Brussels Gives Go-Ahead for Austrian Power Solution

The partners of the Austrian power solution share the following objectives: joint power trading under the leadership of VERBUND and joint key account sales under the leadership of EnergieAllianz, as well as joint planning and control of power plants through the power trading company.

To the economic benefit of the participating companies and especially also the Austrian electricity consumers a vertically integrated supplier group will emerge that is holding an excellent market position in Austria and takes its place among the TOP 10 of electricity service providers in Europe.

"Against the background of the liberalization of the European electricity market and the forthcoming enlargement of the E.U. in 2004 we can make an important contribution to an efficient liberalized electricity market in Central Europe by combining the electricity businesses of VERBUND and EnergieAllianz economically ", agree VERBUND and Energie Allianz.

The "Austrian power solution" will have a lasting positive effect on the current structure of the domestic electricity industry and meet the challenges of the liberalized European energy market.

To obtain the approval of the Brussels competition authorities for the Austrian power solution the participating companies committed themselves to business policies promoting competition in the domestic market. “By way of intensive negotiations between the partners we have achieved an Austrian power solution that makes good economic sense. In this spirit we will also endeavour to fulfil our commitments vis-à-vis the E.U.”, say the partner companies.

The joint-venture companies (trading company APT and key account company E&S new) are to start their business operations at the beginning of the year 2004.