the system of exit fees has been altered significantly, as instructed by the Federal Network Agency.

The procedure for examining and approving the fees was very business-like. However, on some points the views of EGT and the Federal Network Agency deviated considerably. "They included the calculation of trade tax, current new values and interest on borrowed capital. These points will have to be settled in court," said Mr. Kamphues.

"We will only be able to fulfil the new demands on us as network operators if it is clear who will bear the additional cost. This applies not only to new network extensions and IT processes but also to changes in capacity and congestion management. We are unable to accept additional risks," Mr. Kamphues added.
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